Exhibit 99.2

Non-GAAP Financial Measures

The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. After-tax Cash Flows and Adjusted Cash Flows from Operations Excluding Alabama Gas Corporation (Alagasco) are Non-GAAP financial measures. Energen believes after-tax cash flows are relevant because they are a measure of cash available to fund the Company’s capital expenditures, dividends, debt reduction, and other investments. Similarly, Adjusted Cash Flows from Operations Excluding Alagasco reflect comparable information specific to the Company’s non-regulated activities.

Reconciliation To GAAP Information
($ in millions)
	Years Ended 12/31
	2006 Actual		2007 Estimate (a)					2008 Estimate (a)
Net Income (GAAP)	274		280		—	305		265		—	295
Depreciation, depletion and amortization	142		160		—	160		180		—	180
Deferred income taxes, net	98		0		—	0		50		—	50
After-tax Cash Flows (Non-GAAP)	514		440		—	465		495		—	525
Changes in assets and liabilities and other adjustments	(31	)	(10	)	—	(10	)	10		—	20
Net Cash Provided by Operating Activities (GAAP)	483		430		—	455		505		—	545
Reconciliation To GAAP Information
($ in millions)
	Years Ended 12/31
	2006 Actual		2007 Estimate (a)					2008 Estimate (a)
Net Cash Provided by Operating Activities (GAAP)	483		430		—	455		505		—	545
Changes in assets and liabilities and other adjustments	31		10		—	10		(10	)	—	(20	)
After-tax Cash Flow (Non-GAAP)	514		440		—	465		495		—	525
Less: AGC cash flows from operations (GAAP)	(84	)	(95	)	—	(95	)	(89	)	—	(89	)
Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP)	430		345		—	370		406		—	436

(a) This estimate is a “forward-looking statement” as defined by the Securities and Exchange Commission. 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, assumptions and forecasts. A discussion of risks and uncertainties, which could affect future results of Energen and its subsidiaries, is included in the Company’s periodic reports filed with the Securities and Exchange Commission.