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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending June 30, 2016 and 2015

	2nd Quarter
(in thousands, except per share data)	2016			2015			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	171,637		$	219,290		$	(47,653	)
Loss on derivative instruments, net		(65,872	)		(50,964	)		(14,908	)
Total revenues		105,765			168,326			(62,561	)
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		42,840			53,581			(10,741	)
Production and ad valorem taxes		11,265			13,352			(2,087	)
Depreciation, depletion and amortization		117,035			149,843			(32,808	)
Asset impairment		—			60,413			(60,413	)
Exploration		1,520			11,018			(9,498	)
General and administrative(including non-cash stock based compensation of $5,504 and $6,027 for the three months ended June 30, 2016, and 2015, respectively)		23,548			38,652			(15,104	)
Accretion of discount on asset retirement obligations		1,779			1,669			110
(Gain) loss on sale of assets and other		(161,097	)		1,476			(162,573	)
Total operating costs and expenses		36,890			330,004			(293,114	)
Operating Income (Loss)		68,875			(161,678	)		230,553
Other Income (Expense)
Interest expense		(9,038	)		(11,244	)		2,206
Other income		63			41			22
Total other expense		(8,975	)		(11,203	)		2,228
Income (Loss) Before Income Taxes		59,900			(172,881	)		232,781
Income tax expense (benefit)		23,141			(61,280	)		84,421
Net Income (Loss)	$	36,759		$	(111,601	)	$	148,360
Diluted Earnings Per Average Common Share	$	0.38		$	(1.52	)	$	1.90
Basic Earnings Per Average Common Share	$	0.38		$	(1.52	)	$	1.90
Diluted Average Common Shares Outstanding		97,389			73,452			23,937
Basic Average Common Shares Outstanding		97,067			73,452			23,615
Dividends Per Common Share	$	—		$	0.02		$	(0.02	)

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 6 months ending June 30, 2016 and 2015

	Year-to-date
(in thousands, except per share data)	2016			2015			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	294,401		$	407,112		$	(112,711	)
Loss on derivative instruments, net		(60,417	)		(16,928	)		(43,489	)
Total revenues		233,984			390,184			(156,200	)
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		90,567			121,335			(30,768	)
Production and ad valorem taxes		22,435			32,417			(9,982	)
Depreciation, depletion and amortization		236,397			284,224			(47,827	)
Asset impairment		220,025			66,996			153,029
Exploration		1,762			11,781			(10,019	)
General and administrative(including non-cash stock based compensation of $7,975 and $11,107 for the six months ended June 30, 2016, and 2015, respectively)		53,073			70,707			(17,634	)
Accretion of discount on asset retirement obligations		3,536			3,679			(143	)
Gain (loss) on sale of assets and other		(160,875	)		(26,868	)		(134,007	)
Total operating costs and expenses		466,920			564,271			(97,351	)
Operating Loss		(232,936	)		(174,087	)		(58,849	)
Other Income (Expense)
Interest expense		(18,871	)		(23,002	)		4,131
Other income		159			87			72
Total other expense		(18,712	)		(22,915	)		4,203
Loss Before Income Taxes		(251,648	)		(197,002	)		(54,646	)
Income tax benefit		(85,291	)		(69,981	)		(15,310	)
Net Loss	$	(166,357	)	$	(127,021	)	$	(39,336	)
Diluted Earnings Per Average Common Share	$	(1.81	)	$	(1.74	)	$	(0.07	)
Basic Earnings Per Average Common Share	$	(1.81	)	$	(1.74	)	$	(0.07	)
Diluted Average Common Shares Outstanding		91,850			73,143			18,707
Basic Average Common Shares Outstanding		91,850			73,143			18,707
Dividends Per Common Share	$	—		$	0.04		$	(0.04	)

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of June 30, 2016 and December 31, 2015

(in thousands)	June 30, 2016		December 31, 2015
ASSETS
Current Assets
Cash and cash equivalents	$	309,889	$	1,272
Accounts receivable, net		76,119		63,097
Inventories		12,596		11,255
Assets held for sale		176,914		93,739
Derivative instruments		3,235		56,963
Prepayments and other		7,087		20,014
Total current assets		585,840		246,340
Property, Plant and Equipment
Oil and natural gas properties, net		3,858,918		4,302,332
Other property and equipment, net		45,755		48,358
Total property, plant and equipment, net		3,904,673		4,350,690
Other postretirement assets		4,358		3,881
Other assets		9,866		10,245
TOTAL ASSETS	$	4,504,737	$	4,611,156
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable		53,108		64,742
Accrued taxes		16,684		5,801
Accrued wages and benefits		13,386		28,563
Accrued capital costs		40,347		79,206
Revenue and royalty payable		57,979		60,493
Liabilities related to assets held for sale		13,279		12,789
Pension liabilities		—		15,685
Derivative instruments		46,452		459
Other		19,344		19,783
Total current liabilities		260,579		287,521
Long-term debt		551,245		773,550
Asset retirement obligations		91,473		89,990
Deferred income taxes		460,424		552,369
Noncurrent derivative instruments		12,875		—
Other long-term liabilities		11,910		11,866
Total liabilities		1,388,506		1,715,296
Total Shareholders’ Equity		3,116,231		2,895,860
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,504,737	$	4,611,156

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending June 30, 2016 and 2015

	2nd Quarter
(in thousands, except sales price and per unit data)	2016			2015			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	146,360		$	188,599		$	(42,239	)
Natural gas liquids		13,928			14,781			(853	)
Natural gas		11,349			15,910			(4,561	)
Total	$	171,637		$	219,290		$	(47,653	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(54,729	)	$	(103,734	)	$	49,005
Natural gas		(5,896	)		(13,133	)		7,237
Total	$	(60,625	)	$	(116,867	)	$	56,242
Closed gains (losses) on derivative instruments
Oil	$	(6,297	)	$	55,330		$	(61,627	)
Natural gas		1,050			10,573			(9,523	)
Total	$	(5,247	)	$	65,903		$	(71,150	)
Total revenues	$	105,765		$	168,326		$	(62,561	)
Production volumes
Oil (MBbl)		3,558			3,594			(36	)
Natural gas liquids (MMgal)		44.8			44.9			(0.1	)
Natural gas (MMcf)		7,296			7,134			162
Total production volumes (MBOE)		5,841			5,853			(12	)
Average daily production volumes
Oil (MBbl/d)		39.1			39.5			(0.4	)
Natural gas liquids (MMgal/d)		0.5			0.5			—
Natural gas (MMcf/d)		80.2			78.4			1.8
Total average daily production volumes (MBOE/d)		64.2			64.3			(0.1	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	39.37		$	67.87		$	(28.50	)
Natural gas liquids (per gallon)	$	0.31		$	0.33		$	(0.02	)
Natural gas (per Mcf)	$	1.70		$	3.71		$	(2.01	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	41.14		$	52.48		$	(11.34	)
Natural gas liquids (per gallon)	$	0.31		$	0.33		$	(0.02	)
Natural gas (per Mcf)	$	1.56		$	2.23		$	(0.67	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	7.34		$	9.15		$	(1.81	)
Production and ad valorem taxes	$	1.93		$	2.28		$	(0.35	)
Depreciation, depletion and amortization	$	20.04		$	25.60		$	(5.56	)
Exploration expense	$	0.26		$	1.88		$	(1.62	)
General and administrative	$	4.03		$	6.60		$	(2.57	)
Capital expenditures	$	92,962		$	300,178		$	(207,216	)

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 6 months ending June 30, 2016 and 2015

	Year-to-Date
(in thousands, except sales price and per unit data)	2016			2015			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	248,517		$	330,627		$	(82,110	)
Natural gas liquids		22,517			25,615			(3,098	)
Natural gas		23,367			50,870			(27,503	)
Total	$	294,401		$	407,112		$	(112,711	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(56,428	)	$	(155,503	)	$	99,075
Natural gas		(4,454	)		(21,015	)		16,561
Total	$	(60,882	)	$	(176,518	)	$	115,636
Closed gains (losses) on derivative instruments
Oil	$	(1,203	)	$	132,813		$	(134,016	)
Natural gas		1,668			26,777			(25,109	)
Total	$	465		$	159,590		$	(159,125	)
Total revenues	$	233,984		$	390,184		$	(156,200	)
Production volumes
Oil (MBbl)		6,944			6,829			115
Natural gas liquids (MMgal)		84.8			81.1			3.7
Natural gas (MMcf)		14,742			20,412			(5,670	)
Total production volumes (MBOE)		11,421			12,162			(741	)
Average daily production volumes
Oil (MBbl/d)		38.2			37.7			0.5
Natural gas liquids (MMgal/d)		0.5			0.5			—
Natural gas (MMcf/d)		81.0			112.8			(31.8	)
Total average daily production volumes (MBOE/d)		62.8			67.2			(4.4	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	35.62		$	67.86		$	(32.24	)
Natural gas liquids (per gallon)	$	0.27		$	0.32		$	(0.05	)
Natural gas (per Mcf)	$	1.70		$	3.80		$	(2.10	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	35.79		$	48.42		$	(12.63	)
Natural gas liquids (per gallon)	$	0.27		$	0.32		$	(0.05	)
Natural gas (per Mcf)	$	1.59		$	2.49		$	(0.90	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	7.93		$	9.98		$	(2.05	)
Production and ad valorem taxes	$	1.96		$	2.67		$	(0.71	)
Depreciation, depletion and amortization	$	20.70		$	23.37		$	(2.67	)
Exploration expense	$	0.15		$	0.97		$	(0.82	)
General and administrative	$	4.65		$	5.81		$	(1.16	)
Capital expenditures	$	217,050		$	678,282		$	(461,232	)