Energen (EGN) 8-K Energen’s Martin Co. Wolfcamp “A” Well Generates Strong Rates

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending March 31, 2014 and 2013

	1st  Quarter
(in thousands, except per share data)	2014			2013		Change
Operating Revenues
Oil and gas operations	$	297,278		$	236,331	$	60,947
Natural gas distribution		263,900			237,685		26,215
Total operating revenues		561,178			474,016		87,162
Operating Expenses
Cost of gas		128,114			95,442		32,672
Operations and maintenance		155,072			140,712		14,360
Depreciation, depletion and amortization		135,697			105,828		29,869
Taxes, other than income taxes		35,853			28,157		7,696
Accretion expense		1,843			1,687		156
Total operating expenses		456,579			371,826		84,753
Operating Income		104,599			102,190		2,409
Other Income (Expense)
Interest expense		(17,640	)		(16,752)		(888	)
Other income		1,384			1,734		(350	)
Other expense		(54	)		(69)		15
Total other expense		(16,310	)		(15,087)		(1,223	)
Income From Continuing Operations Before Income Taxes		88,289			87,103		1,186
Income tax expense		32,797			32,409		388
Income From Continuing Operations		55,492			54,694		798
Discontinued Operations, net of taxes
Income (loss) from discontinued operations		(1,126	)		1,998		(3,124	)
Loss on disposal of discontinued operations		(1,050	)		-		(1,050	)
Income (Loss) From Discontinued Operations		(2,176	)		1,998		(4,174	)
Net Income	$	53,316		$	56,692	$	(3,376	)
Diluted Earnings Per Average Common Share
Continuing operations	$	0.76		$	0.75	$	0.01
Discontinued operations		(0.03	)		0.03		(0.06	)
Net Income	$	0.73		$	0.78	$	(0.05	)
Basic Earnings Per Average Common Share
Continuing operations	$	0.76		$	0.76	$	-
Discontinued operations		(0.03	)		0.03		(0.06	)
Net Income	$	0.73		$	0.79	$	(0.06	)
Diluted Avg. Common Shares Outstanding		73,043			72,288		755
Basic Avg. Common Shares Outstanding		72,628			72,143		485
Dividends Per Common Share	$	0.15		$	0.145	$	0.005

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2014 and December 31, 2013

(in thousands)	March 31, 2014		December 31, 2013
ASSETS
Current Assets
Cash and cash equivalents	$	35,343	$	5,555
Accounts receivable, net of allowance		299,118		257,545
Inventories		36,896		52,330
Regulatory asset		1,283		2,756
Assets held for sale		1,871		51,104
Other		64,518		57,941
Total current assets		439,029		427,231
Property, Plant and Equipment
Oil and gas properties, net		5,231,851		5,087,573
Utility plant, net		888,177		885,509
Other property, net		33,690		30,556
Total property, plant and equipment, net		6,153,718		6,003,638
Other Assets
Regulatory asset		82,570		84,890
Long-term derivative instruments		2,638		5,439
Other		102,435		101,014
Total other assets		187,643		191,343
TOTAL ASSETS	$	6,780,390	$	6,622,212
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	60,000	$	60,000
Notes payable to banks		575,000		539,000
Accounts payable		300,069		250,756
Regulatory liability		80,698		49,006
Other		194,717		211,131
Total current liabilities		1,210,484		1,109,893
Long-term debt		1,328,442		1,343,464
Deferred Credits and Other Liabilities
Regulatory liability		83,240		94,125
Deferred income taxes		1,037,898		1,013,245
Long-term derivative instruments		1,011		398
Other		208,188		203,068
Total deferred credits and other liabilities		1,330,337		1,310,836
Total Shareholders’ Equity		2,911,127		2,858,019
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,780,390	$	6,622,212

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2014 and 2013

	1st Quarter
(in thousands, except sales price data)	2014			2013		Change
Oil and Gas Operations (GAAP)
Operating revenues from continuing operations
Natural gas	$	51,252		$	53,216	$	(1,964	)
Oil		217,493			161,551		55,942
Natural gas liquids		28,686			21,116		7,570
Other		(153	)		448		(601	)
Total (GAAP)	$	297,278		$	236,331	$	60,947
Oil and Gas Operations excluding mark-to-market (Non-GAAP)
Operating revenues from continuing operations
Natural gas	$	63,756		$	57,591	$	6,165
Oil		238,957			198,203		40,754
Natural gas liquids		28,399			21,137		7,262
Other		(153	)		448		(601	)
Total (Non-GAAP)*	$	330,959		$	277,379	$	53,580
Production volumes from continuing operations
Natural gas (MMcf)		14,124			13,818		306
Oil (MBbl)		2,751			2,314		437
Natural gas liquids (MMgal)		37.9			27.6		10.3
Production volumes from continuing operations (MBOE)		6,008			5,273		735
Total production volumes (MBOE)		6,162			5,921		241
Revenue per unit of production excluding effects of non-cash mark-to-market derivative instruments
Natural gas (Mcf)	$	4.51		$	4.17	$	0.34
Oil (barrel)	$	86.86		$	85.65	$	1.21
Natural gas liquids (gallon)	$	0.75		$	0.77	$	(0.02	)
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	4.88		$	3.29	$	1.59
Oil (barrel)	$	92.24		$	82.44	$	9.80
Natural gas liquids (gallon)	$	0.74		$	0.68	$	0.06
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	75,012		$	75,155	$	(143	)
Production taxes		19,756			13,763		5,993
Total	$	94,768		$	88,918	$	5,850
Depreciation, depletion and amortization	$	124,372		$	95,099	$	29,273
General and administrative expense	$	29,933		$	25,948	$	3,985
Capital expenditures	$	271,696		$	285,053	$	(13,357	)
Exploration expenditures	$	12,814		$	1,498	$	11,316
Operating income	$	33,548		$	23,181	$	10,367

* Operating revenues excluding mark-to-market losses of $33,681 and $41,048 in first quarter 2014 and 2013, respectively.

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Natural Gas Distribution
Operating revenues
Residential	$	191,611		$	162,739		$	28,872
Commercial and industrial		68,992			57,599			11,393
Transportation		18,034			18,240			(206	)
Other		(14,737	)		(893	)		(13,844	)
Total	$	263,900		$	237,685		$	26,215
Gas delivery volumes (MMcf)
Residential		13,053			10,382			2,671
Commercial and industrial		5,315			4,207			1,108
Transportation		12,782			12,790			(8	)
Total		31,150			27,379			3,771
Other data
Depreciation and amortization	$	11,325		$	10,729		$	596
Capital expenditures	$	13,594		$	19,697		$	(6,103	)
Operating income	$	72,351		$	79,293		$	(6,942	)

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