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

January 23, 2008

Commission File Number	Registrant	State of Incorporation	IRS Employer Identification Number
1-7810	Energen Corporation	Alabama	63-0757759
2-38960	Alabama Gas Corporation	Alabama	63-0022000

605 Richard Arrington Jr. Boulevard North Birmingham, Alabama	35203
(Address of principal executive offices)	(Zip Code)

(205) 326-2700

(Registrant’s telephone number including area code)

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

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

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

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

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

ITEM 2.02 Results of Operations and Financial Condition

On January 23, 2008, Energen Corporation and Alabama Gas Corporation issued a press release announcing the fourth quarter and year-to-date 2007 financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2.

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 January 23, 2008
99.2	Supplemental Financial Information

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
January 23, 2008	By	/s/ Charles W. Porter, Jr.
		Charles W. Porter, Jr. Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama Gas Corporation

EXHIBIT INDEX

EXHIBIT NUMBER		DESCRIPTION
99.1	*	Press Release dated January 23, 2008
99.2	*	Supplemental Financial Information

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

EX-99.1

Exhibit 99.1

For Immediate Release:	For More Information:
Wednesday, January 23, 2008	Julie S. Ryland, (205) 326-8421

Energen Earns Record $4.28 per Diluted Share in 2007

2009 Earnings Guidance Initiated: Range of $4.45-$4.85 per Diluted Share

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) reported today that its 2007 earnings per diluted share (EPS) increased 15 percent to $4.28, marking the diversified energy company’s sixth straight year of record earnings. Energen also affirmed its 2008 earnings guidance and initiated earnings guidance for 2009 with a range of $4.45-$4.85 per diluted share.

MANAGEMENT COMMENTS

“Our natural gas hedging, strong prices applicable to our unhedged oil and natural gas liquids (NGL) volumes, and accelerated development of our undeveloped reserves combined to generate record earnings at Energen for the sixth straight year,” said Energen Chairman and Chief Executive Officer James T. McManus. “I think it is important to emphasize that we achieved record earnings in 2007 even though prior-year earnings included some 56 cents per diluted share of one-time gains associated with the sale of half of our October 2006 acreage position in Alabama shales to Chesapeake Energy Corporation and a settlement of our Enron bankruptcy claim.

“The expectation that Energen would deliver in 2007 helped generate for shareholders a total return of 38 percent. Over the last five years, Energen’s annualized total return to shareholders is 36 percent a year.

“The just-completed 2007 year also was marked by record production of 98.6 billion cubic feet equivalent (Bcfe) for Energen Resources Corporation, our oil and gas exploration and production company,” McManus said. “Not only did we increase our capital spending to accelerate the production of our undeveloped reserves, but our horizontal drilling activities in the San Juan Basin performed even better than expected. With year-end proved reserves of 1.75 trillion cubic feet equivalent (Tcfe), Energen demonstrated its ability to replace reserves organically by bringing into production its extensive undeveloped reserves.

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“Today, we also are pleased to be affirming our earnings guidance for 2008 of $3.95-$4.35 per diluted share and, importantly, initiating our 2009 guidance with a range of $4.45-$4.85 per diluted share,” McManus said. “Approximately 52 percent of our estimated 2009 production is already hedged at NYMEX-equivalent prices of $8.71 per thousand cubic feet (Mcf) of gas and $70.75 per barrel of oil and an NGL price of $1.05 per gallon. Our price assumptions for our unhedged volumes are below strip prices at $8 per Mcf of gas and $80 per barrel of oil, and our assumed NGL price is $1.04 per gallon.

“We are particularly excited about the organic production growth we expect in 2009; this growth is being driven primarily by our accelerated capital investment in 2007 and 2008. Our production estimate for 2009 is 108 Bcfe and reflects a 6 percent increase over our estimated 2008 production of 102 Bcfe.

“Another highlight of 2007 was the seven-year extension of our natural gas utility’s rate-setting methodology,” McManus said. “Rate Stabilization and Equalization has been in place for 25 rate years and has benefited our customers and Alabama Gas Corporation (Alagasco).

“We are proud of the track record we have established at Energen over the last 12 years and very excited about the future,” McManus said. “In addition to effectively executing our base business strategy, we have a number of investment opportunities in the years ahead that could add even more to our excellent growth prospects. These include continued accelerated development of our extensive unproved reserves, property acquisitions, stock repurchases and Alabama shale exploration and development. At year-end 2007, we have a very healthy balance sheet and accumulating cash flows that we can draw upon. These are exciting times for our Company.”

ALABAMA SHALE UPDATE

Energen and Chesapeake Energy have amassed an acreage lease position in multiple shale plays in north and central Alabama of approximately 565,000 acres, with Energen’s net position totaling some 282,500 acres. The first three permits in the planned 5- to 10-well test program have been obtained for drilling in Greene and Bibb counties. Work is scheduled to begin next week.

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“This is a test program aimed at helping define the productive potential of our joint acreage position,” McManus said. “As such, our efforts will involve considerable ‘science.’ We know the investment community is anxious for results, but they are months away. We do not plan to disclose well-by-well results,” McManus added. “Our plans are to work as thoroughly and expediently as possible and to announce our findings when sufficient data has been gathered.”

2007 EARNINGS

Energen’s net income for the year totaled $309.2 million, while 2006 earnings totaled $273.6 million, or $3.73 per diluted share. The prior year included a $34.5 million, or 47 cents per diluted share, gain from the sale of one-half of its acreage position in Alabama shales to Chesapeake Energy Corporation, and a $6.7 million, or 9 cents per diluted share, gain from the settlement of its Enron bankruptcy claim.

Energen Resources Corporation, the Company’s oil and gas exploration and production subsidiary, again was the driver of consolidated earnings growth in 2007. Contributing net income of $273.2 million, Energen Resources benefited from a 19 percent increase in realized sales prices, a 3 percent rise in production to 98.6 Bcfe and an income tax benefit on qualified production. Negatively affecting Energen Resources’ earnings were increased lease operating expense (LOE), including production taxes; higher depreciation, depletion and amortization (DD&A) expense; and greater general and administrative (G&A) expense. Energen Resources’ net income in 2006 totaled $237.6 million and included the $34.5 million gain from the acreage position sale to Chesapeake and the $6.7 million gain from the Enron bankruptcy settlement.

Average Revenues Per Unit of Production, 2007 vs 2006

Commodity	2007		2006		Change
Natural Gas (per Mcf)	$	7.77	$	6.96	12	%
Oil (per barrel)	$	64.83	$	49.79	30	%
NGL (per gallon)	$	0.89	$	0.66	35	%

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Production from Continuing Operations, 2007 vs 2006

Commodity	2007	2006	Change
Natural Gas (Bcf)	64.3	62.8	2	%
Oil (MBbl)	3,879	3,645	6	%
NGL (MMgal)	77.2	76.3	1	%
Total (Bcfe)	98.6	95.6	3	%

Production from Continuing Operations By Area, 2007 vs 2006 (MMcfe)

Area	2007	2006	Change
San Juan Basin	47,518	44,845	6	%
Permian Basin	28,655	27,180	5	%
Black Warrior Basin	14,813	15,010	(1	)%
Other	7,620	8,557	(11	)%

Per-unit LOE in 2007 totaled $2.05. This 6 percent increase year-over-year largely was due to a general rise in field service costs, increased severance taxes, additional compression and increased repairs and work-over expenses. DD&A expense in 2007 increased 13 percent to $1.13 per Mcfe largely due to a decline in 2006 year-end reserve prices and higher development costs.

Alabama Gas Corporation (Alagasco), Energen’s natural gas utility, generated net income of $36.8 million, down slightly from prior-year net income of $37.3 million. This was due largely to revenue reductions under the utility’s rate-setting mechanism designed to bring the utility’s return on average equity for the rate-year within its allowed range of return coupled with less-than-expected fourth quarter sales to the Alagasco’s residential and large commercial and industrial customers.

FOURTH QUARTER RESULTS

For the three months ending December 31, 2007, Energen’s net income totaled $79.4 million, or $1.10 per diluted share. In 2006, consolidated net income totaled $95.1 million, or $1.31 per diluted share, and included the $34.5 million gain (47 cents per diluted share) from the acreage position sale to Chesapeake and the $6.7 million gain (9 cents per diluted share) from the Enron bankruptcy settlement.

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Energen Resources’ net income totaled $73.9 million in the fourth quarter of 2007 and compared with $87.6 million in the prior year; 2006 net income included both the Chesapeake and Enron settlement gains.

Energen Resources’ fourth-quarter 2007 realized prices increased 26 percent over the same period a year ago, and production increased 5 percent to 25.3 Bcfe.

Average Revenues Per Unit of Production, 4Q2007 vs 4Q2006

Commodity	2007		2006		Change
Natural Gas (per Mcf)	$	7.72	$	6.75	14	%
Oil (per barrel)	$	71.48	$	49.89	43	%
NGL (per gallon)	$	1.00	$	0.63	59	%

Production from Continuing Operations, 4Q2007 vs 4Q2006

Commodity	2007	2006	Change
Natural Gas (Bcf)	16.6	15.8	5	%
Oil (MBbl)	981	908	8	%
NGL (MMgal)	19.6	19.3	2	%
Total (Bcfe)	25.3	24.0	5	%

Per-unit LOE in the fourth quarter of 2007 increased 6 percent to $1.99 per Mcfe largely due to a 30 percent rise in price-related production taxes. Per-unit DD&A expense in the fourth quarter of 2007 increased 13 percent to $1.21 per Mcfe primarily due to higher development costs and increased production.

Alagasco’s natural gas distribution operations reported net income of $5.7 million in the fourth quarter of 2007 as compared with $8.1 million in the same period a year ago; this decrease primarily reflects less-than-expected sales to its residential and large commercial and industrial customers.

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2009 EARNINGS GUIDANCE INITIATED

Energen today initiated its 2009 earnings guidance with a range of $4.45-$4.85 per diluted share. Guidance does not include potential property acquisitions, Alabama shales exploration or stock repurchases.

Key assumptions in Energen’s 2009 earnings guidance:

• Existing hedge position covering approximately 52 percent of estimated 2009 production;

• Assumed prices for unhedged natural gas, oil and NGL production of $8.00 per Mcf, $80 per barrel and $1.04 per gallon, respectively;

• Production of 108 Bcfe;

• Capital spending of $335 million, including approximately $270 million by Energen Resources and $65 million by Alagasco;

• An average DD&A rate at Energen Resources of $1.36 per Mcfe;

• LOE at Energen Resources, including production taxes, of $2.24 per Mcfe;

• General and administrative expense at Energen Resources of 50 cents per Mcfe;

• Alagasco’s earning within its allowed range of return on average equity of approximately $326 million; and

• Average diluted shares outstanding of 72.4 million.

2009 Hedge Position Summary

Energen Resources’ 2009 hedge position by commodity is as follows:

Commodity	Hedge Volumes	2009e Production	Hedge %		NYMEXe Price
Natural Gas	39.2 Bcf	69.5 Bcf	56	%	$	8.71/Mcf
Oil	2.4 MMBbl	4.8 MMBbl	50	%	$	70.75/barrel
NGL	20.2 MMgal	68.0 MMgal	30	%	$	1.05/gallon

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Energen Resources’ 2009 natural gas and oil hedge positions by hedge type are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	28.4	$	1.00 per Mcf	$	8.77 per Mcf
NYMEX	10.8		—	$	8.55 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	1,980	$	5.15 per barrel	$	67.93 per barrel
NYMEX	480		—	$	82.40 per barrel

Average realized oil and gas prices for Energen Resources’ production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.

For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials.

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources’ current hedge position for 2009 and using the price assumptions given above for the Company’s unhedged production, changes in commodity prices are estimated to have the following impact on Energen’s 2009 earnings:

• Every 10-cent change in the average NYMEX price of gas from $8.00 represents an estimated net income impact of approximately $1.5 million (2.1 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $80.00 per barrel represents an estimated net income impact of approximately $1.3 million (1.8 cents per diluted share).

• Every 1-cent change in the average price of liquids from $1.04 per gallon represents an estimated net income impact of approximately $260,000 (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.

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2008 EARNINGS GUIDANCE AFFIRMED

Energen raised its 2008 earnings guidance in mid-December by 30 cents to a new range of $3.95-$4.35 per diluted share and, today, affirmed that earnings range. Guidance does not include potential property acquisitions, Alabama shales exploration or stock repurchases.

Key assumptions in Energen’s 2008 budget are:

• Existing hedge position covering approximately 74 percent of estimated 2008 production;

• Assumed prices for unhedged natural gas, oil and NGL production of $7.50 per Mcf, $75 per barrel and 97.5 cents per gallon, respectively;

• Production of 102 Bcfe;

• Capital spending of $370 million, including approximately $310 million by Energen Resources and $60 million by Alagasco;

• An average DD&A rate at ERC of $1.26 per Mcfe;

• LOE at ERC, including production taxes, of $2.21 per Mcfe;

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

• Alagasco’s earning within its allowed range of return on average equity of approximately $312 million; and

• Average diluted shares outstanding of 72.2 million.

2008 Hedge Position Summary

Energen Resources’ 2008 hedge position by commodity is as follows:

Commodity	Hedge Volumes	2008e Production	Hedge %		NYMEXe Price
Natural Gas	49.5 Bcf	67.1 Bcf	74	%	$	8.54/Mcf
Oil	3.2 MMBbl	4.2 MMBbl	77	%	$	69.57/barrel
NGL	47.8 MMgal	69.7 MMgal	69	%	$	0.96/gallon

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Energen Resources’ 2008 natural gas and oil hedge positions by hedge type are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential	NYMEXe Price
San Juan Basin	30.8	$1.05 per Mcf	$8.55 per Mcf
NYMEX	18.7	—	$8.52 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential	NYMEXe Price
Sour Oil (WTS)	2,483	$5.00 per barrel	$67.81 per barrel
NYMEX	720	—	$75.66 per barrel

Average realized oil and gas prices for Energen Resources’ production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.

For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials.

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources’ current hedge position for 2008 and using the price assumptions given above for the Company’s unhedged production, changes in commodity prices are estimated to have the following impact on Energen’s 2008 earnings:

• Every 10-cent change in the average NYMEX price of gas from $7.50 represents an estimated net income impact of approximately $600,000 (0.8 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $75.00 per barrel represents an estimated net income impact of approximately $475,000 (0.7 cents per diluted share).

• Every 1-cent change in the average price of liquids from $0.975 per gallon represents an estimated net income impact of approximately $100,000 (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.

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

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.75 Tcfe of proved reserves and 1.9 Tcfe of probable and possible reserves in the San Juan, Permian and Black Warrior basins. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at http://www.energen.com.

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EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending December 31, 2007 and 2006

	4th Quarter						Change
(in thousands, except per share data)	2007			2006
Operating Revenues
Oil and gas operations	$	219,780		$	220,329		$	(549	)
Natural gas distribution		131,675			160,430			(28,755	)
Total operating revenues		351,455			380,759			(29,304	)
Operating Expenses
Cost of gas		65,845			88,905			(23,060	)
Operations & maintenance		82,432			70,437			11,995
DD&A		43,193			37,614			5,579
Taxes, other than income taxes		24,661			22,277			2,384
Accretion expense		1,027			928			99
Total operating expenses		217,158			220,161			(3,003	)
Operating Income		134,297			160,598			(26,301	)
Other Income (Expense)
Interest expense		(11,445	)		(10,842	)		(603	)
Other income		272			187			85
Other expense		(333	)		(984	)		651
Total other expense		(11,506	)		(11,639	)		133
Income From Continuing Operations Before Income Taxes		122,791			148,959			(26,168	)
Income tax expense		43,377			53,836			(10,459	)
Income from Continuing Operations		79,414			95,123			(15,709	)
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		—			—			—
Gain on disposal of discontinued operations		—			—			—
Income from Discontinued Operations		—			—			—
Net Income	$	79,414		$	95,123		$	(15,709	)
Diluted Earnings Per Average Common Share
Continuing operations	$	1.10		$	1.31		$	(0.21	)
Discontinued operations		—			—			—
Net Income	$	1.10		$	1.31		$	(0.21	)
Basic Earnings Per Average Common Share
Continuing operations	$	1.11		$	1.33		$	(0.22	)
Discontinued operations		—			—			—
Net Income	$	1.11		$	1.33		$	(0.22	)
Diluted Avg. Common Shares Outstanding		72,352			72,540			(188	)
Basic Avg. Common Shares Outstanding		71,667			71,606			61
Dividends Per Share	$	0.115		$	0.11		$	0.005

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending December 31, 2007 and 2006

	Year-to-date						Change
(in thousands, except per share data)	2007			2006
Operating Revenues
Oil and gas operations	$	825,592		$	730,542		$	95,050
Natural gas distribution		609,468			663,444			(53,976	)
Total operating revenues		1,435,060			1,393,986			41,074
Operating Expenses
Cost of gas		318,429			373,097			(54,668	)
Operations & maintenance		333,443			302,157			31,286
DD&A		161,377			142,086			19,291
Taxes, other than income taxes		95,831			95,727			104
Accretion expense		3,948			3,619			329
Total operating expenses		913,028			916,686			(3,658	)
Operating Income		522,032			477,300			44,732
Other Income (Expense)
Interest expense		(47,100	)		(48,652	)		1,552
Other income		2,668			951			1,717
Other expense		(959	)		(1,046	)		87
Total other expense		(45,391	)		(48,747	)		3,356
Income From Continuing Operations Before Income Taxes		476,641			428,553			48,088
Income tax expense		167,429			155,030			12,399
Income from Continuing Operations		309,212			273,523			35,689
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		3			(6	)		9
Gain on disposal of discontinued operations		18			53			(35	)
Income from Discontinued Operations		21			47			(26	)
Net Income	$	309,233		$	273,570		$	35,663
Diluted Earnings Per Average Common Share
Continuing operations	$	4.28		$	3.73		$	0.55
Discontinued operations		—			—			—
Net Income	$	4.28		$	3.73		$	0.55
Basic Earnings Per Average Common Share
Continuing operations	$	4.32		$	3.77		$	0.55
Discontinued operations		—			—			—
Net Income	$	4.32		$	3.77		$	0.55
Diluted Avg. Common Shares Outstanding		72,181			73,278			(1,097	)
Basic Avg. Common Shares Outstanding		71,592			72,505			(913	)
Dividends Per Share	$	0.46		$	0.44		$	0.02

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2007 and 2006

	4th Quarter				Change
(in thousands, except sales price data)	2007		2006
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	127,970	$	106,487	$	21,483
Oil		70,109		45,313		24,796
Natural gas liquids		19,547		12,106		7,441
Other		2,154		56,423		(54,269	)
Total	$	219,780	$	220,329	$	(549	)
Production volumes from continuing operations
Natural gas (MMcf)		16,568		15,768		800
Oil (MBbl)		981		908		73
Natural gas liquids (MMgal)		19.6		19.3		0.3
Production volumes from continuing ops. (MMcfe)		25,256		23,971		1,285
Total production volumes (MMcfe)		25,256		23,971		1,285
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.72	$	6.75	$	0.97
Oil (barrel)	$	71.48	$	49.89	$	21.59
Natural gas liquids (gallon)	$	1.00	$	0.63	$	0.37
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	35,044	$	34,064	$	980
Production taxes		15,230		11,055		4,175
Total	$	50,274	$	45,119	$	5,155
Depreciation, depletion and amortization	$	31,158	$	26,250	$	4,908
G&A expense	$	14,203	$	3,130	$	11,073
Capital expenditures	$	124,701	$	103,072	$	21,629
Exploration expense	$	1,223	$	669	$	554
Operating income	$	121,895	$	144,233	$	(22,338	)
Natural Gas Distribution
Operating revenues
Residential	$	81,980	$	103,431	$	(21,451	)
Commercial and industrial		34,625		42,187		(7,562	)
Transportation		12,746		12,839		(93	)
Other		2,324		1,973		351
Total	$	131,675	$	160,430	$	(28,755	)
Gas delivery volumes (MMcf)
Residential		4,362		5,729		(1,367	)
Commercial and industrial		2,220		2,667		(447	)
Transportation		13,051		12,813		238
Total		19,633		21,209		(1,576	)
Other data
Depreciation and amortization	$	12,035	$	11,364	$	671
Capital expenditures	$	13,266	$	17,210	$	(3,944	)
Operating income	$	13,008	$	16,757	$	(3,749	)

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2007 and 2006

	Year-to-date				Change
(in thousands, except sales price data)	2007		2006
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	499,406	$	437,560	$	61,846
Oil		251,497		181,459		70,038
Natural gas liquids		68,623		50,258		18,365
Other		6,066		61,265		(55,199	)
Total	$	825,592	$	730,542	$	95,050
Production volumes from continuing operations
Natural gas (MMcf)		64,300		62,824		1,476
Oil (MBbl)		3,879		3,645		234
Natural gas liquids (MMgal)		77.2		76.3		0.9
Production volumes from continuing ops. (MMcfe)		98,606		95,596		3,010
Total production volumes (MMcfe)		98,605		95,595		3,010
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.77	$	6.96	$	0.81
Oil (barrel)	$	64.83	$	49.79	$	15.04
Natural gas liquids (gallon)	$	0.89	$	0.66	$	0.23
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	148,280	$	134,853	$	13,427
Production taxes		53,798		49,509		4,289
Total	$	202,078	$	184,362	$	17,716
Depreciation, depletion and amortization	$	114,241	$	97,842	$	16,399
G&A expense	$	50,864	$	35,389	$	15,475
Capital expenditures	$	379,496	$	259,678	$	119,818
Exploration expense	$	2,894	$	4,181	$	(1,287	)
Operating income	$	451,567	$	405,149	$	46,418
Natural Gas Distribution
Operating revenues
Residential	$	388,291	$	426,066	$	(37,775	)
Commercial and industrial		164,903		181,900		(16,997	)
Transportation		49,255		45,950		3,305
Other		7,019		9,528		(2,509	)
Total	$	609,468	$	663,444	$	(53,976	)
Gas delivery volumes (MMcf)
Residential		20,665		22,310		(1,645	)
Commercial and industrial		10,593		11,226		(633	)
Transportation		51,448		50,760		688
Total		82,706		84,296		(1,590	)
Other data
Depreciation and amortization	$	47,136	$	44,244	$	2,892
Capital expenditures	$	58,862	$	76,157	$	(17,295	)
Operating income	$	72,742	$	74,274	$	(1,532	)

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