Energen (EGN) 8-K Oil & Gas Operations Continue to Drive Energen’s Earnings Growth

EXHIBIT 99.2:

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending March 31, 2007 and 2006

	1st Quarter						Change
(in thousands, except per share data)	2007			2006
Operating Revenues
Oil and gas operations	$	194,033		$	169,519		$	24,514
Natural gas distribution		298,628			318,623			(19,995	)
Total operating revenues		492,661			488,142			4,519
Operating Expenses
Cost of gas		168,138			194,050			(25,912	)
Operations & maintenance		82,043			74,483			7,560
Depreciation, depletion and amortization		38,020			34,297			3,723
Taxes, other than income taxes		30,312			32,679			(2,367	)
Accretion expense		950			898			52
Total operating expenses		319,463			336,407			(16,944	)
Operating Income		173,198			151,735			21,463
Other Income (Expense)
Interest expense		(12,221	)		(13,177	)		956
Other income		561			707			(146	)
Other expense		(195	)		(229	)		34
Total other expense		(11,855	)		(12,699	)		844
Income from Continuing Operations Before Income Taxes		161,343			139,036			22,307
Income tax expense		57,462			51,535			5,927
Income from Continuing Operations		103,881			87,501			16,380
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		1			(7	)		8
Gain on disposal of discontinued operations		—			—			—
Income (Loss) from Discontinued Operations		1			(7	)		8
Net Income	$	103,882		$	87,494		$	16,388
Diluted Earnings Per Average Common Share
Continuing operations	$	1.44		$	1.18		$	0.26
Discontinued operations		—			—			—
Net Income	$	1.44		$	1.18		$	0.26
Basic Earnings Per Average Common Share
Continuing operations	$	1.45		$	1.19		$	0.26
Discontinued operations		—			—			—
Net Income	$	1.45		$	1.19		$	0.26
Diluted Avg. Common Shares Outstanding		72,124			74,094			(1,970	)
Basic Avg. Common Shares Outstanding		71,482			73,268			(1,786	)
Dividends Per Common Share	$	0.115		$	0.11		$	0.005

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)2

For the 12 months ending March 31, 2007 and 2006

	Trailing 12 Months						Change
(in thousands, except per share data)	2007			2006
Operating Revenues
Oil and gas operations	$	755,056		$	594,333		$	160,723
Natural gas distribution		643,449			661,195			(17,746	)
Total operating revenues		1,398,505			1,255,528			142,977
Operating Expenses
Cost of gas		347,185			372,817			(25,632	)
Operations & maintenance		309,717			282,805			26,912
Depreciation, depletion and amortization		145,809			134,563			11,246
Taxes, other than income taxes		93,360			100,112			(6,752	)
Accretion expense		3,671			2,902			769
Total operating expenses		899,742			893,199			6,543
Operating Income		498,763			362,329			136,434
Other Income (Expense)
Interest expense		(47,696	)		(48,307	)		611
Other income		865			2,517			(1,652	)
Other expense		(1,072	)		(671	)		(401	)
Total other expense		(47,903	)		(46,461	)		(1,442	)
Income from Continuing Operations Before Income Taxes		450,860			315,868			134,992
Income tax expense		160,957			114,423			46,534
Income from Continuing Operations		289,903			201,445			88,458
Discontinued Operations, Net of Taxes
Income from discontinued operations		2			6			(4	)
Gain on disposal of discontinued operations		53			9			44
Income from Discontinued Operations		55			15			40
Net Income	$	289,958		$	201,460		$	88,498
Diluted Earnings Per Average Common Share
Continuing operations	$	3.99		$	2.73		$	1.26
Discontinued operations		—			—			—
Net Income	$	3.99		$	2.73		$	1.26
Basic Earnings Per Average Common Share
Continuing operations	$	4.02		$	2.75		$	1.27
Discontinued operations		—			—			—
Net Income	$	4.02		$	2.75		$	1.27
Diluted Avg. Common Shares Outstanding		72,674			73,904			(1,230	)
Basic Avg. Common Shares Outstanding		72,138			73,160			(1,022	)
Dividends Per Common Share	$	0.445		$	0.41		$	0.035

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2007 and 2006

	1st Quarter
(in thousands, except sales price data)	2007		2006		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	123,225	$	116,084	$	7,141
Oil		54,084		42,142		11,942
Natural gas liquids		15,042		9,677		5,365
Other		1,682		1,616		66
Total	$	194,033	$	169,519	$	24,514
Production volumes from continuing operations
Natural gas (MMcf)		15,547		15,327		220
Oil (MBbl)		927		917		10
Natural gas liquids (MMgal)		18.9		16.6		2.3
Production volumes from continuing ops. (MMcfe)		23,806		23,209		597
Total production volumes (MMcfe)		23,805		23,209		596
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.93	$	7.57	$	0.36
Oil (barrel)	$	58.36	$	45.94	$	12.42
Natural gas liquids (gallon)	$	0.80	$	0.58	$	0.22
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	35,409	$	33,862	$	1,547
Production taxes		12,011		13,093		(1,082	)
Total	$	47,420	$	46,955	$	465
Depreciation, depletion and amortization	$	26,473	$	23,551	$	2,922
Capital expenditures	$	53,395	$	44,905	$	8,490
Exploration expenditures	$	97	$	109	$	(12	)
Operating income	$	105,301	$	88,539	$	16,762
Natural Gas Distribution
Operating revenues
Residential	$	203,798	$	218,506	$	(14,708	)
Commercial and industrial		77,722		84,557		(6,835	)
Transportation		14,567		12,735		1,832
Other		2,541		2,825		(284	)
Total	$	298,628	$	318,623	$	(19,995	)
Gas delivery volumes (MMcf)
Residential		11,579		11,685		(106	)
Commercial and industrial		4,872		4,941		(69	)
Transportation		13,420		13,359		61
Total		29,871		29,985		(114	)
Other data
Depreciation and amortization	$	11,547	$	10,746	$	801
Capital expenditures	$	14,967	$	18,845	$	(3,878	)
Operating income	$	68,437	$	63,727	$	4,710

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending March 31, 2007 and 2006

	Trailing 12 Months
(in thousands, except sales price data)	2007		2006		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	444,701	$	414,119	$	30,582
Oil		193,401		132,488		60,913
Natural gas liquids		55,623		39,987		15,636
Other		61,331		7,739		53,592
Total	$	755,056	$	594,333	$	160,723
Production volumes from continuing operations
Natural gas (MMcf)		63,044		61,693		1,351
Oil (MBbl)		3,654		3,414		240
Natural gas liquids (MMgal)		78.6		71.4		7.2
Production volumes from continuing ops. (MMcfe)		96,193		92,373		3,820
Total production volumes (MMcfe)		96,191		92,402		3,789
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.05	$	6.71	$	0.34
Oil (barrel)	$	52.93	$	38.80	$	14.13
Natural gas liquids (gallon)	$	0.71	$	0.56	$	0.15
Other data
Lease operating expense (LOE)
LOE and other	$	136,400	$	115,354	$	21,046
Production taxes		48,427		55,160		(6,733	)
Total	$	184,827	$	170,514	$	14,313
Depreciation, depletion and amortization	$	100,764	$	91,879	$	8,885
Capital expenditures	$	268,168	$	358,132	$	(89,964	)
Exploration expenditures	$	4,169	$	461	$	3,708
Operating income	$	421,911	$	293,438	$	128,473
Natural Gas Distribution
Operating revenues
Residential	$	411,358	$	425,105	$	(13,747	)
Commercial and industrial		175,065		186,214		(11,149	)
Transportation		47,782		42,996		4,786
Other		9,244		6,880		2,364
Total	$	643,449	$	661,195	$	(17,746	)
Gas delivery volumes (MMcf)
Residential		22,204		23,274		(1,070	)
Commercial and industrial		11,157		12,144		(987	)
Transportation		50,821		49,468		1,353
Total		84,182		84,886		(704	)
Other data
Depreciation and amortization	$	45,045	$	42,684	$	2,361
Capital expenditures	$	72,279	$	77,319	$	(5,040	)
Operating income	$	78,984	$	70,245	$	8,739

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