Exhibit 99.4
Non-GAAP Financial Measures
The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. Net Income excluding the non-cash after-tax unproved leasehold write-off is a Non-GAAP financial measure. Energen believes that excluding it for comparative purposes better reflects financial performance of the company’s on-going operations.
| | | | | | | | | | | | | | | | |
| | | Quarter Ended 9/30/2010 | | | Nine Months Ended 9/30/2010 | |
Consolidated Net Income ($ in millions except per share data) | | Net Income | | | Per Diluted Share | | | Net Income | | | Per Diluted Share | |
Net Income (GAAP) | | | 38.3 | | | $ | 0.53 | | | | 210.6 | | | $ | 2.92 | |
Non-cash leasehold write-off* | | | 14.6 | | | | 0.20 | | | | 24.6 | | | | 0.34 | |
| | | | | | | | | | | | | | | | |
Net Income (Non-GAAP) | | | 52.9 | | | $ | 0.73 | | | | 235.2 | | | $ | 3.26 | |
| | | | | | | | | | | | | | | | |
| | |
2010 Earnings Guidance Range | | 12/31/2010
Estimate (e) | | | | |
Net Income (GAAP) | | $ | 3.96 – $4.06 | | |
Non-cash leasehold write-off | | | 0.34 – 0.34 | | |
| | | | | |
Net Income (Non-GAAP) | | $ | 4.30 – $4.40 | | |
| | | | | |
| | | | |
Energen Resources Net Income ($ in millions) | | Quarter
Ended 9/30/2010 | | | Nine Months
Ended 9/30/2010 | | | Twelve Months
Ended 9/30/2010 | | | | |
Net Income (GAAP) | | | 46.3 | | | | 174.7 | | | | 225.9 | | |
Non-cash leasehold write-off* | | | 14.6 | | | | 24.6 | | | | 24.6 | | |
| | | | | | | | | | | | | |
Net Income (Non-GAAP) | | | 60.9 | | | | 199.3 | | | | 250.5 | | |
| | | | | | | | | | | | | |
* | Net of $8.8 million tax for quarter ended 9/3/2010 and $14.9 million tax for nine months and twelve months ended 9/30/2010 |
(e) | This estimate is a “forward-looking statement” as defined by the Securities and Exchange Commission. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties, which could affect future results of Energen and its subsidiaries, is included in the Company’s periodic reports filed with the Securities and Exchange Commission. |
