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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending December 31, 2009 and 2008

	4th Quarter
(in thousands, except per share data)	2009			2008			Change
Operating Revenues
Oil and gas operations	$	216,388		$	209,704		$	6,684
Natural gas distribution		146,417			166,089			(19,672	)
Total operating revenues		362,805			375,793			(12,988	)
Operating Expenses
Cost of gas		73,771			98,615			(24,844	)
Operations and maintenance		105,775			86,613			19,162
Depreciation, depletion and amortization		62,776			54,772			8,004
Taxes, other than income taxes		21,230			15,566			5,664
Accretion expense		1,330			1,109			221
Total operating expenses		264,882			256,675			8,207
Operating Income		97,923			119,118			(21,195	)
Other Income (Expense)
Interest expense		(9,793	)		(10,282	)		489
Other income		914			430			484
Other expense		(101	)		(3,957	)		3,856
Total other expense		(8,980	)		(13,809	)		4,829
Income Before Income Taxes		88,943			105,309			(16,366	)
Income tax expense		30,322			40,024			(9,702	)
Net Income	$	58,621		$	65,285		$	(6,664	)
Diluted Earnings Per Average Common Share	$	0.81		$	0.91		$	(0.10	)
Basic Earnings Per Average Common Share	$	0.82		$	0.91		$	(0.09	)
Diluted Avg. Common Shares Outstanding		72,057			71,909			148
Basic Avg. Common Shares Outstanding		71,701			71,592			109
Dividends Per Common Share	$	0.125		$	0.12		$	0.005

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 12 months ending December 31, 2009 and 2008

	Year-to-date
(in thousands, except per share data)	2009			2008			Change
Operating Revenues
Oil and gas operations	$	822,546		$	914,132		$	(91,586	)
Natural gas distribution		617,874			654,778			(36,904	)
Total operating revenues		1,440,420			1,568,910			(128,490	)
Operating Expenses
Cost of gas		306,054			351,774			(45,720	)
Operations and maintenance		380,625			354,760			25,865
Depreciation, depletion and amortization		235,084			188,413			46,671
Taxes, other than income taxes		78,329			107,605			(29,276	)
Accretion expense		4,935			4,290			645
Total operating expenses		1,005,027			1,006,842			(1,815	)
Operating Income		435,393			562,068			(126,675	)
Other Income (Expense)
Interest expense		(39,379	)		(41,981	)		2,602
Other income		4,972			1,885			3,087
Other expense		(690	)		(7,014	)		6,324
Total other expense		(35,097	)		(47,110	)		12,013
Income Before Income Taxes		400,296			514,958			(114,662	)
Income tax expense		143,971			193,043			(49,072	)
Net Income	$	256,325		$	321,915		$	(65,590	)
Diluted Earnings Per Average Common Share	$	3.57		$	4.47		$	(0.90	)
Basic Earnings Per Average Common Share	$	3.58		$	4.50		$	(0.92	)
Diluted Avg. Common Shares Outstanding		71,885			72,030			(145	)
Basic Avg. Common Shares Outstanding		71,667			71,601			66
Dividends Per Common Share	$	0.50		$	0.48		$	0.02

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2009 and 2008

	4th Quarter
(in thousands, except sales price data)	2009		2008		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	116,686	$	124,830	$	(8,144	)
Oil		80,163		71,506		8,657
Natural gas liquids		19,042		12,301		6,741
Other		497		1,067		(570	)
Total	$	216,388	$	209,704	$	6,684
Production volumes
Natural gas (MMcf)		17,805		17,492		313
Oil (MBbl)		1,234		1,109		125
Natural gas liquids (MMgal)		19.3		18.0		1.3
Total production volumes (MMcfe)		27,965		26,715		1,250
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.55	$	7.14	$	(0.59	)
Oil (barrel)	$	64.98	$	64.48	$	0.50
Natural gas liquids (gallon)	$	0.99	$	0.68	$	0.31
Other data
Lease operating expense (LOE)
LOE and other	$	47,054	$	45,500	$	1,554
Production taxes		11,492		3,813		7,679
Total	$	58,546	$	49,313	$	9,233
Depreciation, depletion and amortization	$	49,900	$	42,299	$	7,601
General and administrative expense	$	14,384	$	7,166	$	7,218
Capital expenditures	$	73,975	$	154,064	$	(80,089	)
Exploration expense	$	8,860	$	5,081	$	3,779
Operating income	$	83,368	$	104,736	$	(21,368	)
Natural Gas Distribution
Operating revenues
Residential	$	94,097	$	106,647	$	(12,550	)
Commercial and industrial		36,013		44,715		(8,702	)
Transportation		15,044		13,291		1,753
Other		1,263		1,436		(173	)
Total	$	146,417	$	166,089	$	(19,672	)
Gas delivery volumes (MMcf)
Residential		5,137		5,385		(248	)
Commercial and industrial		2,320		2,585		(265	)
Transportation		11,129		10,522		607
Total		18,586		18,492		94
Other data
Depreciation and amortization	$	12,876	$	12,473	$	403
Capital expenditures	$	20,702	$	18,365	$	2,337
Operating income	$	15,140	$	14,831	$	309

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2009 and 2008

	Year-to-date
(in thousands, except sales price data)	2009		2008		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	460,370	$	536,283	$	(75,913	)
Oil		284,750		292,908		(8,158	)
Natural gas liquids		67,254		68,216		(962	)
Other		10,172		16,725		(6,553	)
Total	$	822,546	$	914,132	$	(91,586	)
Production volumes
Natural gas (MMcf)		72,337		67,573		4,764
Oil (MBbl)		4,690		4,114		576
Natural gas liquids (MMgal)		75.2		70.7		4.5
Total production volumes (MMcfe)		111,224		102,354		8,870
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.36	$	7.94	$	(1.58	)
Oil (barrel)	$	60.72	$	71.20	$	(10.48	)
Natural gas liquids (gallon)	$	0.89	$	0.96	$	(0.07	)
Other data
Lease operating expense (LOE)
LOE and other	$	181,777	$	174,127	$	7,650
Production taxes		35,652		62,552		(26,900	)
Total	$	217,429	$	236,679	$	(19,250	)
Depreciation, depletion and amortization	$	184,089	$	139,539	$	44,550
General and administrative expense	$	52,214	$	41,740	$	10,474
Capital expenditures	$	427,399	$	449,571	$	(22,172	)
Exploration expense	$	10,234	$	9,296	$	938
Operating income	$	353,645	$	482,588	$	(128,943	)
Natural Gas Distribution
Operating revenues
Residential	$	399,760	$	408,280	$	(8,520	)
Commercial and industrial		162,141		177,719		(15,578	)
Transportation		54,312		51,116		3,196
Other		1,661		17,663		(16,002	)
Total	$	617,874	$	654,778	$	(36,904	)
Gas delivery volumes (MMcf)
Residential		20,921		21,632		(711	)
Commercial and industrial		9,934		10,934		(1,000	)
Transportation		40,903		46,789		(5,886	)
Total		71,758		79,355		(7,597	)
Other data
Depreciation and amortization	$	50,995	$	48,874	$	2,121
Capital expenditures	$	77,809	$	63,320	$	14,489
Operating income	$	83,984	$	81,956	$	2,028

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