Energen (EGN) 8-K Energen Reports 3RD Quarter 2013 Operating, Financial Results

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending September 30, 2013 and 2012

	3rd Quarter
(in thousands, except per share data)	2013		2012		Change
Operating Revenues
Oil and gas operations	$	272,038	$	214,620	$	57,418
Natural gas distribution		48,368		61,809		(13,441)
Total operating revenues		320,406		276,429		43,977
Operating Expenses
Cost of gas		20,435		20,924		(489)
Operations and maintenance		141,271		123,730		17,541
Depreciation, depletion and amortization		136,123		96,634		39,489
Taxes, other than income taxes		24,858		19,572		5,286
Accretion expense		1,771		1,605		166
Total operating expenses		324,458		262,465		61,993
Operating Income (Loss)		(4,052)		13,964		(18,016)
Other Income (Expense)
Interest expense		(17,689)		(17,195)		(494)
Other income		13,062		1,488		11,574
Other expense		(434)		(84)		(350)
Total other expense		(5,061)		(15,791)		10,730
Income (Loss) from Continuing Operations Before Income Taxes		(9,113)		(1,827)		(7,286)
Income tax expense (benefit)		(3,627)		(322)		(3,305)
Income (Loss) from Continuing Operations		(5,486)		(1,505)		(3,981)
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		1,866		3,551		(1,685)
Gain (loss) on disposal		(15,678)		–		(15,678)
Income (Loss) from Discontinued Operations		(13,812)		3,551		(17,363)
Net Income (Loss)	$	(19,298)	$	2,046	$	(21,344)
Diluted Earnings Per Average Common Share			$		$
Continuing operations		(0.08)		(0.02)		(0.06)
Discontinued operations		(0.19)		0.05		(0.24)
Net Income (Loss)	$	(0.27)	$	0.03	$	(0.30)
Basic Earnings Per Average Common Share	$		$		$
Continuing operations		(0.08)		(0.02)		(0.06)
Discontinued operations		(0.19)		0.05		(0.24)
Net Income (Loss)	$	(0.27)	$	0.03	$	(0.30)
Diluted Avg. Common Shares Outstanding		72,346		72,316		30
Basic Avg. Common Shares Outstanding		72,346		72,130		216
Dividends Per Common Share	$	0.145	$	0.14	$	0.005

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 9 months ending September 30, 2013 and 2012

	Year-to-date
(in thousands, except per share data)	2013		2012		Change
Operating Revenues
Oil and gas operations	$	875,350	$	799,339	$	76,011
Natural gas distribution		390,567		327,183		63,384
Total operating revenues		1,265,917		1,126,522		139,395
Operating Expenses
Cost of gas		163,448		94,179		69,269
Operations and maintenance		413,401		336,568		76,833
Depreciation, depletion and amortization		365,355		276,465		88,890
Taxes, other than income taxes		77,955		64,314		13,641
Accretion expense		5,187		4,691		496
Total operating expenses		1,025,346		776,217		249,129
Operating Income (Loss)		240,571		350,305		(109,734)
Other Income (Expense)
Interest expense		(51,751)		(48,447)		(3,304)
Other income		15,578		3,678		11,900
Other expense		(631)		(305)		(326)
Total other expense		(36,804)		(45,074)		8,270
Income (Loss) from Continuing Operations Before Income Taxes		203,767		305,231		(101,464)
Income tax expense (benefit)		73,897		110,508		(36,611)
Income (Loss) from Continuing Operations	$	129,870	$	194,723	$	(64,853)
Discontinued Operations, Net of Taxes
Income (loss) from operations		6,269		(3,984)		10,253
Gain (loss) on disposal		(15,678)		–		(15,678)
Income (Loss) from Discontinued Operations		(9,409)		(3,984)		(5,425)
Net Income (Loss)		120,461		190,739		(70,278)
Diluted Earnings Per Average Common Share	$		$		$
Continuing operations		1.80		2.69		(0.89)
Discontinued operations		(0.13)		(0.05)		(0.08)
Net Income (Loss)	$	1.67	$	2.64	$	(0.97)
Basic Earnings Per Average Common Share	$		$		$
Continuing operations		1.80		2.70		(0.90)
Discontinued operations		(0.13)		(0.06)		(0.07)
Net Income (Loss)	$	1.67	$	2.64	$	(0.97)
Diluted Avg. Common Shares Outstanding		72,272		72,301		(29)
Basic Avg. Common Shares Outstanding		72,220		72,121		99
Dividends Per Common Share	$	0.435	$	0.42	$	0.015

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of September 30, 2013 and December 31, 2012

(in thousands)	September 30, 2013		December 31, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	12,413	$	9,704
Accounts receivable, net of allowance		200,043		277,900
Inventories		61,684		63,994
Regulatory asset		11,213		45,515
Assets held for sale		183,862		–
Other		63,371		28,007
Total current assets		532,586		425,120
Property, Plant and Equipment
Oil and gas properties, net		4,997,661		4,673,886
Utility plant, net		876,570		842,643
Other property, net		29,733		25,107
Total property, plant and equipment, net		5,903,964		5,541,636
Other Assets
Regulatory asset		89,004		110,566
Long-term derivative instruments		12,786		40,577
Other		76,532		57,991
Total other assets		178,322		209,134
TOTAL ASSETS	$	6,614,872	$	6,175,890
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	125,000	$	50,000
Notes payable to banks		901,000		643,000
Accounts payable		256,109		257,579
Regulatory liability		40,168		45,116
Other		219,012		164,087
Total current liabilities		1,541,289		1,159,782
Long-term debt		1,028,509		1,103,528
Deferred Credits and Other Liabilities
Regulatory liability		81,414		80,404
Deferred income taxes		979,898		905,601
Long-term derivative instruments		1,961		11,305
Other		212,135		238,580
Total deferred credits and other liabilities		1,275,408		1,235,890
Total Shareholders’ Equity		2,769,666		2,676,690
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,614,872	$	6,175,890

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2013 and 2012

	3rd Quarter
(in thousands, except sales price data)	2013		2012		Change
Oil and Gas Operations (GAAP)
Operating revenues from continuing operations
Natural gas	$	62,073	$	49,422	$	12,651
Oil		183,950		147,710		36,240
Natural gas liquids		26,292		17,566		8,726
Other		(277)		(78)		(199)
Total (GAAP)	$	272,038	$	214,620	$	57,418
Oil and Gas Operations excluding mark-to-market (Non-GAAP)
Operating revenues from continuing operations
Natural gas	$	60,389	$	53,581	$	6,808
Oil		247,839		188,279		59,560
Natural gas liquids		27,647		19,590		8,057
Other		(277)		(78)		(199)
Total (Non-GAAP)*	$	335,598	$	261,372	$	74,226
Production volumes
Natural gas (MMcf)		14,868		14,622		246
Oil (MBbl)		2,764		2,275		489
Natural gas liquids (MMgal)		36.7		25.2		11.5
Total production volumes (MMcfe)		36,696		31,872		4,824
Total production volumes (MBOE)		6,116		5,312		804
Revenue per unit of production including effects of designated cash flow hedges
Natural gas (Mcf)	$	4.06	$	3.66	$	0.40
Oil (barrel)	$	89.67	$	82.76	$	6.91
Natural gas liquids (gallon)	$	0.75	$	0.78	$	(0.03)
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	3.39	$	2.69	$	0.70
Oil (barrel)	$	103.22	$	86.55	$	16.67
Natural gas liquids (gallon)	$	0.68	$	0.68	$	–
Other data
Lease operating expense (LOE)
LOE and other	$	69,086	$	57,397	$	11,689
Production taxes		18,939		13,531		5,408
Total	$	88,025	$	70,928	$	17,097
Depreciation, depletion and amortization	$	125,060	$	86,062	$	38,998
General and administrative expense	$	29,626	$	18,468	$	11,158
Capital expenditures	$	257,759	$	323,037	$	(65,278)
Exploration expenditures	$	8,949	$	10,644	$	(1,695)
Operating income	$	18,607	$	26,913	$	(8,306)

*Operating revenues excluding mark-to-market losses of $63,560 and $46,752 in third quarter 2013 and 2012,  respectively.

Natural Gas Distribution
Operating revenues
Residential	$	31,201	$	30,658	$	543
Commercial and industrial		18,194		17,695		499
Transportation		13,197		13,505		(308)
Other		(14,224)		(49)		(14,175)
Total	$	48,368	$	61,809	$	(13,441)
Gas delivery volumes (MMcf)
Residential		1,384		1,378		6
Commercial and industrial		1,272		1,246		26
Transportation		11,237		11,252		(15)
Total		13,893		13,876		17
Other data
Depreciation and amortization	$	11,063	$	10,572	$	491
Capital expenditures	$	20,980	$	18,813	$	2,167
Operating income (loss)	$	(22,544)	$	(12,743)	$	(9,801)

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2013 and 2012

	Year-to-date
(in thousands, except sales price data)	2013		2012		Change
Oil and Gas Operations (GAAP)
Operating revenues from continuing operations
Natural gas	$	196,311	$	156,308	$	40,003
Oil		607,975		578,167		29,808
Natural gas liquids		71,556		64,970		6,586
Other		(492)		(106)		(386)
Total (GAAP)	$	875,350	$	799,339	$	76,011
Oil and Gas Operations excluding mark-to-market (Non-GAAP)
Operating revenues from continuing operations
Natural gas	$	179,701	$	160,429	$	19,272
Oil		671,836		541,812		130,024
Natural gas liquids		72,764		63,169		9,595
Other		(492)		(106)		(386)
Total (Non-GAAP)*	$	923,809	$	765,304	$	158,505
Production volumes
Natural gas (MMcf)		43,428		44,076		(648)
Oil (MBbl)		7,670		6,414		1,256
Natural gas liquids (MMgal)		98.5		79.0		19.5
Total production volumes (MMcfe)		103,518		93,846		9,672
Total production volumes (MBOE)		17,253		15,641		1,612
Revenue per unit of production including effects of designated cash flow hedges
Natural gas (Mcf)	$	4.14	$	3.64	$	0.50
Oil (barrel)	$	87.59	$	84.47	$	3.12
Natural gas liquids (gallon)	$	0.74	$	0.80	$	(0.06)
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	3.51	$	2.51	$	1.00
Oil (barrel)	$	92.69	$	89.92	$	2.77
Natural gas liquids (gallon)	$	0.65	$	0.78	$	(0.13)
Other data
Lease operating expense (LOE)
LOE and other	$	210,455	$	159,052	$	51,403
Production taxes		49,598		39,882		9,716
Total	$	260,053	$	198,934	$	61,119
Depreciation, depletion and amortization	$	332,690	$	244,914	$	87,776
General and administrative expense	$	81,570	$	56,521	$	25,049
Capital expenditures	$	892,691	$	957,913	$	(65,222)
Exploration expenditures	$	13,902	$	13,382	$	52
Operating income	$	181,948	$	280,897	$	(98,949)

* Operating revenues excluding mark-to-market loss of $48,459 and gain of $34,035 in 2013 and 2012, respectively.

Natural Gas Distribution
Operating revenues
Residential	$	259,492	$	201,537	$	57,955
Commercial and industrial		103,419		84,889		18,530
Transportation		45,261		42,765		2,496
Other		(17,605)		(2,008)		(15,597)
Total	$	390,567	$	327,183	$	63,384
Gas delivery volumes (MMcf)
Residential		15,379		11,601		3,778
Commercial and industrial		7,434		6,137		1,297
Transportation		34,733		34,835		(102)
Total		57,546		52,573		4,973
Other data
Depreciation and amortization	$	32,665	$	31,551	$	1,114
Capital expenditures	$	67,790	$	51,786	$	16,004
Operating income	$	58,968	$	70,265	$	(11,297)