Energen (EGN) 8-K Oil & Gas Business Drives Energen’s Record Earnings in 2006

EXHIBIT 99.2:

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending December 31, 2006 and 2005

	4th Quarter
(in thousands, except per share data)	2006			2005			Change
Operating Revenues
Oil and gas operations	$	220,329		$	164,127		$	56,202
Natural gas distribution		160,430			170,954			(10,524	)
Total operating revenues		380,759			335,081			45,678
Operating Expenses
Cost of gas		88,905			100,957			(12,052	)
Operations & maintenance		70,437			73,600			(3,163	)
DD&A		37,614			32,950			4,664
Taxes, other than income taxes		22,277			28,116			(5,839	)
Accretion expense		928			682			246
Total operating expenses		220,161			236,305			(16,144	)
Operating Income		160,598			98,776			61,822
Other Income (Expense)
Interest expense		(10,842	)		(12,006	)		1,164
Other income		187			469			(282	)
Other expense		(984	)		(72	)		(912	)
Total other expense		(11,639	)		(11,609	)		(30	)
Income From Continuing Operations Before Income Taxes		148,959			87,167			61,792
Income tax expense		53,836			29,872			23,964
Income from Continuing Operations		95,123			57,295			37,828
Discontinued Operations, Net of Taxes
Loss from discontinued operations		—			(4	)		4
Gain on disposal of discontinued operations		—			12			(12	)
Income from Discontinued Operations		—			8			(8	)
Net Income	$	95,123		$	57,303		$	37,820
Diluted Earnings Per Average Common Share
Continuing operations	$	1.31		$	0.77		$	0.54
Discontinued operations		—			0.01			(0.01	)
Net Income	$	1.31		$	0.78		$	0.53
Basic Earnings Per Average Common Share
Continuing operations	$	1.33		$	0.78		$	0.55
Discontinued operations		—			—			—
Net Income	$	1.33		$	0.78		$	0.55
Diluted Avg. Common Shares Outstanding		72,540			73,938			(1,398	)
Basic Avg. Common Shares Outstanding		71,606			73,166			(1,560	)
Dividends Per Share	$	0.11		$	0.10		$	0.01

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 12 months ending December 31, 2006 and 2005

	Year-to-date
(in thousands, except per share data)	2006			2005			Change
Operating Revenues
Oil and gas operations	$	730,542		$	527,695		$	202,847
Natural gas distribution		663,444			600,700			62,744
Total operating revenues		1,393,986			1,128,395			265,591
Operating Expenses
Cost of gas		373,097			315,622			57,475
Operations & maintenance		302,157			268,727			33,430
DD&A		142,086			131,691			10,395
Taxes, other than income taxes		95,727			93,983			1,744
Accretion expense		3,619			2,647			972
Total operating expenses		916,686			812,670			104,016
Operating Income		477,300			315,725			161,575
Other Income (Expense)
Interest expense		(48,652	)		(46,800	)		(1,852	)
Other income		951			2,163			(1,212	)
Other expense		(1,046	)		(710	)		(336	)
Total other expense		(48,747	)		(45,347	)		(3,400	)
Income From Continuing Operations Before Income Taxes		428,553			270,378			158,175
Income tax expense		155,030			97,491			57,539
Income from Continuing Operations		273,523			172,887			100,636
Discontinued Operations, Net of Taxes
Loss from discontinued operations		(6	)		(7	)		1
Gain on disposal of discontinued operations		53			132			(79	)
Income from Discontinued Operations		47			125			(78	)
Net Income	$	273,570		$	173,012		$	100,558
Diluted Earnings Per Average Common Share
Continuing operations	$	3.73		$	2.35		$	1.38
Discontinued operations		—			—			—
Net Income	$	3.73		$	2.35		$	1.38
Basic Earnings Per Average Common Share
Continuing operations	$	3.77		$	2.37		$	1.40
Discontinued operations		—			—			—
Net Income	$	3.77		$	2.37		$	1.40
Diluted Avg. Common Shares Outstanding		73,278			73,715			(437	)
Basic Avg. Common Shares Outstanding		72,505			73,052			(547	)
Dividends Per Share	$	0.44		$	0.40		$	0.04

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2006 and 2005

	4th Quarter
(in thousands, except sales price data)	2006		2005		Change
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	106,487	$	118,548	$	(12,061	)
Oil		45,313		32,968		12,345
Natural gas liquids		12,106		9,936		2,170
Other		56,423		2,675		53,748
Total	$	220,329	$	164,127	$	56,202
Production volumes from continuing operations
Natural gas (MMcf)		15,768		15,177		591
Oil (MBbl)		908		836		72
Natural gas liquids (MMgal)		19.3		18.1		1.2
Production volumes from continuing ops. (MMcfe)		23,971		22,773		1,198
Total production volumes (MMcfe)		23,971		22,796		1,175
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.75	$	7.81	$	(1.06	)
Oil (barrel)	$	49.89	$	39.43	$	10.46
Natural gas liquids (gallon)	$	0.63	$	0.55	$	0.08
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	34,064	$	28,730	$	5,334
Production taxes		11,055		16,721		(5,666	)
Total	$	45,119	$	45,451	$	(332	)
Depreciation, depletion and amortization	$	26,250	$	22,323	$	3,927
Capital expenditures	$	107,071	$	220,741	$	(113,670	)
Exploration expense	$	669	$	108	$	561
Operating income	$	144,233	$	87,163	$	57,070
Natural Gas Distribution
Operating revenues
Residential	$	103,431	$	108,025	$	(4,594	)
Commercial and industrial		42,187		50,345		(8,158	)
Transportation		12,839		10,639		2,200
Other		1,973		1,945		28
Total	$	160,430	$	170,954	$	(10,524	)
Gas delivery volumes (MMcf)
Residential		5,729		5,608		121
Commercial and industrial		2,667		3,001		(334	)
Transportation		12,813		12,216		597
Total		21,209		20,825		384
Other data
Depreciation and amortization	$	11,364	$	10,627	$	737
Capital expenditures	$	17,210	$	19,714	$	(2,504	)
Operating income	$	16,757	$	11,913	$	4,844

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2006 and 2005

	Year-to-date
(in thousands, except sales price data)	2006		2005		Change
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	437,560	$	365,636	$	71,924
Oil		181,459		116,651		64,808
Natural gas liquids		50,258		38,455		11,803
Other		61,265		6,953		54,312
Total	$	730,542	$	527,695	$	202,847
Production volumes from continuing operations
Natural gas (MMcf)		62,824		61,048		1,776
Oil (MBbl)		3,645		3,316		329
Natural gas liquids (MMgal)		76.3		70.5		5.8
Production volumes from continuing ops. (MMcfe)		95,596		91,020		4,576
Total production volumes (MMcfe)		95,595		91,099		4,496
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.96	$	5.99	$	0.97
Oil (barrel)	$	49.79	$	35.18	$	14.61
Natural gas liquids (gallon)	$	0.66	$	0.55	$	0.11
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	134,853	$	104,241	$	30,612
Production taxes		49,509		52,271		(2,762	)
Total	$	184,362	$	156,512	$	27,850
Depreciation, depletion and amortization	$	97,842	$	89,340	$	8,502
Capital expenditures	$	263,677	$	353,712	$	(90,035	)
Exploration expense	$	4,181	$	676	$	3,505
Operating income	$	405,149	$	243,877	$	161,272
Natural Gas Distribution
Operating revenues
Residential	$	426,066	$	384,753	$	41,313
Commercial and industrial		181,900		166,957		14,943
Transportation		45,950		43,291		2,659
Other		9,528		5,699		3,829
Total	$	663,444	$	600,700	$	62,744
Gas delivery volumes (MMcf)
Residential		22,310		24,601		(2,291	)
Commercial and industrial		11,226		12,498		(1,272	)
Transportation		50,760		49,850		910
Total		84,296		86,949		(2,653	)
Other data
Depreciation and amortization	$	44,244	$	42,351	$	1,893
Capital expenditures	$	76,157	$	73,276	$	2,881
Operating income	$	74,274	$	72,922	$	1,352