Energen (EGN) 8-K Increased Production, Prices Drive 43% Rise in Energen’s 3rd Quarter EPS

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending September 30, 2007 and 2006

	3rd Quarter
(in thousands, except per share data)	2007			2006			Change
Operating Revenues
Oil and gas operations	$	208,423		$	171,516		$	36,907
Natural gas distribution		67,599			71,195			(3,596	)
Total operating revenues		276,022			242,711			33,311
Operating Expenses
Cost of gas		31,088			32,311			(1,223	)
Operations & maintenance		84,857			78,836			6,021
Depreciation, depletion and amortization		41,457			35,676			5,781
Taxes, other than income taxes		18,988			19,338			(350	)
Accretion expense		1,000			881			119
Total operating expenses		177,390			167,042			10,348
Operating Income		98,632			75,669			22,963
Other Income (Expense)
Interest expense		(11,418	)		(12,267	)		849
Other income		885			448			437
Other expense		(244	)		(207	)		(37	)
Total other expense		(10,777	)		(12,026	)		1,249
Income from Continuing Operations Before Income Taxes		87,855			63,643			24,212
Income tax expense		29,841			22,346			7,495
Income from Continuing Operations		58,014			41,297			16,717
Discontinued Operations, Net of Taxes
Income from discontinued operations		2			2			—
Gain on disposal of discontinued operations		18			53			(35	)
Income from Discontinued Operations		20			55			(35	)
Net Income	$	58,034		$	41,352		$	16,682
Diluted Earnings Per Average Common Share
Continuing operations	$	0.80		$	0.56		$	0.24
Discontinued operations		—			—			—
Net Income	$	0.80		$	0.56		$	0.24
Basic Earnings Per Average Common Share
Continuing operations	$	0.81		$	0.57		$	0.24
Discontinued operations		—			—			—
Net Income	$	0.81		$	0.57		$	0.24
Diluted Avg. Common Shares Outstanding		72,275			73,191			(916	)
Basic Avg. Common Shares Outstanding		71,623			72,228			(605	)
Dividends Per Common Share	$	0.115		$	0.11		$	0.005

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 9 months ending September 30, 2007 and 2006

	Year-to-date
(in thousands, except per share data)	2007			2006			Change
Operating Revenues
Oil and gas operations	$	605,812		$	510,213		$	95,599
Natural gas distribution		477,793			503,014			(25,221	)
Total operating revenues		1,083,605			1,013,227			70,378
Operating Expenses
Cost of gas		252,584			284,192			(31,608	)
Operations & maintenance		251,011			231,720			19,291
Depreciation, depletion and amortization		118,184			104,472			13,712
Taxes, other than income taxes		71,170			73,450			(2,280	)
Accretion expense		2,921			2,691			230
Total operating expenses		695,870			696,525			(655	)
Operating Income		387,735			316,702			71,033
Other Income (Expense)
Interest expense		(35,655	)		(37,810	)		2,155
Other income		2,396			1,410			986
Other expense		(626	)		(708	)		82
Total other expense		(33,885	)		(37,108	)		3,223
Income from Continuing Operations Before Income Taxes		353,850			279,594			74,256
Income tax expense		124,052			101,194			22,858
Income from Continuing Operations		229,798			178,400			51,398
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		3			(6	)		9
Gain on disposal of discontinued operations		18			53			(35	)
Income from Discontinued Operations		21			47			(26	)
Net Income	$	229,819		$	178,447		$	51,372
Diluted Earnings Per Average Common Share
Continuing operations	$	3.18		$	2.42		$	0.76
Discontinued operations		—			—			—
Net Income	$	3.18		$	2.42		$	0.76
Basic Earnings Per Average Common Share
Continuing operations	$	3.21		$	2.45		$	0.76
Discontinued operations		—			—			—
Net Income	$	3.21		$	2.45		$	0.76
Diluted Avg. Common Shares Outstanding		72,173			73,671			(1,498	)
Basic Avg. Common Shares Outstanding		71,566			72,839			(1,273	)
Dividends Per Common Share	$	0.345		$	0.33		$	0.015

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 12 months ending September 30, 2007 and 2006

	Trailing 12 Months
(in thousands, except per share data)	2007			2006			Change
Operating Revenues
Oil and gas operations	$	826,141		$	674,340		$	151,801
Natural gas distribution		638,223			673,968			(35,745	)
Total operating revenues		1,464,364			1,348,308			116,056
Operating Expenses
Cost of gas		341,489			385,149			(43,660	)
Operations & maintenance		321,448			305,320			16,128
Depreciation, depletion and amortization		155,798			137,422			18,376
Taxes, other than income taxes		93,447			101,566			(8,119	)
Accretion expense		3,849			3,373			476
Total operating expenses		916,031			932,830			(16,799	)
Operating Income		548,333			415,478			132,855
Other Income (Expense)
Interest expense		(46,497	)		(49,816	)		3,319
Other income		1,859			1,879			(20	)
Other expense		(886	)		(780	)		(106	)
Total other expense		(45,524	)		(48,717	)		3,193
Income from Continuing Operations Before Income Taxes		502,809			366,761			136,048
Income tax expense		177,888			131,066			46,822
Income from Continuing Operations		324,921			235,695			89,226
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		3			(10	)		13
Gain on disposal of discontinued operations		18			65			(47	)
Income from Discontinued Operations		21			55			(34	)
Net Income	$	324,942		$	235,750		$	89,192
Diluted Earnings Per Average Common Share
Continuing operations	$	4.50		$	3.20		$	1.30
Discontinued operations		—			—			—
Net Income	$	4.50		$	3.20		$	1.30
Basic Earnings Per Average Common Share
Continuing operations	$	4.54		$	3.23		$	1.31
Discontinued operations		—			—			—
Net Income	$	4.54		$	3.23		$	1.31
Diluted Avg. Common Shares Outstanding		72,170			73,744			(1,574	)
Basic Avg. Common Shares Outstanding		71,598			72,934			(1,336	)
Dividends Per Common Share	$	0.455		$	0.43		$	0.025

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2007 and 2006

	3rd Quarter
(in thousands, except sales price data)	2007			2006			Change
Oil and Gas Operations
Operating revenues
Natural gas	$	123,499		$	108,795		$	14,704
Oil		66,689			46,529			20,160
Natural gas liquids		17,486			14,668			2,818
Other		749			1,524			(775	)
Total	$	208,423		$	171,516		$	36,907
Production volumes from continuing operations
Natural gas (MMcf)		16,495			16,004			491
Oil (MBbl)		1,025			905			120
Natural gas liquids (MMgal)		19.6			20.4			(0.8	)
Production volumes from continuing ops. (MMcfe)		25,445			24,340			1,105
Total production volumes (MMcfe)		25,445			24,340			1,105
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.49		$	6.80		$	0.69
Oil (barrel)	$	65.06		$	51.43		$	13.63
Natural gas liquids (gallon)	$	0.89		$	0.72		$	0.17
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	38,706		$	35,305		$	3,401
Production taxes		12,968			12,602			366
Total	$	51,674		$	47,907		$	3,767
Depreciation, depletion and amortization	$	29,610		$	24,475		$	5,135
Capital expenditures	$	94,274		$	61,049		$	33,225
Exploration expenditures	$	1,396		$	1,986		$	(590	)
Operating income	$	112,899		$	85,239		$	27,660
Natural Gas Distribution
Operating revenues
Residential	$	35,685		$	36,635		$	(950	)
Commercial and industrial		21,384			22,300			(916	)
Transportation		10,575			10,115			460
Other		(45	)		2,145			(2,190	)
Total	$	67,599		$	71,195		$	(3,596	)
Gas delivery volumes (MMcf)
Residential		1,537			1,601			(64	)
Commercial and industrial		1,520			1,534			(14	)
Transportation		12,779			12,999			(220	)
Total		15,836			16,134			(298	)
Other data
Depreciation and amortization	$	11,847		$	11,201		$	646
Capital expenditures	$	14,023		$	18,512		$	(4,489	)
Operating (loss)	$	(13,673	)	$	(8,921	)	$	(4,752	)

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2007 and 2006

	Year-to-date
(in thousands, except sales price data)	2007		2006		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	371,436	$	331,073	$	40,363
Oil		181,388		136,146		45,242
Natural gas liquids		49,076		38,152		10,924
Other		3,912		4,842		(930	)
Total	$	605,812	$	510,213	$	95,599
Production volumes from continuing operations
Natural gas (MMcf)		47,732		47,056		676
Oil (MBbl)		2,898		2,736		162
Natural gas liquids (MMgal)		57.6		57.1		0.5
Production volumes from continuing ops. (MMcfe)		73,350		71,625		1,725
Total production volumes (MMcfe)		73,349		71,624		1,725
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.78	$	7.04	$	0.74
Oil (barrel)	$	62.58	$	49.75	$	12.83
Natural gas liquids (gallon)	$	0.85	$	0.67	$	0.18
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	113,236	$	100,789	$	12,447
Production taxes		38,568		38,454		114
Total	$	151,804	$	139,243	$	12,561
Depreciation, depletion and amortization	$	83,083	$	71,592	$	11,491
Capital expenditures	$	254,795	$	156,606	$	98,189
Exploration expenditures	$	1,671	$	3,512	$	(1,841	)
Operating income	$	329,672	$	260,916	$	68,756
Natural Gas Distribution
Operating revenues
Residential	$	306,312	$	322,635	$	(16,323	)
Commercial and industrial		130,279		139,713		(9,434	)
Transportation		36,509		33,111		3,398
Other		4,693		7,555		(2,862	)
Total	$	477,793	$	503,014	$	(25,221	)
Gas delivery volumes (MMcf)
Residential		16,303		16,581		(278	)
Commercial and industrial		8,373		8,559		(186	)
Transportation		38,396		37,947		449
Total		63,072		63,087		(15	)
Other data
Depreciation and amortization	$	35,101	$	32,880	$	2,221
Capital expenditures	$	45,596	$	58,947	$	(13,351	)
Operating income	$	59,734	$	57,517	$	2,217

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending September 30, 2007 and 2006

	Trailing 12 Months
(in thousands, except sales price data)	2007		2006		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	477,923	$	449,621	$	28,302
Oil		226,701		169,114		57,587
Natural gas liquids		61,182		48,088		13,094
Other		60,335		7,517		52,818
Total	$	826,141	$	674,340	$	151,801
Production volumes from continuing operations
Natural gas (MMcf)		63,500		62,223		1,277
Oil (MBbl)		3,807		3,573		234
Natural gas liquids (MMgal)		76.9		75.1		1.8
Production volumes from continuing ops. (MMcfe)		97,321		94,398		2,923
Total production volumes (MMcfe)		97,320		94,420		2,900
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.53	$	7.22	$	0.31
Oil (barrel)	$	59.55	$	47.34	$	12.21
Natural gas liquids (gallon)	$	0.80	$	0.64	$	0.16
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	147,300	$	129,519	$	17,781
Production taxes		49,623		55,175		(5,552	)
Total	$	196,923	$	184,694	$	12,229
Depreciation, depletion and amortization	$	109,333	$	93,915	$	15,418
Capital expenditures	$	357,867	$	377,600	$	(19,733	)
Exploration expenditures	$	2,340	$	3,620	$	(1,280	)
Operating income	$	473,905	$	348,079	$	125,826
Natural Gas Distribution
Operating revenues
Residential	$	409,743	$	430,660	$	(20,917	)
Commercial and industrial		172,465		190,058		(17,593	)
Transportation		49,348		43,750		5,598
Other		6,667		9,500		(2,833	)
Total	$	638,223	$	673,968	$	(35,745	)
Gas delivery volumes (MMcf)
Residential		22,032		22,190		(158	)
Commercial and industrial		11,040		11,560		(520	)
Transportation		51,209		50,163		1,046
Total		84,281		83,913		368
Other data
Depreciation and amortization	$	46,465	$	43,507	$	2,958
Capital expenditures	$	62,806	$	78,661	$	(15,855	)
Operating income	$	76,491	$	69,430	$	7,061

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