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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 3 months ending September 30, 2016 and 2015

	3rd Quarter
(in thousands, except per share data)	2016			2015			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	163,973		$	188,398		$	(24,425	)
Gain on derivative instruments, net		20,412			107,173			(86,761	)
Total revenues		184,385			295,571			(111,186	)
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		42,280			54,598			(12,318	)
Production and ad valorem taxes		10,987			13,366			(2,379	)
Depreciation, depletion and amortization		108,167			149,781			(41,614	)
Asset impairment		587			399,394			(398,807	)
Exploration		18			493			(475	)
General and administrative(including non-cash stock based compensation of $6,518 and $933 for the three months ended Sept. 30, 2016, and 2015, respectively)		21,710			23,631			(1,921	)
Accretion of discount on asset retirement obligations		1,556			1,700			(144	)
(Gain) loss on sale of assets and other		(91,222	)		822			(92,044	)
Total operating costs and expenses		94,083			643,785			(549,702	)
Operating Income (Loss)		90,302			(348,214	)		438,516
Other Income (Expense)
Interest expense		(8,987	)		(10,084	)		1,097
Other income		421			56			365
Total other expense		(8,566	)		(10,028	)		1,462
Income (Loss) Before Income Taxes		81,736			(358,242	)		439,978
Income tax expense (benefit)		28,422			(130,338	)		158,760
Net Income (Loss)	$	53,314		$	(227,904	)	$	281,218
Diluted Earnings Per Average Common Share	$	0.55		$	(2.89	)	$	3.44
Basic Earnings Per Average Common Share	$	0.55		$	(2.89	)	$	3.44
Diluted Average Common Shares Outstanding		97,511			78,742			18,769
Basic Average Common Shares Outstanding		97,068			78,742			18,326
Dividends Per Common Share	$	—		$	0.02		$	(0.02	)

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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

For the 9 months ending September 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	$	458,374		$	595,510		$	(137,136	)
Gain (loss) on derivative instruments, net		(40,005	)		90,245			(130,250	)
Total revenues		418,369			685,755			(267,386	)
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		132,847			175,933			(43,086	)
Production and ad valorem taxes		33,422			45,783			(12,361	)
Depreciation, depletion and amortization		344,564			434,005			(89,441	)
Asset impairment		220,612			466,390			(245,778	)
Exploration		1,780			12,274			(10,494	)
General and administrative(including non-cash stock based compensation of $14,493 and $12,040 for the nine months ended Sept. 30, 2016, and 2015, respectively)		74,783			94,338			(19,555	)
Accretion of discount on asset retirement obligations		5,092			5,379			(287	)
Gain on sale of assets and other		(252,097	)		(26,046	)		(226,051	)
Total operating costs and expenses		561,003			1,208,056			(647,053	)
Operating Loss		(142,634	)		(522,301	)		379,667
Other Income (Expense)
Interest expense		(27,858	)		(33,086	)		5,228
Other income		580			143			437
Total other expense		(27,278	)		(32,943	)		5,665
Loss Before Income Taxes		(169,912	)		(555,244	)		385,332
Income tax benefit		(56,869	)		(200,319	)		143,450
Net Loss	$	(113,043	)	$	(354,925	)	$	241,882
Diluted Earnings Per Average Common Share	$	(1.21	)	$	(4.72	)	$	3.51
Basic Earnings Per Average Common Share	$	(1.21	)	$	(4.72	)	$	3.51
Diluted Average Common Shares Outstanding		93,602			75,125			18,477
Basic Average Common Shares Outstanding		93,602			75,125			18,477
Dividends Per Common Share	$	—		$	0.06		$	(0.06	)

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of September 30, 2016 and December 31, 2015

(in thousands)	September 30, 2016		December 31, 2015
ASSETS
Current Assets
Cash and cash equivalents	$	447,925	$	1,272
Accounts receivable, net		72,587		63,097
Inventories		14,159		11,255
Assets held for sale		—		93,739
Derivative instruments		3,653		56,963
Prepayments and other		6,240		20,014
Total current assets		544,564		246,340
Property, Plant and Equipment
Oil and natural gas properties, net		3,965,358		4,302,332
Other property and equipment, net		45,198		48,358
Total property, plant and equipment, net		4,010,556		4,350,690
Other postretirement assets		4,350		3,881
Other assets		9,654		10,245
TOTAL ASSETS	$	4,569,124	$	4,611,156
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year		19,000		—
Accounts payable		56,221		64,742
Accrued taxes		35,071		5,801
Accrued wages and benefits		20,000		28,563
Accrued capital costs		56,858		79,206
Revenue and royalty payable		52,241		60,493
Liabilities related to assets held for sale		—		12,789
Pension liabilities		—		15,685
Derivative instruments		24,909		459
Other		14,421		19,783
Total current liabilities		278,721		287,521
Long-term debt		532,343		773,550
Asset retirement obligations		92,937		89,990
Deferred income taxes		475,239		552,369
Noncurrent derivative instruments		6,043		—
Other long-term liabilities		11,714		11,866
Total liabilities		1,396,997		1,715,296
Total Shareholders’ Equity		3,172,127		2,895,860
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,569,124	$	4,611,156

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2016 and 2015

	3rd 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	$	138,388		$	160,531		$	(22,143	)
Natural gas liquids		12,067			11,001			1,066
Natural gas		13,518			16,866			(3,348	)
Total	$	163,973		$	188,398		$	(24,425	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	22,984		$	5,760		$	17,224
Natural gas liquids		(954	)		—			(954	)
Natural gas		2,992			(6,924	)		9,916
Total	$	25,022		$	(1,164	)	$	26,186
Closed gains (losses) on derivative instruments
Oil	$	(4,118	)	$	98,072		$	(102,190	)
Natural gas		(492	)		10,265			(10,757	)
Total	$	(4,610	)	$	108,337		$	(112,947	)
Total revenues	$	184,385		$	295,571		$	(111,186	)
Production volumes
Oil (MBbl)		3,325			3,610			(285	)
Natural gas liquids (MMgal)		41.2			44.4			(3.2	)
Natural gas (MMcf)		5,958			7,362			(1,404	)
Total production volumes (MBOE)		5,298			5,893			(595	)
Average daily production volumes Oil (MBbl/d)		36.1			39.2			(3.1	)
Natural gas liquids (MMgal/d)		0.4			0.5			(0.1	)
Natural gas (MMcf/d)		64.8			80.0			(15.2	)
Total average daily production volumes (MBOE/d)		57.6			64.1			(6.5	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	40.38		$	71.64		$	(31.26	)
Natural gas liquids (per gallon)	$	0.29		$	0.25		$	0.04
Natural gas (per Mcf)	$	2.19		$	3.69		$	(1.50	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	41.62		$	44.47		$	(2.85	)
Natural gas liquids (per gallon)	$	0.29		$	0.25		$	0.04
Natural gas (per Mcf)	$	2.27		$	2.29		$	(0.02	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	7.98		$	9.26		$	(1.28	)
Production and ad valorem taxes	$	2.07		$	2.27		$	(0.20	)
Depreciation, depletion and amortization	$	20.42		$	25.42		$	(5.00	)
Exploration expense	$	—		$	0.08		$	(0.08	)
General and administrative	$	4.10		$	4.01		$	0.09
Capital expenditures	$	211,393		$	240,516		$	(29,123	)

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 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	$	386,905		$	491,158		$	(104,253	)
Natural gas liquids		34,584			36,616			(2,032	)
Natural gas		36,885			67,736			(30,851	)
Total	$	458,374		$	595,510		$	(137,136	)
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(33,444	)	$	(149,743	)	$	116,299
Natural gas liquids		(954	)		—			(954	)
Natural gas		(1,462	)		(27,939	)		26,477
Total	$	(35,860	)	$	(177,682	)	$	141,822
Closed gains (losses) on derivative instruments
Oil	$	(5,321	)	$	230,885		$	(236,206	)
Natural gas		1,176			37,042			(35,866	)
Total	$	(4,145	)	$	267,927		$	(272,072	)
Total revenues	$	418,369		$	685,755		$	(267,386	)
Production volumes
Oil (MBbl)		10,269			10,439			(170	)
Natural gas liquids (MMgal)		126.0			125.5			0.5
Natural gas (MMcf)		20,700			27,774			(7,074	)
Total production volumes (MBOE)		16,719			18,055			(1,336	)
Average daily production volumes
Oil (MBbl/d)		37.5			38.2			(0.7	)
Natural gas liquids (MMgal/d)		0.5			0.5			—
Natural gas (MMcf/d)		75.5			101.7			(26.2	)
Total average daily production volumes (MBOE/d)		61.0			66.1			(5.1	)
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	37.16		$	69.17		$	(32.01	)
Natural gas liquids (per gallon)	$	0.27		$	0.29		$	(0.02	)
Natural gas (per Mcf)	$	1.84		$	3.77		$	(1.93	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	37.68		$	47.05		$	(9.37	)
Natural gas liquids (per gallon)	$	0.27		$	0.29		$	(0.02	)
Natural gas (per Mcf)	$	1.78		$	2.44		$	(0.66	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	7.94		$	9.74		$	(1.80	)
Production and ad valorem taxes	$	2.00		$	2.54		$	(0.54	)
Depreciation, depletion and amortization	$	20.61		$	24.04		$	(3.43	)
Exploration expense	$	0.11		$	0.68		$	(0.57	)
General and administrative	$	4.47		$	5.23		$	(0.76	)
Capital expenditures	$	428,443		$	918,798		$	(490,355	)

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