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

July 28, 2010

Commission File Number	Registrant	State of Incorporation	IRS Employer Identification 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 July 28, 2010, Energen Corporation and Alabama Gas Corporation issued a press release announcing the second quarter and year-to-date 2010 financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2.

ITEM 7.01 Regulation FD Disclosure

Energen Corporation has included reconciliations of certain Non-GAAP financial measures to the related GAAP financial measures. These Non-GAAP financial measures will be disclosed at various investor/analyst meetings in the coming weeks. The reconciliations are attached hereto as exhibit 99.3 and 99.4.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits.

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

Exhibit Number:
99.1	Press Release dated July 28, 2010
99.2	Supplemental Financial Information
99.3	Non-GAAP Financial Measures Reconciliation
99.4	Non-GAAP Financial Measures Reconciliation

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
July 28, 2010	By	/s/ Charles W. Porter, Jr.
		Charles W. Porter, Jr. Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama Gas Corporation

EXHIBIT INDEX

EXHIBIT NUMBER	DESCRIPTION
99.1	* Press Release dated July 28, 2010
99.2	* Supplemental Financial Information
99.3	* Non-GAAP Financial Measures Reconciliation
99.4	* Non-GAAP Financial Measures Reconciliation

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

EX-99.1

Exhibit 99.1

For Release: 4:30 P.M. EDT	Contacts:  Julie S. Ryland
Wednesday, July 28, 2010	205.326.8421

Energen’s EPS Flat in Second Quarter due to Non-cash Charge

Earnings Rise 20% Excluding Shale Leasehold Write-off

BIRMINGHAM, Alabama – Higher realized sales prices and increased production were major contributors to a 20 percent increase in the second quarter earnings of Energen Corporation (NYSE: EGN) after normalizing results for a previously announced non-cash charge related to the company’s deep Conasauga shale acreage.

Energen’s net income (including the $10 million after-tax write-off of capitalized unproved leasehold) totaled $55.5 million, or 77 cents per diluted share, in the second quarter of 2010 as compared with $55.0 million, or 76 cents per diluted share, in the same period a year ago. To better reflect the financial performance of the company’s on-going operations, Energen’s net income excluding the write-off totaled $65.5 million, or 91 cents per diluted share.

The year-over-year average realized sales price for the company’s natural gas, oil, and natural gas liquids (NGL) production increased 17 percent in the second quarter, and production increased 2 percent to 27.9 billion cubic feet equivalent (Bcfe). Energen’s current capital focus on its oil-producing properties in the Permian Basin resulted in a 13 percent increase in oil production.

EARNINGS GUIDANCE

Energen also reported today that it is affirming its 2010 earnings guidance range of $4.30-$4.70 per diluted share, excluding the non-cash charge. “We consider non-cash write-offs associated with our shale leasehold in Alabama to be outside the parameters of our normal, on-going operations,” said James McManus, Energen’s chairman and chief executive officer. The comparable earnings guidance range including the non-cash charge is $4.16-$4.56 per diluted share.

Energen’s earnings guidance assumes that commodity prices applicable to its unhedged production for the remainder of the year will average $4.50 per thousand cubic feet (Mcf) for natural gas, $85 per barrel for oil, and 92 cents per gallon for NGL. Approximately 70 percent of Energen’s production for the remainder of the year is hedged at an average NYMEX-equivalent price of $9.69 per Mcf equivalent (Mcfe).

CASH FLOWS OUTLOOK

Energen Resources Corporation, the company’s oil and gas exploration and production subsidiary, is expected to generate after-tax cash flows in 2010 of $560-$590 million. After funding identified capital spending of $360 million, Energen Resources is expected to have $200-$230 million available for discretionary investment. Together with $40 million of cash available at year-end 2009, Energen Resources’ total discretionary cash in 2010 is estimated to be $240-$270 million and can be used to acquire oil and gas properties, fund other opportunities and/or repay debt; Energen Resources has $150 million of debt due in December 2010. In general, Energen’s natural gas utility, Alabama Gas Corporation (Alagasco), utilizes all of its after-tax cash flows to fund its capital expenditures and the majority of Energen’s dividend.

SECOND QUARTER 2010 FINANCIAL RESULTS

Energen’s consolidated net income for the three months ended June 30, 2010, totaled $55.5 million, or 77 cents per diluted share, and compared with $55.0 million, or 76 cents per diluted share, in the second quarter of 2009. Included in these numbers is a non-cash, $10.0 million, after-tax write-off for capitalized unproved leasehold associated with the company’s deep Conasauga shale acreage.

Energen Resources’ net income for the second quarter of 2010 totaled $56.8 million ($66.8 million excluding the write-off) as compared with $54.9 million in the same period a year ago. Alagasco recorded a net loss of $0.3 million, down from net income of $0.9 million in the prior-year second quarter.

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Energen Resources Corporation

Energen Resources’ increase in second quarter 2010 net income reflected the impact of higher realized sales prices and increased oil and natural gas liquids production partially offset by the non-cash charge, increased depreciation, depletion and amortization (DD&A) expense, and higher commodity price-based production taxes.

Average Realized Sales Prices, Second Quarter Comparison

Commodity	2Q10		2Q09		Change
Natural Gas (per Mcf)	$	6.84	$	6.27	9	%
Oil (per barrel)	$	78.34	$	59.85	31	%
NGL (per gallon)	$	0.77	$	0.88	(13	)%

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Production, Second Quarter Comparison

Commodity	2Q10	2Q09	Change
Natural Gas (Bcf)	17.6	18.0	(2	)%
Oil (MBbl)	1,258	1,113	13	%
NGL (MMgal)	19.0	18.4	3	%
Total (Bcfe)	27.9	27.3	2	%

Production by Area (Bcfe), Second Quarter Comparison

Area	2Q10	2Q09	Change
San Juan Basin	13.8	13.5	2	%
Permian Basin	9.1	8.0	14	%
Black Warrior Basin	3.3	3.7	(11	)%
N. LA/E. TX/Other	1.7	2.1	(19	)%

The second quarter 2010 production increase in the Permian Basin reflected the June 2009 acquisition of Range Resources Corporation’s interests in the Fuhrman-Mascho field and new waterflood development in the North Westbrook unit. Increased production in the San Juan Basin largely reflected the impact of new well development and better-than-expected performance from some wells in the over-pressured Fruitland Coal, partially offset by the timing of plant maintenance and wells shut-in due to sidetrack operations.

Total per-unit lease operating expense (LOE) in the second quarter of 2010 increased 7 percent from the prior-year second quarter to $1.98 per Mcfe primarily due to a 41 percent increase in per-unit production taxes. Base LOE and marketing and transportation expenses were essentially unchanged at $1.60 per Mcfe.

DD&A expense per unit in the second quarter of 2010 increased 13 percent over the same period in 2009 to $1.78 per Mcfe largely due to higher development costs and price-related reserve revisions at year-end 2009.

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Per-unit net G&A expense in the second quarter of 2010 increased 12 percent to 47 cents per Mcfe. This increase largely was due to labor and benefits-related expenses and certain legal expenses.

Alabama Gas Corporation

Alagasco’s year-over-year earnings decline of $1.2 million in the second quarter of 2010 largely reflected the timing of rate recovery and revenue reductions under Alagasco’s rate-setting mechanism.

YTD 2010 FINANCIAL RESULTS

Energen’s consolidated net income for the first six months of 2010 totaled $172.3 million, or $2.39 per diluted share, and compared with $150.6 million, or $2.09 per diluted share, in the second quarter of 2009. Current-period results included the non-cash, $10.0 million, after-tax write-off for capitalized unproved leasehold.

Energen Resources’ net income for the year-to-date period totaled $128.4 million ($138.4 million excluding the write-off) as compared with net income of $102.0 million in the first half of 2009. Alagasco’s net income totaled $43.9 million as compared with $48.4 million in the same period last year.

Energen Resources Corporation

Energen Resources’ increase in year-to-date 2010 net income reflected the impact of higher realized sales prices and increased oil and NGL production, partially offset by the non-cash charge, increased DD&A expense, higher administrative expenses, and a rise in commodity price-driven production taxes.

Average Realized Sales Prices, YTD Comparison

Commodity	YTD10		YTD09		Change
Natural Gas (per Mcf)	$	7.02	$	6.41	10	%
Oil (per barrel)	$	78.77	$	56.44	40	%
NGL (per gallon)	$	0.82	$	0.85	(4	)%

5

Production, YTD Comparison

Commodity	YTD10	YTDQ09	Change
Natural Gas (Bcf)	35.0	35.7	(2	)%
Oil (MBbl)	2,444	2,203	11	%
NGL (MMgal)	37.8	35.9	5	%
Total (Bcfe)	55.1	54.0	2	%

Production by Area (Bcfe), YTD Comparison

Area	YTD10	YTD09	Change
San Juan Basin	27.4	26.9	2	%
Permian Basin	17.7	15.8	12	%
Black Warrior Basin	6.5	7.2	(10	)%
N. LA/E. TX/Other	3.5	4.1	(15	)%

The year-to-date 2010 production increase in the Permian Basin reflected the June 2009 acquisition of Range Resources Corporation’s interests in the Fuhrman-Mascho field and new waterflood development in the North Westbrook unit. Increased production in the San Juan Basin largely reflected the impact of new well development and better-than-expected performance from some wells in the over-pressured Fruitland Coal, partially offset by delays from adverse weather conditions, the timing of plant maintenance, and wells shut-in due to sidetrack operations.

6

Total LOE in the first six months of 2010 increased 3 percent per unit from the same period a year ago to $1.98 per Mcfe. Base LOE and marketing and transportation expenses fell approximately 2 percent while production taxes rose 32 percent on a per-unit basis.

DD&A expense per unit in the first six months of 2010 increased 14 percent over the same period in 2009 to $1.77 per Mcfe largely due to higher development costs and price-related reserve revisions at year-end 2009.

Per-unit net G&A expense in the first six months of 2010 increased to 51 cents per Mcfe largely due to labor and benefits-related expenses and certain legal expenses.

Alabama Gas Corporation

Energen’s natural gas utility generated net income of $43.9 million in the first six months of 2010 as compared with $48.4 million in the same period a year ago. This decrease largely reflected the timing of rate recovery and revenue reductions under Alagasco’s rate-setting mechanism.

TRAILING 12 MONTHS’ FINANCIAL RESULTS

For the 12 months ended June 30, 2010, Energen’s net income totaled $278.0 million, or $3.86 per diluted share, and compared with net income of $288.9 million, or $4.02 per diluted share, for the same period last year. Current-period results included a $10.0 million non-cash charge for capitalized unproved leasehold associated with the company’s deep Conasauga shale acreage.

Energen Resources Corporation

Energen Resources’ net income in the trailing 12 months totaled $238.6 million ($248.6 million excluding the write-down) and compared with $241.6 million in the same period last year; included in current 12-months’ results is a one-time gain of $3.1 million, or 4 cents per diluted share, generated by the sale of a small, non-operated Permian Basin property.

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Average Realized Sales Prices, Trailing 12 Months Comparison

Commodity	12-M Ended 6/30/2010		12-M Ended 6/30/2009		Change
Natural Gas (per Mcf)	$	6.66	$	7.08	(6	)%
Oil (per barrel)	$	71.57	$	63.71	12	%
NGL (per gallon)	$	0.88	$	0.86	2	%

Production, Trailing 12 Months Comparison

Commodity	12-M Ended 6/30/2010	12-M Ended 6/30/2009	Change
Natural Gas (Bcf)	71.7	70.4	2	%
Oil (MBbl)	4,930	4,367	13	%
NGL (MMgal)	77.1	71.8	7	%
Total (Bcfe)	112.3	106.9	5	%

Alabama Gas Corporation

Alagasco’s net income for the 12 months ended June 30, 2010, totaled $40.9 million as compared with $48.0 million in the same period a year ago. This decrease largely reflected higher operations and maintenance expense and the timing of rate recovery and revenue reductions under Alagasco’s rate-setting mechanism.

2010 EARNINGS GUIDANCE RANGE UNCHANGED

Energen affirmed its earnings guidance range for 2010 of $4.30-$4.70 per diluted share. This range excludes the non-cash write-off of capitalized unproved leasehold. The comparable earnings guidance range including the non-cash charge is $4.16-$4.56 per diluted share.

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Guidance assumes that commodity prices applicable to its unhedged production for the remainder of the year will average $4.50 per Mcf for natural gas, $85 per barrel for oil, and 92 cents per gallon for NGL.

For the last six months of 2010, Energen has hedges in place for approximately 72 percent of its estimated natural gas production of 36.4 Bcf at an average NYMEX-equivalent price of $8.01 per Mcf, 69 percent of its estimated oil production of 2.8 million barrels (MMBbl) at an average NYMEX-equivalent price of $85.25 per barrel, and 50 percent of its estimated NGL production of 37.4 million gallons at an average price of 88 cents per gallon.

Key assumptions included in the guidance include:

• Full-year impact of certain year-to-date results;

• Current hedge position;

• Annual production of approximately 114 Bcfe; 58.7 for remainder of year

• Capital spending of $445 million, including $360 million by Energen Resources (ERC) and $85 million by Alagasco;

• Average DD&A expense at ERC of $1.77 per Mcfe;

• Total LOE, including production taxes, at ERC of $2.10 per Mcfe (base LOE and marketing and transportation costs of $1.70 per Mcfe);

• General and administrative expense at ERC of 49 cents per Mcfe;

• Alagasco’s earning on estimated average equity of $331 million;

• Average diluted shares outstanding of 72.1 million.

Energen’s 2010 earnings guidance does not include potential benefits from unidentified property acquisitions, Alabama shales exploration, or stock repurchases. The guidance also makes no assumption related to the potential impairment of remaining capitalized unproved leasehold. Energen’s remaining capitalized, unproved leasehold associated with its Chattanooga shale and the shallow Conasauga shale is $14.4 million after-tax ($23.2 million pre-tax), or 20 cents per diluted share. The Chattanooga shale acreage is $8 million after-tax (11 cents per diluted share), and the shallow Conasauga acreage is $6.4 million (9 cents per diluted share).

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2010 Hedge Summary

Energen Resources’ hedge position for the remainder of 2010 is as follows:

Commodity	Hedge Volumes	Est. Production	Hedge %		NYMEXe Price*
Natural Gas	26.1 Bcf	36.4 Bcf	72	%	$	8.01/Mcf
Oil	2.0 MMBbl	2.8 MMBbl	69	%	$	85.25/barrel
NGL	18.7 MMgal	37.4 MMgal	50	%	$	0.88/gallon

* July actuals included when known.

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Energen Resources’ natural gas and oil hedge positions by hedge type for the remainder of 2010 are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price*
San Juan Basin	19.0	$	0.50 per Mcf	$	7.73 per Mcf
NYMEX	7.1		—	$	8.77 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price*
Sour Oil (WTS)	1,159	$	3.00 per barrel	$	90.34 per barrel
NYMEX	808		—	$	77.96 per barrel

* July actuals included when known.

Average realized oil and gas prices for Energen Resources’ production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees. For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials.

Sensitivity of Earnings, Cash Flows to Changes in Commodity Prices

Given Energen Resources’ current hedge position for the remainder of 2010, changes in commodity prices are estimated to have the following impact on Energen’s 2010 earnings and cash flows:

• Every 10-cent change in the average NYMEX price of gas from $4.50 represents an estimated net income impact of approximately $385,000 (0.5 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $85 per barrel represents an estimated net income impact of approximately $440,000 (0.6 cents per diluted share).

• Every 1-cent change in the average price of liquids from $0.92 per gallon represents an estimated net income impact of approximately $85,000 (0.1 cents per diluted share).

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

2011 AND 2012 HEDGE POSITIONS

Energen Resources has substantial hedges in place for 2011 and 2012. Underscoring the impact of the company’s oil production, the average NYMEX-equivalent price of Energen Resources’ hedges is $8.63 per Mcfe in 2011 and $12.69 per Mcfe in 2012.

Energen Resources’ 2011 hedge position is as follows:

Commodity	Hedge Volumes	NYMEXe Price
Natural Gas	38.8 Bcf	$	6.76/Mcf
Oil	3.5 MMBbl	$	76.39/barrel
NGL	38.9 MMgal	$	0.89/gallon

Energen Resources’ natural gas and oil hedge positions by hedge type for 2011 are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	25.7	$	0.45 per Mcf	$	6.81 per Mcf
NYMEX	13.1		—	$	6.66 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	2,076	$	3.00 per barrel	$	73.24 per barrel
NYMEX	1,398		—	$	81.07 per barrel

Energen Resources’ 2012 hedge position is as follows:

Commodity	Hedge Volumes	NYMEXe Price
Oil	3.1 MMBbl	$	81.38/barrel
NGL	18.1 MMgal	$	0.91/gallon

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Energen Resources’ oil hedge position by hedge type for 2012 is as follows:

Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	672	$	3.00 per barrel	$	84.40 per barrel
NYMEX	2,458		—	$	80.55 per barrel

Average realized oil and gas prices for Energen Resources’ production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees. For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 3.5 trillion cubic feet equivalent of proved, probable, and possible reserves in the San Juan, Permian, and Black Warrior basins. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at http://www.energen.com.

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, assumptions 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.

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EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending June 30, 2010 and 2009

	2nd Quarter
(in thousands, except per share data)	2010			2009			Change
Operating Revenues
Oil and gas operations	$	234,586		$	198,537		$	36,049
Natural gas distribution		99,139			107,683			(8,544	)
Total operating revenues		333,725			306,220			27,505
Operating Expenses
Cost of gas		43,234			50,837			(7,603	)
Operations and maintenance		109,945			88,500			21,445
Depreciation, depletion and amortization		62,476			56,407			6,069
Taxes, other than income taxes		18,256			15,168			3,088
Accretion expense		1,521			1,163			358
Total operating expenses		235,432			212,075			23,357
Operating Income		98,293			94,145			4,148
Other Income (Expense)
Interest expense		(9,844	)		(9,788	)		(56	)
Other income		385			2,817			(2,432	)
Other expense		(1,346	)		(170	)		(1,176	)
Total other expense		(10,805	)		(7,141	)		(3,664	)
Income Before Income Taxes		87,488			87,004			484
Income tax expense		31,945			32,003			(58	)
Net Income	$	55,543		$	55,001		$	542
Diluted Earnings Per Average Common Share	$	0.77		$	0.76		$	0.01
Basic Earnings Per Average Common Share	$	0.77		$	0.77		$	0.00
Diluted Avg. Common Shares Outstanding		72,089			71,904			185
Basic Avg. Common Shares Outstanding		71,844			71,644			200
Dividends Per Common Share	$	0.13		$	0.125		$	0.005

1

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 6 months ending June 30, 2010 and 2009

	Year-to-date
(in thousands, except per share data)	2010			2009			Change
Operating Revenues
Oil and gas operations	$	472,200		$	387,657		$	84,543
Natural gas distribution		436,439			402,669			33,770
Total operating revenues		908,639			790,326			118,313
Operating Expenses
Cost of gas		240,390			202,906			37,484
Operations and maintenance		201,647			176,887			24,760
Depreciation, depletion and amortization		124,211			110,985			13,226
Taxes, other than income taxes		48,893			41,628			7,265
Accretion expense		3,007			2,299			708
Total operating expenses		618,148			534,705			83,443
Operating Income		290,491			255,621			34,870
Other Income (Expense)
Interest expense		(19,804	)		(19,569	)		(235	)
Other income		723			1,522			(799	)
Other expense		(870	)		(360	)		(510	)
Total other expense		(19,951	)		(18,407	)		(1,544	)
Income Before Income Taxes		270,540			237,214			33,326
Income tax expense		98,287			86,631			11,656
Net Income	$	172,253		$	150,583		$	21,670
Diluted Earnings Per Average Common Share	$	2.39		$	2.09		$	0.30
Basic Earnings Per Average Common Share	$	2.40		$	2.10		$	0.30
Diluted Avg. Common Shares Outstanding		72,069			71,888			181
Basic Avg. Common Shares Outstanding		71,830			71,642			188
Dividends Per Common Share	$	0.26		$	0.25		$	0.01

2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending June 30, 2010 and 2009

	Trailing 12 Months
(in thousands, except per share data)	2010			2009			Change
Operating Revenues
Oil and gas operations	$	907,089		$	845,114		$	61,975
Natural gas distribution		651,644			651,210			434
Total operating revenues		1,558,733			1,496,324			62,409
Operating Expenses
Cost of gas		343,538			337,422			6,116
Operations and maintenance		405,385			351,668			53,717
Depreciation, depletion and amortization		248,310			212,868			35,442
Taxes, other than income taxes		85,594			84,460			1,134
Accretion expense		5,643			4,489			1,154
Total operating expenses		1,088,470			990,907			97,563
Operating Income		470,263			505,417			(35,154	)
Other Income (Expense)
Interest expense		(39,612	)		(40,168	)		556
Other income		3,781			2,675			1,106
Other expense		(810	)		(6,326	)		5,516
Total other expense		(36,641	)		(43,819	)		7,178
Income Before Income Taxes		433,622			461,598			(27,976	)
Income tax expense		155,627			172,666			(17,039	)
Net Income	$	277,995		$	288,932		$	(10,937	)
Diluted Earnings Per Average Common Share	$	3.86		$	4.02		$	(0.16	)
Basic Earnings Per Average Common Share	$	3.87		$	4.03		$	(0.16	)
Diluted Avg. Common Shares Outstanding		71,971			71,961			10
Basic Avg. Common Shares Outstanding		71,770			71,641			129
Dividends Per Common Share	$	0.51		$	0.49		$	0.02

3

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending June 30, 2010 and 2009

	2nd Quarter
(in thousands, except sales price data)	2010		2009		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	120,588	$	112,822	$	7,766
Oil		98,523		66,620		31,903
Natural gas liquids		14,611		16,194		(1,583	)
Other		864		2,901		(2,037	)
Total	$	234,586	$	198,537	$	36,049
Production volumes
Natural gas (MMcf)		17,633		18,001		(368	)
Oil (MBbl)		1,258		1,113		145
Natural gas liquids (MMgal)		19.0		18.4		0.6
Total production volumes (MMcfe)		27,897		27,314		583
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.84	$	6.27	$	0.57
Oil (barrel)	$	78.34	$	59.85	$	18.49
Natural gas liquids (gallon)	$	0.77	$	0.88	$	(0.11	)
Other data
Lease operating expense (LOE)
LOE and other	$	44,721	$	43,371	$	1,350
Production taxes		10,646		7,269		3,377
Total	$	55,367	$	50,640	$	4,727
Depreciation, depletion and amortization	$	50,586	$	43,753	$	6,833
General and administrative expense	$	12,979	$	11,428	$	1,551
Capital expenditures	$	72,352	$	241,213	$	(168,861	)
Exploration expenditures	$	18,677	$	104	$	18,573
Operating income	$	95,456	$	91,449	$	4,007
Natural Gas Distribution
Operating revenues
Residential	$	59,676	$	64,764	$	(5,088	)
Commercial and industrial		26,190		29,918		(3,728	)
Transportation		11,683		12,209		(526	)
Other		1,590		792		798
Total	$	99,139	$	107,683	$	(8,544	)
Gas delivery volumes (MMcf)
Residential		3,310		3,095		215
Commercial and industrial		1,853		1,810		43
Transportation		10,523		8,302		2,221
Total		15,686		13,207		2,479
Other data
Depreciation and amortization	$	11,890	$	12,654	$	(764	)
Capital expenditures	$	21,167	$	19,864	$	1,303
Operating income	$	3,138	$	3,242	$	(104	)

4

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 6 months ending June 30, 2010 and 2009

	Year-to-date
(in thousands, except sales price data)	2010			2009		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	246,015		$	228,457	$	17,558
Oil		192,498			124,362		68,136
Natural gas liquids		31,147			30,716		431
Other		2,540			4,122		(1,582	)
Total	$	472,200		$	387,657	$	84,543
Production volumes
Natural gas (MMcf)		35,045			35,651		(606	)
Oil (MBbl)		2,444			2,203		241
Natural gas liquids (MMgal)		37.8			35.9		1.9
Total production volumes (MMcfe)		55,106			54,006		1,100
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.02		$	6.41	$	0.61
Oil (barrel)	$	78.77		$	56.44	$	22.33
Natural gas liquids (gallon)	$	0.82		$	0.85	$	(0.03	)
Other data
Lease operating expense (LOE)
LOE and other	$	88,560		$	89,243	$	(683	)
Production taxes		20,587			15,110		5,477
Total	$	109,147		$	104,353	$	4,794
Depreciation, depletion and amortization	$	99,282		$	85,716	$	13,566
General and administrative expense	$	28,162		$	22,440	$	5,722
Capital expenditures	$	110,915		$	315,828	$	(204,913	)
Exploration expenditures	$	19,861		$	254	$	19,607
Operating income	$	212,741		$	172,595	$	40,146
Natural Gas Distribution
Operating revenues
Residential	$	301,082		$	269,292	$	31,790
Commercial and industrial		110,480			105,294		5,186
Transportation		29,516			27,225		2,291
Other		(4,639	)		858		(5,497	)
Total	$	436,439		$	402,669	$	33,770
Gas delivery volumes (MMcf)
Residential		18,272			14,286		3,986
Commercial and industrial		7,580			6,378		1,202
Transportation		23,205			19,271		3,934
Total		49,057			39,935		9,122
Other data
Depreciation and amortization	$	24,929		$	25,269	$	(340	)
Capital expenditures	$	37,527		$	35,974	$	1,553
Operating income	$	78,393		$	84,081	$	(5,688	)

5

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending June 30, 2010 and 2009

	Trailing 12 Months
(in thousands, except sales price data)	2010			2009		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	477,928		$	498,570	$	(20,642	)
Oil		352,886			278,243		74,643
Natural gas liquids		67,685			61,421		6,264
Other		8,590			6,880		1,710
Total	$	907,089		$	845,114	$	61,975
Production volumes
Natural gas (MMcf)		71,731			70,401		1,330
Oil (MBbl)		4,930			4,367		563
Natural gas liquids (MMgal)		77.1			71.8		5.3
Total production volumes (MMcfe)		112,324			106,855		5,469
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.66		$	7.08	$	(0.42	)
Oil (barrel)	$	71.57		$	63.71	$	7.86
Natural gas liquids (gallon)	$	0.88		$	0.86	$	0.02
Other data
Lease operating expense (LOE)
LOE and other	$	181,094		$	178,633	$	2,461
Production taxes		41,129			39,533		1,596
Total	$	222,223		$	218,166	$	4,057
Depreciation, depletion and amortization	$	197,655		$	162,864	$	34,791
General and administrative expense	$	57,936		$	38,753	$	19,183
Capital expenditures	$	222,485		$	592,489	$	(370,004	)
Exploration expenditures	$	29,841		$	6,241	$	23,600
Operating income	$	393,791		$	414,601	$	(20,810	)
Natural Gas Distribution
Operating revenues
Residential	$	431,550		$	414,286	$	17,264
Commercial and industrial		167,327			174,130		(6,803	)
Transportation		56,603			51,332		5,271
Other		(3,836	)		11,462		(15,298	)
Total	$	651,644		$	651,210	$	434
Gas delivery volumes (MMcf)
Residential		24,907			21,176		3,731
Commercial and industrial		11,135			10,353		782
Transportation		44,838			40,499		4,339
Total		80,880			72,028		8,852
Other data
Depreciation and amortization	$	50,655		$	50,004	$	651
Capital expenditures	$	79,362		$	70,298	$	9,064
Operating income	$	78,296		$	93,021	$	(14,725	)

6

EX-99.3

Exhibit 99.3

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
	2009 Actual		2010 Estimate (e)
Net Income (GAAP)	256		311		—	341
Depreciation, depletion and amortization	235		249		—	249
Deferred income taxes, net	85		77		—	77
After-tax Cash Flows (Non-GAAP)	576		637		—	667
Changes in assets and liabilities and other adjustments	103		10		—	10
Net Cash Provided by Operating Activities (GAAP)	679		647		—	677
Reconciliation To GAAP Information ($ in millions)
	Years Ended 12/31
	2009 Actual		2010 Estimate (e)
Net Cash Provided by Operating Activities (GAAP)	679		647		—	677
Changes in assets and liabilities and other adjustments	(103	)	(10	)	—	(10	)
After-tax Cash Flow (Non-GAAP)	576		637		—	667
Less: AGC cash flows from operations and other	(113	)	(77	)		(77	)
Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP)	463		560		—	590

(e) 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.

EX-99.4

Exhibit 99.4

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. Net Income excluding the non-cash afer-tax unproved leasehold write-off is a Non-GAAP financial measure. Energen believes that excluding it for comparative purposes better reflects financial perfomance of the company’s on-going operations.

	Quarter Ended 6/30/2010			Six Months Ended 6/30/2010
Consolidated Net Income ($ in millions except per share data)	Net Income	Per Diluted Share		Net Income	Per Diluted Share
Net Income (GAAP)	55.5	$	0.77	172.3	$	2.39
Non-cash leasehold write-off (net of $6.1 tax)	10.0		0.14	10.0		0.14
Net Income (Non-GAAP)	65.5	$	0.91	182.3	$	2.53
2010 Earnings Guidance Range	12/31/2010 Estimate (e)
Net Income (GAAP)	$4.16 – $4.56
Non-cash leasehold write-off	0.14 – 0.14
Net Income (Non-GAAP)	$4.30 – $4.70
Energen Resources Net Income ($ in millions)	Quarter Ended 6/30/2010	Six Months Ended 6/30/2010		Twelve Months Ended 6/30/2010
Net Income (GAAP)	56.8		128.4	238.6
Non-cash leasehold write-off (net of $6.1 tax)	10.0		10.0	10.0
Net Income (Non-GAAP)	66.8		138.4	248.6

(e) 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.