Energen (EGN) 8-K Results of Operations and Financial Condition

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending March 31, 2008 and 2007

	1st Quarter
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	224,895		$	194,033		$	30,862
Natural gas distribution		296,751			298,628			(1,877	)
Total operating revenues		521,646			492,661			28,985
Operating Expenses
Cost of gas		161,389			168,138			(6,749	)
Operations & maintenance		86,552			82,043			4,509
Depreciation, depletion and amortization		42,416			38,020			4,396
Taxes, other than income taxes		34,905			30,312			4593
Accretion expense		1,045			950			95
Total operating expenses		326,307			319,463			6,844
Operating Income		195,339			173,198			22,141
Other Income (Expense)
Interest expense		(11,122	)		(12,221	)		1,099
Other income		244			561			(317	)
Other expense		(596	)		(195	)		(401	)
Total other expense		(11,474	)		(11,855	)		381
Income from Continuing Operations Before Income Taxes		183,865			161,343			22,522
Income tax expense		67,177			57,462			9,715
Income from Continuing Operations		116,688			103,881			12,807
Discontinued Operations, Net of Taxes
Income from discontinued operations		—			1			(1	)
Gain on disposal of discontinued operations		—			—			—
Income from Discontinued Operations		—			1			(1	)
Net Income	$	116,688		$	103,882		$	12,806
Diluted Earnings Per Average Common Share
Continuing operations	$	1.62		$	1.44		$	0.18
Discontinued operations		—			—			—
Net Income	$	1.62		$	1.44		$	0.18
Basic Earnings Per Average Common Share
Continuing operations	$	1.63		$	1.45		$	0.18
Discontinued operations		—			—			—
Net Income	$	1.63		$	1.45		$	0.18
Diluted Avg. Common Shares Outstanding		72,125			72,124			1
Basic Avg. Common Shares Outstanding		71,637			71,482			155
Dividends Per Common Share	$	0.12		$	0.115		$	0.005

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)2

For the 12 months ending March 31, 2008 and 2007

	Trailing 12 Months
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	856,454		$	755,056		$	101,398
Natural gas distribution		607,591			643,449			(35,858	)
Total operating revenues		1,464,045			1,398,505			65,540
Operating Expenses
Cost of gas		311,680			347,185			(35,505	)
Operations & maintenance		337,952			309,717			28,235
Depreciation, depletion and amortization		165,773			145,809			19,964
Taxes, other than income taxes		100,424			93,360			7,064
Accretion expense		4,043			3,671			372
Total operating expenses		919,872			899,742			20,130
Operating Income		544,173			498,763			45,410
Other Income (Expense)
Interest expense		(46,001	)		(47,696	)		1,695
Other income		2,351			865			1,486
Other expense		(1,360	)		(1,072	)		(288	)
Total other expense		(45,010	)		(47,903	)		2,893
Income from Continuing Operations Before Income Taxes		499,163			450,860			48,303
Income tax expense		177,144			160,957			16,187
Income from Continuing Operations		322,019			289,903			32,116
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	$	322,039		$	289,958		$	32,081
Diluted Earnings Per Average Common Share
Continuing operations	$	4.47		$	3.99		$	0.48
Discontinued operations		—			—			—
Net Income	$	4.47		$	3.99		$	0.48
Basic Earnings Per Average Common Share
Continuing operations	$	4.49		$	4.02		$	0.47
Discontinued operations		—			—			—
Net Income	$	4.49		$	4.02		$	0.47
Diluted Avg. Common Shares Outstanding		72,088			72,674			(586	)
Basic Avg. Common Shares Outstanding		71,650			72,138			(488	)
Dividends Per Common Share	$	0.465		$	0.445		$	0.02

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2008 and 2007

	1st Quarter
(in thousands, except sales price data)	2008		2007		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	130,954	$	123,225	$	7,729
Oil		64,099		54,084		10,015
Natural gas liquids		17,446		15,042		2,404
Other		12,396		1,682		10,714
Total	$	224,895	$	194,033	$	30,862
Production volumes from continuing operations
Natural gas (MMcf)		16,427		15,547		880
Oil (MBbl)		944		927		17
Natural gas liquids (MMgal)		16.7		18.9		(2.2	)
Production volumes from continuing ops. (MMcfe)		24,483		23,806		677
Total production volumes (MMcfe)		24,483		23,805		678
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.97	$	7.93	$	0.04
Oil (barrel)	$	67.90	$	58.36	$	9.54
Natural gas liquids (gallon)	$	1.04	$	0.80	$	0.24
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	43,135	$	35,409	$	7,726
Production taxes		16,576		12,011		4,565
Total	$	59,711	$	47,420	$	12,291
Depreciation, depletion and amortization	$	30,396	$	26,473	$	3,923
General and administrative expense	$	11,899	$	13,792	$	(1,893	)
Capital expenditures	$	74,397	$	53,395	$	21,002
Exploration expenditures	$	349	$	97	$	252
Operating income	$	121,495	$	105,301	$	16,194
Natural Gas Distribution
Operating revenues
Residential	$	199,575	$	203,798	$	(4,223	)
Commercial and industrial		77,505		77,722		(217	)
Transportation		15,503		14,567		936
Other		4,168		2,541		1,627
Total	$	296,751	$	298,628	$	(1,877	)
Gas delivery volumes (MMcf)
Residential		11,531		11,579		(48	)
Commercial and industrial		4,976		4,872		104
Transportation		14,297		13,420		877
Total		30,804		29,871		933
Other data
Depreciation and amortization	$	12,020	$	11,547	$	473
Capital expenditures	$	13,070	$	14,967	$	(1,897	)
Operating income	$	74,488	$	68,437	$	6,051

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending March 31, 2008 and 2007

	Trailing 12 Months
(in thousands, except sales price data)	2008		2007		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	507,135	$	444,701	$	62,434
Oil		261,512		193,401		68,111
Natural gas liquids		71,027		55,623		15,404
Other		16,780		61,331		(44,551	)
Total	$	856,454	$	755,056	$	101,398
Production volumes from continuing operations
Natural gas (MMcf)		65,180		63,044		2,136
Oil (MBbl)		3,897		3,654		243
Natural gas liquids (MMgal)		75.1		78.6		(3.5	)
Production volumes from continuing ops. (MMcfe)		99,283		96,193		3,090
Total production volumes (MMcfe)		99,283		96,191		3,092
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.78	$	7.05	$	0.73
Oil (barrel)	$	67.11	$	52.93	$	14.18
Natural gas liquids (gallon)	$	0.95	$	0.71	$	0.24
Other data
Lease operating expense (LOE)
LOE and other	$	156,006	$	136,400	$	19,606
Production taxes		58,363		48,427		9,936
Total	$	214,369	$	184,827	$	29,542
Depreciation, depletion and amortization	$	118,164	$	100,764	$	17,400
General and administrative expense	$	48,971	$	39,714	$	9,257
Capital expenditures	$	400,481	$	268,168	$	132,313
Exploration expenditures	$	3,146	$	4,169	$	(1,023	)
Operating income	$	467,761	$	421,911	$	45,850
Natural Gas Distribution
Operating revenues
Residential	$	384,068	$	411,358	$	(27,290	)
Commercial and industrial		164,686		175,065		(10,379	)
Transportation		50,191		47,782		2,409
Other		8,646		9,244		(598	)
Total	$	607,591	$	643,449	$	(35,858	)
Gas delivery volumes (MMcf)
Residential		20,617		22,204		(1,587	)
Commercial and industrial		10,697		11,157		(460	)
Transportation		52,324		50,821		1,503
Total		83,638		84,182		(544	)
Other data
Depreciation and amortization	$	47,609	$	45,045	$	2,564
Capital expenditures	$	56,965	$	72,279	$	(15,314	)
Operating income	$	78,793	$	78,984	$	(191	)

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