Energen (EGN) 8-K Energen Reports 2ND Quarter 2013 Operating, Financial Results

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending June 30, 2013 and 2012

	2nd Quarter
(in thousands, except per share data)	2013		2012		Change
Operating Revenues
Oil and gas operations	$	385,543	$	399,468	$	(13,925)
Natural gas distribution		104,514		70,887		33,627
Total operating revenues		490,057		470,355		19,702
Operating Expenses
Cost of gas		47,571		13,669		33,902
Operations and maintenance		136,204		112,713		23,491
Depreciation, depletion and amortization		132,285		101,991		30,294
Taxes, other than income taxes		25,650		19,523		6,127
Accretion expense		2,043		1,861		182
Total operating expenses		343,753		249,757		93,996
Operating Income		146,304		220,598		(74,294)
Other Income (Expense)
Interest expense		(17,306)		(15,835)		(1,471)
Other income		748		659		89
Other expense		(128)		(582)		454
Total other expense		(16,686)		(15,758)		(928)
Income Before Income Taxes		129,618		204,840		(75,222)
Income tax expense		46,551		73,553		(27,002)
Net Income	$	83,067	$	131,287	$	(48,220)
Diluted Earnings Per Average Common Share	$	1.15	$	1.82	$	(0.67)
Basic Earnings Per Average Common Share	$	1.15	$	1.82	$	(0.67)
Diluted Avg. Common Shares Outstanding		72,419		72,330		89
Basic Avg. Common Shares Outstanding		72,167		72,117		50
Dividends Per Common Share	$	0.145	$	0.14	$	0.005

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 6 months ending June 30, 2013 and 2012

	Year-to-date
(in thousands, except per share data)	2013		2012		Change
Operating Revenues
Oil and gas operations	$	640,537	$	623,425	$	17,112
Natural gas distribution		342,199		265,374		76,825
Total operating revenues		982,736		888,799		93,937
Operating Expenses
Cost of gas		143,013		73,255		69,758
Operations and maintenance		282,041		223,274		58,767
Depreciation, depletion and amortization		247,580		196,525		51,055
Asset impairment		–		21,545		(21,545)
Taxes, other than income taxes		54,422		45,758		8,664
Accretion expense		4,040		3,674		366
Total operating expenses		731,096		564,031		167,065
Operating Income		251,640		324,768		(73,128)
Other Income (Expense)
Interest expense		(34,060)		(31,260)		(2,800)
Other income		2,506		2,217		289
Other expense		(197)		(221)		24
Total other expense		(31,751)		(29,264)		(2,487)
Income Before Income Taxes		219,889		295,504		(75,615)
Income tax expense		80,130		106,811		(26,681)
Net Income	$	139,759	$	188,693	$	(48,934)
Diluted Earnings Per Average Common Share	$	1.93	$	2.61	$	(0.68)
Basic Earnings Per Average Common Share	$	1.94	$	2.62	$	(0.68)
Diluted Avg. Common Shares Outstanding		72,329		72,336		(7)
Basic Avg. Common Shares Outstanding		72,155		72,110		45
Dividends Per Common Share	$	0.29	$	0.28	$	0.01

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of June 30, 2013 and December 31, 2012

(in thousands)	June 30, 2013		December 31, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	3,793	$	9,704
Accounts receivable, net of allowance		226,255		277,900
Inventories		44,158		63,994
Regulatory asset		10,915		45,515
Assets held for sale		130,743		–
Other		31,035		28,007
Total current assets		446,899		425,120
Property, Plant and Equipment
Oil and gas properties, net		4,952,205		4,673,886
Utility plant, net		866,200		842,643
Other property, net		31,535		25,107
Total property, plant and equipment, net		5,849,940		5,541,636
Other Assets
Regulatory asset		107,189		110,566
Long-term derivative instruments		39,006		40,577
Other		62,129		57,991
Total other assets		208,324		209,134
TOTAL ASSETS	$	6,505,163	$	6,175,890
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	100,000	$	50,000
Notes payable to banks		800,000		643,000
Accounts payable		273,531		257,579
Regulatory liability		27,581		45,116
Liabilities related to assets held for sale		7,917		–
Other		187,407		164,087
Total current liabilities		1,396,436		1,159,782
Long-term debt		1,053,542		1,103,528
Deferred Credits and Other Liabilities
Regulatory liability		68,934		80,404
Deferred income taxes		963,727		905,601
Long-term derivative instruments		470		11,305
Other		240,577		238,580
Total deferred credits and other liabilities		1,273,708		1,235,890
Total Shareholders’ Equity		2,781,477		2,676,690
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,505,163	$	6,175,890

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending June 30, 2013 and 2012

	2nd Quarter
(in thousands, except sales price data)	2013		2012		Change
Oil and Gas Operations (GAAP)
Operating revenues
Natural gas	$	98,572	$	68,249	$	30,323
Oil		262,775		306,960		(44,185)
Natural gas liquids		24,148		23,692		456
Other		48		567		(519)
Total (GAAP)	$	385,543	$	399,468	$	(13,925)
Oil and Gas Operations excluding mark-to-market (Non-GAAP)
Operating revenues
Natural gas	$	79,271	$	68,494	$	10,777
Oil		226,095		188,116		37,979
Natural gas liquids		23,980		20,832		3,148
Other		48		567		(519)
Total (Non-GAAP)*	$	329,394	$	278,009	$	51,385
Production volumes
Natural gas (MMcf)		18,420		19,278		(858)
Oil (MBbl)		2,595		2,195		400
Natural gas liquids (MMgal)		34.2		27.8		6.4
Total production volumes (MMcfe)		38,880		36,414		2,466
Total production volumes (MBOE)		6,480		6,069		411
Revenue per unit of production excluding effects of non-cash mark-to-market derivative instruments
Natural gas (Mcf)	$	4.30	$	3.55	$	0.75
Oil (barrel)	$	87.13	$	85.70	$	1.43
Natural gas liquids (gallon)	$	0.70	$	0.75	$	(0.05)
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	3.90	$	2.19	$	1.71
Oil (barrel)	$	90.62	$	85.70	$	4.92
Natural gas liquids (gallon)	$	0.61	$	0.71	$	(0.10)
Other data
Lease operating expense (LOE)
LOE and other	$	72,027	$	58,779	$	13,248
Production taxes		17,606		13,205		4,401
Total	$	89,633	$	71,984	$	17,649
Depreciation, depletion and amortization	$	121,412	$	91,458	$	29,954
General and administrative expense	$	24,969	$	16,807	$	8,162
Capital expenditures	$	349,879	$	293,909	$	55,970
Exploration expenditures	$	3,455	$	952	$	2,503
Operating income	$	144,031	$	216,406	$	(72,375)

*Operating revenues excluding mark-to-market gains of $56,149 and $121,459 in second quarter 2013 and 2012,respectively.

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Natural Gas Distribution
Operating revenues
Residential	$	65,551	$	40,371	$	25,180
Commercial and industrial		27,627		20,442		7,185
Transportation		13,824		13,661		163
Other		(2,488)		(3,587)		1,099
Total	$	104,514	$	70,887	$	33,627
Gas delivery volumes (MMcf)
Residential		3,613		1,985		1,628
Commercial and industrial		1,955		1,449		506
Transportation		10,706		11,547		(841)
Total		16,274		14,981		1,293
Other data
Depreciation and amortization	$	10,873	$	10,533	$	340
Capital expenditures	$	27,113	$	18,030	$	9,083
Operating income	$	2,219	$	4,448	$	(2,229)

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 6 months ending June 30, 2013 and 2012

	Year-to-date
(in thousands, except sales price data)	2013		2012		Change
Oil and Gas Operations (GAAP)
Operating revenues
Natural gas	$	169,644	$	143,829	$	25,815
Oil		424,587		431,274		(6,687)
Natural gas liquids		45,264		47,404		(2,140)
Other		1,042		918		124
Total (GAAP)	$	640,537	$	623,425	$	17,112
Oil and Gas Operations excluding mark-to-market (Non-GAAP)
Operating revenues
Natural gas	$	154,718	$	143,791	$	10,927
Oil		424,559		354,350		70,209
Natural gas liquids		45,117		43,579		1,538
Other		1,042		918		124
Total (Non-GAAP)*	$	625,436	$	542,638	$	82,798
Production volumes
Natural gas (MMcf)		36,108		38,370		(2,262)
Oil (MBbl)		4,912		4,148		764
Natural gas liquids (MMgal)		61.8		53.8		8.0
Total production volumes (MMcfe)		74,406		70,944		3,462
Total production volumes (MBOE)		12,401		11,824		577
Revenue per unit of production excluding effects of non-cash mark-to-market derivative instruments
Natural gas (Mcf)	$	4.28	$	3.75	$	0.53
Oil (barrel)	$	86.43	$	85.43	$	1.00
Natural gas liquids (gallon)	$	0.73	$	0.81	$	(0.08)
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	3.61	$	2.43	$	1.18
Oil (barrel)	$	86.77	$	91.77	$	(5.00)
Natural gas liquids (gallon)	$	0.64	$	0.83	$	(0.19)
Other data
Lease operating expense (LOE)
LOE and other	$	153,573	$	115,391	$	38,182
Production taxes		31,969		27,367		4,602
Total	$	185,542	$	142,758	$	42,784
Depreciation, depletion and amortization	$	225,978	$	175,546	$	50,432
Asset impairment	$	–		21,545		(21,545)
General and administrative expense	$	49,664	$	34,750	$	14,914
Capital expenditures	$	634,932	$	634,876	$	56
Exploration expenditures	$	4,955	$	2,741	$	2,214
Operating income	$	170,358	$	242,411	$	(72,053)

*Operating revenues excluding mark-to-market gains of $15,101 and $80,787 in 2013 and 2012, respectively

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Natural Gas Distribution
Operating revenues
Residential	$	228,291	$	170,879	$	57,412
Commercial and industrial		85,225		67,198		18,027
Transportation		32,064		29,259		2,805
Other		(3,381)		(1,962)		(1,419)
Total	$	342,199	$	265,374	$	76,825
Gas delivery volumes (MMcf)
Residential		13,995		10,223		3,772
Commercial and industrial		6,162		4,891		1,271
Transportation		23,496		23,583		(87)
Total		43,653		38,697		4,956
Other data
Depreciation and amortization	$	21,602	$	20,979	$	623
Capital expenditures	$	46,810	$	32,973	$	13,837
Operating income	$	81,512	$	83,008	$	(1,496)

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