-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ShuAjZu7lhKgRE4awE+3trxWT84dPTbcNenHc7tR0CyHiqoyWw46iNuZCqcSARfa 794jAy7EOK4nnmh+aMbLEA== 0000277595-04-000027.txt : 20040723 0000277595-04-000027.hdr.sgml : 20040723 20040722124623 ACCESSION NUMBER: 0000277595-04-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040630 ITEM INFORMATION: FILED AS OF DATE: 20040722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENERGEN CORP CENTRAL INDEX KEY: 0000277595 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 630757759 STATE OF INCORPORATION: AL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07810 FILM NUMBER: 04925999 BUSINESS ADDRESS: STREET 1: 605 RICHARD ARRINGTON JR BLVD N CITY: BIRMINGHAM STATE: AL ZIP: 35203-2707 BUSINESS PHONE: 2053262997 MAIL ADDRESS: STREET 1: 605 RICHARD ARRINGTON JR BLVD N CITY: BIRMINGHAM STATE: AL ZIP: 35203 FORMER COMPANY: FORMER CONFORMED NAME: ALAGASCO INC DATE OF NAME CHANGE: 19851002 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA GAS CORP CENTRAL INDEX KEY: 0000003146 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 630022000 STATE OF INCORPORATION: AL FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-70466 FILM NUMBER: 04926000 BUSINESS ADDRESS: STREET 1: 2101 SIXTH AVE NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35203 BUSINESS PHONE: 2053262742 MAIL ADDRESS: STREET 1: 605 RICHARD ARRINGTON JR BLVD NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35203 8-K 1 earnings8k06302004.htm ENERGEN CORPORATION 8K 6/30/04 SECURITIES AND EXCHANGE COMMISSION



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 22, 2004

 

Commission

IRS Employer

File

State of

Identification

Number

Registrant

Incorporation

Number

1-7810

Energen Corporation

Alabama

63-0757759

2-38960

Alabama Gas Corporation

Alabama

63-0022000


 

605 Richard Arrington Jr. Boulevard North

Birmingham, Alabama

35203
 

(Address of principal executive offices)

(Zip Code)

 

 

 

(205) 326-2700

(Registrant's telephone number including area code)

 

 

 

 

ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION


On July 22, 2004, Energen Corporation and Alabama Gas Corporation issued a press release announcing financial results for the second quarter of 2004. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2 to this form 8-K and are furnished to, but not filed with, the Commission. This information is provided under Item 12 of Form 8-K.

 

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 22, 2004

By /s/ G. C. Ketcham

G. C. Ketcham
Executive Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama
Gas Corporation

 

 

EXHIBIT INDEX

EXHIBIT NUMBER

  

DESCRIPTION

     

99.1

*

Press Release dated July 22, 2004

99.2

*

Supplemental Financial Information dated July 22, 2004

 

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

 

 

 

 

 

 EX-99.1 2 exhibit991.htm ENERGEN CORPORATION PRESS RELEASE 6/30/04 Energen Corporation (NYSE: EGN)

 

 

 

For Immediate Release: For More Information:

Thursday, July 22, 2004 Julie S. Ryland, (205) 326-8421

 

ENERGEN RAISES EARNINGS GUIDANCE FOR 2004 AND 2005

2nd Quarter 2004 Results Better than Expected

Birmingham, Alabama - Energen Corporation (NYSE: EGN) today reported second quarter 2004 earnings of $22.3 million, or $0.61 per diluted share. Earnings for the quarter exceeded internal expectations and the First Call consensus estimate. The Company also announced that it is raising its earnings guidance for 2004 and 2005.

Given solid year-to-date results, Energen increased its 2004 earnings guidance 5 cents to a range of $3.25-$3.35 per diluted share. Even though remaining estimated production is heavily hedged, the current market outlook for commodity prices in the last six months of 2004 is significantly above Energen's assumed prices for unhedged volumes, thereby leaving room for upside earnings potential from prices received for that production.

The Company also raised its 2005 earnings guidance to a range of $3.80-$4.00 per diluted share; this 10-cents per diluted share increase reflects the estimated impact of recent natural gas and oil hedges on the production of Energen Resources Corporation, its oil and gas acquisition and development subsidiary.

Energen's 2005 guidance assumes that prices applicable to Energen Resources' unhedged production in 2005 will average $5.25 per thousand cubic feet (Mcf) for gas, $28.00 per barrel for oil, and 46.7 cents per gallon for natural gas liquids (NGL). The current pricing outlook for natural gas, oil and NGL in 2005 is significantly higher than Energen's assumed prices; for example, at $6.00 per Mcf for gas, $35.00 per barrel for oil, and 55 cents per gallon for NGL, Energen's earnings could exceed $4.30 per diluted share.

 

The Company's 2004 and 2005 guidance assumes the successful close on August 2, 2004, of Energen Resources' planned purchase of San Juan Basin coalbed methane properties; also included in 2005 guidance is approximately 7 cents per diluted share for an assumed $200 million acquisition in late 2005.

RESULTS OF SECOND QUARTER 2004

Energen's 2004 second quarter net income of $22.3 million, or $0.61 per diluted share, compared with prior-year second quarter net income of $23.3 million, or $0.66 per diluted share. Income from discontinued operations for the current-year period was minimal as compared with a loss of $1.1 million, or 3 cents per diluted share, in the same period a year ago.

Energen Resources

Energen Resources' second quarter 2004 income from continuing operations totaled $21.8 million and compared with income from continuing operations of $22.6 million in the same period last year. The impact of increased commodity prices in the current-year quarter was more than offset by increased lease operating expense (LOE), decreased production and and increased administrative expense.

The Company's average realized sales prices for its production was as follows:

Commodity

Price per Unit

Percent Change

2Q 2004

2Q 2003

Natural Gas (Mcf)

$4.76

$4.24

12.3

Oil (Barrel)

$26.52

$25.65

3.4

NGL (Gallon)

$0.42

$0.35

20

Note: Average realized sales prices reflect the impact of all hedges, basis differentials and NGL transportation and fractionation fees; they are not NYMEX-equivalent prices.

Energen Resources' production from continuing operations in the second quarter of 2004 totaled 21.1 billion cubic feet equivalent (Bcfe), reflecting a 3 percent decrease in production from continuing operations from the prior-year second quarter.

The break-down of production by commodity is as follows:

Commodity

Production

Percent Change

2Q 2004

2Q 2003

Natural Gas (Mcf)

13,754

14,248

(3.5)

Oil (MBbl)

831

850

(2.2)

NGL (MMgal)

16.9

17.2

(1.7)

 

 

 

 

 

 

Energen Resources' per-unit LOE in the current-year second quarter increased 31 percent to $1.27 per Mcf equivalent (Mcfe) due to increased workover and maintenance expenses, increased ad valorem taxes and additional compression; production taxes also increased as a result of higher commodity prices.

DD&A expense from oil and gas activities declined 3 percent from the same period last year to 88 cents per Mcfe.

Alagasco

Alagasco's natural gas distribution operations earned net income in the second quarter of 2004 of $0.6 million as compared with $2.1 million in the same period last year. This decline in earnings is related to fluctuations in the timing of rate relief under the utility's rate-setting mechanism.

RESULTS OF YEAR-TO-DATE 2004

Energen's 2004 year-to-date net income of $82.5 million, or $2.25 per diluted share, compared with net income for the first six months of 2003 of $77.9 million, or $2.21 per diluted share. Discontinued operations generated a minimal loss of $10,000 in the current year-to-date period as compared with income from discontinued operations of $146,000 in the same period a year ago.

Energen Resources

Energen Resources' year-to-date income from continuing operations increased approximately 6 percent to $45.0 million from $42.3 million in the same period last year. The impact of increased commodity prices more than offset the impact of higher LOE and administrative expense.

 The Company's average realized sales prices for its production were as follows:

Commodity

Price per Unit

Percent Change

Jan-Jun 2004

Jan-Jun 2003

Natural Gas (Mcf)

$4.76

$4.31

10.4

Oil (Barrel)

$26.83

$25.81

4.0

NGL (Gallon)

$0.41

$0.38

7.9

Note: Average realized sales prices reflect the impact of all hedges, basis differentials and NGL transportation and fractionation fees; they are not NYMEX-equivalent prices.

Energen Resources' production from continuing operations in the first six months of 2004 totaled 42.3 Bcfe, virtually unchanged from production from continuing operations in the first half of the prior-year.

The break-down of production by commodity is as follows:

Commodity

Production

Percent Change

Jan-Jun 2004

Jan-Jun 2003

Natural Gas (Mcf)

27,491

27,515

(0.1)

Oil (MBbl)

1,704

1,701

0.2

NGL (MMgal)

32.2

32.9

(2.1)

 

 

 

 

 

 

Energen Resources' per-unit LOE in the current year-to-date period increased 17 percent to $1.25 per Mcfe due to increased workover and maintenance expenses, increased ad valorem taxes and additional compression; production taxes also increased as a result of higher commodity prices.

DD&A expense from oil and gas activities declined 3 percent from the same period last year to 88 cents per Mcfe.

Alagasco

Alagasco's natural gas distribution operations earned net income in the first six months of 2004 of $36.9 million as compared with $35.6 million in the same period last year. This increase in earnings largely reflects the utility's ability to earn on a higher level of equity representing investment in utility plant.

 

RESULTS OF 12 MONTHS ENDING JUNE 30

For the 12 months ended June 30, 2004, Energen's net income totaled $115.2 million, or $3.16 per diluted share, as compared with $97.1 million, or $2.78 per diluted share, in the same period a year ago. Income from continuing operations totaled $114.9 million, or $3.16 per diluted share. This compared with income from continuing operations in the comparable period a year ago of $96.4 million, or $2.76 per diluted share.

Prior-period results included a $1.7 million, or 5 cents per diluted share, non-cash benefit from the Company's previous hedge position with Enron Corporation and $2.6 million, or 7 cents per diluted share, of nonconventional fuels tax credits. The ability to generate new credits ended at the end of 2002.

Energen Resources

Increased commodity prices and production generated for Energen Resources a 26 percent increase in income from continuing operations for the trailing 12-months' period as compared with the comparable period a year ago. Income from continuing operations in the current-year period totaled $81.3 million and compared with prior-year results of $64.7 million. The prior-period results included the non-cash benefit associated with the Company's previous hedge position with Enron and the nonconventional fuels tax credits.

The Company's average realized sales prices for its production were as follows:

Commodity

Price per Unit

Percent Change

Jul 03-Jun 04

Jul 02-Jun 03

Natural Gas (Mcf)

$4.48

$3.89

15.2

Oil (Barrel)

$26.07

$25.37

2.8

NGL (Gallon)

$0.40

$0.36

11.1

Note: Average realized sales prices reflect the impact of all hedges, basis differentials and NGL transportation and fractionation fees; they are not NYMEX-equivalent prices.

 

Energen Resources' production from continuing operations for the trailing 12-months' period totaled 85.3 Bcfe as compared with 81.7 Bcfe in the same period a year ago.

 

The break-down of production by commodity is as follows:

Commodity

Production

Percent Change

Jul 03-Jun 04

Jul 03-Jun 04

Natural Gas (Mcf)

55,409

51,204

8.2

Oil (MBbl)

3,415

3,375

1.2

NGL (MMgal)

65.9

71.6

(8.0)

 

 

 

 

 

 

Energen Resources' per-unit LOE in the current trailing 12-months' period increased 13 percent to $1.21 per Mcfe. DD&A expense from oil and gas activities of 89 cents per Mcfe was basically unchanged from the 90 cents per Mcfe in same period last year.

Alagasco

For the 12 months ending June 30, 2004, Alagasco earned net income of $34.3 million as compared with $31.6 million in the comparable period last year. This increase in earnings largely reflects the utility's ability to earn on a higher level of equity representing investment in utility plant.

2004 EARNINGS GUIDANCE

Energen's management has increased its 2004 earnings guidance to a range of $3.25- $3.35 per diluted share. This compares with previous guidance of $3.20-$3.30 per diluted share. Energen's budgeted prices for unhedged natural gas, oil and NGL production for the remainder of the year are $5.00 per Mcf (excepting July, for which the actual NYMEX price was $6.14 per Mcf), $27.00 per barrel and 45 cents per gallon, respectively.

For the remaining six months of 2004, Energen Resources' hedge position is as follows:

Commodity

Volumes

Estimated Production

% Hedged

NYMEX-equiv. price

Natural Gas

24 Bcf

28 Bcf

86%

$4.97 per Mcf

Oil

1.4 MMBbl

1.7 MMBbl

83%

$29.46 per barrel

NGL

18.6 MMgal

38 MMgal

49%

$0.412 per gallon

 

For the remaining six months of 2004, Energen Resources' natural gas hedge position by hedge type is as follows:

Hedge Type

Volumes (Bcf)

Assumed Basis Difference*

Price/Mcf (NYMEX equiv)

NYMEX Hedges

10.2

$5.04

NYMEX Collars

1.2

$4.05 floor/$4.44 ceiling

San Juan Basin-specific

9.7

$0.79

$4.85

Permian Basin-specific

2.9

$0.35

$5.38

* Assumed basis differentials have been used to calculate NYMEX-equivalent prices for August through December; actual basis differentials were used for July.

For the remaining six months of 2004, Energen Resources' oil hedge position by hedge type is as follows:

Hedge Type

Volumes (MBbl)

Assumed Sour Oil Difference*

Price/Barrel (NYMEX equiv)

NYMEX Hedges

728

$28.44

Sour Oil (WTS)

706

$2.80

$30.50

* Assumed sour oil differential has been used to calculate the NYMEX-equivalent price.

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

Energen Resources' production in 2004 is estimated to total 86 Bcfe, including 55 Bcf of natural gas, 3.4 MMBbl of oil, and 70 MMgal of NGL.

 

Other key assumptions in Energen's 2004 guidance, which takes into account year-to-date results, include:

  • Average diluted shares outstanding of 36,630,000.
  • Alagasco's utility operations earning a return on equity at the end of the year of some 13.2 percent on average equity of approximately $265 million (The utility's rate-setting mechanism provides the opportunity for the utility to earn a return on average equity at the end of its rate year, September 30, between 13.15 percent and 13.65 percent).
  • A DD&A rate from oil and gas activities of approximately 91 cents per Mcfe and LOE (including production taxes) of approximately $1.26 per Mcfe.

Earnings Sensitivities to Commodity Price Changes

The largest influences on Energen's financial results typically are the commodity prices applicable to the company's unhedged production. Given Energen Resources' year-to-date performance, hedge position for the remainder of 2004, and assumed prices for its unhedged production as well as the actual NYMEX price of gas for July, Energen's earnings' sensitivities to commodity price changes for the remainder of the year are as follows:

Relative to the Company's remaining unhedged volumes:

  • Every 10-cent change in the average NYMEX price of gas from $5.00 per Mcf is estimated to have a net income impact of approximately $105,000 (0.3 cents per diluted share).
  • Every $1 change in the average NYMEX price of oil from $27.00 per barrel is estimated to have a net income impact of approximately $170,000 (0.5 cents per diluted share).
  • Every 1-cent change in average price of NGL from 45 cents per gallon is estimated to have a net income impact of approximately $90,000 (0.2 cents per diluted share).

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

Earnings Guidance and Hedge Position by Quarter

Energen estimates that, on a quarterly basis for the remainder of 2004, its earnings will range from $0.30-$0.35 per diluted share in the 3rd quarter and from $0.70-$0.75 cents per diluted share in the 4th quarter. Approximately 6.2 Bcfe of hedges applicable to production over the remainder of the year do not qualify as cash flow hedges under SFAS 133, and the mark-to-market treatment of these hedges could affect quarterly results (annual earnings would not be affected). Diluted average shares outstanding are estimated to be 36.7 million in the third and fourth quarters.

The following tables reflect Energen's quarterly production estimates, hedge positions, pricing assumptions for unhedged production and earnings sensitivities to 10-cent per Mcf, $1.00 per barrel and 1-cent per gallon changes in the assumed prices for unhedged natural gas, oil and NGL production, respectively, in the quarter.

 

3rd Quarter 2004

Natural Gas

Oil

NGL

Production (estimated)

13.7 Bcf

845 MBbl

18 MMgal

Hedge position (%)

87%

86%

51%

Average hedge price

$4.94/Mcf +a

$29.48/barrel +

$0.41/gallon

Assumed Price (unhedged production)

$5.38/Mcf +a*

$27.00/barrel +

$0.45/gallon

Earnings sensitivities:

Per $0.10/Mcf Change from Assumed Price

Per $1/barrel Change from Assumed Price

Per $0.01/gallon Change from Assumed Price

Net income

$32,000

$60,000

$40,000

EPS (diluted)

0.1 cents

0.2 cents

0.1 cents

+ NYMEX equivalent

a Incorporates known gas basis differentials for July

* For August and September; July actual was $6.14/Mcf

4th Quarter 2004

Natural Gas

Oil

NGL

Production (estimated)

14.3 Bcf

880 MBbl

20 MMgal

Hedge position (%)

85%

80%

47%

Average hedge price

$5.01/Mcf +

$29.43/barrel +

$0.41/gallon

Assumed Price (unhedged production)

$5.00/Mcf +

$27.00/barrel +

$0.45/gallon

Earnings sensitivities:

Per $0.10/Mcf Change from Assumed Price

Per $1/barrel Change from Assumed Price

Per $0.01/gallon Change from Assumed Price

Net income

$73,000

$110,000

$50,000

EPS (diluted)

0.2 cents

0.3 cents

0.1 cents

+ NYMEX equivalent

2005 EARNINGS GUIDANCE

With the planned closing on August 2, 2004, of the $273 million acquisition of San Juan Basin coalbed methane properties, much of the uncertainty related to Energen's 2005 earnings has been removed. In addition, the Company has increased its hedge position in recent weeks (as previously reported) to help solidify the earnings outlook for the year.

As a result, Energen has raised its 2005 earnings guidance to a range of $3.80-$4.00 per diluted share. The Company's plans call for a $200 million acquisition to occur late in the year, and an estimated 7 cents per diluted share is attributable to this unidentified acquisition.

The Company's guidance for 2005 earnings assumes that prices applicable to Energen's unhedged production in 2005 will average $5.25 per Mcf for gas, $28.00 per barrel for oil, and 46.7 cents per gallon for NGL.

Energen Resources' hedge position for 2005 is as follows:

Commodity

Volumes

Estimated Production

% Hedged

NYMEX-equiv. Price

Natural Gas

35.4 Bcf

60.8 Bcf*

58.0 Bcf**

58%*

61%**

$5.70 per Mcf

Oil

2.3 MMBbl

3.5 MMBbl

65%

$33.25 per barrel

NGL

30.2 MMgal

79 MMgal*

78 MMgal**

38%*

40%**

$0.485 per gallon

* With unidentified 4th quarter 2005 acquisition

** Without unidentified 4th quarter 2005 acquisition

Energen Resources' 2005 natural gas hedge position by hedge type is as follows:

Hedge Type

Volumes (Bcf)

Assumed Basis Difference*

Price/Mcf (NYMEX equiv)

NYMEX Hedges

16.4

$5.98

San Juan Basin-specific

15.5

$0.80

$5.33

Permian Basin-specific

1.8

$0.35

$5.96

SNG-LA Basin-specific

1.6

$0.04

$6.13

* Assumed basis differentials have been used to calculate NYMEX-equivalent prices.

 

Energen Resources' 2005 oil hedge position by hedge type is as follows:

Hedge Type

Volumes (MBbl)

Assumed Sour Oil Difference*

Price/Barrel (NYMEX equiv)

NYMEX Hedges

535

$31.20

Sour Oil (WTS)

1,723

$2.90

$33.89

* Assumed sour oil differential has been used to calculate the NYMEX-equivalent price.

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

Earnings Sensitivities to Commodity Price Changes

The largest influences on Energen's financial results typically are the commodity prices applicable to the company's unhedged production. Given Energen Resources' current hedge position for 2005 and assuming prices (as outlined above) for its unhedged production (excluding volumes from unidentified acquisitions), Energen's earnings' sensitivities to commodity price changes are as follows:

Relative to the company's unhedged volumes in 2005 (excluding production from unidentified acquisitions):

  • Every 10-cent change in the average NYMEX price of gas from $5.25 per Mcf is estimated to have a net income impact of approximately $1,100,000 (3 cents per diluted share).
  • Every $1.00 change in the average NYMEX price of oil from $28.00 per barrel is estimated to have a net income impact of approximately $950,000 (2.5 cents per diluted share).
  • Every 1-cent change in average price of NGL from 46.7 cents per gallon is estimated to have a net income impact of approximately $165,000 (0.4 cents per diluted share).

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

Total production for 2005 is estimated to be 93 Bcfe, including approximately 3 Bcfe attributable to an unidentified acquisition in the fourth quarter of 2005.

Other key assumptions used in developing Energen's 2005 earnings guidance include:

  • Average diluted shares outstanding of 36,850,000.
  • Alagasco's earning a return on average equity of 13.15-13.65 percent on average equity of approximately $270 million.
  • A DD&A rate at Energen Resources of approximately 95 cents per Mcfe and LOE (including production taxes) of approximately $1.30 per Mcfe.
  • Capital spending at Energen Resources of approximately $205 million for property acquisitions and related development, and approximately $75 million for development of existing properties (including the San Juan coalbed methane properties scheduled to close on August 2, 2004); and capital spending at Alagasco of approximately $55 million.

 

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

FORWARD-LOOKING STATEMENTS

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

-o0o-

EX-99.2 3 exhibit992.htm ENERGEN CORPORATION FINANCIAL DATA 6/30/04

Consolidated Statements of Income (Unaudited)
For the 3 months ending June 30, 2004 and 2003

 

2nd Quarter

    

(in thousands, except per share data)

  

2004

  

2003

  

Change

Operating Revenues

    

     

Oil and gas operations

$

95,433

$

89,782

$

5,651

Natural gas distribution

  

92,744

  

94,248

  

(1,504)

Total operating revenues

  

188,177

  

184,030

  

4,147

Operating Expenses

            

Cost of gas

  

40,291

  

42,107

  

(1,816)

Operations & maintenance

  

56,244

  

47,711

  

8,533

DD&A

  

28,927

  

29,535

  

(608)

Taxes, other than income taxes

  

16,047

  

14,165

  

1,882

Accretion expense

  

532

  

466

  

66

Total operating expenses

  

142,041

  

133,984

  

8,057

Operating Income

  

46,136

  

50,046

  

(3,910)

Other Income (Expense)

            

Interest expense

  

(10,694)

  

(10,734)

  

40

Other income

  

633

  

1,999

  

(1,366)

Other expense

  

(670)

  

(2,263)

  

1,593

Total other expense

  

(10,731)

  

(10,998)

  

267

Income Before Income Taxes

  

35,405

  

39,048

  

(3,643)

Income tax expense

  

13,137

  

14,589

  

(1,452)

Income from Continuing Operations

  

22,268

  

24,459

  

(2,191)

Discontinued Operations, Net of Taxes

            

Income from discontinued operations

  

2

  

149

  

(147)

Gain (loss) on disposal

  

-

  

(1,261)

  

1,261

Income (Loss) from Discontinued Operations

  

2

  

(1,112)

  

1,114

Net Income

$

22,270

$

23,347

$

(1,077)

Diluted Earnings Per Share

            

Continuing operations

$

0.61

$

0.69

$

(0.08)

Discontinued operations

-

(0.03)

0.03

Net Income

$

0.61

$

0.66

$

(0.05)

Basic Earnings Per Share

            

Continuing operations

$

0.61

$

0.70

$

(0.09)

Discontinued operations

  

-

  

(0.03)

  

0.03

Net Income

$

0.61

$

0.67

$

(0.06)

Diluted Avg. Common Shares Outstanding

  

36,625

  

35,349

  

1,276

Basic Avg. Common Shares Outstanding

  

36,230

  

35,000

  

1,230

Dividends Per Share

$

0.185

$

0.18

$

0.005

 

Consolidated Statements of Income (Unaudited)
For the 6 months ending June 30, 2004 and 2003

 

Year-to-date

    

(in thousands, except per share data)

  

2004

  

2003

  

Change

Operating Revenues

    

     

Oil and gas operations

$

191,660

$

178,301

$

13,359

Natural gas distribution

  

347,946

  

315,387

  

32,559

Total operating revenues

  

539,606

  

493,688

  

45,918

Operating Expenses

            

Cost of gas

  

179,029

  

154,079

  

24,950

Operations & maintenance

  

109,391

  

98,528

  

10,863

DD&A

  

57,663

  

58,270

  

(607)

Taxes, other than income taxes

  

40,325

  

35,685

  

4,640

Accretion expense

  

1,022

  

960

  

62

Total operating expenses

  

387,430

  

347,522

  

39,908

Operating Income

  

152,176

  

146,166

  

6,010

Other Income (Expense)

            

Interest expense

  

(21,012)

  

(21,556)

  

544

Other income

  

1,495

  

5,119

  

(3,624)

Other expense

  

(1,695)

  

(5,352)

  

3,657

Total other expense

  

(21,212)

  

(21,789)

  

577

Income Before Income Taxes

  

130,964

  

124,377

  

6,587

Income tax expense

  

48,499

  

46,595

  

1,904

Income from Continuing Operations

  

82,465

  

77,782

  

4,683

Discontinued Operations, Net of Taxes

            

Income from discontinued operations

  

3

  

822

  

(819)

Gain (loss) on disposal

  

(13)

  

(676)

  

663

Income (Loss) from Discontinued Operations

  

(10)

  

146

  

(156)

Net Income

$

82,455

$

77,928

$

4,527

Diluted Earnings Per Share

            

Continuing operations

$

2.25

$

2.21

$

0.04

Discontinued operations

  

-

  

-

  

-

Net Income

$

2.25

$

2.21

$

0.04

Basic Earnings Per Share

            

Continuing operations

$

2.28

$

2.23

$

0.05

Discontinued operations

  

-

  

-

  

-

Net Income

$

2.28

$

2.23

$

0.05

Diluted Avg. Common Shares Outstanding

  

36,600

  

35,193

  

1,407

Basic Avg. Common Shares Outstanding

  

36,202

  

34,868

  

1,334

Dividends Per Share

$

0.37

$

0.36

$

0.01

 

 

Consolidated Statements of Income (Unaudited)
For the 12 months ending June 30, 2004 and 2003

 

Trailing 12 Months

    

(in thousands, except per share data)

  

2004

  

2003

  

Change

Operating Revenues

    

     

Oil and gas operations

$

366,481

$

315,397

$

51,084

Natural gas distribution

  

521,658

  

467,585

  

54,073

Total operating revenues

  

888,139

  

782,982

  

105,157

Operating Expenses

            

Cost of gas

  

258,773

  

217,748

  

41,025

Operations & maintenance

  

219,082

  

200,292

  

18,790

DD&A

  

116,251

  

110,834

  

5,417

Taxes, other than income taxes

  

68,183

  

58,221

  

9,962

Accretion expense

  

1,952

  

1,928

  

24

Total operating expenses

  

664,241

  

589,023

  

75,218

Operating Income

  

223,898

  

193,959

  

29,939

Other Income (Expense)

            

Interest expense

  

(41,718)

  

(43,427)

  

1,709

Other income

  

5,120

  

14,057

  

(8,937)

Other expense

  

(6,320)

  

(13,853)

  

7,533

Total other expense

  

(42,918)

  

(43,223)

  

305

Income Before Income Taxes

  

180,980

  

150,736

  

30,244

Income tax expense

  

66,032

  

54,369

  

11,663

Income from Continuing Operations

  

114,948

  

96,367

  

18,581

Discontinued Operations, Net of Taxes

            

Income from discontinued operations

  

154

  

1,215

  

(1,061)

Gain (loss) on disposal

  

79

  

(439)

  

518

Income (Loss) from Discontinued Operations

  

233

  

776

  

(543)

Net Income

$

115,181

$

97,143

$

18,038

Diluted Earnings Per Share

            

Continuing operations

$

3.16

$

2.76

$

0.40

Discontinued operations

  

-

  

0.02

  

(0.02)

Net Income

$

3.16

$

2.78

$

0.38

Basic Earnings Per Share

            

Continuing operations

$

3.19

$

2.78

$

0.41

Discontinued operations

  

-

  

0.02

  

(0.02)

Net Income

$

3.19

$

2.80

$

0.39

Diluted Avg. Common Shares Outstanding

  

36,407

  

34,948

  

1,459

Basic Avg. Common Shares Outstanding

  

36,059

  

34,672

  

1,387

Dividends Per Share

$

0.74

$

0.72

$

0.02

 

 

 

 

 

Selected Business Segment Data (Unaudited)

For the 3 months ending June 30, 2004 and 2003

2nd Quarter

(in thousands, except sales price data)

  

2004

  

2003

  

Change

Oil and Gas Operations

            

Operating revenues

            

Natural gas

$

65,408

$

60,438

$

4,970

Oil

  

22,026

  

21,803

  

223

Natural gas liquids

  

7,135

  

5,975

  

1,160

Other

  

864

  

1,566

  

(702)

Total

$

95,433

$

89,782

$

5,651

Production volumes from continuing operations

            

Natural gas (MMcf)

  

13,754

  

14,248

  

(494)

Oil (MBbl)

  

831

  

850

  

(19)

Natural gas liquids (MBbl)

  

402

  

410

  

(8)

Production volumes from continuing ops. (MMcfe)

  

21,149

  

21,807

  

(658)

Total sales volume (MMcfe)

  

21,149

  

21,959

  

(810)

Average sales price from continuing ops.

            

Natural gas (Mcf)

$

4.76

$

4.24

$

0.52

Oil (barrel)

$

26.52

$

25.65

$

0.87

Natural gas liquids (barrel)

$

17.75

$

14.58

$

3.17

Other data

            

Lease operating expense (LOE)

            

LOE and other

$

18,445

$

14,529

$

3,916

Production taxes

8,463

6,710

1,753

Total

$

26,908

$

21,239

$

5,669

DD&A

$

19,069

$

20,313

$

(1,244)

Capital expenditures

$

49,964

$

27,191

$

22,773

Exploration expense

$

52

$

38

$

14

Operating income

$

41,747

$

43,515

$

(1,768)

Natural Gas Distribution

            

Operating revenues

            

Residential

$

56,644

$

59,446

$

(2,802)

Commercial and industrial - small

  

24,575

  

24,773

  

(198)

Transportation

  

9,102

  

8,667

  

435

Other

  

2,423

  

1,362

  

1,061

Total

$

92,744

$

94,248

$

(1,504)

Gas delivery volumes (MMcf)

            

Residential

 

3,760

  

3,857

  

(97)

Commercial

  

2,227

  

2,129

  

98

Transportation

  

13,183

  

13,785

  

(602)

Total

  

19,170

  

19,771

  

(601)

Other data

            

Depreciation and amortization

$

9,858

$

9,222

$

636

Capital expenditures

$

16,410

$

14,996

$

1,414

Operating income

$

4,575

$

6,988

$

(2,413)

 

 

 

Selected Business Segment Data (Unaudited)

For the 6 months ending June 30, 2004 and 2003

 

Year-to-date

    

(in thousands, except sales price data)

  

2004

  

2003

  

Change

Oil and Gas Operations

            

Operating revenues

            

Natural gas

$

130,884

$

118,534

$

12,350

Oil

  

45,713

  

43,906

  

1,807

Natural gas liquids

  

13,155

  

12,651

  

504

Other

  

1,908

  

3,210

  

(1,302)

Total

$

191,660

$

178,301

$

13,359

Production volume from continuing operations

            

Natural gas (MMcf)

  

27,491

  

27,515

  

(24)

Oil (MBbl)

  

1,704

  

1,701

  

3

Natural gas liquids (MBbl)

  

766

  

784

  

(18)

Production volumes from continuing ops. (MMcfe)

  

42,310

  

42,427

  

(117)

Total sales volume (MMcfe)

  

42,310

  

43,154

  

(844)

Average sales price from continuing ops.

            

Natural gas (Mcf)

$

4.76

$

4.31

$

0.45

Oil (barrel)

$

26.83

$

25.81

$

1.02

Natural gas liquids (barrel)

$

17.18

$

16.13

$

1.05

Other data

            

Lease operating expense (LOE)

            

LOE and other

$

36,275

$

31,342

$

4,933

Production taxes

 

16,711

  

13,957

  

2,754

Total

$

52,986

$

45,299

$

7,687

DD&A

$

38,195

$

40,123

$

(1,928)

Capital expenditures

$

71,408

$

81,022

$

(9,614)

Exploration expense

$

100

$

178

$

(78)

Operating income

$

85,880

$

82,690

$

3,190

Natural Gas Distribution

            

Operating revenues

            

Residential

$

233,304

$

213,385

$

19,919

Commercial and industrial - small

  

89,176

  

79,712

  

9,464

Transportation

  

20,477

  

19,798

  

679

Other

  

4,989

  

2,492

  

2,497

Total

$

347,946

$

315,387

$

32,559

Gas delivery volumes (MMcf)

            

Residential

 

18,869

  

19,917

  

(1,048)

Commercial

  

8,275

  

8,373

  

(98)

Transportation

  

27,781

  

28,178

  

(397)

Total

  

54,925

  

56,468

  

(1,543)

Other data

            

Depreciation and amortization

$

19,468

$

18,147

$

1,321

Capital expenditures

$

30,221

$

28,987

$

1,240

Operating income

$

66,589

$

64,188

$

2,401

 

 

 

 

Selected Business Segment Data (Unaudited)

For the 12 months ending June 30, 2004 and 2003

Trailing 12 Months

(in thousands, except sales price data)

  

2004

  

2003

  

Change

Oil and Gas Operations

            

Operating revenues

            

Natural gas

$

247,999

$

199,049

$

48,950

Oil

  

89,007

  

85,616

  

3,391

Natural gas liquids

  

26,394

  

25,464

  

930

Other

  

3,081

  

5,268

  

(2,187)

Total

$

366,481

$

315,397

$

51,084

Production volumes from continuing operations

            

Natural gas (MMcf)

  

55,409

  

51,204

  

4,205

Oil (MBbl)

  

3,415

  

3,375

  

40

Natural gas liquids (MBbl)

  

1,568

  

1,705

  

(137)

Production volumes from continuing ops. (MMcfe)

  

85,305

  

81,684

  

3,621

Total sales volume (MMcfe)

  

85,313

  

83,943

  

1,370

Average sales price from continuing ops.

            

Natural gas (Mcf)

$

4.48

$

3.89

$

0.59

Oil (barrel)

$

26.07

$

25.37

$

0.70

Natural gas liquids (barrel)

$

16.83

$

14.93

$

1.90

Other data

            

Lease operating expense (LOE)

            

LOE and other

$

72,853

$

63,445

$

9,408

Production taxes

30,485

24,153

6,332

Total

$

103,338

$

87,598

$

15,740

DD&A

$

77,759

$

75,548

$

2,211

Capital expenditures

$

153,724

$

170,299

$

(16,575)

Exploration expense

$

975

$

1,833

$

(858)

Operating income

$

156,781

$

129,415

$

27,366

Natural Gas Distribution

            

Operating revenues

            

Residential

$

340,857

$

306,986

$

33,871

Commercial and industrial - small

  

136,103

  

117,622

  

18,481

Transportation

  

38,929

  

38,091

  

838

Other

  

5,769

  

4,886

  

883

Total

$

521,658

$

467,585

$

54,073

Gas delivery volumes (MMcf)

            

Residential

 

26,200

  

28,177

  

(1,977)

Commercial

  

12,466

  

12,648

  

(182)

Transportation

  

55,225

  

58,222

  

(2,997)

Total

  

93,891

  

99,047

  

(5,156)

Other data

            

Depreciation and amortization

$

38,492

$

35,286

$

3,206

Capital expenditures

$

59,143

$

64,628

$

(5,485)

Operating income

$

69,249

$

66,026

$

3,223

-----END PRIVACY-ENHANCED MESSAGE-----