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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending December 31, 2014 and 2013

	4th Quarter
(in thousands, except per share data)	2014			2013			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	286,747		$	328,571		$	(41,824	)
Gain on derivative instruments, net		325,521			1,880			323,641
Loss on sale of assets and other		(833	)		(489	)		(344	)
Total revenues		611,435			329,962			281,473
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		74,571			66,494			8,077
Production and ad valorem taxes		20,961			24,994			(4,033	)
Depreciation, depletion and amortization		148,996			120,629			28,367
Asset impairment		235,301			7,082			228,219
Exploration		6,872			6,958			(86	)
General and administrative		28,553			27,122			1,431
Accretion of discount on asset retirement obligations		1,958			1,808			150
Total costs and expenses		517,212			255,087			262,125
Operating Income		94,223			74,875			19,348
Other Income (Expense)
Interest expense		(10,397	)		(9,504	)		(893	)
Other income		134			1,184			(1,050	)
Total other expense		(10,263	)		(8,320	)		(1,943	)
Income From Continuing Operations Before Income Taxes		83,960			66,555			17,405
Income tax expense		17,441			20,922			(3,481	)
Income From Continuing Operations		66,519			45,633			20,886
Discontinued Operations, net of tax
Income (loss) from discontinued operations		(1,143	)		19,188			(20,331	)
Gain on disposal of discontinued operations		42			19,272			(19,230	)
Income (Loss) From Discontinued Operations		(1,101	)		38,460			(39,561	)
Net Income	$	65,418		$	84,093		$	(18,675	)
Diluted Earnings Per Average Common Share
Continuing operations	$	0.91		$	0.62		$	0.29
Discontinued operations		(0.02	)		0.53			(0.55	)
Net Income	$	0.89		$	1.15		$	(0.26	)
Basic Earnings Per Average Common Share
Continuing operations	$	0.91		$	0.63		$	0.28
Discontinued operations		(0.01	)		0.53			(0.54	)
Net Income	$	0.90		$	1.16		$	(0.26	)
Diluted Avg. Common Shares Outstanding		73,343			73,086			257
Basic Avg. Common Shares Outstanding		72,988			72,628			360
Dividends Per Common Share	$	0.02		$	0.145		$	(0.125	)

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 12 months ending December 31, 2014 and 2013

	Year-to-date
(in thousands, except per share data)	2014			2013			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	1,344,194		$	1,256,317		$	87,877
Gain (loss) on derivative instruments, net		335,019			(50,024	)		385,043
Loss on sale of assets and other		(2,642	)		(981	)		(1,661	)
Total revenues		1,676,571			1,205,312			471,259
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		274,432			257,438			16,994
Production and ad valorem taxes		102,063			94,103			7,960
Depreciation, depletion and amortization		548,564			452,876			95,688
Asset impairment		416,801			13,906			402,895
Exploration		28,090			14,036			14,054
General and administrative		122,052			113,821			8,231
Accretion of discount on asset retirement obligations		7,608			6,995			613
Total costs and expenses		1,499,610			953,175			546,435
Operating Income		176,961			252,137			(75,176	)
Other Income (Expense)
Interest expense		(37,771	)		(39,736	)		1,965
Other income		1,181			3,803			(2,622	)
Total other expense		(36,590	)		(35,933	)		(657	)
Income From Continuing Operations Before Income Taxes		140,371			216,204			(75,833	)
Income tax expense		40,728			74,323			(33,595	)
Income From Continuing Operations		99,643			141,881			(42,238	)
Discontinued Operations, net of tax
Income from discontinued operations		29,292			59,079			(29,787	)
Gain on disposal of discontinued operations		439,097			3,594			435,503
Income From Discontinued Operations		468,389			62,673			405,716
Net Income	$	568,032		$	204,554		$	363,478
Diluted Earnings Per Average Common Share
Continuing operations	$	1.36		$	1.96		$	(0.60	)
Discontinued operations		6.39			0.86			5.53
Net Income	$	7.75		$	2.82		$	4.93
Basic Earnings Per Average Common Share
Continuing operations	$	1.37		$	1.96		$	(0.59	)
Discontinued operations		6.42			0.87			5.55
Net Income	$	7.79		$	2.83		$	4.96
Diluted Average Common Shares Outstanding		73,275			72,471			804
Basic Average Common Shares Outstanding		72,897			72,318			579
Dividends Per Common Share	$	0.47		$	0.58		$	(0.11	)

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2014 and December 31, 2013

(in thousands)	December 31, 2014		December 31, 2013
ASSETS
Current Assets
Cash and cash equivalents	$	1,852	$	2,523
Accounts receivable, net of allowance		147,675		136,334
Inventories		14,251		11,130
Assets held for sale		411,654		1,242,872
Deferred income taxes		—		21,250
Derivative instruments		322,337		17,463
Prepayments and other		24,574		9,989
Total current assets		922,343		1,441,561
Property, Plant and Equipment
Oil and natural gas properties, net		5,152,748		5,087,573
Other property and equipment, net		43,812		30,515
Total property, plant and equipment, net		5,196,560		5,118,088
Noncurrent derivative instruments		—		5,439
Other assets		19,512		57,124
TOTAL ASSETS	$	6,138,415	$	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		101,562		78,178
Accrued taxes		4,003		8,201
Accrued wages and benefits		46,162		27,036
Accrued capital costs		207,461		93,623
Revenue and royalty payable		64,446		51,519
Liabilities related to assets held for sale		33,406		831,570
Deferred income taxes		79,164		—
Derivative instruments		988		30,302
Other current liabilities		23,288		21,796
Total current liabilities		560,480		1,691,225
Long-term debt		1,038,563		1,093,541
Asset retirement obligations		94,060		108,533
Deferred income taxes		1,000,486		807,614
Noncurrent derivative instruments		—		398
Other long-term liabilities		30,222		62,882
Total liabilities		2,723,811		3,764,193
Total Shareholders’ Equity		3,414,604		2,858,019
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,138,415	$	6,622,212

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2014 and 2013

	4th 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	$	211,916		$	250,118		$	(38,202	)
Natural gas liquids		20,293			27,096			(6,803	)
Natural gas		54,538			51,357			3,181
Total	$	286,747		$	328,571		$	(41,824	)
Loss on sale of assets and other	$	(833	)	$	(489	)	$	(344	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	230,490		$	20,600		$	209,890
Natural gas liquids		(1,316	)		556			(1,872	)
Natural gas		32,286			(20,529	)		52,815
Total	$	261,460		$	627		$	260,833
Closed gains (losses) on derivative instruments
Oil	$	50,945		$	(13,593	)	$	64,538
Natural gas liquids		4,990			2,342			2,648
Natural gas		8,126			12,504			(4,378	)
Total	$	64,061		$	1,253		$	62,808
Total Revenues	$	611,435		$	329,962		$	281,473
Production volumes from continuing operations
Oil (MBbl)		3,213			2,694			519
Natural gas liquids (MMgal)		43.1			37.3			5.8
Natural gas (MMcf)		14,646			14,676			(30	)
Production volumes from continuing operations (MBOE)		6,681			6,028			653
Total production volumes (MBOE)		6,681			6,203			478
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	81.81		$	87.80		$	(5.99	)
Natural gas liquids (per gallon)	$	0.59		$	0.79		$	(0.20	)
Natural gas (per Mcf)	$	4.28		$	4.35		$	(0.07	)
Average realized prices excluding derivative instruments
Oil (per barrel)	$	65.96		$	92.84		$	(26.88	)
Natural gas liquids (per gallon)	$	0.47		$	0.73		$	(0.26	)
Natural gas (per Mcf)	$	3.72		$	3.50		$	0.22
Other costs per BOE from continuing operations
Oil, natural gas liquids and natural gas production expenses	$	11.16		$	11.04		$	0.12
Production and ad valorem taxes	$	3.14		$	4.15		$	(1.01	)
Depreciation, depletion and amortization	$	22.08		$	19.96		$	2.12
Exploration expense	$	1.03		$	1.15		$	(0.12	)
General and administrative	$	4.27		$	4.50		$	(0.23	)
Capital expenditures	$	425,045		$	212,054		$	212,991

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 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	$	988,868		$	961,055		$	27,813
Natural gas liquids		110,918			91,407			19,511
Natural gas		244,408			203,855			40,553
Total	$	1,344,194		$	1,256,317		$	87,877
Loss on sale of assets and other	$	(2,642	)	$	(981	)	$	(1,661	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	271,200		$	(43,261	)	$	314,461
Natural gas liquids		287			(652	)		939
Natural gas		43,958			(3,919	)		47,877
Total	$	315,445		$	(47,832	)	$	363,277
Closed gains (losses) on derivative instruments
Oil	$	4,377		$	(52,694	)	$	57,071
Natural gas liquids		6,218			10,795			(4,577	)
Natural gas		8,979			39,707			(30,728	)
Total	$	19,574		$	(2,192	)	$	21,766
Total Revenues	$	1,676,571		$	1,205,312		$	471,259
Production volumes from continuing operations
Oil (MBbl)		11,814			10,364			1,450
Natural gas liquids (MMgal)		172.3			135.8			36.5
Natural gas (MMcf)		58,602			58,104			498
Production volumes from continuing operations (MBOE)		25,684			23,281			2,403
Total production volumes (MBOE)		25,849			25,362			487
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	84.07		$	87.65		$	(3.58	)
Natural gas liquids (per gallon)	$	0.68		$	0.75		$	(0.07	)
Natural gas (per Mcf)	$	4.32		$	4.19		$	0.13
Average realized prices excluding derivative instruments
Oil (per barrel)	$	83.70		$	92.73		$	(9.03	)
Natural gas liquids (per gallon)	$	0.64		$	0.67		$	(0.03	)
Natural gas (per Mcf)	$	4.17		$	3.51		$	0.66
Other costs per BOE from continuing operations
Oil, natural gas liquids and natural gas production expenses	$	10.68		$	11.06		$	(0.38	)
Production and ad valorem taxes	$	3.97		$	4.04		$	(0.07	)
Depreciation, depletion and amortization	$	21.17		$	19.32		$	1.85
Exploration expense	$	1.09		$	0.60		$	0.49
General and administrative	$	4.75		$	4.89		$	(0.14	)
Capital expenditures	$	1,376,038		$	1,104,745		$	271,293

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