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

February 20, 2018

Energen Corporation

Registrant

1-7810	Alabama	63-0757759
Commission File Number	State of Incorporation	IRS Employer Identification Number

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

ITEM 2.02 Results of Operations and Financial Condition.

On February 20, 2018, Energen Corporation issued a press release announcing the fourth quarter financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2.

The information furnished pursuant to Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Energen Corporation under the Securities Act of 1933 or the Exchange Act.

ITEM 7.01 Regulation FD Disclosure.

Energen Corporation has included reconciliations of certain Non-GAAP financial measures to the related GAAP financial measures. The reconciliations are attached hereto as exhibit 99.3.

The information furnished pursuant to Item 7.01, including Exhibit 99.3, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Energen Corporation under the Securities Act of 1933 or the Exchange Act.

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 February 20, 2018
99.2	Supplemental Financial Information
99.3	Non-GAAP Financial Measures Reconciliation

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EXHIBIT INDEX

EXHIBIT NUMBER		DESCRIPTION
99.1	*	Press Release dated February 20, 2018
99.2	*	Supplemental Financial Information
99.3	*	Non-GAAP Financial Measures Reconciliation

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

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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
February 20, 2018	By /s/ Charles W. Porter, Jr.
	Charles W. Porter, Jr. Vice President, Chief Financial Officer and Treasurer of Energen Corporation

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EX-99.1

Exhibit 99.1

	ENERGEN CORPORATION 605 Richard Arrington Jr. Blvd. N. Birmingham, AL 35203-2707
	For Release: 6:00 a.m. ET	Contact:	Julie S. Ryland
	Tuesday, February 20, 2018		205.326.8421

4Q17 PRODUCTION BEATS GUIDANCE BY 14%, APPROACHES 100 MBOEPD

2018 Production Estimated to Grow 25% YOY at Midpoint

3-Year Production CAGR (2018-2020) Expected to Exceed 28% Per Year

****NOTE: 4Q17 conference call slides available at www.energen.com****

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) (“Energen” or the “company”) today announced financial and operating results for the fourth quarter ended December 31, 2017.

FINANCIAL AND OPERATING HIGHLIGHTS

STRONG EXECUTION DRIVES STRONG 4Q17 AND CY17

• 4Q17 production of 97.4 mboepd exceeded guidance by 14% and surpassed 3Q17 production by 20%.

• 4Q17 oil production of 58.1 mbopd exceeded guidance by 8% and surpassed 3Q17 oil production by 19%.

• CY17 production of 76.1 mboepd grew 39% from CY16 on strength of Generation 3 completions and greater activity level.

• 4Q17 adjusted EBITDAX of $241 mm grew 39% from 3Q17 and beat internal expectations by 24%.

• Per-unit LOE and net SG&A beat guidance midpoints by 10% and 9%, respectively.

• Additions in 2017 replaced production by ≈415%, driving 40% increase in YE17 proved reserves.

• CY17 proved developed F&D cost totaled $8.38/boe.

• Updated inventory supports net undeveloped resource potential of 2.7 billion BOE.

GEN 3 PATTERN WELLS CONTINUE TO GENERATE OUTSTANDING RESULTS

• Gen 3 performance drives strong IRRs through higher EURs and/or acceleration.

• Updated type curves support superior economics.

• 25 gross/21 net wells turned to production in 4Q17; 64% were multi-zone pattern wells completed in batches.

• New wells reflect outstanding 24-hr. and 30-day IP rates in Midland and Delaware basins; 4Q17 Delaware Basin wells generated average 24-hour IP rate of 402 boepd/1,000’ and average 30-day IP rate of 272 boepd/1,000’.

BRINGING VALUE FORWARD IN CY18

• Drilling and development capital (including facilities) estimated to range from $1.1 billion to $1.3 billion.

• Annual production estimated to range from 91.5-98.5 mboepd.

• Capital plans include drilling approximately 130 gross/120 net horizontal wells and completing approximately 123 gross/113 net horizontal wells (including 30 gross/28 net DUCs at YE17).

3-YEAR OUTLOOK (2018-2020) LEVERAGES SUPERIOR ECONOMICS TO FURTHER DRIVE SHAREHOLDER VALUE

• Annual oil production estimated to grow at 3-year CAGR of ≈28%.

• Annual production estimated to reach ≈160 mboepd in 2020, with 4Q exit rate of ≈170 mboepd.

• Drilling and development capital estimated to increase to $1.6-$1.8 billion in 2020.

• YE20 EBITDAX estimated to be ≈$1.6 billion (3-year CAGR: ≈35%).

• Balance sheet ensures capital flexibility as net debt to EBITDAX expected to remain between 1.0x-1.5x.

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Comments from the CEO

“Energen’s breakout year of 2017 culminated with another excellent quarter of execution, growth, and financial strength,” said Energen Chief Executive Officer James McManus. “In the 4^th quarter as well as the year, we delivered on our drilling and development plans and exceeded expectations for oil and total production as well as for lease operating and net SG&A expenses.

“As a result of implementing a clearly-defined strategy based on decisions made by the company’s Board and management, Energen is poised to build on its strong performance in 2017. Over the last five years, the Board and management have strategically divested non-core assets and transformed Energen into a low-cost Permian pure-pay with a strong foundation for profitable growth. As we look out over the next three years, we plan to leverage the superior economics of our Permian Basin assets in the Delaware and Midland basins to further drive shareholder value.

“We begin 2018 with a portfolio of high quality, oil-focused assets in the Delaware and Midland basins,” McManus said. “The company is delivering strong returns with the continued implementation of Generation 3 frac designs that are driving significant production growth. At the same, the company remains focused on cost reductions and operating efficiencies and a strong balance sheet that supports growth, capital flexibility, and value creation,” he added.

“Our Gen 3 frac designs are generating strong internal rates of return through higher EURs and/or acceleration, and we estimate that we can generate a 3-year compound annual growth rate (2018-2020) in excess of 28 percent a year while maintaining a net debt to EBITDAX multiple between 1.0x and 1.5x,” McManus said.

“We are extremely pleased with our performance this quarter and confident that Energen is well-positioned to continue delivering strong results and creating shareholder value.”

4Q17 Operations Update

In 4Q17 Energen turned to production 20 gross (16 net) wells in the Midland Basin and 5 gross (5 net) wells in the Delaware Basin. Their early performance continues to reflect outstanding results from Gen 3 frac designs; 64 percent were multi-zone pattern wells completed in batches. During the quarter, Energen operated 6 horizontal drilling rigs and 2 frac crews.

4Q17 Wells Turned to Production

Area	# Wells		Avg. Completed Lateral Length	Avg. Peak 24-Hr IP			Avg. Peak 30-Day IP
				Boepd	Boepd/ 1,000’	% Oil	Boepd	Boepd/ 1,000’	% Oil
Delaware Basin	5	Wolfcamp A (4) 3rd BS Sand (1)	6,297’	2,529	402	74	1,716	272	73
N. Midland Basin	4	Wolfcamp A (2) Wolfcamp B (2)	7,548‘	1,469	195	90	1,020	135	84
N. Midland Basin	5	Lower Spraberry	7,451‘	1,779	239	93	1,425	191	90
N. Midland Basin *	9	M. Spraberry (5) Jo Mill (4)	7,964‘	867	109	89	676	85	86
C. Midland Basin	2	Wolfcamp A	9,160‘	1,766	193	91	1,159	126	82

* Includes a Middle Spraberry well and a Jo Mill well turned to production in late 3Q17 but not previously disclosed due to timing of first production

Note: 2 test wells drilled in other formations in the Midland Basin are not included

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4Q17 Financial Results

For the 3 months ended December 31, 2017, Energen reported GAAP net income from all operations of $262.4 million, or $2.68 per diluted share. Adjusting for a non-cash loss on mark-to-market derivatives of $(37.5 million); a one-time, non-cash tax benefit of $240.1 million resulting from the Tax Cuts and Jobs Act; and miscellaneous non-cash items totaling $(1.4) million: Energen had adjusted net income in 4Q17 of $61.3 million, or $0.63 per diluted share. This compares with an adjusted net loss in 4Q16 of $(26.6 million), or $(0.27) per diluted share. [See “Non-GAAP Financial Measures” beginning on p. 10 for more information and reconciliation.]

Energen’s adjusted 4Q17 net income of $61.3 million exceeded internal expectations by $28.6 million largely due to better-than-expected production; lower-than-expected depreciation, depletion and amortization expense (DD&A), lease operating expense (LOE), and net salaries and general and administrative expense (SG&A); and higher realized oil prices.

Energen’s adjusted EBITDAX in 4Q17 totaled $241.0 million; this was 39 percent higher than adjusted EBITDAX in 3Q17 and 24 percent above internal expectations. In the same period a year ago, Energen’s adjusted EBITDAX totaled $82.1 million. [See “Non-GAAP Financial Measures” beginning on p. 10 for more information and reconciliation.]

4Q17 Production (mboepd)

Commodity	4Q17						Area	4Q17
	Actual		Guidance		% D			Actual		Guidance		% D
Oil		58.1		54.0		8	Midland Basin		51.7		45.4		14
NGL		19.4		14.9		30	Delaware Basin		37.4		32.4		15
Natural Gas		20.0		16.8		19	Platform/Other		8.2		7.8		5
Total		97.4		85.7		14	Total		97.4		85.7		14

Note: Totals may not sum due to rounding.

4Q17 Expenses

Per BOE, except where noted	4Q17
	Actual			Guidance Mdpt			% D
LOE (production costs, marketing & transportation)	$	6.02	*	$	6.70			(10	)
Production & ad valorem taxes (% of revenues exc. hedges)		5.3	%		6.2	%		(15	)
DD&A	$	14.43		$	16.30			(11	)
SG&A	$	2.58		$	2.85			(9	)
Exploration (includes seismic, delay rentals, etc.)	$	0.19		$	0.20			(5	)
Interest ($mm)	$	10.3		$	10.0			3

* LOE in the Midland/Delaware basins totaled $4.94/boe

4Q17 Average Realized Prices

Commodity	With Hedges		W/O Hedges
Oil (per barrel)	$	50.71	$	52.75
NGL (per gallon)	$	0.46	$	0.52
Natural Gas (per mcf)	$	2.25	$	2.08

CY17 Financial Results

For CY17, Energen reported GAAP net income from all operations of $306.8 million, or $3.14 per diluted share. Adjusting for a non-cash items, Energen had adjusted net income in CY17 of $73.6 million, or $0.75 per diluted share. This compares with an adjusted net loss in CY16 of $(128.8 million), or $(1.36) per diluted share. Energen’s adjusted EBITDAX in CY17 totaled $653.0 million – more than double the company’s adjusted EBITDAX in CY16 of $293.2 million. [See “Non-GAAP Financial Measures” beginning on p. 10 for more information and reconciliation.]

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CY17 Production (mboepd)

By Commodity	CY17		CY16*		% D		By Basin	CY17		CY16*		% D
Oil		46.4		34.5		34	Midland Basin		42.4		35.3		20
NGL		14.4		9.4		53	Delaware Basin		25.6		10.3		149
Natural Gas		15.3		10.7		43	Platform/Other		8.1		9.0		(10	)
Total		76.1		54.6		39	Total		76.1		54.6		39

* Excludes 2016 asset sales

Note: Totals may not sum due to rounding

CY17 Expenses

Per BOE, except where noted	CY17			CY16*			% D
LOE (production costs, marketing & transportation)†	$	6.61		$	7.86			(16	)
Production & ad valorem taxes (% of revenues exc. hedges)		6.0	%		6.6	%		(9	)
DD&A	$	17.23		$	21.45			(20	)
SG&A	$	3.05		$	4.32			(29	)
Exploration (includes seismic, delay rentals, etc.)	$	0.29		$	0.27			7
Interest ($mm)	$	38.4		$	36.9			4

* Excludes 2016 asset sales

^† LOE in the Midland and Delaware basins totaled $5.28/boe in CY17, down 15 percent from $6.23/boe in CY16

2017 Capital

Drilling and development capital in 2017 totaled $902 million, including $197 million in the fourth quarter. Total capital invested in 2017 including leasehold/mineral acquisitions and FF&E totaled $1.2 billion in 2017 and $217 million in the fourth quarter. During 4Q17, Energen added approximately 1,600 net acres of proved and unproved leasehold for some $16 million.

Liquidity and Leverage Update

At December 31, 2017, Energen had cash of $0.4 million, long-term debt of $527.9 million, and $255.0 million drawn on its $1.05 billion line of credit. The company’s net debt-to-adjusted EBITDAX at year-end 2017 totaled 1.2x.

2018 Overview

Energen plans to invest $1.1 billion to $1.3 billion of capital for drilling and development activities in 2018 (approximately $550-$650 million in each of the Delaware and Midland basins). Approximately 81 percent of the capital will be invested in drilling and developing operated wells; some 13 percent is allocated to saltwater disposal wells and other facilities; and the remainder is expected to be spent on non-operated and other activities. For its unhedged volumes, Energen’s 2018 plans assume recent strip prices of $58 WTI per barrel of oil, $0.65 per gallon of NGL, and $2.75 Henry Hub per Mcf of gas.

The company plans to drill approximately 130 gross/120 net horizontal wells in 2018 and complete approximately 123 gross/113 net horizontal wells, including 30 gross/28 net year-end 2017 drilled but uncompleted wells (DUCs). The working interest of completed wells in 2018 is approximately 90 percent, and the average lateral length is approximately 8,000’. The company estimates its YE18 DUCs will total approximately 37 gross/35 net. Energen also plans to drill 7 gross/7 net vertical wells in the Midland Basin and complete 6 gross/6 net of them.

During 2018, the company plans to run an average of 9 drilling rigs and 4.5 frac crews.

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Primary horizontal well targets in 2018 are the Wolfcamp A and B in the Delaware Basin; the Jo Mill, Middle Spraberry, Lower Spraberry and Wolfcamp A and B zones in the northern Midland Basin; and the Wolfcamp A and B in the central Midland Basin. [See 4Q17 conference slides for updated DC&E costs, type curves, EURs, and internal rates of return for Energen’s 2018 program.]

2018 Production Guidance

Energen’s production in 2018 is estimated to range from 91.5-98.5 mboepd, reflecting a 25 percent increase from 2017 at midpoint.

Area	2018 Guidance Range	2018 Guidance Midpoint		2017 Actual		% Change Mdpt. vs Actual
Midland Basin	48.5 - 51.5		50.0		42.4		18
Delaware Basin	37.0 - 39.0		38.0		25.6		48
Platform/Other	6.0 - 8.0		7.0		8.1		(14	)
Total	91.5 - 98.5		95.0		76.1		25

NOTE: Totals may not sum due to rounding

Commodity	2018 Guidance Range	2018 Guidance Midpoint		2017 Actual		% Change Mdpt. vs Actual
Oil	55.5 - 58.5		57.0		46.4		23
NGL	17.0 - 19.0		18.0		14.4		25
Gas	19.0 - 21.0		20.0		15.3		31
Total	91.5 - 98.5		95.0		76.1		25

NOTE: Totals may not sum due to rounding

Guidance by Basin	1Q18e	2Q18e	3Q18e	4Q18e
Midland Basin	49.5 - 52.5	48.5 - 51.5	46.5 - 49.5	50.0 - 53.0
Delaware Basin	30.0 - 32.0	33.0 - 35.0	37.0 - 39.0	47.5 - 49.5
Platform/Other	6.5 - 8.5	6.0 - 8.0	6.0 - 8.0	6.0 - 8.0
Total	86.0 - 93.0	87.5 - 94.5	89.5 - 96.5	103.5 - 110.5

NOTE: Totals may not sum due to rounding

Guidance by Commodity	1Q18e	2Q18e	3Q18e	4Q18e
Oil	51.5 - 54.5	51.5 - 54.5	54.0 - 57.0	65.0 - 68.0
NGL	16.5 - 18.5	17.0 - 19.0	16.5 - 18.5	18.0 - 20.0
Gas	18.0 - 20.0	19.0 - 21.0	19.0 - 21.0	20.0 - 22.0
Total	86.0 - 93.0	87.5 - 94.5	89.5 - 96.5	103.5 - 110.5

NOTE: Totals may not sum due to rounding

2018 First Production/Flow back (Operated Horizontal Wells – Gross/Net)

	1Q18e	2Q18e	3Q18e	4Q18e	CY18e
Midland Basin	9/8	16/15	15/14	26/22	66/58
Delaware Basin	4/4	12/10	14/13	21/21	51/48

NOTE: Totals may not sum due to rounding

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2018 Expenses

Energen expects most of its per-unit expenses to continue declining year-over-over in 2018 as production increases. LOE per boe in CY18 is estimated to range from $5.05-$5.25 in the Midland Basin, $5.35-$5.55 in the Delaware Basin, and $21.55-$21.75 in the Central Basin Platform/Northeast Shelf areas (“Platform”). Net SG&A per boe in CY18 is estimated to be comprised of cash of $1.85-$2.05 per boe and non-cash, equity-based compensation of $0.45-$0.65 per boe.

Per BOE, except where noted	2018e	CY17 Actual
LOE (production costs, marketing & transportation)	$6.40 - $6.60	$	6.61
Production & ad valorem taxes (% of revenues, excluding hedges)	6.2%		6.0	%
DD&A expense	$14.00 - $14.50	$	17.23
Salaries and general & administrative expense, net	$2.30 - $2.70	$	3.05
Exploration expense (seismic, delay rentals, etc.)	$0.15 - $0.20	$	0.29
Interest expense ($MM)	$46.5 - $51.5	$	38.4
FF&E depreciation ($MM)	$4.0 - $5.0	$	4.6
Accretion of discount on ARO ($MM)	$5.5 - $7.0	$	5.8
Effective tax rate (%)	22% - 24%		37	%

Per BOE, except where noted	1Q18e	2Q18e	3Q18e	4Q18e
LOE	$6.20 - $6.40	$6.75 - $6.95	$6.55 - $6.75	$6.15 - $6.35
Production & ad valorem taxes*	6.4%	6.2%	6.2%	6.2%
DD&A expense	$14.70 - $15.20	$14.45 - $14.95	$13.85 - $14.35	$13.15 - $13.65
SG&A, net	$2.80 - $3.20	$2.40 - $2.80	$2.30 - $2.70	$1.80 - $2.20
Exploration expense	$0.15 - $0.20	$0.15 - $0.20	$0.15 - $0.20	$0.15 - $0.20
Effective tax rate (%)	22% - 24%	22% - 24%	22% - 24%	22% - 24%

* % of revenues, excluding hedges

3-Year Outlook

Energen’s management believes the quality of its deep inventory in the Permian Basin supports a 3-year compound annual production growth rate of more than 28 percent a year (2018-2020). This growth comes as Energen maintains an outstanding balance sheet while increasing capital investment to bring forward the value of its inventory. Energen estimates that its annual production will grow from 95 mboepd (at guidance midpoint) in 2018 to more than 160 mboepd in 2020 and that 4Q production will increase from 107 mboepd (at guidance midpoint) in 2018 to approximately 135 mboepd in 2019 and 170 mboepd in 2020.

At recent strip prices, Energen estimates that its capital plans support annual investment in drilling and development activities in a range of $1.4-$1.6 billion in 2019 and $1.6-$1.8 billion in 2020. Energen’s EBITDAX at year-end 2020 is estimated to be approximately $1.6 billion, representing a 3-year CAGR of approximately 35 percent a year. (Oil prices used in the 3-year outlook reflect recent strip prices of $58 per barrel in 2018, $54 in 2019, and $52 in 2020).

YE17 Proved Reserves Increase 40% to 444 MMBOE

Energen’s proved reserves at year-end 2017 totaled 444 mmboe, up approximately 40 percent from year-end 2016. Reserve additions of 115.5 mmboe replaced production by 415 percent and were driven by an active drilling and completion program in the Midland and Delaware basins that featured Gen 3 frac designs. Proved reserves in the Delaware Basin alone rose 177 percent. The CY17 proved developed finding and development (F&D) cost totaled $8.38 per boe.

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Proved developed F&D per boe is defined as exploration and development costs divided by the sum of reserves associated with discoveries and extensions placed on production during 2017, transfers from proved undeveloped reserves at year-end 2016, and revisions (excluding price-related revisions) of previous estimates of proved developed reserves in 2017.

Commodity prices used for calculating reserves at year-end 2017 were higher than those at year-end 2016. WTI oil prices rose 20 percent to $51.34, while NGL prices (before transportation and fractionation) increased 46 percent to 57 cents per gallon and Henry Hub natural gas prices increased 20 percent to 2.98 per thousand cubic feet (Mcf).

Proved Reserves by Basin (MMBOE)

Basin	YE16		2017 Production			2017 Acquisitions/ (Divestitures)		2017 Additions		2017 Price/Other Revisions		YE17
Midland Basin		236.4		(15.5	)		—		49.0		23.9		293.8
Delaware Basin		39.1		(9.4	)		0.2		66.3		11.8		108.1
Platform/Other		40.9		(3.0	)		—		0.1		4.1		41.1
TOTAL		316.3		(27.8	)		0.2		115.5		39.8		444.0

NOTE: Totals may not sum due to rounding

Proved Reserves by Commodity (MMBOE)

Commodity	2017		2016
Oil		257		200
Natural gas liquids		91		58
Natural gas		96		58
TOTAL		444		316

NOTE: Totals may not sum due to rounding

YE17 3P Reserves & Contingent Resources (MMBOE)

Basin	Proved		Probable		Possible		Contingent Resources		Total
Midland Basin		294		154		130		979		1,557
Delaware Basin		108		40		46		1,243		1,437
Platform/Other		42		—		—		1		43
TOTAL		444		194		176		2,223		3,037

NOTE: Totals may not sum due to rounding

The definitions of probable and possible reserves and contingent resources imply different probabilities of potential recovery in each classification; the quantities reported here are unrisked and based on the company’s estimate of current costs to drill wells in each basin and bring associated production to market. [See Cautionary Statements on p. 9].

Hedges

Energen entered 2018 with 13.5 mmbo, or 65 percent of its estimated production guidance midpoint, hedged with 3-way collars at an average call price of $60.04 per barrel. Approximately 38 percent of its estimated NGL volumes has been hedged an average price of $0.59 per gallon; and some 8 percent of its gas volumes has been hedged at an average NYMEX-equivalent price of $3.56 per Mcf.

Energen also has hedged the WTI Midland to WTI Cushing differential for 10.8 million barrels, or 58 percent of its estimated sweet oil production, at an average price of $(1.01) per barrel.

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2018 Hedges

Oil	2018 Hedge Volumes		% Hedged			Avg. NYMEX Price
Three-way Collars		13.5 mmbo		65	%
Call Price						$	60.04
Put Price						$	45.47
Short Put Price						$	35.47

Commodity	2018 Hedge Volumes		% Hedged			Avg. NYMEXe Price
NGL		105.8 mm gallons		38	%	$	0.59 per gallon
Natural Gas		3.6 bcf		8	%	$	3.56 per mcf

Energen’s average realized prices in 2018 will reflect commodity and basis hedges, oil transportation charges of approximately $1.95 per barrel, NGL T&F fees of approximately $0.14 per gallon, and basis differentials applicable to unhedged production. Gas and NGL production also are subject to percent of proceeds contracts of approximately 85%.

The assumed natural gas basis for 2018 is $(1.00) per Mcf, and the assumed WTI Midland to WTI Cushing basis differential is $(1.15). Assumed prices for unhedged volumes in 2018 are $58/barrel, $0.65/gallon, and $2.75 per Mcf.

All 2018 hedges are pro rata throughout the year.

Estimated Price Realizations (pre-hedge):

	CY18e			1Q18e
Crude oil (% of NYMEX/WTI)		95	%		96	%
NGL (after T&F) (% of NYMEX/WTI)		32	%		33	%
Natural gas (% of NYMEX/Henry Hub)		52	%		59	%

2019 Hedges

Oil	2019 Hedge Volumes		Avg. NYMEX Price
Three-way Collars		5.4 mmbo
Call Price			$61.53 per barrel
Put Price			$45.67 per barrel
Short Put Price			$35.67 per barrel

In addition, Energen has hedges in place for 25.2 million gallons of 2019 NGL production at an average price of $0.66 per gallon and has hedged the Midland to Cushing differential on approximately 5.0 million barrels of its 2019 oil production at an average price of $(0.44).

Conference Call

4Q17 slides associated with Energen’s quarterly release and conference call are available at www.energen.com. Energen will hold its quarterly conference call Tuesday, February 20, at 8:30 a.m. ET. Investment community members may participate by calling 1-877-407-8289 (reference Energen earnings call). A live audio Webcast of the program as well as a replay may be accessed via www.energen.com.

Energen Corporation is an oil-focused exploration and production company with operations in the Permian Basin in west Texas and New Mexico. For more information, go to www.energen.com.

8

FORWARD LOOKING STATEMENTS: All statements, other than statements of historical fact, appearing in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements about our expectations, beliefs, intentions or business strategies for the future, statements concerning our outlook with regard to the timing and amount of future production of oil, natural gas liquids and natural gas, price realizations, the nature and timing of capital expenditures for exploration and development, plans for funding operations and drilling program capital expenditures, the timing and success of specific projects, operating costs and other expenses, proved oil and natural gas reserves, liquidity and capital resources, outcomes and effects of litigation, claims and disputes and derivative activities. Forward-looking statements may include words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “foresee”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “seek”, “will” or other words or expressions concerning matters that are not historical facts. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this news release. Except as otherwise disclosed, the forward-looking statements do not reflect the impact of possible or pending acquisitions, investments, divestitures or restructurings. The absence of errors in input data, calculations and formulas used in estimates, assumptions and forecasts cannot be guaranteed. We base our forward-looking statements on information currently available to us, and we undertake no obligation to correct or update these statements whether as a result of new information, future events or otherwise. Additional information regarding our forward-looking statements and related risks and uncertainties that could affect future results of Energen, can be found in the Company’s periodic reports filed with the Securities and Exchange Commission and available on the Company’s website - www.energen.com.

CAUTIONARY STATEMENTS: The SEC permits oil and gas companies to disclose in SEC filings only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. Outside of SEC filings, we use the terms “estimated ultimate recovery” or “EUR,” reserve or resource “potential,” “contingent resources” and other descriptions of volumes of non-proved reserves or resources potentially recoverable through additional drilling or recovery techniques. These estimates are inherently more speculative than estimates of proved reserves and are subject to substantially greater risk of actually being realized. We have not risked EUR estimates, potential drilling locations, and resource potential estimates. Actual locations drilled and quantities that may be ultimately recovered may differ substantially from estimates. We make no commitment to drill all of the drilling locations that have been attributed these quantities. Factors affecting ultimate recovery include the scope of our on-going drilling program, which will be directly affected by the availability of capital, drilling, and production costs, availability of drilling and completion services and equipment, drilling results, lease expirations, regulatory approvals, and geological and mechanical factors. Estimates of unproved reserves, type/decline curves, per-well EURs, and resource potential may change significantly as development of our oil and gas assets provides additional data. Additionally, initial production rates contained in this news release are subject to decline over time and should not be regarded as reflective of sustained production levels.

Financial, operating, and support data pertaining to all reporting periods included in this release are

unaudited and subject to revision.

9

EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 3 months ending December 31, 2017 and 2016

	4th Quarter
(in thousands, except per share data)	2017			2016			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	343,226		$	162,992		$	180,234
Loss on derivative instruments, net		(71,430	)		(48,472	)		(22,958	)
Total revenues		271,796			114,520			157,276
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		53,951			38,867			15,084
Production and ad valorem taxes		18,083			9,516			8,567
Depreciation, depletion and amortization		130,419			103,397			27,022
Asset impairment		82			40			42
Exploration		3,816			3,635			181
General and administrative (including stock-based compensation of $4,301 and $5,148 for the three months ended December 31, 2017, and 2016, respectively)		23,158			20,906			2,252
Accretion of discount on asset retirement obligations		1,501			1,580			(79	)
(Gain) loss on sale of assets and other, net		(6,031	)		5,175			(11,206	)
Total operating costs and expenses		224,979			183,116			41,863
Operating Income (Loss)		46,817			(68,596	)		115,413
Other Income (Expense)
Interest expense		(10,327	)		(9,041	)		(1,286	)
Other income		131			398			(267	)
Total other expense		(10,196	)		(8,643	)		(1,553	)
Income (Loss) Before Income Taxes		36,621			(77,239	)		113,860
Income tax benefit		(225,809	)		(22,769	)		(203,040	)
Net Income (Loss)	$	262,430		$	(54,470	)	$	316,900
Diluted Earnings Per Average Common Share	$	2.68		$	(0.56	)	$	3.24
Basic Earnings Per Average Common Share	$	2.70		$	(0.56	)	$	3.26
Diluted Average Common Shares Outstanding		97,831			97,074			757
Basic Average Common Shares Outstanding		97,202			97,074			128

1

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 12 months ending December 31, 2017 and 2016

	Year-to-date
(in thousands, except per share data)	2017			2016			Change
Revenues
Oil, natural gas liquids and natural gas sales	$	987,438		$	621,366		$	366,072
Loss on derivative instruments, net		(26,393	)		(88,477	)		62,084
Total revenues		961,045			532,889			428,156
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		183,697			171,714			11,983
Production and ad valorem taxes		59,447			42,938			16,509
Depreciation, depletion and amortization		483,376			447,961			35,415
Asset impairment		1,671			220,652			(218,981	)
Exploration		10,075			5,415			4,660
General and administrative (including stock-based compensation of $15,402 and $19,641 for the years ended December 31, 2017, and 2016, respectively)		84,823			95,689			(10,866	)
Accretion of discount on asset retirement obligations		5,831			6,672			(841	)
Gain on sale of assets and other, net		(13,011	)		(246,922	)		233,911
Total operating costs and expenses		815,909			744,119			71,790
Operating Income (Loss)		145,136			(211,230	)		356,366
Other Income (Expense)
Interest expense		(38,366	)		(36,899	)		(1,467	)
Other income		617			978			(361	)
Total other expense		(37,749	)		(35,921	)		(1,828	)
Income (Loss) Before Income Taxes		107,387			(247,151	)		354,538
Income tax benefit		(199,441	)		(79,638	)		(119,803	)
Net Income (Loss)	$	306,828		$	(167,513	)	$	474,341
Diluted Earnings Per Average Common Share	$	3.14		$	(1.77	)	$	4.91
Basic Earnings Per Average Common Share	$	3.16		$	(1.77	)	$	4.93
Diluted Average Common Shares Outstanding		97,707			94,476			3,231
Basic Average Common Shares Outstanding		97,182			94,476			2,706

2

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2017 and 2016

(in thousands)	December 31, 2017		December 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	439	$	386,093
Accounts receivable, net		158,787		73,322
Inventories, net		13,177		14,222
Derivative instruments		—		50
Income tax receivable		6,905		27,153
Prepayments and other		12,085		5,071
Total current assets		191,393		505,911
Property, Plant and Equipment
Oil and natural gas properties, net		4,718,939		4,016,683
Other property and equipment, net		44,581		44,869
Total property, plant and equipment, net		4,763,520		4,061,552
Other postretirement assets		2,646		3,619
Noncurrent derivative instruments		70,716		—
Other assets		5,620		8,741
TOTAL ASSETS	$	5,033,895	$	4,579,823
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	—	$	24,000
Accounts payable		75,167		65,031
Accrued taxes		2,631		7,252
Accrued wages and benefits		26,170		25,089
Accrued capital costs		74,909		79,988
Revenue and royalty payable		54,072		51,217
Derivative instruments		71,379		65,467
Other		17,916		20,160
Total current liabilities		322,244		338,204
Long-term debt		782,861		527,443
Asset retirement obligations		88,378		81,544
Noncurrent derivative instruments		8,886		3,006
Deferred income taxes		387,807		495,888
Other long-term liabilities		5,262		13,136
Total liabilities		1,595,438		1,459,221
Total Shareholders’ Equity		3,438,457		3,120,602
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,033,895	$	4,579,823

3

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2017 and 2016

	4th Quarter
(in thousands, except sales price and per unit data)	2017			2016			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	281,818		$	134,112		$	147,706
Natural gas liquids		38,522			14,068			24,454
Natural gas		22,886			14,812			8,074
Total	$	343,226		$	162,992		$	180,234
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(53,388	)	$	(23,704	)	$	(29,684	)
Natural gas liquids		(4,863	)		(5,914	)		1,051
Natural gas		54			(5,712	)		5,766
Total	$	(58,197	)	$	(35,330	)	$	(22,867	)
Closed gains (losses) on derivative instruments
Oil	$	(10,894	)	$	(12,380	)	$	1,486
Natural gas liquids		(4,312	)		—			(4,312	)
Natural gas		1,973			(762	)		2,735
Total	$	(13,233	)	$	(13,142	)	$	(91	)
Total revenues	$	271,796		$	114,520		$	157,276
Production volumes
Oil (MBbl)		5,343			2,944			2,399
Natural gas liquids (MMgal)		74.8			37.5			37.3
Natural gas (MMcf)		11,028			6,504			4,524
Total production volumes (MBOE)		8,961			4,920			4,041
Average daily production volumes
Oil (MBbl/d)		58.1			32.0			26.1
Natural gas liquids (MMgal/d)		0.8			0.4			0.4
Natural gas (MMcf/d)		119.9			70.7			49.2
Total average daily production volumes (MBOE/d)		97.4			53.5			43.9
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	50.71		$	41.35		$	9.36
Natural gas liquids (per gallon)	$	0.46		$	0.38		$	0.08
Natural gas (per Mcf)	$	2.25		$	2.16		$	0.09
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	52.75		$	45.55		$	7.20
Natural gas liquids (per gallon)	$	0.52		$	0.38		$	0.14
Natural gas (per Mcf)	$	2.08		$	2.28		$	(0.20	)
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	6.02		$	7.90		$	(1.88	)
Production and ad valorem taxes	$	2.02		$	1.93		$	0.09
Depreciation, depletion and amortization	$	14.55		$	21.02		$	(6.47	)
Exploration expense	$	0.43		$	0.74		$	(0.31	)
General and administrative	$	2.58		$	4.25		$	(1.67	)
Capital expenditures (including acquisitions)	$	217,475		$	154,455		$	63,020

4

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2017 and 2016

	Year-to-date
(in thousands, except sales price and per unit data)	2017			2016			Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil	$	814,470		$	521,017		$	293,453
Natural gas liquids		98,298			48,652			49,646
Natural gas		74,670			51,697			22,973
Total	$	987,438		$	621,366		$	366,072
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil	$	(10,658	)	$	(57,148	)	$	46,490
Natural gas liquids		(9,011	)		(6,868	)		(2,143	)
Natural gas		8,910			(7,174	)		16,084
Total	$	(10,759	)	$	(71,190	)	$	60,431
Closed gains (losses) on derivative instruments
Oil	$	(11,364	)	$	(17,701	)	$	6,337
Natural gas liquids		(7,780	)		—			(7,780	)
Natural gas		3,510			414			3,096
Total	$	(15,634	)	$	(17,287	)	$	1,653
Total revenues	$	961,045		$	532,889		$	428,156
Production volumes
Oil (MBbl)		16,951			13,213			3,738
Natural gas liquids (MMgal)		220.7			163.5			57.2
Natural gas (MMcf)		33,528			27,204			6,324
Total production volumes (MBOE)		27,794			21,639			6,155
Average daily production volumes
Oil (MBbl/d)		46.4			36.1			10.3
Natural gas liquids (MMgal/d)		0.6			0.4			0.2
Natural gas (MMcf/d)		91.9			74.3			17.6
Total average daily production volumes (MBOE/d)		76.1			59.1			17.0
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel)	$	47.38		$	38.09		$	9.29
Natural gas liquids (per gallon)	$	0.41		$	0.30		$	0.11
Natural gas (per Mcf)	$	2.33		$	1.92		$	0.41
Average realized prices excluding effects of all derivative instruments
Oil (per barrel)	$	48.05		$	39.43		$	8.62
Natural gas liquids (per gallon)	$	0.45		$	0.30		$	0.15
Natural gas (per Mcf)	$	2.23		$	1.90		$	0.33
Costs per BOE
Oil, natural gas liquids and natural gas production expenses	$	6.61		$	7.94		$	(1.33	)
Production and ad valorem taxes	$	2.14		$	1.98		$	0.16
Depreciation, depletion and amortization	$	17.39		$	20.70		$	(3.31	)
Exploration expense	$	0.36		$	0.25		$	0.11
General and administrative	$	3.05		$	4.42		$	(1.37	)
Capital expenditures (includes acquisitions)	$	1,189,342		$	582,898		$	606,444

5

EX-99.3

Exhibit 99.3

Non-GAAP Financial Measures

Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, income (loss) associated with divestitures, and the benefit of the Tax Cut and Jobs Act. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.

	Three Months Ended 12/31/17
Energen Net Income ($ in millions except per share data)	Net Income			Per Diluted Share
Net Income (Loss) All Operations (GAAP)		262.4			2.68
Non-cash mark-to-market losses (net of $20.6 tax)		37.5			0.38
Asset impairment, other (net of $0.8 tax)		1.4			0.01
Benefit of Tax Cuts and Jobs Act		(240.1	)		(2.45	)
Adjusted Income from Continuing Operations (Non-GAAP)		61.3			0.63
	Three Months Ended 12/31/16
Energen Net Income ($ in millions except per share data)	Net Income			Per Diluted Share
Net Income (Loss) All Operations (GAAP)		(54.5	)		(0.56	)
Non-cash mark-to-market losses (net of $12.5 tax)		22.8			0.23
Asset impairment, other (net of $0.0 tax) *		nm			nm
Loss associated with property sales (net of $1.3 tax)		5.0			0.05
Adjusted Income from Continuing Operations (Non-GAAP)		(26.6	)		(0.27	)

Note: Amounts may not sum due to rounding

* Approximately $25,000 (net of tax)

Non-GAAP Financial Measures

Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, certain prior period losses associated with a reduction in force, pension settlement expenses, income associated with divestitures, and the benefit of the Tax Cut and Jobs Act. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.

	Year Ended 12/31/17
Energen Net Income ($ in millions except per share data)	Net Income			Per Diluted Share
Net Income (Loss) All Operations (GAAP)		306.8			3.14
Non-cash mark-to-market losses (net of $3.8 tax)		6.9			0.07
Asset impairment, other (net of $1.4 tax)		2.4			0.03
Income associated with property sales (net of $2.0 tax)		(2.5	)		(0.03	)
Benefit of Tax Cuts and Jobs Act		(240.1	)		(2.46	)
Adjusted Income from Continuing Operations (Non-GAAP)		73.6			0.75
	Year Ended 12/31/16
Energen Net Income ($ in millions except per share data)	Net Income			Per Diluted Share
Net Income (Loss) All Operations (GAAP)		(167.5	)		(1.77	)
Non-cash mark-to-market losses (net of $25.3 tax)		45.9			0.49
Asset impairment, other (net of $67.5 tax)		121.7			1.29
Income associated with property sales (net of $76.1 tax)		(134.6	)		(1.42	)
Pension settlement expenses (net of $1.2 tax)		2.2			0.02
Reduction in force expenses (net of $1.9 tax)		3.5			0.04
Adjusted Income from Continuing Operations (Non-GAAP)		(128.8	)		(1.36	)

Note: Amounts may not sum due to rounding

Non-GAAP Financial Measures

Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes impairment losses, certain non-cash mark-to-market derivative financial instruments, and income (loss) associated with divestitures. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.

Reconciliation To GAAP Information

	Three Months Ended 12/31
($ in millions)	2017			2016
Energen Net Income (Loss) (GAAP)		262.4			(54.5	)
Loss associated with property sales, net of tax		0.0			5.0
Net Income (Loss) Excluding Property Sales (Non-GAAP)		262.4			(49.5	)
Interest expense		10.3			9.0
Income tax expense (benefit) **		(225.8	)		(21.5	)
Depreciation, depletion and amortization		130.4			103.4
Accretion expense		1.5			1.6
Exploration expense		1.7			3.6
Adjustment for asset impairment		2.2			nm
Adjustment for mark-to-market (gains)/ losses		58.2			35.3
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)		241.0			82.1

Note: Amounts may not sum due to rounding    

** Amount adjusted to exclude 2016 property sales in prior period. See reconciliation to GAAP Information for the Three Months Ended 12/31/2016.

Non-GAAP Financial Measures

Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes impairment losses, certain non-cash mark-to-market derivative financial instruments, prior period losses associated with a reduction in force, pension settlement expenses, and income associated with divestitures. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.

Reconciliation To GAAP Information

	Year Ended 12/31
($ in millions)	2017			2016
Energen Net Income (Loss) (GAAP)		306.8			(167.5	)
Income associated with property sales, net of tax*		(2.5	)		(134.6	)
Net Income (Loss) Excluding Property Sales (Non-GAAP)		304.3			(302.1	)
Interest expense		38.4			36.9
Income tax expense (benefit) **		(201.4	)		(155.7	)
Depreciation, depletion and amortization **		483.4			433.4
Accretion expense **		5.8			6.2
Exploration expense **		7.9			5.3
Adjustment for asset impairment		3.8			189.2
Adjustment for mark-to-market (gains)/ losses		10.8			71.2
Adjustment for pension settlement expenses		0.0			3.3
Adjustment for reduction in force expenses		0.0			5.5
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)		653.0			293.2

Note: Amounts may not sum due to rounding    

* For quarter to quarter comparability, excluded from GAAP income in the current quarter is an immaterial sale of certain unproved leasehold properties in Wyoming.

** Amount adjusted to exclude 2016 property sales in prior period. See reconciliation to GAAP Information for the Year Ended 12/31/2016.

Non-GAAP Financial Measures

The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with 2016 property sales provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.

Energen Net Income (Loss) Excluding 2016 Property Sales

Reconciliation to GAAP Information

	Three Months Ended
(in thousands except per share and production data)	December 31, 2016
	GAAP			2016 Property Sales			Non-GAAP
Revenues
Oil, natural gas liquids and natural gas sales	$	162,992		$	42		$	162,950
Gain (loss) on derivative instruments		(48,472	)		—			(48,472	)
Total Revenues		114,520			42			114,478
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		38,867			258			38,609
Production and ad valorem taxes		9,516			209			9,307
O&G Depreciation, depletion and amortization		102,230			—			102,230
FF&E Depreciation, depletion and amortization		1,167			—			1,167
Asset impairment		40			—			40
Exploration		3,635			—			3,635
General and administrative		20,906			1			20,905
Accretion of discount on asset retirement obligations		1,580			—			1,580
(Gain) loss on sale of assets and other		5,175			5,889			(714	)
Total costs and expenses		183,116			6,357			176,759
Operating Income (Loss)		(68,596	)		(6,315	)		(62,281	)
Other Income/(Expense)
Interest expense		(9,041	)		—			(9,041	)
Other income		398			8			390
Total other expense		(8,643	)		8			(8,651	)
Loss Before Income Taxes		(77,239	)		(6,307	)		(70,932	)
Income tax expense (benefit)		(22,769	)		(1,293	)		(21,476	)
Net Income (Loss)	$	(54,470	)	$	(5,014	)	$	(49,456	)
Diluted Earnings Per Average Common Share	$	(0.56	)	$	(0.05	)	$	(0.51	)
Basic earning Per Average Common Share	$	(0.56	)	$	(0.05	)	$	(0.51	)
Oil		2,944			1			2,943
NGL		892			1			891
Natural Gas		1,084			—			1,084
Total Production (mboe)		4,920			2			4,918
Total Production (boepd)		53,478			22			53,457

Note: Amounts may not sum due to rounding

Non-GAAP Financial Measures

The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with 2016 property sales provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.

Energen Net Income (Loss) Excluding 2016 Property Sales

Reconciliation to GAAP Information

	Year Ended
(in thousands except per share and production data)	December 31, 2016
	GAAP			2016 Property Sales			Non-GAAP
Revenues
Oil, natural gas liquids and natural gas sales	$	621,366		$	29,808		$	591,558
Gain (loss) on derivative instruments		(88,477	)		—			(88,477	)
Total Revenues		532,889			29,808			503,081
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production		171,714			14,784			156,930
Production and ad valorem taxes		42,938			3,589			39,349
O&G Depreciation, depletion and amortization		443,007			14,366			428,641
FF&E Depreciation, depletion and amortization		4,954			153			4,801
Asset impairment		220,652			31,407			189,245
Exploration		5,415			117			5,298
General and administrative		95,689			523			95,166
Accretion of discount on asset retirement obligations		6,672			501			6,171
(Gain) loss on sale of assets and other		(246,922	)		(246,283	)		(639	)
Total costs and expenses		744,119			(180,843	)		924,962
Operating Income (Loss)		(211,230	)		210,651			(421,881	)
Other Income/(Expense)
Interest expense		(36,899	)		—			(36,899	)
Other income		978			58			920
Total other expense		(35,921	)		58			(35,979	)
Loss Before Income Taxes		(247,151	)		210,709			(457,860	)
Income tax expense (benefit)		(79,638	)		76,102			(155,740	)
Net Income (Loss)	$	(167,513	)	$	134,607		$	(302,120	)
Diluted Earnings Per Average Common Share	$	(1.77	)	$	1.43		$	(3.20	)
Basic earning Per Average Common Share	$	(1.77	)	$	1.43		$	(3.20	)
Oil		13,213			597			12,616
NGL		3,892			432			3,460
Natural Gas		4,534			629			3,905
Total Production (mboe)		21,639			1,658			19,981
Total Production (boepd)		59,123			4,530			54,593

Note: Amounts may not sum due to rounding