Energen (EGN) 8-K Results of Operations and Financial Condition

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending September 30, 2014 and 2013

	3rd Quarter
(in thousands, except per share data)	2014			2013			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	350,773		$	360,507		$	(9,734	)
Gain (loss) on derivative instruments, net Loss on sale of assets and other		147,735 (747	)		(88,192 (277	)  )		235,927 (470	)
Total revenues		497,761			272,038			225,723
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		67,720			65,795			1,925
Production and ad valorem taxes		25,729			22,230			3,499
Depreciation, depletion and amortization		139,104			124,911			14,193
Asset impairment		179,074			—			179,074
Exploration		8,255			8,949			(694	)
General and administrative Accretion of discount on asset retirement obligations		27,784 1,924			30,947 1,771			(3,163 153	)
Total costs and expenses		449,590			254,603			194,987
Operating Income		48,171			17,435			30,736
Other Income (Expense)
Interest expense		(11,522	)		(10,149	)		(1,373	)
Other income		37			1,249			(1,212	)
Total other expense		(11,485	)		(8,900	)		(2,585	)
Income From Continuing Operations Before Income Taxes		36,686			8,535			28,151
Income tax expense		16,055			3,128			12,927
Income From Continuing Operations		20,631			5,407			15,224
Discontinued Operations, net of tax
Loss from discontinued operations		(3,485	)		(9,027	)		5,542
Gain (loss) on disposal of discontinued operations		440,105			(15,678	)		455,783
Income (Loss) From Discontinued Operations		436,620			(24,705	)		461,325
Net Income (Loss)	$	457,251		$	(19,298	)	$	476,549
Diluted Earnings Per Average Common Share
Continuing operations	$	0.28		$	0.07		$	0.21
Discontinued operations		5.94			(0.34	)		6.28
Net Income (Loss)	$	6.22		$	(0.27	)	$	6.49
Basic Earnings Per Average Common Share
Continuing operations	$	0.28		$	0.07		$	0.21
Discontinued operations		5.98			(0.34	)		6.32
Net Income (Loss)	$	6.26		$	(0.27	)	$	6.53
Diluted Avg. Common Shares Outstanding		73,507			72,346			1,161
Basic Avg. Common Shares Outstanding		73,093			72,346			747
Dividends Per Common Share	$	0.150		$	0.145		$	0.005

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 9 months ending September 30, 2014 and 2013

	Year-to-date
(in thousands, except per share data)	2014			2013			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	1,057,447		$	927,746		$	129,701
Gain (loss) on derivative instruments, net Loss on sale of assets and other		9,498 (1,809	)		(51,904 (492	)  )		61,402 (1,317	)
Total revenues		1,065,136			875,350			189,786
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		199,861			190,944			8,917
Production and ad valorem taxes		81,102			69,109			11,993
Depreciation, depletion and amortization		399,568			332,247			67,321
Asset impairment		179,074			—			179,074
Exploration		23,644			13,902			9,742
General and administrative Accretion of discount on asset retirement obligations		93,499 5,650			86,699 5,187			6,800 463
Total costs and expenses		982,398			698,088			284,310
Operating Income		82,738			177,262			(94,524	)
Other Income (Expense)
Interest expense		(27,374	)		(30,232	)		2,858
Other income		1,047			2,619			(1,572	)
Total other expense		(26,327	)		(27,613	)		1,286
Income From Continuing Operations Before Income Taxes		56,411			149,649			(93,238	)
Income tax expense		23,287			53,401			(30,114	)
Income From Continuing Operations		33,124			96,248			(63,124	)
Discontinued Operations, net of tax
Income from discontinued operations		30,435			39,891			(9,456	)
Gain (loss) on disposal of discontinued operations		439,055			(15,678	)		454,733
Income From Discontinued Operations		469,490			24,213			445,277
Net Income	$	502,614		$	120,461		$	382,153
Diluted Earnings Per Average Common Share
Continuing operations	$	0.45		$	1.33		$	(0.88	)
Discontinued operations		6.41			0.34			6.07
Net Income	$	6.86		$	1.67		$	5.19
Basic Earnings Per Average Common Share
Continuing operations	$	0.45		$	1.33		$	(0.88	)
Discontinued operations		6.45			0.34			6.11
Net Income	$	6.90		$	1.67		$	5.23
Diluted Avg. Common Shares Outstanding		73,238			72,272			966
Basic Avg. Common Shares Outstanding		72,861			72,220			641
Dividends Per Common Share	$	0.45		$	0.435		$	0.015

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of September 30, 2014 and December 31, 2013

(in thousands)	September 30, 2014		December 31, 2013
ASSETS
Current Assets
Cash and cash equivalents	$	1,321	$	2,523
Short-term investments		18,000		—
Accounts receivable, net of allowance		185,342		136,334
Inventories		14,373		11,130
Assets held for sale with prior period comparable		—		1,242,872
Derivative instruments		30,195		17,463
Prepayments and other		39,289		31,239
Total current assets		288,520		1,441,561
Property, Plant and Equipment
Oil and natural gas properties, net		5,457,875		5,087,573
Other property and equipment, net		43,355		30,515
Total property, plant and equipment, net		5,501,230		5,118,088
Noncurrent derivative instruments		5,758		5,439
Other assets		37,462		57,124
TOTAL ASSETS	$	5,832,970	$	6,622,212
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	—	$	60,000
Notes payable to banks		—		489,000
Accounts payable		110,955		78,178
Accrued taxes		227,180		8,201
Liabilities related to assets held for sale with prior period comparable		—		831,570
Derivative instruments		808		30,302
Other current liabilities		254,495		193,974
Total current liabilities		593,438		1,691,225
Long-term debt		632,458		1,093,541
Asset retirement obligations		115,431		108,533
Deferred income taxes		1,074,690		807,614
Noncurrent derivative instruments		640		398
Other long-term liabilities		55,065		62,882
Total liabilities		2,471,722		3,764,193
Total Shareholders’ Equity		3,361,248		2,858,019
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,832,970	$	6,622,212

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2014 and 2013

	3rd Quarter
(in thousands, except sales price and per unit data)	2014			2013			Change
Oil and Gas Operations
Oil, natural gas liquids and natural gas sales from continuing operations
Oil	$	260,447		$	285,308		$	(24,861	)
Natural gas liquids		31,259			24,785			6,474
Natural gas		59,067			50,414			8,653
Total		350,773			360,507			(9,734	)
Loss on sale of assets and other	$	(747	)	$	(277	)	$	(470	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	128,346		$	(63,889	)	$	192,235
Natural gas liquids		1,276			(1,355	)		2,631
Natural gas		17,665			1,684			15,981
Total	$	147,287		$	(63,560	)	$	210,847
Closed gains (losses) on derivative instruments
Oil	$	(6,012	)	$	(37,469	)	$	31,457
Natural gas liquids		873			2,862			(1,989	)
Natural gas		5,587			9,975			(4,388	)
Total	$	448		$	(24,632	)	$	25,080
Total Revenues	$	497,761		$	272,038		$	225,723
Production volumes from continuing operations
Oil (MBbl)		3,017			2,764			253
Natural gas liquids (MMgal)		46.5			36.7			9.8
Natural gas (MMcf)		15,156			14,868			288
Production volumes from continuing operations(MBOE)		6,651			6,116			535
Total production volumes (MBOE)		6,652			6,758			(106	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	84.33		$	89.67		$	(5.34	)
Natural gas liquids (per gallon)	$	0.69		$	0.75		$	(0.06	)
Natural gas (per Mcf)	$	4.27		$	4.06		$	0.21
Average realized prices excluding derivative instruments
Oil (per barrel)	$	86.33		$	103.22		$	(16.89	)
Natural gas liquids (per gallon)	$	0.67		$	0.68		$	(0.01	)
Natural gas (per Mcf)	$	3.90		$	3.39		$	0.51
Other costs per BOE from continuing operations
Oil, natural gas liquids and natural gas production expenses	$	10.18		$	10.76		$	(0.58	)
Production and ad valorem taxes	$	3.87		$	3.63		$	0.24
Depreciation, depletion and amortization	$	20.71		$	20.27		$	0.44
Exploration expense	$	1.24		$	1.46		$	(0.22	)
General and administrative	$	4.18		$	5.06		$	(0.88	)
Capital expenditures	$	356,725		$	257,759		$	98,966

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2014 and 2013

	Year-to-date
(in thousands, except sales price and per unit data)	2014			2013			Change
Oil and Gas Operations
Oil, natural gas liquids and natural gas sales from continuing operations
Oil	$	776,952		$	710,937		$	66,015
Natural gas liquids		90,625			64,311			26,314
Natural gas		189,870			152,498			37,372
Total		1,057,447			927,746			129,701
Loss on sale of assets and other	$	(1,809	)	$	(492	)	$	(1,317	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	40,710		$	(63,861	)	$	104,571
Natural gas liquids		1,603			(1,208	)		2,811
Natural gas		11,672			16,610			(4,938	)
Total	$	53,985		$	(48,459	)	$	102,444
Closed gains (losses) on derivative instruments
Oil	$	(46,568	)	$	(39,101	)	$	(7,467	)
Natural gas liquids		1,228			8,453			(7,225	)
Natural gas		853			27,203			(26,350	)
Total	$	(44,487	)	$	(3,445	)	$	(41,042	)
Total Revenues	$	1,065,136		$	875,350		$	189,786
Production volumes from continuing operations
Oil (MBbl)		8,601			7,670			931
Natural gas liquids (MMgal)		129.2			98.5			30.7
Natural gas (MMcf)		43,956			43,428			528
Production volumes from continuing operations(MBOE)		19,003			17,253			1,750
Total production volumes (MBOE)		19,168			19,159			9
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	84.92		$	87.59		$	(2.67	)
Natural gas liquids (per gallon)	$	0.71		$	0.74		$	(0.03	)
Natural gas (per Mcf)	$	4.34		$	4.14		$	0.20
Average realized prices excluding derivative instruments
Oil (per barrel)	$	90.33		$	92.69		$	(2.36	)
Natural gas liquids (per gallon)	$	0.70		$	0.65		$	0.05
Natural gas (per Mcf)	$	4.32		$	3.51		$	0.81
Other costs per BOE from continuing operations
Oil, natural gas liquids and natural gas production expenses	$	10.52		$	11.07		$	(0.55	)
Production and ad valorem taxes	$	4.27		$	4.00		$	0.27
Depreciation, depletion and amortization	$	20.85		$	19.10		$	1.75
Exploration expense	$	1.24		$	0.81		$	0.43
General and administrative	$	4.92		$	5.03		$	(0.11	)
Capital expenditures	$	950,993		$	862,691		$	88,302

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