EX-99.3 4 dex993.htm NON-GAAP FINANCIAL MEASURES RECONCILIATION Non-GAAP Financial Measures Reconciliation

 

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 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.

Reconciliation To GAAP Information

($ in millions)

 

     Years Ended 12/31  
     2009 Actual      2010 Estimate (e)      2011 Estimate (e)  

Net Income (GAAP)

      256         286         —           293         230         —           260   

Depreciation, depletion and amortization

      235         250         —           250         268         —           268   

Deferred income taxes, net

      85         127         —           127         110         —           110   
                                                              

After-tax Cash Flows (Non-GAAP)

      576         663         —           670         608         —           638   

Changes in assets and liabilities and other adjustments*

      103         33         —           33         —           —           —     
                                                              

Net Cash Provided by Operating Activities (GAAP)

      679         696         —           703         608         —           638   
                                                              

 

*

Not projected for 2011

 

(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.