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

Exhibit 99.2

CONSOLIDATED STATEMENTSOF OPERATIONS (UNAUDITED)

For the 3 months ending March 31, 2018 and 2017

	1st Quarter
(in thousands, except per share data)	2018			2017			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	357,866		$	176,375		$	181,491
Gain (loss) on derivative instruments, net		(1,695	)		64,546			(66,241	)
Total revenues		356,171			240,921			115,250
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		52,635			41,288			11,347
Production and ad valorem taxes		22,568			12,820			9,748
Depreciation, depletion and amortization		124,210			99,652			24,558
Asset impairment		177			1,460			(1,283	)
Exploration		1,398			3,636			(2,238	)
General and administrative(including stock-based compensation of $4,145 and $3,197 for the three months ended March 31, 2018 and 2017, respectively)		22,257			20,516			1,741
Accretion of discount on asset retirement obligations		1,533			1,414			119
Gain on sale of assets and other, net		(33,723	)		(1,175	)		(32,548	)
Total operating costs and expenses		191,055			179,611			11,444
Operating Income		165,116			61,310			103,806
Other Income (Expense)
Interest expense		(10,248	)		(9,023	)		(1,225	)
Other income		227			557			(330	)
Total other expense		(10,021	)		(8,466	)		(1,555	)
Income Before Income Taxes		155,095			52,844			102,251
Income tax expense		36,180			19,441			16,739
Net Income	$	118,915		$	33,403		$	85,512
Diluted Earnings Per Average Common Share	$	1.22		$	0.34		$	0.88
Basic Earnings Per Average Common Share	$	1.22		$	0.34		$	0.88
Diluted Average Common Shares Outstanding		97,818			97,607			211
Basic Average Common Shares Outstanding		97,321			97,140			181

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CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2018 and December 31, 2017

(in thousands)	March 31, 2018		December 31, 2017
ASSETS
Current Assets
Cash and cash equivalents	$	600	$	439
Accounts receivable, net		150,813		158,787
Inventories, net		19,586		13,177
Derivative instruments		4,984		—
Income tax receivable		6,899		6,905
Prepayments and other		9,773		12,085
Total current assets		192,655		191,393
Property, Plant and Equipment
Oil and natural gas properties, net		4,887,737		4,718,939
Other property and equipment, net		44,427		44,581
Total property, plant and equipment, net		4,932,164		4,763,520
Other postretirement assets		2,627		2,646
Noncurrent derivative instruments		3,261		—
Noncurrent income tax receivable, net		70,716		70,716
Other assets		4,341		5,620
TOTAL ASSETS	$	5,205,764	$	5,033,895
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	104,430	$	75,167
Accrued taxes		6,411		2,631
Accrued wages and benefits		8,936		26,170
Accrued capital costs		111,887		74,909
Revenue and royalty payable		62,517		54,072
Derivative instruments		57,478		71,379
Other		12,239		17,916
Total current liabilities		363,898		322,244
Long-term debt		755,964		782,861
Asset retirement obligations		90,295		88,378
Noncurrent derivative instruments		11,563		8,886
Deferred income taxes		423,228		387,807
Other long-term liabilities		5,969		5,262
Total liabilities		1,650,917		1,595,438
Total Shareholders’ Equity		3,554,847		3,438,457
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,205,764	$	5,033,895

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2018 and 2017

	1st Quarter
(in thousands, except sales price and per unit data)	2018			2017			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	303,995		$	146,670		$	157,325
Natural gas liquids		34,133			15,634			18,499
Natural gas		19,738			14,071			5,667
Total	$	357,866		$	176,375		$	181,491
Opennon-cashmark-to-market gains (losses) on derivative instruments
Oil	$	11,202		$	58,058		$	(46,856	)
Natural gas liquids		5,766			7,087			(1,321	)
Natural gas		1,712			7,224			(5,512	)
Total	$	18,680		$	72,369		$	(53,689	)
Closed gains (losses) on derivative instruments
Oil	$	(16,667	)	$	(6,010	)	$	(10,657	)
Natural gas liquids		(3,981	)		(1,465	)		(2,516	)
Natural gas		273			(348	)		621
Total	$	(20,375	)	$	(7,823	)	$	(12,552	)
Total revenues	$	356,171		$	240,921		$	115,250
Production volumes
Oil (MBbl)		4,984			2,996			1,988
Natural gas liquids (MMgal)		68.8			33.7			35.1
Natural gas (MMcf)		10,422			5,730			4,692
Total production volumes (MBOE)		8,358			4,754			3,604
Average daily production volumes
Oil (MBbl/d)		55.4			33.3			22.1
Natural gas liquids (MMgal/d)		0.8			0.4			0.4
Natural gas (MMcf/d)		115.8			63.7			52.1
Total average daily production volumes (MBOE/d)		92.9			52.8			40.1
Average realized prices excluding effects of opennon-cashmark-to-market derivative instruments
Oil (per barrel)	$	57.65		$	46.95		$	10.7
Natural gas liquids (per gallon)	$	0.44		$	0.42		$	0.02
Natural gas (per Mcf)	$	1.92		$	2.39		$	(0.47	)
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	60.99		$	48.96		$	12.03
Natural gas liquids (per gallon)	$	0.50		$	0.46		$	0.04
Natural gas (per Mcf)	$	1.89		$	2.46		$	(0.57	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	6.30		$	8.68		$	(2.38	)
Production and ad valorem taxes	$	2.70		$	2.70		$	—
Depreciation, depletion and amortization	$	14.86		$	20.96		$	(6.10	)
Exploration expense	$	0.17		$	0.76		$	(0.59	)
General and administrative	$	2.66		$	4.32		$	(1.66	)
Capital expenditures (including acquisitions)	$	260,533		$	384,135		$	(123,602	)

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