8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report
July 25, 2005

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02          Results of Operations and Financial Condition.

On July 25, 2005, Energen Corporation and Alabama Gas Corporation issued a press release announcing the second quarter and year-to-date 2005 financial results. 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.

ITEM 9.01          Financial Statements and Exhibits.

(c) Exhibits.

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

Exhibit

Number:

99.1 Press Release dated July 25, 2005

99.2 Supplemental Financial Information dated July 25, 2005

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 25, 2005	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 25, 2005
99.2	*	Supplemental Financial Information dated July 25, 2005

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

EX-99.1

EXHIBIT 99.1

For Immediate Release:

Monday, July 25, 2005

For More Information:

Julie S. Ryland, (205) 326-8421

ENERGEN REPORTS STRONG 2^ND QUARTER RESULTS

Management Raises 2006 Earnings Guidance, Affirms 2005 Guidance

Birmingham, Alabama - Energen Corporation (NYSE: EGN) reported today that higher commodity prices and higher production were major contributors to its strong financial performance for the three months ending June 30, 2005. Energen's net income and income from continuing operations totaled $37.6 million, or 51 cents per diluted share, in the second quarter of 2005. Included in these numbers is a non-cash, after-tax gain of $2.7 million, or 4 cents per diluted share, related to the timing of mark-to-market derivatives.

In the second quarter of the prior year, Energen's net income totaled $22.3 million, or 30 cents per diluted share, and included a net loss of $0.8 million, or 1 cent per diluted share, related to the timing of mark-to-market derivatives. Income/(loss) from discontinued operations totaled ($15,000) and $39,000 in the current- and prior-year second quarters, respectively.

"We are very pleased with the progress of our two lines of business in 2005," said Mike Warren, Energen's chairman and chief executive officer. "Not only is Energen benefiting from the fundamental strengths of its successful business plans, but continued commodity price strength further enhances our earnings growth potential.

"In looking ahead to 2006, we have raised the price assumptions applicable to our unhedged oil, gas and natural gas liquids (NGL) production and, as a result, have increased our earnings guidance range for 2006 to $2.85-$3.15 per diluted share." [Prior 2006 guidance range was $2.70-$2.90 per diluted share.]

Energen Resources in the Second Quarter

Energen Resources' second quarter 2005 income from continuing operations totaled $36.4 million and compared with prior-year results of $21.8 million. Included in these numbers is an after-tax gain of $2.7 million and after-tax loss of $0.8 million, respectively, related to the timing of mark-to-market derivatives.

Energen Resources' second quarter 2005 production from continuing operations rose 8.5 percent from the same period last year to total 22.9 billion cubic feet (Bcf) equivalent. Natural gas production and NGL production each increased approximately 10 percent to 15.2 Bcf and 18.6 million gallons (MMgal), respectively, primarily due to the Company's August 2004 acquisition of coalbed methane properties in the San Juan Basin; the Company's oil production increased 2 percent to 848,000 barrels.

The Company's average sales price for its natural gas production increased 31 percent to $6.22 per thousand cubic feet (Mcf) in the second quarter of 2005 as compared with the same period a year ago; the average sales price of oil rose 27 percent to $33.63 per barrel; and the average sales price of NGL production increased 24 percent to 52 cents per gallon. Average sales prices reflect the impact of all hedges, including mark-to-market derivatives, and basis differentials and are not NYMEX-equivalent prices.

Energen Resources' per-unit lease operating expense in the second quarter of 2005 increased 28 percent to $1.63 per Mcf equivalent (Mcfe) due to a 30 percent increase in per-unit production taxes resulting from higher commodity prices and to increased expenses associated with work-overs, environmental compliance, and overall price increases.

Per-unit DD&A expense from oil and gas activities totaled 96 cents per Mcfe in the current-year second quarter, up 9 percent from the same period a year ago primarily due to last year's property acquisition.

Alagasco in the Second Quarter

Alagasco's natural gas distribution operations earned net income of $1.1 million in the second quarter of 2005 as compared with net income of $0.6 million in the same period last year. Earnings in the prior-year period reflected the negative impact of fluctuations in the timing of rate relief.

YEAR-TO-DATE EARNINGS

Higher commodity prices and increased production continued to drive Energen's financial results for the six months ending June 30, 2005. Energen's net income in the 2005 year-to-date period totaled $96.6 million, or $1.31 per diluted share, as compared with $82.5 million, or $1.13 per diluted share, for the 6 months ended June 30, 2004. Income from discontinued operations totaled $90,000 and $63,000 in the current- and prior-year periods, respectively.

Included in these numbers are non-cash, after-tax losses of $4.3 million, or 6 cents per diluted share, in the current year, and $2.1 million, or 3 cents per diluted share, in the prior year. These losses are related to the timing of mark-to-market derivatives, and the current year-to-date loss will reverse by the end of 2005 as the volumes to which the derivatives are associated are produced.

Energen Resources' year-to-date 2005 income from continuing operations totaled $55.9 million and compared with prior-year results of $45.0 million. Included in these numbers are after-tax losses of $4.3 million and $2.1 million, respectively, related to the timing of mark-to-market derivatives.

Energen Resources' production from continuing operations in the current year-to-date period totaled 44.8 Bcf equivalent (Bcfe), an increase of 6 percent from production of 42.3 Bcfe in the same period last year. Natural gas production increased 9 percent to 29.9 Bcf and NGL production increased 7 percent to 34.4 MMgal primarily due to the Company's August 2004 acquisition of coalbed methane properties in the San Juan Basin; the Company's oil production decreased 2 percent to 1.7 million barrels.

The Company's average sales price for its natural gas production increased 14 percent to $5.43 per Mcf in the current year-to-date period as compared with the same period a year ago; the average sales price of oil rose 23 percent to $32.89 per barrel; and the average sales price of NGL production increased 27 percent to 52 cents per gallon. Average sales prices reflect the impact of all hedges, including mark-to-market derivatives, and basis differentials and are not NYMEX-equivalent prices.

Energen Resources' per-unit lease operating expense in the first six months of 2005 increased 26 percent to $1.57 per Mcfe due to a 23 percent increase in per-unit production taxes resulting from higher commodity prices and to increased expenses associated with work-overs, environmental compliance, and overall price increases.

Per-unit DD&A expense from oil and gas activities totaled 95 cents per Mcfe in the current-year period, up 8 percent from the same period a year ago primarily due to last year's property acquisition.

Alagasco's natural gas distribution operations earned net income of $40.1 million in the 2005 year-to-date period as compared with net income of $36.9 million in the same period last year. Alagasco remains on track to earn within its allowed range of return on average equity at year-end.

TRAILING 12-MONTHS' EARNINGS

For the 12 months ended June 30, 2005, Energen's net income totaled $141.6 million, or $1.93 per diluted share, as compared with $115.2 million, or $1.58 per diluted share, in the same period a year ago. Income from discontinued operations totaled $0.2 million in the current-year period and $0.4 million in the same period a year ago.

Energen Resources' income from continuing operations in the current-year 12 months' period totaled $104.8 million and compared with the $81.2 million in the same period a year ago. Production from continuing operations totaled 90 Bcfe in the 12 months ended June 30, 2005, up 6 percent from the 85.2 Bcfe produced in the same period last year.

Average sales prices for the 12-months' period were:

• Natural gas, up 15 percent to $5.17 per Mcf;
• Oil, up 21 percent to $31.65 per barrel; and
• NGLs, up 25 percent to 50 cents per gallon.

LOE increased 23 percent to $1.49 per unit period-to-period. Per-unit DD&A expense from oil and gas activities increased 6 percent to 94 cents per Mcfe.

Alagasco's net income for the 12 months ended June 30, 2005, totaled $37.0 million, up 8 percent from $34.3 million of net income in the same period a year ago.

2005 EARNINGS GUIDANCE

Energen today affirmed its 2005 earnings guidance range of $2.23-$2.33 per diluted share. Included in this guidance is an estimated 1.6 cents per diluted share from an unidentified acquisition of $200 million budgeted to occur in the fourth quarter.

Since more than 75 percent of Energen Resources' estimated production for the remainder of 2005 is hedged, the sensitivity of the Company's earnings to commodity price changes is minimal; however, to better reflect the realities of near-term commodity prices, the Company's 2005 guidance now assumes that prices applicable to Energen Resources' unhedged production will average:

• $7.50 per Mcf for gas (August through December);
• $50 per barrel for oil (July through December); and
• 71 cents per gallon for NGL (July through December)

Energen Resources' significant hedge position with respect to its estimated production for the remainder of 2005 (July through December) is as follows:

Commodity	Hedge Vols.	Last 6 Months 2005 Production		% Hedged		NYMEX-equiv. price
Natural Gas	25.2 Bcf	32.4 Bcf*	31.1 Bcf**	78%*	81%**	$5.95 per Mcf
Oil	1.3 MMBbl	1.8 MMBbl		72%		$35.95 per barrel
NGL	25.3 MMgal	38.6 MMgal*	37.4 MMgal**	66%*	68%**	$0.542 per gallon

* With unidentified 4th quarter 2005 acquisition

** Without unidentified 4th quarter 2005 acquisition

Realized prices for Energen Resources' production associated with NYMEX contracts 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' assumed basis differentials are:

• San Juan Basin natural gas: 78 cents per Mcf (August through December)
• Permian Basin natural gas: 60 cents per Mcf (August through December)
• West Texas Sour oil: $4.50 per barrel (July through December)

Energen Resources' production for 2005 is estimated to total 93.7 Bcfe, including 1.8 Bcfe associated with a budgeted, 4^th quarter property acquisition. LOE is estimated to be $1.56 per Mcfe, and DD&A from oil and gas activities is estimated to total 97 cents per Mcfe.

Given Energen Resources' current hedge position for the remainder of 2005, known prices for July gas and assuming prices as outlined above for its unhedged production (excluding volumes from unidentified acquisitions), the sensitivities to pricing changes applicable to Energen's earnings guidance for 2005 are as follows:

• Every 10-cent change in the average NYMEX price of gas from $7.50 per Mcf (August through December) represents an estimated net income impact of approximately $180,000 (0.2 cents per diluted share).
• Every $1.00 change in the average NYMEX price of oil from $50 per barrel (July through December) represents an estimated net income impact of approximately $250,000 (0.3 cents per diluted share).
• Every 1-cent change in average price of NGL from $0.71 per gallon (July through December) represents an estimated net income impact of approximately $45,000 (0.1 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.

2005 Capital Spending Plans and Other Assumptions

Energen Resources has incorporated into its financial objectives for 2005 an investment late in the year of $200 million in domestic producing properties and $7 million in associated development. Because of the budgeted timing of the acquisition, any such acquisition is estimated to generate less than $1.2 million in net income in 2005. Should one or more acquisitions occur earlier in the 2005 year, they could have a positive impact on Energen Resources' production volumes and earnings.

Energen Resources also is planning to invest in 2005 approximately $150 million in development capital related to its existing properties. Energen Resources' exploration spending in 2005 is estimated to total approximately $5 million.

Capital spending at Alagasco is estimated to be approximately $60 million.

Other key assumptions that support Energen's guidance include:

• Average diluted shares outstanding of 73.7 million.

Alagasco's earning a return on average equity of approximately 13.5 percent on average equity estimated to be $270-$275 million.

2006 EARNINGS GUIDANCE

With the expectation of continued commodity price strength in 2006, Energen's management has raised its earnings guidance for 2006 to a range of $2.85 to $3.15 per diluted share. Embedded in Energen's 2006 earnings guidance is an estimated 8 cents per diluted share from unidentified oil and gas property acquisitions of approximately $200 million each in the fourth quarters of 2005 and 2006.

The Company's guidance for 2006 earnings assumes that NYMEX prices applicable to Energen Resources' unhedged production in 2006 will average $7 per Mcf for gas and $45 per barrel for oil and that NGL prices will average approximately 70 cents per gallon.

Energen Resources' total current hedge position with respect to its estimated 2006 production is as follows:

Commodity	Hedge Vols.	Estimated 2006 Production		% Hedged		NYMEX-equiv. price
Natural Gas	27.7 Bcf	64.6 Bcf1	59.2 Bcf2	43%1	47%2	$7.17 per Mcf
Oil	2,160 MBbl	3,600 MBbl1	3,300 MBbl2	60%1	65%2	$49.42 per barrel
NGL	30.2 MMgal	85.1 Mgal1	79.7 MMgal2	36%1	38%2	$0.56 per gallon

1 With unidentified 4th quarter acquisition in 2005 and 2006

2 Without unidentified 4th quarter acquisition in 2005 and 2006

Energen Resources' 2006 natural gas hedge position by hedge type is as follows:

Hedge Type	Volumes (Bcf)	Assumed Basis Difference	Price/Mcf (NYMEX equiv)
San Juan Basin-specific	17.6	$0.80	$ 6.84
NYMEX Hedges	10.1	NA	$ 7.76

Energen Resources' 2006 oil hedge position by hedge type is as follows:

Hedge Type	Volumes (MBbl)	Assumed Sour Oil Difference	Price/Barrel (NYMEX equiv)
NYMEX Hedges	360	-	$37.12
Sour Oil (WTS)	1,800	$4.11	$51.88

Given Energen Resources' current hedge position for 2006 and assuming prices as outlined above for its unhedged production (excluding volumes from unidentified acquisitions), sensitivities to pricing changes applicable to Energen's 2006 earnings guidance are as follows:

• Every 10-cent change in the average NYMEX price of gas from $7 per Mcf represents an estimated net income impact of approximately $1,575,000 (2.1 cents per diluted share).
• Every $1.00 change in the average NYMEX price of oil from $45 per barrel represents an estimated net income impact of approximately $585,000 (0.8 cents per diluted share).
• Every 1-cent change in average price of NGL from $0.70 per gallon represents an estimated net income impact of approximately $245,000 (0.3 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.

Energen Resources' 2006 production is estimated to total approximately 98.3 Bcfe, including 7.8 Bcfe from unidentified acquisitions in 2005 and 2006:

• Natural gas: 64.6 Bcf, including 5.4 Bcf from unidentified acquisitions in 2005 and 2006
• Oil: 3.6 MMBbl, including 0.3 MMBbl from unidentified acquisitions in 2005 and 2006
• NGL: 85.1 MMgal, including 5.4 MMgal from unidentified acquisitions in 2005 and 2006

2006 Capital Spending Plans and Other Assumptions

Energen Resources' 2006 capital spending plans include a $215 million, fourth quarter acquisition of producing properties and approximately $30 million for associated development. Energen Resources also expects to invest some $50 million to develop existing properties. Exploration spending in 2006 is estimated to be $3 million. Capital spending at Alagasco is estimated to be approximately $57 million.

Other key assumptions that support Energen's 2006 earnings guidance include:

• Average diluted shares outstanding of 74 million;
• Alagasco's earning a return on average equity of approximately 13.1 percent on average equity of approximately $285 million;
• A DD&A rate at Energen Resources of approximately $1.04 per Mcfe; and
• LOE (including production taxes) at Energen Resources of approximately $1.59 per Mcfe.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are the acquisition and development of onshore domestic oil and gas properties 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. These include, but are not limited to, the amount and timing of oil, gas and natural gas liquids production and market prices, utility customer growth, retention and usage per customer, inflation rat es, legislative and regulatory changes, and financial market conditions, all of which are difficult to predict. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.

EX-99.2

EXHIBIT 99-2

Consolidated Statements of Income (Unaudited)
For the 3 months ending June 30, 2005 and 2004

	2nd Quarter
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	134,453	$	95,322	$	39,131
Natural gas distribution		107,197		92,744		14,453
Total operating revenues		241,650		188,066		53,584
Operating Expenses
Cost of gas		50,424		40,291		10,133
Operations & maintenance		66,904		56,242		10,662
DD&A		33,101		28,885		4,216
Taxes, other than income taxes		19,794		16,040		3,754
Accretion expense		654		532		122
Total operating expenses		170,877		141,990		28,887
Operating Income		70,773		46,076		24,697
Other Income (Expense)
Interest expense		(11,524)		(10,694)		(830)
Other income		517		633		(116)
Other expense		(268)		(670)		402
Total other expense		(11,275)		(10,731)		(544)
Income Before Income Taxes		59,498		35,345		24,153
Income tax expense		21,910		13,114		8,796
Income from Continuing Operations		37,588		22,231		15,357
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		(2)		39		(41)
Gain (loss) on disposal		(13)		-		(13)
Income (Loss) from Discontinued Operations		(15)		39		(54)
Net Income	$	37,573	$	22,270	$	15,303
Diluted Earnings Per Share
Continuing operations	$	0.51	$	0.30	$	0.21
Discontinued operations		-		-		-
Net Income	$	0.51	$	0.30	$	0.21
Basic Earnings Per Share
Continuing operations	$	0.51	$	0.31	$	0.20
Discontinued operations		-		-		-
Net Income	$	0.51	$	0.31	$	0.20
Diluted Avg. Common Shares Outstanding		73,782		73,249		533
Basic Avg. Common Shares Outstanding		73,017		72,459		558
Dividends Per Share	$	0.10	$	0.0925	$	0.0075

Consolidated Statements of Income (Unaudited) For the 6 months ending June 30, 2005 and 2004
	Year-to-date
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	237,333	$	191,402	$	45,931
Natural gas distribution		365,325		347,946		17,379
Total operating revenues		602,658		539,348		63,310
Operating Expenses
Cost of gas		187,279		179,029		8,250
Operations & maintenance		127,311		109,364		17,947
DD&A		64,526		57,569		6,957
Taxes, other than income taxes		46,344		40,306		6,038
Accretion expense		1,297		1,022		275
Total operating expenses		426,757		387,290		39,467
Operating Income		175,901		152,058		23,843
Other Income (Expense)
Interest expense		(23,194)		(21,012)		(2,182)
Other income		870		1,495		(625)
Other expense		(536)		(1,695)		1,159
Total other expense		(22,860)		(21,212)		(1,648)
Income Before Income Taxes		153,041		130,846		22,195
Income tax expense		56,512		48,454		8,058
Income from Continuing Operations		96,529		82,392		14,137
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		(20)		76		(96)
Gain (loss) on disposal		110		(13)		123
Income (Loss) from Discontinued Operations		90		63		27
Net Income	$	96,619	$	82,455	$	14,164
Diluted Earnings Per Share
Continuing operations	$	1.31	$	1.13	$	0.18
Discontinued operations		-		-		-
Net Income	$	1.31	$	1.13	$	0.18
Basic Earnings Per Share
Continuing operations	$	1.32	$	1.14	$	0.18
Discontinued operations		-		-		-
Net Income	$	1.32	$	1.14	$	0.18
Diluted Avg. Common Shares Outstanding		73,726		73,200		526
Basic Avg. Common Shares Outstanding		72,985		72,404		581
Dividends Per Share	$	0.20	$	0.1875	$	0.015

Consolidated Statements of Income (Unaudited)
For the 12 months ending June 30, 2005 and 2004

	Trailing 12 Months
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	456,042	$	365,975	$	90,067
Natural gas distribution		544,119		521,658		22,461
Total operating revenues		1,000,161		887,633		112,528
Operating Expenses
Cost of gas		268,139		258,773		9,366
Operations & maintenance		252,119		219,016		33,103
DD&A		127,734		116,060		11,674
Taxes, other than income taxes		80,969		68,146		12,823
Accretion expense		2,540		1,952		588
Total operating expenses		731,501		663,947		67,554
Operating Income		268,660		223,686		44,974
Other Income (Expense)
Interest expense		(44,925)		(41,718)		(3,207)
Other income		2,320		5,120		(2,800)
Other expense		(1,056)		(6,320)		5,264
Total other expense		(43,661)		(42,918)		(743)
Income Before Income Taxes		224,999		180,768		44,231
Income tax expense		83,572		65,949		17,623
Income from Continuing Operations		141,427		114,819		26,608
Discontinued Operations, Net of Taxes
Income from discontinued operations		82		283		(201)
Gain (loss) on disposal		118		79		39
Income (Loss) from Discontinued Operations		200		362		(162)
Net Income	$	141,627	$	115,181	$	26,446
Diluted Earnings Per Share
Continuing operations	$	1.92	$	1.58	$	0.34
Discontinued operations		0.01		-		0.01
Net Income	$	1.93	$	1.58	$	0.35
Basic Earnings Per Share
Continuing operations	$	1.94	$	1.59	$	0.35
Discontinued operations		0.01		0.01		-
Net Income	$	1.95	$	1.60	$	0.35
Diluted Avg. Common Shares Outstanding		73,480		72,814		666
Basic Avg. Common Shares Outstanding		72,802		72,118		684
Dividends Per Share	$	0.3895	$	0.37	$	0.0195

Selected Business Segment Data (Unaudited)

For the 3 months ending June 30, 2005 and 2004

	2nd Quarter
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	94,401	$	65,330	$	29,071
Oil		28,499		22,026		6,473
Natural gas liquids		9,653		7,135		2,518
Other		1,900		831		1,069
Total	$	134,453	$	95,322	$	39,131
Production volumes from continuing operations
Natural gas (MMcf)		15,177		13,731		1,446
Oil (MBbl)		848		831		17
Natural gas liquids (Mgal)		18,550		16,884		1,666
Production volumes from continuing ops. (MMcfe)		22,912		21,126		1,786
Total sales volume (MMcfe)		22,919		21,149		1,770
Average sales price from continuing ops.
Natural gas (Mcf)	$	6.22	$	4.76	$	1.46
Oil (barrel)	$	33.63	$	26.52	$	7.11
Natural gas liquids (gallon)	$	0.52	$	0.42	$	0.10
Other data
Lease operating expense (LOE)
LOE and other	$	25,366	$	18,443	$	6,923
Production taxes		11,869		8,456		3,413
Total	$	37,235	$	26,899	$	10,336
DD&A	$	22,458	$	19,027	$	3,431
Capital expenditures	$	48,024	$	49,964	$	(1,940)
Exploration expense	$	170	$	52	$	118
Operating income	$	65,394	$	41,687	$	23,707
Natural Gas Distribution
Operating revenues
Residential	$	64,778	$	56,644	$	8,134
Commercial and industrial - small		29,580		24,575		5,005
Transportation		10,245		9,102		1,143
Other		2,594		2,423		171
Total	$	107,197	$	92,744	$	14,453
Gas delivery volumes (MMcf)
Residential		4,170		3,760		410
Commercial		2,411		2,227		184
Transportation		11,942		13,183		(1,241)
Total		18,523		19,170		(647)
Other data
Depreciation and amortization	$	10,643	$	9,858	$	785
Capital expenditures	$	20,897	$	16,410	$	4,487
Operating income	$	5,630	$	4,575	$	1,055
Selected Business Segment Data (Unaudited) For the 6 months ending June 30, 2005 and 2004

	Year-to-date
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	162,001	$	130,659	$	31,342
Oil		54,804		45,713		9,091
Natural gas liquids		17,798		13,155		4,643
Other		2,730		1,875		855
Total	$	237,333	$	191,402	$	45,931
Production volume from continuing operations
Natural gas (MMcf)		29,859		27,439		2,420
Oil (MBbl)		1,666		1,704		(38)
Natural gas liquids (Mgal)		34,377		32,165		2,212
Production volumes from continuing ops. (MMcfe)		44,768		42,258		2,510
Total sales volume (MMcfe)		44,825		42,310		2,515
Average sales price from continuing ops.
Natural gas (Mcf)	$	5.43	$	4.76	$	0.67
Oil (barrel)	$	32.89	$	26.83	$	6.06
Natural gas liquids (gallon)	$	0.52	$	0.41	$	0.11
Other data
Lease operating expense (LOE)
LOE and other	$	48,117	$	36,248	$	11,869
Production taxes		22,073		16,692		5,381
Total	$	70,190	$	52,940	$	17,250
DD&A	$	43,470	$	38,101	$	5,369
Capital expenditures	$	88,509	$	71,408	$	17,101
Exploration expense	$	494	$	100	$	394
Operating income	$	104,369	$	85,762	$	18,607
Natural Gas Distribution
Operating revenues
Residential	$	242,932	$	233,304	$	9,628
Commercial and industrial - small		94,880		89,176		5,704
Transportation		23,274		20,477		2,797
Other		4,239		4,989		(750)
Total	$	365,325	$	347,946	$	17,379
Gas delivery volumes (MMcf)
Residential		17,183		18,869		(1,686)
Commercial		7,706		8,275		(569)
Transportation		25,683		27,781		(2,098)
Total		50,572		54,925		(4,353)
Other data
Depreciation and amortization	$	21,056	$	19,468	$	1,588
Capital expenditures	$	35,699	$	30,221	$	5,478
Operating income	$	72,034	$	66,589	$	5,445

Selected Business Segment Data (Unaudited) For the 12 months ending June 30, 2005 and 2004
	Trailing 12 Months
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	307,814	$	247,530	$	60,284
Oil		107,504		89,007		18,497
Natural gas liquids		35,545		26,394		9,151
Other		5,179		3,044		2,135
Total	$	456,042	$	365,975	$	90,067
Production volumes from continuing operations
Natural gas (MMcf)		59,575		55,303		4,272
Oil (MBbl)		3,397		3,415		(18)
Natural gas liquids (Mgal)		70,420		65,863		4,557
Production volumes from continuing ops. (MMcfe)		90,014		85,199		4,815
Total sales volume (MMcfe)		90,121		85,313		4,808
Average sales price from continuing ops.
Natural gas (Mcf)	$	5.17	$	4.48	$	0.69
Oil (barrel)	$	31.65	$	26.07	$	5.58
Natural gas liquids (gallon)	$	0.50	$	0.40	$	0.10
Other data
Lease operating expense (LOE)
LOE and other	$	91,082	$	72,787	$	18,295
Production taxes		42,664		30,448		12,216
Total	$	133,746	$	103,235	$	30,511
DD&A	$	86,265	$	77,568	$	8,697
Capital expenditures	$	421,037	$	153,724	$	267,313
Exploration expense	$	2,494	$	975	$	1,519
Operating income	$	198,960	$	156,569	$	42,391
Natural Gas Distribution
Operating revenues
Residential	$	349,857	$	340,857	$	9,000
Commercial and industrial - small		144,390		136,103		8,287
Transportation		43,018		38,929		4,089
Other		6,854		5,769		1,085
Total	$	544,119	$	521,658	$	22,461
Gas delivery volumes (MMcf)
Residential		23,696		26,200		(2,504)
Commercial		11,753		12,466		(713)
Transportation		52,287		55,225		(2,938)
Total		87,736		93,891		(6,155)
Other data
Depreciation and amortization	$	41,469	$	38,492	$	2,977
Capital expenditures	$	63,686	$	59,143	$	4,543
Operating income	$	71,644	$	69,249	$	2,395