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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending December 31, 2015 and 2014

	4th Quarter
(in thousands, except per share data)	2015			2014			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	167,751		$	286,747		$	(118,996	)
Gain on derivative instruments, net		25,048			325,521			(300,473	)
Total revenues		192,799			612,268			(419,469	)
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		52,447			74,571			(22,124	)
Production and ad valorem taxes		11,597			20,961			(9,364	)
Depreciation, depletion and amortization		159,784			148,996			10,788
Asset impairment		825,918			235,301			590,617
Exploration		2,604			6,872			(4,268	)
General and administrative		54,794			28,553			26,241
Accretion of discount on asset retirement obligations		1,729			1,958			(229	)
(Gain) loss on sale of assets and other		(524	)		833			(1,357	)
Total operating costs and expenses		1,108,349			518,045			590,304
Operating Income (Loss)		(915,550	)		94,223			(1,009,773	)
Other Income (Expense)
Interest expense		(10,022	)		(10,397	)		375
Other income		80			134			(54	)
Total other expense		(9,942	)		(10,263	)		321
Income (Loss) From Continuing Operations Before Income Taxes		(925,492	)		83,960			(1,009,452	)
Income tax expense (benefit)		(334,686	)		17,441			(352,127	)
Income (Loss) From Continuing Operations		(590,806	)		66,519			(657,325	)
Discontinued Operations, net of tax
Loss from discontinued operations		—			(1,143	)		1,143
Gain on disposal of discontinued operations, net		—			42			(42	)
Loss From Discontinued Operations		—			(1,101	)		1,101
Net Income (Loss)	$	(590,806	)	$	65,418		$	(656,224	)
Diluted Earnings Per Average Common Share
Continuing operations	$	(7.50	)	$	0.91		$	(8.41	)
Discontinued operations		—			(0.02	)		0.02
Net Income (Loss)	$	(7.50	)	$	0.89		$	(8.39	)
Basic Earnings Per Average Common Share
Continuing operations	$	(7.50	)		0.91		$	(8.41	)
Discontinued operations		—			(0.01	)		0.01
Net Income (Loss)	$	(7.50	)	$	0.90		$	(8.40	)
Diluted Avg. Common Shares Outstanding		78,783			73,343			5,440
Basic Avg. Common Shares Outstanding		78,783			72,988			5,795
Dividends Per Common Share	$	0.02		$	0.02		$	0.0

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 12 months ending December 31, 2015 and 2014

	Year-to-date
(in thousands, except per share data)	2015			2014			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	763,261		$	1,344,194		$	(580,933	)
Gain on derivative instruments, net		115,293			335,019			(219,726	)
Total revenues		878,554			1,679,213			(800,659	)
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		228,380			274,432			(46,052	)
Production and ad valorem taxes		57,380			102,063			(44,683	)
Depreciation, depletion and amortization		593,789			548,564			45,225
Asset impairment		1,292,308			416,801			875,507
Exploration		14,878			28,090			(13,212	)
General and administrative		149,132			122,052			27,080
Accretion of discount on asset retirement obligations		7,108			7,608			(500	)
(Gain) loss on sale of assets and other		(26,570	)		2,642			(29,212	)
Total operating costs and expenses		2,316,405			1,502,252			814,153
Operating Income (Loss)		(1,437,851	)		176,961			(1,614,812	)
Other Income (Expense)
Interest expense		(43,108	)		(37,771	)		(5,337	)
Other income		223			1,181			(958	)
Total other expense		(42,885	)		(36,590	)		(6,295	)
Income (Loss) From Continuing Operations Before Income Taxes		(1,480,736	)		140,371			(1,621,107	)
Income tax expense (benefit)		(535,005	)		40,728			(575,733	)
Income (Loss) From Continuing Operations		(945,731	)		99,643			(1,045,374	)
Discontinued Operations, net of tax
Income from discontinued operations		—			29,292			(29,292	)
Gain on disposal of discontinued operations, net		—			439,097			(439,097	)
Income From Discontinued Operations		—			468,389			(468,389	)
Net Income (Loss)	$	(945,731	)	$	568,032		$	(1,513,763	)
Diluted Earnings Per Average Common Share
Continuing operations	$	(12.43	)	$	1.36		$	(13.79	)
Discontinued operations		—			6.39			(6.39	)
Net Income (Loss)	$	(12.43	)	$	7.75		$	(20.18	)
Basic Earnings Per Average Common Share
Continuing operations	$	(12.43	)	$	1.37		$	(13.80	)
Discontinued operations		—			6.42			(6.42	)
Net Income (Loss)	$	(12.43	)	$	7.79		$	(20.22	)
Diluted Avg. Common Shares Outstanding		76,078			73,275			2,803
Basic Avg. Common Shares Outstanding		76,078			72,897			3,181
Dividends Per Common Share	$	0.08		$	0.47		$	(0.39	)

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2015 and December 31, 2014

(in thousands)	December 31, 2015		December 31, 2014
ASSETS
Current Assets
Cash and cash equivalents	$	1,272	$	1,852
Accounts receivable, net		63,097		157,678
Inventories		11,255		14,251
Assets held for sale		93,739		395,797
Derivative instruments		56,963		322,337
Prepayments and other		20,014		27,445
Total current assets		246,340		919,360
Property, Plant and Equipment
Oil and natural gas properties, net		4,302,332		5,152,748
Other property and equipment, net		48,358		46,389
Total property, plant and equipment, net		4,350,690		5,199,137
Other postretirement assets		3,881		—
Other assets		12,782		19,761
TOTAL ASSETS	$	4,613,693	$	6,138,258
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	64,742	$	101,453
Accrued taxes		5,801		5,530
Accrued wages and benefits		28,563		21,553
Accrued capital costs		79,206		207,461
Revenue and royalty payable		60,493		72,047
Liabilities related to assets held for sale		12,789		24,230
Pension liabilities		15,685		24,609
Deferred income taxes		—		79,164
Derivative instruments		459		988
Other		19,783		23,288
Total current liabilities		287,521		560,323
Long-term debt		776,087		1,038,563
Asset retirement obligations		89,990		94,060
Pension and other postretirement liabilities		—		15,935
Deferred income taxes		552,369		1,000,486
Other long-term liabilities		11,866		14,287
Total liabilities		1,717,833		2,723,654
Total Shareholders’ Equity		2,895,860		3,414,604
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,613,693	$	6,138,258

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2015 and 2014

	4th Quarter
(in thousands, except sales price and per unit data)	2015			2014			Change
Operating and production data from continuing operations
Oil, natural gas liquids and natural gas sales
Oil	$	140,505		$	211,916		$	(71,411	)
Natural gas liquids		12,240			20,293			(8,053	)
Natural gas		15,006			54,538			(39,532	)
Total	$	167,751		$	286,747		$	(118,996	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(92,484	)	$	230,490		$	(322,974	)
Natural gas liquids		—			(1,316	)		1,316
Natural gas		(11,586	)		32,286			(43,872	)
Total	$	(104,070	)	$	261,460		$	(365,530	)
Closed gains (losses) on derivative instruments
Oil	$	115,519		$	50,945		$	64,574
Natural gas liquids		—			4,990			(4,990	)
Natural gas		13,599			8,126			5,473
Total	$	129,118		$	64,061		$	65,057
Total revenues	$	192,799		$	612,268		$	(419,469	)
Production volumes
Oil (MBbl)		3,584			3,213			371
Natural gas liquids (MMgal)		45.3			43.1			2.2
Natural gas (MMcf)		7,830			14,646			(6,816	)
Total production volumes (MBOE)		5,967			6,681			(714	)
Average daily production volumes
Oil (MBbl/d)		39.0			34.9			4.1
Natural gas liquids (MMgal/d)		0.5			0.5			—
Natural gas (MMcf/d)		85.1			159.2			(74.1	)
Total average daily production volumes (MBOE/d)		64.9			72.6			(7.7	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	71.44		$	81.81		$	(10.37	)
Natural gas liquids (per gallon)	$	0.27		$	0.59		$	(0.32	)
Natural gas (per Mcf)	$	3.65		$	4.28		$	(0.63	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	39.20		$	65.96		$	(26.76	)
Natural gas liquids (per gallon)	$	0.27		$	0.47		$	(0.20	)
Natural gas (per Mcf)	$	1.92		$	3.72		$	(1.80	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	8.79		$	11.16		$	(2.37	)
Production and ad valorem taxes	$	1.94		$	3.14		$	(1.20	)
Depreciation, depletion and amortization	$	26.54		$	22.08		$	4.46
Exploration expense	$	0.44		$	1.03		$	(0.59	)
General and administrative*	$	9.18		$	4.27		$	4.91
Net capital expenditures	$	149,119		$	425,045		$	(275,926	)

* Includes pension and pension settlement expenses of $4.40 and $0.83 for the three months ended December 31, 2015 and 2014, respectively.

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2015 and 2014

	Year-to-date
(in thousands, except sales price and per unit data)	2015			2014		Change
Operating and production data from continuing operations
Oil, natural gas liquids and natural gas sales
Oil	$	631,663		$	988,868	$	(357,205	)
Natural gas liquids		48,856			110,918		(62,062	)
Natural gas		82,742			244,408		(161,666	)
Total	$	763,261		$	1,344,194	$	(580,933	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(242,227	)	$	271,200	$	(513,427	)
Natural gas liquids		—			287		(287	)
Natural gas		(39,525	)		43,958		(83,483	)
Total	$	(281,752	)	$	315,445	$	(597,197	)
Closed gains (losses) on derivative instruments
Oil	$	346,404		$	4,377	$	342,027
Natural gas liquids		—			6,218		(6,218	)
Natural gas		50,641			8,979		41,662
Total	$	397,045		$	19,574	$	377,471
Total revenues	$	878,554		$	1,679,213	$	(800,659	)
Production volumes
Oil (MBbl)		14,023			11,814		2,209
Natural gas liquids (MMgal)		170.7			172.3		(1.6	)
Natural gas (MMcf)		35,604			58,602		(22,998	)
Total production volumes (MBOE)		24,022			25,684		(1,662	)
Average daily production volumes
Oil (MBbl/d)		38.4			32.4		6.0
Natural gas liquids (MMgal/d)		0.5			0.5		—
Natural gas (MMcf/d)		97.5			160.6		(63.1	)
Total average daily production volumes (MBOE/d)		65.8			70.4		(4.6	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	69.75		$	84.07	$	(14.32	)
Natural gas liquids (per gallon)	$	0.29		$	0.68	$	(0.39	)
Natural gas (per Mcf)	$	3.75		$	4.32	$	(0.57	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	45.04		$	83.70	$	(38.66	)
Natural gas liquids (per gallon)	$	0.29		$	0.64	$	(0.35	)
Natural gas (per Mcf)	$	2.32		$	4.17	$	(1.85	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	9.51		$	10.68	$	(1.17	)
Production and ad valorem taxes	$	2.39		$	3.97	$	(1.58	)
Depreciation, depletion and amortization	$	24.72		$	21.36	$	3.36
Exploration expense	$	0.62		$	1.09	$	(0.47	)
General and administrative*	$	6.21		$	4.75	$	1.46
Net capital expenditures	$	1,040,610		$	1,372,510	$	(331,900	)

* Includes pension and pension settlement expenses of $1.30 and $0.74 for the twelve months ended December 31, 2015 and 2014, respectively.