8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report
October 26, 2005

Commission			IRS Employer
File		State of	Identification
Number	Registrant	Incorporation	Number
1-7810	Energen Corporation	Alabama	63-0757759
2-38960	Alabama Gas Corporation	Alabama	63-0022000

605 Richard Arrington Jr. Boulevard North Birmingham, Alabama	35203
(Address of principal executive offices)	(Zip Code)

(205) 326-2700

(Registrant's telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02          Results of Operations and Financial Condition.

On October 26, 2005, Energen Corporation and Alabama Gas Corporation issued a press release announcing the third quarter and year-to-date 2005 financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2 to this form 8-K and are furnished to, but not filed with, the Commission.

ITEM 9.01          Financial Statements and Exhibits.

(c) Exhibits.

The following exhibits are furnished as part of this Current Report on Form 8-K.

Exhibit

Number:

99.1 Press Release dated October 26, 2005

99.2 Supplemental Financial Information dated October 26, 2005

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ENERGEN CORPORATION ALABAMA GAS CORPORATION
October 26, 2005	By /s/ G. C. Ketcham
	G. C. Ketcham Executive Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama Gas Corporation

EXHIBIT INDEX

EXHIBIT NUMBER		DESCRIPTION
99.1	*	Press Release dated October 26, 2005
99.2	*	Supplemental Financial Information dated October 26, 2005

* This exhibit is furnished to, but not filed with, the Commission by inclusion herein.

EX-99.1

EXHIBIT 99.1

For Immediate Release:	For More Information:
Wednesday, October 26, 2005	Julie S. Ryland, (205) 326-8421

ENERGEN REPORTS STRONG 3^rd QUARTER RESULTS

Management Raises 2005 and 2006 Earnings Guidance

BIRMINGHAM, Alabama - Energen Corporation (NYSE: EGN) today announced that higher commodity prices and increased natural gas production were the dominant drivers behind the diversified energy company's 37 percent increase in earnings per diluted share (EPS) for the third quarter of 2005.

In addition, Energen raised its 2005 earnings guidance range 7 cents to $2.30-$2.40 per diluted share (prior range was $2.23-$2.33) and its 2006 guidance range to $3.25-$3.60 per diluted share (prior range was $3.05-$3.35). Energen said that adjustments to its earnings guidance included higher commodity price assumptions applicable to unhedged production, operating cost increases, and higher expected basis differentials in the San Juan and Permian basins.

"The acquisition of producing properties with development potential remains a critical component of Energen's strategic plan; however, Energen is not dependent on acquisitions to generate near-term earnings growth," said Mike Warren, Energen's chairman and chief executive officer. "To underscore this fact, we have removed estimated acquisition-related earnings from our guidance for 2005 and 2006.

"Our two lines of business continue to perform very well in 2005," Warren said. "The fundamentals of our oil and gas acquisition and development subsidiary, Energen Resources Corporation (ERC), and of our natural gas utility, Alabama Gas Corporation (Alagasco) are strong, and Energen is positioned to generate meaningful earnings growth in 2005 and 2006."

Third Quarter Results

For the three months ended September 30, 2005, Energen reported net income of $19.1 million, or 26 cents per diluted share, including an $8.6 million, or 12 cents per diluted share, non-cash, after-tax loss associated with the timing of mark-to-market derivatives. In the third quarter of 2004, Energen's net income totaled $13.7 million, or 19 cents per diluted share, and included a net loss of $0.9 million, or 1 cent per diluted share, related to the timing of mark-to-market derivatives. Income from discontinued operations totaled $13,000 and $63,000 in the current- and prior-year third quarters, respectively.

Energen Resources Corporation

ERC's third quarter 2005 income from continuing operations totaled $28.1 million and compared with prior-year results of $21.6 million. Included in these numbers are after-tax losses of $8.6 million and $0.9 million, respectively, related to the timing of mark-to-market derivatives.

ERC's third quarter 2005 production from continuing operations rose 5 percent from the same period last year to total 23.5 billion cubic feet (Bcf) equivalent. Natural gas production increased approximately 9 percent to 16.0 Bcf, primarily due to the Company's August 2004 acquisition of coalbed methane properties in the San Juan Basin and increased drilling in the North Louisiana/East Texas area; the Company's oil production decreased approximately 5 percent to 813,000 barrels, while natural gas liquids (NGL) production remained virtually unchanged at 18.1 million gallons.

The Company's average sales price for its natural gas production increased 11 percent to $5.31 per thousand cubic feet (Mcf) in the third quarter of 2005 as compared with the same period a year ago; the average sales price of oil rose 23.5 percent to $35.51 per barrel; and the average sales price of NGL production increased 18 percent to 59 cents per gallon. Average sales prices reflect the impact of all hedges, including mark-to-market derivatives, and basis differentials and are not NYMEX-equivalent prices.

ERC's per-unit lease operating expense (LOE) in the third quarter of 2005 increased 22.5 percent to $1.74 per Mcf equivalent (Mcfe) due to a 33 percent increase in per-unit production taxes resulting from higher commodity prices and to increased expenses associated with work-overs and other price increases, partially offset by lower environmental compliance costs.

Per-unit depreciation, depletion and amortization (DD&A) from oil and gas activities totaled 98 cents per Mcfe in the current-year third quarter, up 8 percent from the same period a year ago largely due to last year's property acquisition and to the current-period production mix that reflects a higher percentage of the Company's shorter-lived North Louisiana/East Texas production.

Alabama Gas Corporation

Alagasco's natural gas distribution operations generated a net loss in the three months ended September 30, 2005, of $8.8 million as compared with a net loss of $7.7 million in the third quarter last year. This difference primarily relates to the timing of rate relief under Alagasco's rate-setting mechanism.

YEAR-TO-DATE RESULTS

For the nine months ended September 30, 2005, Energen's net income totaled $115.7 million, or $1.57 per diluted share, and compared with $96.2 million, or $1.31 per diluted share, for the same period in 2004. Income from discontinued operations totaled $118,000 and $142,000 in the current- and prior-year periods, respectively.

Included in these numbers are non-cash, after-tax losses of $11.4 million, or 15 cents per diluted share, in the current year, and $2.2 million, or 3 cents per diluted share, in the prior year. These losses are related to the timing of mark-to-market derivatives, and the current year-to-date loss will reverse by the end of 2005 as the volumes to which the derivatives are associated are produced.

Energen Resources Corporation

ERC's year-to-date 2005 income from continuing operations increased 26 percent, with the benefits of higher commodity prices and increased production being offset partially by increased LOE and DD&A. For the nine months ended September 30, ERC's income from continuing operations totaled $83.9 million and compared with $66.6 million in the same period last year. Included in these numbers are after-tax losses of $11.4 million and $2.2 million, respectively, related to the timing of mark-to-market derivatives.

ERC's production from continuing operations in the year-to-date period rose approximately 6 percent from the same period last year to total 68.2 Bcfe. Natural gas production increased 9 percent to 45.9 Bcf, primarily due to the Company's August 2004 acquisition of coalbed methane properties in the San Juan Basin and increased drilling in the North Louisiana/East Texas area; the Company's oil production declined 3 percent to 2.5 million barrels, and NGL production increased 4 percent to 52.5 million gallons.

The Company's average sales price for its natural gas production in the 2005 year-to-date increased 13 percent to $5.39 per Mcf as compared with the same period a year ago; the average sales price of oil rose 23 percent to $33.75 per barrel; and the average sales price of NGL production increased approximately 23 percent to 54 cents per gallon. Average sales prices reflect the impact of all hedges, including mark-to-market derivatives, and basis differentials and are not NYMEX-equivalent prices.

ERC's per-unit LOE in the 2005 year-to-date period increased 24 percent to $1.63 per Mcfe due to a 27 percent increase in per-unit production taxes resulting from higher commodity prices and higher costs associated with work-overs, marketing and transportation, compression, ad valorem and other price increases.

Per-unit DD&A expense from oil and gas activities totaled 96 cents per Mcfe in the current year-to-date period, up 8 percent from the same period a year ago primarily due to last year's property acquisition and to the current-period production mix that reflects a higher percentage of the Company's shorter-lived North Louisiana/East Texas production.

Alabama Gas Corporation

Alagasco's net income for the 2005 year-to-date totaled $31.3 million as compared with $29.1 million in the same period last year. This increase reflects the utility's ability to earn within its allowed range of return on a higher level of equity representing investment in utility plant.

RESULTS FOR THE TRAILING 12 MONTHS

For the 12 months ended September 30, 2005, Energen's net income totaled $147.0 million, or $2.00 per diluted share, and compared with $117.0 million, or $1.60 per diluted share, for the 12 months' period ended September 30, 2004. Income from discontinued operations totaled $134,000 in the current-year period as compared with a loss of $35,000 in the same period a year ago.

ERC's income from continuing operations in the current-year 12 months' period totaled $111.3 million as compared with the $82.9 million in the same period a year ago. Production from continuing operations totaled 91.2 Bcfe, up 6 percent from production of 86.2 Bcfe in the same period last year.

Average sales prices for the 12-months' period were:

- Natural gas, up 15 percent to $5.30 per Mcf;

- Oil, up 24 percent to $33.32 per barrel; and

- NGLs, up 23 percent to 53 cents per gallon.

LOE increased 22 percent to $1.57 per unit period-to-period. Per-unit DD&A expense from oil and gas activities increased 7 percent to 95 cents per Mcfe.

Alagasco's net income for the 12 months ended September 30, 2005, totaled $35.9 million, up approximately 5 percent from $34.3 million in the same period a year ago. For the 12 months ended September 30, 2005 (the utility's 'rate year' for rate-setting purposes), Alagasco earned a 13.3 percent return on 13-month average equity of $271 million. Under the utility's rate-setting mechanism, Alagasco cannot earn above its allowed range of return on average equity of 13.15-13.65 percent at the end of its rate year. Primarily due to increased sales to its large commercial and industrial customer group, the utility 'over-earned' its allowed return and will refund to customers through rates that become effective December 1, 2005, the excess amount.

2005 EARNINGS GUIDANCE

Energen today raised its 2005 earnings guidance range to $2.30-$2.40 per diluted share; the new range excludes a previously estimated 1.6 cents per diluted share associated with an unidentified acquisition of $200 million. The new range assumes that commodity prices applicable to its unhedged production will approximate current NYMEX prices of $12.90 per Mcf for natural gas in November and December (October actual known) and $59.50 per barrel for oil (October, November and December); ERC's assumed price for NGL is approximately 65 percent of the oil price per barrel. With 78 percent of ERC's estimated production for the remainder of 2005 hedged, the sensitivity of the Company's earnings to commodity price changes is minimal.

ERC's significant hedge position with respect to its estimated production of 23.4 Bcfe for the remainder of 2005 (October through December) is as follows:

Commodity	Hedge Vols.	Last 3 Months 2005 Production	% Hedged	NYMEX-equiv. price
Natural Gas*	12.6 Bcf	15.8 Bcf	80%	$7.19 per Mcf
Oil	0.6 MMBbl	0.8 MMBbl	78%	$37.68 per barrel
NGL	12.8 MMgal	18.9 MMgal	68%	$0.54 per gallon

* Includes actual basis differentials, as known

Realized prices for ERC's production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. For production associated with basin-specific contracts, ERC will receive the contracted hedge price, regardless of basis differentials. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them ERC's assumed basis differentials. Realized NGL prices will reflect transportation and fractionation fees.

ERC's assumed basis differentials are:

- Juan Basin natural gas: $2.27 per Mcf (November-December)

- Permian Basin natural gas: $1.95 per Mcf (November-December)

- West Texas Sour oil: $6.90 per barrel (October-December)

ERC's production for 2005 is estimated to total 91.6 Bcfe. LOE is estimated to increase to $1.72 per Mcfe, reflecting a continued rise in production-related taxes, field service costs and other operating expenses; and DD&A from oil and gas activities is estimated to total 98 cents per Mcfe.

2005 Capital Spending Plans and Other Assumptions

ERC's capital spending plans for 2005 include approximately $150-$160 million in development capital related to its existing properties and exploration spending of some $5-$10 million. Capital spending at Alagasco is estimated to be $65-$70 million.

Other key assumptions that support Energen's guidance include:

Average diluted shares outstanding of 73.7 million.

Alagasco's earning within its allowed range of return on average equity of $270-$275 million.

2006 EARNINGS GUIDANCE

With the expectation of continued commodity price strength in 2006, Energen's management has raised its earnings guidance for 2006 to a range of $3.25 to $3.60 per diluted share. To underscore that property acquisitions are not necessary in order for Energen to meet its earnings goals, this guidance range excludes the benefit of any acquisitions that could be made in 2005 or 2006. Over the long term, acquisitions remain a critical component of Energen's growth strategy, and the Company is prepared to invest approximately $1 billion over the next five years to acquire domestic producing properties with development potential.

As the nation enters the 2005-2006 winter heating season, it is facing an era of unprecedented high natural gas and oil prices. To better reflect the realities of this marketplace, Energen's new 2006 guidance assumes that NYMEX prices applicable to ERC's unhedged production in 2006 will average $10 per Mcf for gas and $58 per barrel for oil and that NGL prices will average approximately 90 cents per gallon.

ERC's total current hedge position with respect to its estimated 2006 production of 89 Bcfe is as follows:

Commodity	Hedge Vols.	Estimated 2006 Production	% Hedged	NYMEX-equiv. price
Natural Gas	38.2 Bcf	60.0 Bcf	64%	$7.96 per Mcf
Oil	2.4 MMBbl	3.2 MMBbl	76%	$51.79 per barrel
NGL	30.2 MMgal	68.6 MMgal	44%	$0.56 per gallon

ERC's 2006 natural gas hedge position by hedge type is as follows:

Hedge Type	Volumes (Bcf)	Assumed Basis Difference	Price/Mcf (NYMEX equiv)
San Juan Basin-specific	21.0	$1.40	$ 7.79
Permian Basin-specific	0.5	$1.00	$9.53
NYMEX Hedges	16.3	NA	$8.08
Other	0.4	$0.53	$9.50

ERC's 2006 oil hedge position by hedge type is as follows:

Hedge Type	Volumes (MBbl)	Assumed Sour Oil Difference	Price/Barrel (NYMEX equiv)
NYMEX Hedges	509	-	$44.78
Sour Oil (WTS)	1,915	$5.22	$53.65

Given ERC's current hedge position for 2006 and assuming prices as outlined above for its unhedged production, sensitivities to pricing changes applicable to Energen's 2006 earnings guidance are as follows:

Every 10-cent change in the average NYMEX price of gas from $10 per Mcf represents an estimated net income impact of approximately $1,000,000 (1.4 cents per diluted share).

Every $1.00 change in the average NYMEX price of oil from $58 per barrel represents an estimated net income impact of approximately $365,000 (0.5 cents per diluted share).

Every 1-cent change in average price of NGL from $0.90 per gallon represents an estimated net income impact of approximately $185,000 (0.2 cents per diluted share).

Price-related events such as substantial basis differential changes could cause earnings sensitivities to be materially different from those outlined above.

2006 Capital Spending Plans and Other Assumptions

In 2006, ERC expects to invest some $110-$120 million to develop existing properties, with exploration spending estimated to be $5-$10 million. Capital spending at Alagasco is estimated to be $60-65 million.

Other key assumptions that support Energen's 2006 earnings guidance include:

- Average diluted shares outstanding of 74.0 million;

- Alagasco's earning within its allowed range of return on average equity of approximately $285 million;

- A DD&A rate at ERC of 97 cents per Mcfe; and

- LOE (including production taxes) at ERC of $2.00 per Mcfe.

It is important to note that Energen, ERC and Alagasco are still formulating their formal 2006 budgets. As a result, all the variables included in the 2006 forecast are subject to modification and fine-tuning as the budget is finalized.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are the acquisition and development of onshore domestic oil and gas properties and natural gas distribution in central and north Alabama. Additional information on Energen is available at www.energen.com.

FORWARD-LOOKING STATEMENTS: This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumpt ions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.

EX-99.2

EXHIBIT 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending September 30, 2005 and 2004

	3rd Quarter
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	126,260	$	104,181	$	22,079
Natural gas distribution		64,421		62,162		2,259
Total operating revenues		190,681		166,343		24,338
Operating Expenses
Cost of gas		27,386		26,545		841
Operations & maintenance		67,818		60,780		7,038
DD&A		34,215		30,849		3,366
Taxes, other than income taxes		19,523		15,343		4,180
Accretion expense		668		613		55
Total operating expenses		149,610		134,130		15,480
Operating Income		41,071		32,213		8,858
Other Income (Expense)
Interest expense		(11,600)		(10,515)		(1,085)
Other income		822		702		120
Other expense		(104)		(225)		121
Total other expense		(10,882)		(10,038)		(844)
Income Before Income Taxes		30,189		22,175		8,014
Income tax expense		11,116		8,498		2,618
Income from Continuing Operations		19,073		13,677		5,396
Discontinued Operations, Net of Taxes
Income from discontinued operations		3		55		(52)
Gain on disposal		10		8		2
Income from Discontinued Operations		13		63		(50)
Net Income	$	19,086	$	13,740	$	5,346
Diluted Earnings Per Share
Continuing operations	$	0.26	$	0.19	$	0.07
Discontinued operations		-		-		-
Net Income	$	0.26	$	0.19	$	0.07
Basic Earnings Per Share
Continuing operations	$	0.26	$	0.19	$	0.07
Discontinued operations		-		-		-
Net Income	$	0.26	$	0.19	$	0.07
Diluted Avg. Common Shares Outstanding		73,878		73,401		477
Basic Avg. Common Shares Outstanding		73,024		72,537		487
Dividends Per Share	$	0.10	$	0.09625	$	0.00375

Consolidated Statements of Income (Unaudited)
For the 9 months ending September 30, 2005 and 2004

	Year-to-date
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	363,567	$	295,538	$	68,029
Natural gas distribution		429,746		410,108		19,638
Total operating revenues		793,313		705,646		87,667
Operating Expenses
Cost of gas		214,665		205,574		9,091
Operations & maintenance		195,127		170,126		25,001
DD&A		98,741		88,418		10,323
Taxes, other than income taxes		65,867		55,647		10,220
Accretion expense		1,965		1,635		330
Total operating expenses		576,365		521,400		54,965
Operating Income		216,948		184,246		32,702
Other Income (Expense)
Interest expense		(34,794)		(31,527)		(3,267)
Other income		1,694		2,197		(503)
Other expense		(638)		(1,920)		1,282
Total other expense		(33,738)		(31,250)		(2,488)
Income Before Income Taxes		183,210		152,996		30,214
Income tax expense		67,619		56,943		10,676
Income from Continuing Operations		115,591		96,053		19,538
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		(2)		147		(149)
Gain (loss) on disposal		120		(5)		125
Income from Discontinued Operations		118		142		(24)
Net Income	$	115,709	$	96,195	$	19,514
Diluted Earnings Per Share
Continuing operations	$	1.57	$	1.31	$	0.26
Discontinued operations		-		-		-
Net Income	$	1.57	$	1.31	$	0.26
Basic Earnings Per Share
Continuing operations	$	1.58	$	1.33	$	0.25
Discontinued operations		.01		-		0.01
Net Income	$	1.59	$	1.33	$	0.26
Diluted Avg. Common Shares Outstanding		73,725		73,258		467
Basic Avg. Common Shares Outstanding		72,998		72,449		549
Dividends Per Share	$	0.30	$	0.28125	$	0.01875

 Consolidated Statements of Income (Unaudited)
For the 12 months ending September 30, 2005 and 2004

	Trailing 12 Months
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	478,146	$	382,241	$	95,905
Natural gas distribution		546,378		525,673		20,705
Total operating revenues		1,024,524		907,914		116,610
Operating Expenses
Cost of gas		268,980		260,352		8,628
Operations & maintenance		259,151		229,307		29,844
DD&A		131,100		117,754		13,346
Taxes, other than income taxes		85,153		71,357		13,796
Accretion expense		2,595		2,106		489
Total operating expenses		746,979		680,876		66,103
Operating Income		277,545		227,038		50,507
Other Income (Expense)
Interest expense		(46,010)		(42,080)		(3,930)
Other income		2,408		3,533		(1,125)
Other expense		(899)		(3,679)		2,780
Total other expense		(44,501)		(42,226)		(2,275)
Income Before Income Taxes		233,044		184,812		48,232
Income tax expense		86,201		67,752		18,449
Income from Continuing Operations		146,843		117,060		29,783
Discontinued Operations, Net of Taxes
Income from discontinued operations		14		172		(158)
Gain (loss) on disposal		120		(207)		327
Income (Loss) from Discontinued Operations		134		(35)		169
Net Income	$	146,977	$	117,025	$	29,952
Diluted Earnings Per Share
Continuing operations	$	2.00	$	1.60	$	0.4
Discontinued operations		-		-		-
Net Income	$	2.00	$	1.60	$	0.4
Basic Earnings Per Share
Continuing operations	$	2.01	$	1.62	$	0.39
Discontinued operations		0.01		-		0.01
Net Income	$	2.02	$	1.62	$	0.4
Diluted Avg. Common Shares Outstanding		73,596		73,079		517
Basic Avg. Common Shares Outstanding		72,927		72,337		590
Dividends Per Share	$	0.3963	$	0.3738	$	0.0225

Selected Business Segment Data (Unaudited)

For the 3 months ending September 30, 2005 and 2004

	3rd Quarter
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	85,087	$	69,745	$	15,342
Oil		28,879		24,553		4,326
Natural gas liquids		10,721		9,065		1,656
Other		1,573		818		755
Total	$	126,260	$	104,181	$	22,079
Production volumes from continuing operations
Natural gas (MMcf)		16,013		14,632		1,381
Oil (MBbl)		813		854		(41)
Natural gas liquids (Mgal)		18,109		18,158		(49)
Production volumes from continuing ops. (MMcfe)		23,480		22,349		1,131
Total sales volume (MMcfe)		23,478		22,374		1,104
Average sales price from continuing ops.
Natural gas (Mcf)	$	5.31	$	4.77	$	0.54
Oil (barrel)	$	35.51	$	28.76	$	6.75
Natural gas liquids (gallon)	$	0.59	$	0.50	$	0.09
Other data
Lease operating expense (LOE)
LOE and other	$	27,396	$	22,068	$	5,328
Production taxes		13,477		9,565		3,912
Total	$	40,873	$	31,633	$	9,240
DD&A	$	23,547	$	20,864	$	2,683
Capital expenditures	$	44,209	$	288,585	$	(244,376)
Exploration expense	$	74	$	1,807	$	(1,733)
Operating income	$	52,368	$	42,584	$	9,784
Natural Gas Distribution
Operating revenues
Residential	$	33,795	$	33,860	$	(65)
Commercial and industrial - small		21,732		18,516		3,216
Transportation		9,378		8,838		540
Other		(484)		948		(1,432)
Total	$	64,421	$	62,162	$	2,259
Gas delivery volumes (MMcf)
Residential		1,810		1,874		(64)
Commercial		1,791		1,570		221
Transportation		11,951		12,790		(839)
Total		15,552		16,234		(682)
Other data
Depreciation and amortization	$	10,668	$	9,985	$	683
Capital expenditures	$	17,863	$	11,869	$	5,994
Operating income	$	(11,025)	$	(10,130)	$	(895)
Selected Business Segment Data (Unaudited) For the 9 months ending September 30, 2005 and 2004

	Year-to-date
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	247,087	$	200,363	$	46,724
Oil		83,683		70,262		13,421
Natural gas liquids		28,519		22,220		6,299
Other		4,278		2,693		1,585
Total	$	363,567	$	295,538	$	68,029
Production volume from continuing operations
Natural gas (MMcf)		45,871		42,063		3,808
Oil (MBbl)		2,480		2,558		(78)
Natural gas liquids (Mgal)		52,486		50,323		2,163
Production volumes from continuing ops. (MMcfe)		68,247		64,599		3,648
Total sales volume (MMcfe)		68,303		64,684		3,619
Average sales price from continuing ops.
Natural gas (Mcf)	$	5.39	$	4.76	$	0.63
Oil (barrel)	$	33.75	$	27.47	$	6.28
Natural gas liquids (gallon)	$	0.54	$	0.44	$	0.10
Other data
Lease operating expense (LOE)
LOE and other	$	75,511	$	58,298	$	17,213
Production taxes		35,550		26,255		9,295
Total	$	111,061	$	84,553	$	26,508
DD&A	$	67,017	$	58,965	$	8,052
Capital expenditures	$	132,718	$	359,993	$	(227,275)
Exploration expense	$	568	$	1,907	$	(1,339)
Operating income	$	156,713	$	128,321	$	28,392
Natural Gas Distribution
Operating revenues
Residential	$	276,728	$	267,164	$	9,564
Commercial and industrial - small		116,612		107,692		8,920
Transportation		32,652		29,316		3,336
Other		3,754		5,936		(2,182)
Total	$	429,746	$	410,108	$	19,638
Gas delivery volumes (MMcf)
Residential		18,992		20,743		(1,751)
Commercial		9,497		9,845		(348)
Transportation		37,634		40,571		(2,937)
Total		66,123		71,159		(5,036)
Other data
Depreciation and amortization	$	31,724	$	29,453	$	2,271
Capital expenditures	$	53,562	$	42,090	$	11,472
Operating income	$	61,009	$	56,459	$	4,550

Selected Business Segment Data (Unaudited) For the 12 months ending September 30, 2005 and 2004
	Trailing 12 Months
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	323,206	$	257,731	$	65,475
Oil		111,830		92,339		19,491
Natural gas liquids		37,201		29,214		7,987
Other		5,909		2,957		2,952
Total	$	478,146	$	382,241	$	95,905
Production volumes from continuing operations
Natural gas (MMcf)		60,972		55,998		4,974
Oil (MBbl)		3,356		3,430		(74)
Natural gas liquids (Mgal)		70,371		67,445		2,926
Production volumes from continuing ops. (MMcfe)		91,161		86,212		4,949
Total sales volume (MMcfe)		91,225		86,328		4,897
Average sales price from continuing ops.
Natural gas (Mcf)	$	5.30	$	4.60	$	0.70
Oil (barrel)	$	33.32	$	26.92	$	6.40
Natural gas liquids (gallon)	$	0.53	$	0.43	$	0.10
Other data
Lease operating expense (LOE)
LOE and other	$	96,404	$	78,177	$	18,227
Production taxes		46,580		33,256		13,324
Total	$	142,984	$	111,433	$	31,551
DD&A	$	88,948	$	78,662	$	10,286
Capital expenditures	$	423,655	$	346,699	$	76,956
Exploration expense	$	761	$	1,980	$	(1,219)
Operating income	$	208,771	$	160,231	$	48,540
Natural Gas Distribution
Operating revenues
Residential	$	349,793	$	341,720	$	8,073
Commercial and industrial - small		147,606		136,775		10,831
Transportation		43,557		39,503		4,054
Other		5,422		7,675		(2,253)
Total	$	546,378	$	525,673	$	20,705
Gas delivery volumes (MMcf)
Residential		23,632		26,141		(2,509)
Commercial		11,975		12,411		(436)
Transportation		51,447		54,567		(3,120)
Total		87,054		93,119		(6,065)
Other data
Depreciation and amortization	$	42,152	$	39,092	$	3,060
Capital expenditures	$	69,680	$	57,835	$	11,845
Operating income	$	70,749	$	68,694	$	2,055