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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF OPERATIONS (UNAUDITED)

For the 3 months ending December 31, 2017 and 2016

	4th Quarter
(in thousands, except per share data)	2017			2016			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	343,226		$	162,992		$	180,234
Loss on derivative instruments, net		(71,430	)		(48,472	)		(22,958	)
Total revenues		271,796			114,520			157,276
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		53,951			38,867			15,084
Production and ad valorem taxes		18,083			9,516			8,567
Depreciation, depletion and amortization		130,419			103,397			27,022
Asset impairment		82			40			42
Exploration		3,816			3,635			181
General and administrative(including stock-based compensation of $4,301 and $5,148 for the three months ended December 31, 2017, and 2016, respectively)		23,158			20,906			2,252
Accretion of discount on asset retirement obligations		1,501			1,580			(79	)
(Gain) loss on sale of assets and other, net		(6,031	)		5,175			(11,206	)
Total operating costs and expenses		224,979			183,116			41,863
Operating Income (Loss)		46,817			(68,596	)		115,413
Other Income (Expense)
Interest expense		(10,327	)		(9,041	)		(1,286	)
Other income		131			398			(267	)
Total other expense		(10,196	)		(8,643	)		(1,553	)
Income (Loss) Before Income Taxes		36,621			(77,239	)		113,860
Income tax benefit		(225,809	)		(22,769	)		(203,040	)
Net Income (Loss)	$	262,430		$	(54,470	)	$	316,900
Diluted Earnings Per Average Common Share	$	2.68		$	(0.56	)	$	3.24
Basic Earnings Per Average Common Share	$	2.70		$	(0.56	)	$	3.26
Diluted Average Common Shares Outstanding		97,831			97,074			757
Basic Average Common Shares Outstanding		97,202			97,074			128

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CONSOLIDATED STATEMENTSOF OPERATIONS (UNAUDITED)

For the 12 months ending December 31, 2017 and 2016

	Year-to-date
(in thousands, except per share data)	2017			2016			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	987,438		$	621,366		$	366,072
Loss on derivative instruments, net		(26,393	)		(88,477	)		62,084
Total revenues		961,045			532,889			428,156
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		183,697			171,714			11,983
Production and ad valorem taxes		59,447			42,938			16,509
Depreciation, depletion and amortization		483,376			447,961			35,415
Asset impairment		1,671			220,652			(218,981	)
Exploration		10,075			5,415			4,660
General and administrative(including stock-based compensation of $15,402 and $19,641 for the years ended December 31, 2017, and 2016, respectively)		84,823			95,689			(10,866	)
Accretion of discount on asset retirement obligations		5,831			6,672			(841	)
Gain on sale of assets and other, net		(13,011	)		(246,922	)		233,911
Total operating costs and expenses		815,909			744,119			71,790
Operating Income (Loss)		145,136			(211,230	)		356,366
Other Income (Expense)
Interest expense		(38,366	)		(36,899	)		(1,467	)
Other income		617			978			(361	)
Total other expense		(37,749	)		(35,921	)		(1,828	)
Income (Loss) Before Income Taxes		107,387			(247,151	)		354,538
Income tax benefit		(199,441	)		(79,638	)		(119,803	)
Net Income (Loss)	$	306,828		$	(167,513	)	$	474,341
Diluted Earnings Per Average Common Share	$	3.14		$	(1.77	)	$	4.91
Basic Earnings Per Average Common Share	$	3.16		$	(1.77	)	$	4.93
Diluted Average Common Shares Outstanding		97,707			94,476			3,231
Basic Average Common Shares Outstanding		97,182			94,476			2,706

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2017 and 2016

(in thousands)	December 31, 2017		December 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	439	$	386,093
Accounts receivable, net		158,787		73,322
Inventories, net		13,177		14,222
Derivative instruments		—		50
Income tax receivable		6,905		27,153
Prepayments and other		12,085		5,071
Total current assets		191,393		505,911
Property, Plant and Equipment
Oil and natural gas properties, net		4,718,939		4,016,683
Other property and equipment, net		44,581		44,869
Total property, plant and equipment, net		4,763,520		4,061,552
Other postretirement assets		2,646		3,619
Noncurrent derivative instruments		70,716		—
Other assets		5,620		8,741
TOTAL ASSETS	$	5,033,895	$	4,579,823
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	—	$	24,000
Accounts payable		75,167		65,031
Accrued taxes		2,631		7,252
Accrued wages and benefits		26,170		25,089
Accrued capital costs		74,909		79,988
Revenue and royalty payable		54,072		51,217
Derivative instruments		71,379		65,467
Other		17,916		20,160
Total current liabilities		322,244		338,204
Long-term debt		782,861		527,443
Asset retirement obligations		88,378		81,544
Noncurrent derivative instruments		8,886		3,006
Deferred income taxes		387,807		495,888
Other long-term liabilities		5,262		13,136
Total liabilities		1,595,438		1,459,221
Total Shareholders’ Equity		3,438,457		3,120,602
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,033,895	$	4,579,823

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2017 and 2016

	4th Quarter
(in thousands, except sales price and per unit data)	2017			2016			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	281,818		$	134,112		$	147,706
Natural gas liquids		38,522			14,068			24,454
Natural gas		22,886			14,812			8,074
Total	$	343,226		$	162,992		$	180,234
Opennon-cashmark-to-market gains (losses) on derivative instruments
Oil	$	(53,388	)	$	(23,704	)	$	(29,684	)
Natural gas liquids		(4,863	)		(5,914	)		1,051
Natural gas		54			(5,712	)		5,766
Total	$	(58,197	)	$	(35,330	)	$	(22,867	)
Closed gains (losses) on derivative instruments
Oil	$	(10,894	)	$	(12,380	)	$	1,486
Natural gas liquids		(4,312	)		—			(4,312	)
Natural gas		1,973			(762	)		2,735
Total	$	(13,233	)	$	(13,142	)	$	(91	)
Total revenues	$	271,796		$	114,520		$	157,276
Production volumes
Oil (MBbl)		5,343			2,944			2,399
Natural gas liquids (MMgal)		74.8			37.5			37.3
Natural gas (MMcf)		11,028			6,504			4,524
Total production volumes (MBOE)		8,961			4,920			4,041
Average daily production volumes
Oil (MBbl/d)		58.1			32.0			26.1
Natural gas liquids (MMgal/d)		0.8			0.4			0.4
Natural gas (MMcf/d)		119.9			70.7			49.2
Total average daily production volumes (MBOE/d)		97.4			53.5			43.9
Average realized prices excluding effects of opennon-cashmark-to-market derivative instruments
Oil (per barrel)	$	50.71		$	41.35		$	9.36
Natural gas liquids (per gallon)	$	0.46		$	0.38		$	0.08
Natural gas (per Mcf)	$	2.25		$	2.16		$	0.09
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	52.75		$	45.55		$	7.20
Natural gas liquids (per gallon)	$	0.52		$	0.38		$	0.14
Natural gas (per Mcf)	$	2.08		$	2.28		$	(0.20	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	6.02		$	7.90		$	(1.88	)
Production and ad valorem taxes	$	2.02		$	1.93		$	0.09
Depreciation, depletion and amortization	$	14.55		$	21.02		$	(6.47	)
Exploration expense	$	0.43		$	0.74		$	(0.31	)
General and administrative	$	2.58		$	4.25		$	(1.67	)
Capital expenditures (including acquisitions)	$	217,475		$	154,455		$	63,020

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2017 and 2016

	Year-to-date
(in thousands, except sales price and per unit data)	2017			2016			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	814,470		$	521,017		$	293,453
Natural gas liquids		98,298			48,652			49,646
Natural gas		74,670			51,697			22,973
Total	$	987,438		$	621,366		$	366,072
Opennon-cashmark-to-market gains (losses) on derivative instruments
Oil	$	(10,658	)	$	(57,148	)	$	46,490
Natural gas liquids		(9,011	)		(6,868	)		(2,143	)
Natural gas		8,910			(7,174	)		16,084
Total	$	(10,759	)	$	(71,190	)	$	60,431
Closed gains (losses) on derivative instruments
Oil	$	(11,364	)	$	(17,701	)	$	6,337
Natural gas liquids		(7,780	)		—			(7,780	)
Natural gas		3,510			414			3,096
Total	$	(15,634	)	$	(17,287	)	$	1,653
Total revenues	$	961,045		$	532,889		$	428,156
Production volumes
Oil (MBbl)		16,951			13,213			3,738
Natural gas liquids (MMgal)		220.7			163.5			57.2
Natural gas (MMcf)		33,528			27,204			6,324
Total production volumes (MBOE)		27,794			21,639			6,155
Average daily production volumes
Oil (MBbl/d)		46.4			36.1			10.3
Natural gas liquids (MMgal/d)		0.6			0.4			0.2
Natural gas (MMcf/d)		91.9			74.3			17.6
Total average daily production volumes (MBOE/d)		76.1			59.1			17.0
Average realized prices excluding effects of opennon-cashmark-to-market derivative instruments
Oil (per barrel)	$	47.38		$	38.09		$	9.29
Natural gas liquids (per gallon)	$	0.41		$	0.30		$	0.11
Natural gas (per Mcf)	$	2.33		$	1.92		$	0.41
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	48.05		$	39.43		$	8.62
Natural gas liquids (per gallon)	$	0.45		$	0.30		$	0.15
Natural gas (per Mcf)	$	2.23		$	1.90		$	0.33
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	6.61		$	7.94		$	(1.33	)
Production and ad valorem taxes	$	2.14		$	1.98		$	0.16
Depreciation, depletion and amortization	$	17.39		$	20.70		$	(3.31	)
Exploration expense	$	0.36		$	0.25		$	0.11
General and administrative	$	3.05		$	4.42		$	(1.37	)
Capital expenditures (includes acquisitions)	$	1,189,342		$	582,898		$	606,444

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