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

April 23, 2008

1-7810

2-38960

Commission File Number

Energen Corporation

Alabama Gas Corporation

Registrant

Alabama Alabama	63-0757759 63-0022000
State of Incorporation	IRS Employer Identification Number

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

(205) 326-2700

(Registrant’s telephone number including area code)

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

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

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

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

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

ITEM 2.02 Results of Operations and Financial Condition

Attached hereto as Exhibits 99.1 and 99.2 are a press release and supplemental financial information dated April 23, 2008, with respect to first quarter and year-to-date 2008 results. The financial results will be discussed at the Company’s Annual Meeting of Shareholders on April 23, 2008.

ITEM 7.01 Regulation FD Disclosure

Energen Corporation has included a reconciliation of certain Non-GAAP financial measures to the related GAAP financial measures. These Non-GAAP financial measures will be discussed at the Company’s Annual Meeting of Shareholders. A slide presentation containing the meeting material will be available April 23, 2008, on the Company’s web site: www.energen.com. The reconciliation is attached hereto as exhibit 99.3.

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 April 23, 2008
99.2	Supplemental Financial Information
99.3	Non-GAAP Financial Measures Reconciliation

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
April 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 April 23, 2008
99.2	* Supplemental Financial Information
99.3	* Non-GAAP Financial Measures Reconciliation

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

EX-99.1

Exhibit 99.1

For Immediate Release:	Contacts:	Julie S. Ryland
Wednesday, April 23, 2008		205.326.8421

Higher Commodity Prices, Increased Production, and Gain on Sale

Drive 12.5% Increase in Energen’s First Quarter EPS

Company Raises Earnings Guidance Range for 2008, 2009

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) announced at today’s Annual Meeting of Shareholders that its first quarter earnings of $116.7 million, or $1.62 per diluted share, rose more than 12 percent over the same period last year on the strength of higher commodity prices, a $6.4 million after-tax gain on the sale of a small Permian Basin property and a 3 percent increase in production.

“We are very pleased with our progress in the first quarter of 2008 and excited about our prospects for the future,” James McManus, Energen’s chairman and chief executive officer, told shareholders at the energy company’s Birmingham headquarters.

“As I’m sure you are well aware, oil and gas market prices have surged. We have capitalized on this upward momentum over the past six months by strengthening our hedge position for 2009 and 2010 production; in this way, we are helping lock in earnings and cash flow growth for the next several years,” McManus said.

“In recognition of the market strength of commodity prices, we also are raising the prices we assume for our unhedged production in our earnings models; this, in turn, is leading us to increase our earnings guidance ranges for 2008 and 2009 by 20 cents per diluted share,” McManus added. “Energen’s new guidance for 2008 earnings is $4.15-$4.55 per diluted share; and we estimate that 2009 earnings — stimulated by organic production growth of some 6-8 percent — will range from $4.65-$5.05 per diluted share.

“Our new price assumptions are still well below current strip pricing and leave the door wide open to commodity price-driven earnings upside,” McManus added. “Based on the estimated sensitivity of our earnings to commodity price changes – data we routinely incorporate with earnings guidance – it is clear that, at current strip prices for the rest of 2008 and for 2009, Energen could easily generate additional price-driven earnings of 35 cents per diluted share in 2008 and more than 75 cents per diluted share in 2009. (Calculations based on average NYMEX natural gas prices of $11 per Mcfe for the remainder of 2008 and $10.50 per Mcfe for 2009, and on average NYMEX oil prices of $115 per barrel for the remainder of 2008 and $110 per barrel for 2009).

“Energen continues to benefit from the accelerated development of our unproved reserve base, and the annual review of our year-end reserves once again supported 1.9 trillion cubic feet equivalent (Tcfe) of probable and possible reserves in our existing areas of operation,” McManus said. “This is an encouraging development given that approximately 125 billion cubic feet equivalent (Bcfe) of our reserves were reclassified as “proved” in 2007. In addition, these numbers have been adjusted downward to reflect the sale just last month of a small Permian Basin oil property with an estimated 65 Bcfe of probable and possible reserves.

“Energen Resources Corporation, our oil and gas exploration and production unit, is continuing to focus on ways to extend the accelerated pace of drilling on our properties to bring the remaining unproved reserves to production as quickly as possible,” McManus said.

“Meanwhile, our net acreage position in multiple Alabama shale plays has grown to approximately 315,000 acres, and drilling activities continue on our first three test wells in Bibb and Greene counties,” he added. “As you know, we do not plan to disclose results on a well-by-well basis; rather, our plans are to work as thoroughly and expediently as possible and to announce our findings when sufficient data has been gathered.”

FIRST QUARTER 2008 RESULTS

For the three months ended March 31, 2008, Energen’s net income totaled $116.7 million, or $1.62 per diluted share, and compares with first quarter 2007 net income of $103.9 million, or $1.44 per diluted share.

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Energen Resources Corporation

Energen Resources’ net income for the first three months of 2008 totaled $72.5 million and compared with $63.2 million in the same period last year. This increase largely reflects the impact of higher average realized sales prices for Energen Resources’ oil and natural gas liquids (NGL) production, a $6.4 million gain on the sale of 4.4 Bcfe of proved oil reserves in the Permian Basin, and a 3 percent increase in production.

Average Realized Sales Prices, First Quarter Comparison

Commodity	1Q2008		1Q2007		Change
Natural Gas (per Mcf)	$	7.97	$	7.93	1	%
Oil (per barrel)	$	67.90	$	58.36	16	%
NGL (per gallon)	$	1.04	$	0.80	30	%

Production, First Quarter Comparison

Commodity	1Q2008	1Q2007	Change
Natural Gas (Bcf)	16.4	15.5	6	%
Oil (MBbl)	944	927	2	%
NGL (MMgal)	16.7	18.9	(12	)%
Total (Bcfe)	24.5	23.8	3	%

Production By Area (Bcfe), First Quarter Comparison

Area	1Q2008	1Q2007	Change
San Juan Basin	12.0	11.5	4	%
Permian Basin	6.8	6.8	0	%
Black Warrior Basin	3.5	3.6	(3	)%
N. LA/E. TX/Other	2.2	1.9	16	%

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Per-unit lease operating expense (LOE) increased to $2.44 per thousand cubic feet equivalent (Mcfe) from $1.99 per Mcfe in the same period a year ago. This 23 percent increase largely was due to a 36 percent rise in commodity price-driven production taxes and to increased compression, increased workover expense, weather-related road maintenance, and increased environmental compliance expense.

Depreciation, depletion and amortization expense (DD&A) per unit in the first quarter of 2008 increased 11 percent over the same period last year to $1.21 per Mcfe largely due to higher development costs.

Alabama Gas Corporation

Energen’s natural gas utility, Alabama Gas Corporation (Alagasco), generated net income of $43.7 million in the first quarter of 2008 as compared with $40.3 million in the same period a year ago. This increase primarily was due to the utility’s earning on a higher level of equity; a decrease in customer usage was largely offset by the timing of operations and maintenance expense.

TRAILING 12-MONTHS RESULTS

For the 12 months ended March 31, 2008, Energen’s net income totaled $322.0 million, or $4.47 per diluted share, and compared with $290.0 million, or $3.99 per diluted share, for the same period a year ago. The prior-year period 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

Energen Resources’ net income for the trailing 12 months totaled $282.6 million as compared with $251.0 million in the same period a year ago. The prior-year period included $41.2 million of one-time gains associated with the sale of one-half of its acreage position in Alabama shales and the settlement of its Enron bankruptcy claim.

In addition to a $6.4 million gain on the sale of Permian Basin properties during the first quarter of 2008, Energen Resources benefited in the current 12-months’ period from increased average realized sales prices and higher production, partially offset by increased LOE and DD&A.

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Average Realized Sales Prices, T12M Comparison

Commodity	2008		2007		Change
Natural Gas (per Mcf)	$	7.78	$	7.05	10	%
Oil (per barrel)	$	67.11	$	52.93	27	%
NGL (per gallon)	$	0.95	$	0.71	34	%

Production, T12M Comparison

Commodity	2008	2007	Change
Natural Gas (Bcf)	65.2	63.0	3	%
Oil (MBbl)	3,897	3,654	7	%
NGL (MMgal)	75.1	78.6	(4	)%
Total (Bcfe)	99.3	96.2	3	%

Per-unit LOE totaled $2.16 per Mcfe in the 12 months ending March 31, 2008, up 12.5 percent from $1.92 per Mcfe in the same period a year ago; this increase largely was due to higher production taxes, additional compression and a general rise in field service costs.

DD&A expense per unit in the 12 months ended March 31, 2008, increased 14 percent over the same period last year from $1.02 per Mcfe to $1.16 per Mcfe, largely due to higher development costs.

Alabama Gas Corporation

Alagasco generated net income in the 12 months ended March 31, 2008, of $40.2 million as compared with $40.3 million in the same period a year ago.

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2008 EARNINGS GUIDANCE RANGE INCREASED

Energen today raised its 2008 earnings guidance range by 20 cents to $4.15 to $4.55 per diluted share; the new guidance captures:

• Higher price assumptions for Energen Resources’ unhedged production for the remainder of the year;

• First quarter results, including the $6.4 million gain on the sale of 4.4 Bcfe of Permian Basin properties;

• A 1 Bcfe reduction in production largely due to the first quarter property sale and the impact of severe winter weather in the San Juan Basin; and

• Anticipated declines in customer usage at Alagasco in the fourth quarter of 2008.

Energen’s earnings guidance does not include potential benefits from property acquisitions, Alabama shales exploration or stock repurchases. The guidance also makes no assumption related to the potential impairment of $34 million of capitalized unproved leasehold related to Alabama shales.

Key assumptions in Energen’s 2008 budget are:

• A hedge position that covers approximately 76 percent of estimated production for the remaining nine months of the year;

• Assumed prices for unhedged natural gas, oil and NGL production of $8.50 per Mcf, $85 per barrel and $1.12 per gallon, respectively;

• Production of 101 Bcfe;

• Capital spending of $400 million, including approximately $330 million by Energen Resources and $70 million by Alagasco;

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

• LOE at ERC, including production taxes, of $2.31 per Mcfe;

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

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• Alagasco’s earning an estimated 12.6 percent on average equity of approximately $311 million;

• Average diluted shares outstanding of 72.1 million.

2008 Hedge Position Summary

Energen Resources’ hedge position for the remaining nine months of 2008 is as follows:

Commodity	Hedge Volumes	2008e Production	Hedge %		NYMEXe Price
Natural Gas	38.0 Bcf	50.2 Bcf	76	%	$	8.61/Mcf
Oil	2.4 MMBbl	3.1 MMBbl	78	%	$	70.72/barrel
NGL	35.7 MMgal	51.7 MMgal	69	%	$	0.96/gallon

NOTE: Known basis differentials for April included

Energen Resources’ natural gas and oil hedge positions by type for the remaining nine months of 2008 are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	24.0	$	1.20 per Mcf	$	8.68 per Mcf
NYMEX	14.0		—	$	8.51 per Mcf

NOTE: Known basis differentials for April included

Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	1,922	$	5.55 per barrel	$	69.36 per barrel
NYMEX	533		—	$	75.61 per barrel

NOTE: Known basis differentials for April included

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.

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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’ hedge position for the remainder of 2008 and using the price assumptions given above for the Company’s unhedged production, changes in commodity prices over the next nine months are estimated to have the following impact on Energen’s 2008 earnings:

• Every 10-cent change in the average NYMEX price of gas from $8.50 represents an estimated net income impact of approximately $775,000 (1.0 cent per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $85.00 per barrel represents an estimated net income impact of approximately $300,000 (0.4 cents per diluted share).

• Every 1-cent change in the average price of liquids from $1.12 per gallon represents an estimated net income impact of approximately $68,000 (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.

2009 EARNINGS GUIDANCE RANGE RAISED

Energen today also increased its 2009 earnings guidance range by 20 cents as a result of increasing its underlying assumption for commodity prices applicable to unhedged production. The adjusted guidance range also incorporates the Company’s most recent hedges.

The new range is $4.65-$5.05 per diluted share and provides a better, although still conservative, reflection of the market’s expectations of continued commodity price strength into 2009.

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Energen’s earnings guidance does not include potential benefits from property acquisitions, Alabama shales exploration or stock repurchases. The guidance also makes no assumption related to the potential impairment of $34 million of capitalized unproved leasehold related to Alabama shales.

Key assumptions in Energen’s 2009 earnings guidance:

• Existing hedge position covering approximately 61 percent of estimated 2009 production;

• Assumed prices for unhedged natural gas, oil and NGL production of $8.50 per Mcf, $85 per barrel and $1.105 per gallon, respectively;

• Production of 108 Bcfe;

• Capital spending of $345 million, including approximately $270 million by Energen Resources and $75 million by Alagasco;

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

• LOE at Energen Resources, including production taxes, of $2.30 per Mcfe;

• General and administrative expense at Energen Resources of 51 cents per Mcfe;

• Alagasco’s earning within its allowed range of return on average equity of approximately $323 million; and

• Average diluted shares outstanding of 72.3 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	43.8 Bcf	69.5 Bcf	63	%	$	8.76/Mcf
Oil	2.7 MMBbl	4.8 MMBbl	56	%	$	72.73/barrel
NGL	43.3 MMgal	68.0 MMgal	64	%	$	1.15/gallon

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	$	1.10 per Mcf	$	8.87 per Mcf
Permian Basin	1.2	$	0.96 per Mcf	$	8.63 per Mcf
NYMEX	14.2		—	$	8.55 per Mcf

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Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	2,136	$	5.15 per barrel	$	69.79 per barrel
NYMEX	564		—	$	83.89 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 $8.50 represents an estimated net income impact of approximately $1.2 million (1.7 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $85.00 per barrel represents an estimated net income impact of approximately $1.2 million (1.7 cents per diluted share).

• Every 1-cent change in the average price of liquids from $1.105 per gallon represents an estimated net income impact of approximately $115,000 (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.

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2010 HEDGE POSITION CONTINUES TO BUILD

Energen continues to add to its 2010 hedge position. At present, the Company has hedged 36.6 Bcf of natural gas production at an average NYMEX-equivalent price of $9.29 per Mcf and 1.7 million barrels of oil production at an average NYMEX-equivalent price of $92.38 per barrel.

Energen Resources’ 2010 natural gas and oil hedge positions by hedge type are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	25.8	$	1.13 per Mcf	$	9.29 per Mcf
NYMEX	10.8		—	$	9.28 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	960	$	5.30 per barrel	$	100.77 per barrel
NYMEX	720		--	$	81.20 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. 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.

PROBABLE, POSSIBLE RESERVES UPDATE

An update of Energen Resources’ probable and possible reserves shows that the Company’s unproved reserve inventory remains an estimated 1.9 Tcfe, with probable reserves totaling 638 Bcfe and possible reserves totaling 1,257 Bcfe. These reserves do not include an estimated 65 Bcfe of probable and possible reserves associated with a Permian Basin property that was sold during the first quarter of 2008, nor do these numbers include any reserve potential associated with the Company’s pursuit of natural gas in Alabama shales.

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The estimated unrisked cost for Mcfe is well under $2 per unit: $1.23 per Mcfe of probable reserves and $1.01 per Mcfe of possible reserves. Applying the Company’s own risking to its unproved inventory, the total cost per Mcfe is an estimated $1.57 per Mcfe.

The Company cannot include such information about unproved reserve potential in its financial statements and notes filed with the Securities and Exchange Commission.

Location, Amount and Estimated Finding Cost of Reserves (Bcfe) — Unrisked

Basin/Area	Proved @ 12/31/07*	Probable Reserves*			Possible Reserves*
		Quantity	Unit Cost		Quantity	Unit Cost
San Juan	943	304	$	1.25	811	$	0.85
Permian	498	292	$	1.14	398	$	1.25
Black Warrior	234	17	$	0.66	30	$	0.97
N. LA/E. TX/Other	74	25	$	2.29	18	$	2.72
Total	1,749	638	$	1.23	1,257	$	1.01

* As of December 31, 2007, pro forma for 1Q08 Permian Basin property sale

The definitions of probable and possible reserves imply different probabilities of potential recovery in each classification; the quantities reported here are unrisked. All the estimates were prepared by Energen Resources’ technical staff and were 100 percent reviewed by independent reservoir engineers. The same commodity prices used to calculate year-end 2007 proved reserves were applied in establishing the Company’s probable and possible reserves.

Additional investment is necessary to develop the Company’s probable and possible reserve inventory. The per-unit cost estimates in the table are unrisked and are based on the Company’s best estimate of current costs to drill wells in each basin/area and bring associated production to market. Future development costs are dependent on the timing of development.

Previously reported proved reserves were based on Security and Exchange Commission (SEC) definitions. Since the SEC does not define unproved reserves, Energen Resources follows definitions for probable and possible reserves provided by the Petroleum Resources Management System.

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Probable reserves are those that analysis of geoscience and engineering data indicate are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated proved plus probable reserves. In this context, when probabilistic methods are used, there should be at least a 50 percent probability that the actual quantities recovered will equal or exceed the estimate.

Possible Reserves are those that analysis of geoscience and engineering data suggests are less likely to be recoverable than probable reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of proved plus probable plus possible reserves, which is equivalent to the high estimate scenario. In this context, when probabilistic methods are used, there should be at least a 10 percent probability that the actual quantities recovered will equal or exceed the estimate.

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 March 31, 2008 and 2007

	1st Quarter
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	224,895		$	194,033		$	30,862
Natural gas distribution		296,751			298,628			(1,877	)
Total operating revenues		521,646			492,661			28,985
Operating Expenses
Cost of gas		161,389			168,138			(6,749	)
Operations & maintenance		86,552			82,043			4,509
Depreciation, depletion and amortization		42,416			38,020			4,396
Taxes, other than income taxes		34,905			30,312			4593
Accretion expense		1,045			950			95
Total operating expenses		326,307			319,463			6,844
Operating Income		195,339			173,198			22,141
Other Income (Expense)
Interest expense		(11,122	)		(12,221	)		1,099
Other income		244			561			(317	)
Other expense		(596	)		(195	)		(401	)
Total other expense		(11,474	)		(11,855	)		381
Income from Continuing Operations Before Income Taxes		183,865			161,343			22,522
Income tax expense		67,177			57,462			9,715
Income from Continuing Operations		116,688			103,881			12,807
Discontinued Operations, Net of Taxes
Income from discontinued operations		—			1			(1	)
Gain on disposal of discontinued operations		—			—			—
Income from Discontinued Operations		—			1			(1	)
Net Income	$	116,688		$	103,882		$	12,806
Diluted Earnings Per Average Common Share
Continuing operations	$	1.62		$	1.44		$	0.18
Discontinued operations		—			—			—
Net Income	$	1.62		$	1.44		$	0.18
Basic Earnings Per Average Common Share
Continuing operations	$	1.63		$	1.45		$	0.18
Discontinued operations		—			—			—
Net Income	$	1.63		$	1.45		$	0.18
Diluted Avg. Common Shares Outstanding		72,125			72,124			1
Basic Avg. Common Shares Outstanding		71,637			71,482			155
Dividends Per Common Share	$	0.12		$	0.115		$	0.005

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)2

For the 12 months ending March 31, 2008 and 2007

	Trailing 12 Months
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	856,454		$	755,056		$	101,398
Natural gas distribution		607,591			643,449			(35,858	)
Total operating revenues		1,464,045			1,398,505			65,540
Operating Expenses
Cost of gas		311,680			347,185			(35,505	)
Operations & maintenance		337,952			309,717			28,235
Depreciation, depletion and amortization		165,773			145,809			19,964
Taxes, other than income taxes		100,424			93,360			7,064
Accretion expense		4,043			3,671			372
Total operating expenses		919,872			899,742			20,130
Operating Income		544,173			498,763			45,410
Other Income (Expense)
Interest expense		(46,001	)		(47,696	)		1,695
Other income		2,351			865			1,486
Other expense		(1,360	)		(1,072	)		(288	)
Total other expense		(45,010	)		(47,903	)		2,893
Income from Continuing Operations Before Income Taxes		499,163			450,860			48,303
Income tax expense		177,144			160,957			16,187
Income from Continuing Operations		322,019			289,903			32,116
Discontinued Operations, Net of Taxes
Income from discontinued operations		2			2			—
Gain on disposal of discontinued operations		18			53			(35	)
Income from Discontinued Operations		20			55			(35	)
Net Income	$	322,039		$	289,958		$	32,081
Diluted Earnings Per Average Common Share
Continuing operations	$	4.47		$	3.99		$	0.48
Discontinued operations		—			—			—
Net Income	$	4.47		$	3.99		$	0.48
Basic Earnings Per Average Common Share
Continuing operations	$	4.49		$	4.02		$	0.47
Discontinued operations		—			—			—
Net Income	$	4.49		$	4.02		$	0.47
Diluted Avg. Common Shares Outstanding		72,088			72,674			(586	)
Basic Avg. Common Shares Outstanding		71,650			72,138			(488	)
Dividends Per Common Share	$	0.465		$	0.445		$	0.02

15

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2008 and 2007

	1st Quarter
(in thousands, except sales price data)	2008		2007		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	130,954	$	123,225	$	7,729
Oil		64,099		54,084		10,015
Natural gas liquids		17,446		15,042		2,404
Other		12,396		1,682		10,714
Total	$	224,895	$	194,033	$	30,862
Production volumes from continuing operations
Natural gas (MMcf)		16,427		15,547		880
Oil (MBbl)		944		927		17
Natural gas liquids (MMgal)		16.7		18.9		(2.2	)
Production volumes from continuing ops. (MMcfe)		24,483		23,806		677
Total production volumes (MMcfe)		24,483		23,805		678
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.97	$	7.93	$	0.04
Oil (barrel)	$	67.90	$	58.36	$	9.54
Natural gas liquids (gallon)	$	1.04	$	0.80	$	0.24
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	43,135	$	35,409	$	7,726
Production taxes		16,576		12,011		4,565
Total	$	59,711	$	47,420	$	12,291
Depreciation, depletion and amortization	$	30,396	$	26,473	$	3,923
General and administrative expense	$	11,899	$	13,792	$	(1,893	)
Capital expenditures	$	74,397	$	53,395	$	21,002
Exploration expenditures	$	349	$	97	$	252
Operating income	$	121,495	$	105,301	$	16,194
Natural Gas Distribution
Operating revenues
Residential	$	199,575	$	203,798	$	(4,223	)
Commercial and industrial		77,505		77,722		(217	)
Transportation		15,503		14,567		936
Other		4,168		2,541		1,627
Total	$	296,751	$	298,628	$	(1,877	)
Gas delivery volumes (MMcf)
Residential		11,531		11,579		(48	)
Commercial and industrial		4,976		4,872		104
Transportation		14,297		13,420		877
Total		30,804		29,871		933
Other data
Depreciation and amortization	$	12,020	$	11,547	$	473
Capital expenditures	$	13,070	$	14,967	$	(1,897	)
Operating income	$	74,488	$	68,437	$	6,051

16

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending March 31, 2008 and 2007

	Trailing 12 Months
(in thousands, except sales price data)	2008		2007		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	507,135	$	444,701	$	62,434
Oil		261,512		193,401		68,111
Natural gas liquids		71,027		55,623		15,404
Other		16,780		61,331		(44,551	)
Total	$	856,454	$	755,056	$	101,398
Production volumes from continuing operations
Natural gas (MMcf)		65,180		63,044		2,136
Oil (MBbl)		3,897		3,654		243
Natural gas liquids (MMgal)		75.1		78.6		(3.5	)
Production volumes from continuing ops. (MMcfe)		99,283		96,193		3,090
Total production volumes (MMcfe)		99,283		96,191		3,092
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.78	$	7.05	$	0.73
Oil (barrel)	$	67.11	$	52.93	$	14.18
Natural gas liquids (gallon)	$	0.95	$	0.71	$	0.24
Other data
Lease operating expense (LOE)
LOE and other	$	156,006	$	136,400	$	19,606
Production taxes		58,363		48,427		9,936
Total	$	214,369	$	184,827	$	29,542
Depreciation, depletion and amortization	$	118,164	$	100,764	$	17,400
General and administrative expense	$	48,971	$	39,714	$	9,257
Capital expenditures	$	400,481	$	268,168	$	132,313
Exploration expenditures	$	3,146	$	4,169	$	(1,023	)
Operating income	$	467,761	$	421,911	$	45,850
Natural Gas Distribution
Operating revenues
Residential	$	384,068	$	411,358	$	(27,290	)
Commercial and industrial		164,686		175,065		(10,379	)
Transportation		50,191		47,782		2,409
Other		8,646		9,244		(598	)
Total	$	607,591	$	643,449	$	(35,858	)
Gas delivery volumes (MMcf)
Residential		20,617		22,204		(1,587	)
Commercial and industrial		10,697		11,157		(460	)
Transportation		52,324		50,821		1,503
Total		83,638		84,182		(544	)
Other data
Depreciation and amortization	$	47,609	$	45,045	$	2,564
Capital expenditures	$	56,965	$	72,279	$	(15,314	)
Operating income	$	78,793	$	78,984	$	(191	)

17

EX-99.3

Exhibit 99.3

Non-GAAP Financial Measures

The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. After-tax Cash Flows and Adjusted Cash Flows from Operations Excluding Alabama Gas Corporation (Alagasco) are Non-GAAP financial measures. Energen believes after-tax cash flows are relevant because they are a measure of cash available to fund the Company’s capital expenditures, dividends, debt reduction, and other investments. Similarly, Adjusted Cash Flows from Operations Excluding Alagasco reflect comparable information specific to the Company’s non-regulated activities.

Reconciliation To GAAP Information

($ in millions)

	Years Ended 12/31
	2007 Actual	2008 Estimate (e)					2009 Estimate (e)
Net Income (GAAP)	309	300		—	330		335	—	365
Depreciation, depletion and amortization	161	180		—	180		200	—	200
Deferred income taxes, net	1	105		—	105		75	—	75
After-tax Cash Flows (Non-GAAP)	471	585		—	615		610	—	640
Changes in assets and liabilities and other adjustments	13	(50	)	—	(50	)	10	—	10
Net Cash Provided by Operating Activities (GAAP)	484	535		—	565		620	—	650

Reconciliation To GAAP Information

($ in millions)

	Years Ended 12/31
	2007 Actual		2008 Estimate (e)					2009 Estimate (e)
Net Cash Provided by Operating Activities (GAAP)	484		535		—	565		620		—	650
Changes in assets and liabilities and other adjustments	(13	)	50		—	50		(10	)	—	(10	)
After-tax Cash Flow (Non-GAAP)	471		585		—	615		610		—	640
Less: AGC cash flows from operations (GAAP)	(94	)	(75	)	—	(75	)	(95	)	—	(95	)
Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP)	377		510		—	540		515		—	545

(e) This estimate is a “forward-looking statement” as defined by the Securities and Exchange Commission. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties, which could affect future results of Energen and its subsidiaries, is included in the Company’s periodic reports filed with the Securities and Exchange Commission.