Energen (EGN) 8-K Energen Reports First Quarter 2012 Operatingand Financial Results

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending March 31, 2012 and 2011

	1st Quarter						Change
(in thousands, except per share data)	2012			2011
Operating Revenues
Oil and gas operations	$	223,957		$	216,792		$	7,165
Natural gas distribution		194,487			269,572			(75,085	)
Total operating revenues		418,444			486,364			(67,920	)
Operating Expenses
Cost of gas		59,586			131,749			(72,163	)
Operations and maintenance		110,561			103,782			6,779
Depreciation, depletion and amortization		94,534			61,128			33,406
Asset impairment		21,545			—			21,545
Taxes, other than income taxes		26,235			28,175			(1,940	)
Accretion expense		1,813			1,649			164
Total operating expenses		314,274			326,483			(12,209	)
Operating Income		104,170			159,881			(55,711	)
Other Income (Expense)
Interest expense		(15,425	)		(9,404	)		(6,021	)
Other income		2,032			1,230			802
Other expense		(113	)		(163	)		50
Total other expense		(13,506	)		(8,337	)		(5,169	)
Income Before Income Taxes		90,664			151,544			(60,880	)
Income tax expense		33,258			57,276			(24,018	)
Net Income	$	57,406		$	94,268		$	(36,862	)
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Diluted Earnings Per Average Common Share	$	0.79		$	1.30		$	(0.51	)
Basic Earnings Per Average Common Share	$	0.80		$	1.31		$	(0.51	)
Diluted Avg. Common Shares Outstanding		72,326			72,240			86
Basic Avg. Common Shares Outstanding		72,102			72,001			101
Dividends Per Common Share	$	0.14		$	0.135		$	0.005

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2012 and December 31, 2011

(in thousands)	March 31, 2012		December 31, 2011
ASSETS
Current Assets
Cash and cash equivalents	$	49,618	$	9,541
Accounts receivable, net of allowance		203,642		231,925
Inventories		72,539		74,012
Regulatory asset		54,790		57,143
Other		55,914		71,547
Total current assets		436,503		444,168
Property, Plant and Equipment
Oil and gas properties, net		4,005,163		3,783,842
Utility plant, net		818,420		813,428
Other property, net		23,827		23,506
Total property, plant and equipment, net		4,847,410		4,620,776
Other Assets
Regulatory asset		91,478		95,633
Long-term derivative instruments		10,608		31,056
Other		46,773		45,783
Total other assets		148,859		172,472
TOTAL ASSETS	$	5,432,772	$	5,237,416
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	1,000	$	1,000
Notes payable to banks		165,000		15,000
Accounts payable		340,633		302,048
Regulatory liability		30,049		58,279
Other		137,349		167,552
Total current liabilities		674,031		543,879
Long-term debt		1,153,686		1,153,700
Deferred Credits and Other Liabilities
Regulatory liability		74,159		87,234
Deferred income taxes		813,451		806,127
Long-term derivative instruments		61,066		34,663
Other		182,555		179,650
Total deferred credits and other liabilities		1,131,231		1,107,674
Total Shareholders’ Equity		2,473,824		2,432,163
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,432,772	$	5,237,416

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2012 and 2011

	1st Quarter				Change
(in thousands, except sales price data)	2012		2011
Oil and Gas Operations
Operating revenues
Natural gas	$	75,580	$	95,599	$	(20,019	)
Oil		124,314		103,256		21,058
Natural gas liquids		23,712		17,533		6,179
Other		351		404		(53	)
Total	$	223,957	$	216,792	$	7,165
Production volumes
Natural gas (MMcf)		19,092		17,334		1,758
Oil (MBbl)		1,953		1,364		589
Natural gas liquids (MMgal)		26.0		19.7		6.3
Total production volumes (MMcfe)		34,530		28,338		6,192
Total production volumes (MBOE)		5,755		4,723		1,032
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	3.96	$	5.52	$	(1.56	)
Oil (barrel)	$	63.65	$	75.70	$	(12.05	)
Natural gas liquids (gallon)	$	0.91	$	0.89	$	0.02
Revenue per unit of production including effects of qualifying cash flow hedges
Natural gas (Mcf)	$	3.94	$	5.52	$	(1.58	)
Oil (barrel)	$	85.12	$	75.70	$	9.42
Natural gas liquids (gallon)	$	0.87	$	0.89	$	(0.02	)
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	2.69	$	4.01	$	(1.32	)
Oil (barrel)	$	77.12	$	88.67	$	(11.55	)
Natural gas liquids (gallon)	$	0.99	$	1.01	$	(0.02	)
Other data
Lease operating expense (LOE)
LOE and other	$	56,612	$	46,945	$	9,667
Production taxes		14,162		12,283		1,879
Total	$	70,774	$	59,228	$	11,546
Depreciation, depletion and amortization	$	84,088	$	51,348	$	32,740
Asset impairment	$	21,545	$	—	$	21,545
General and administrative expense	$	17,943	$	18,894	$	(951	)
Capital expenditures	$	340,967	$	140,323	$	200,644
Exploration expenditures	$	1,789	$	614	$	1,175
Operating income	$	26,005	$	85,059	$	(59,054	)

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Natural Gas Distribution
Operating revenues
Residential	$	130,509	$	187,674		$	(57,165	)
Commercial and industrial		46,756		66,906			(20,150	)
Transportation		15,598		16,493			(895	)
Other		1,624		(1,501	)		3,125
Total	$	194,487	$	269,572		$	(75,085	)
Gas delivery volumes (MMcf)
Residential		8,238		12,591			(4,353	)
Commercial and industrial		3,442		5,000			(1,558	)
Transportation		12,036		12,970			(934	)
Total		23,716		30,561			(6,845	)
Other data
Depreciation and amortization	$	10,446	$	9,780		$	666
Capital expenditures	$	14,943	$	13,540		$	1,403
Operating income	$	78,560	$	75,059		$	3,501

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