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

October 22, 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

On October 22, 2008, Energen Corporation and Alabama Gas Corporation issued a press release announcing the third quarter and year-to-date 2008 financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2.

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 disclosed at various investor/analyst meetings in the coming weeks. 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 October 22, 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
October 22, 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 October 22, 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	Contact:	Julie S. Ryland
Wednesday, October 22, 2008		205.326.8421

ENERGEN REPORTS 26% RISE IN 3^rd QUARTER EPS

2008 Production Estimate Increased to 102 Bcfe

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) announced today that higher realized sales prices, increased production and improved utility results were major drivers of a 26 percent increase in third quarter earnings. For the three months ended September 30, 2008, the energy company generated net income of $73.1 million, or $1.01 per diluted share, as compared with $58 million, or $0.80 per diluted share, in the same period in 2007.

Energen Resources Corporation, the Company’s oil and gas exploration and production subsidiary, generated net income of $79.6 million in the third quarter — a 15 percent increase over net income of $69.3 million in the prior-year third quarter. Alabama Gas Corporation (Alagasco), Energen’s natural gas utility, experienced a seasonal net loss of $5.8 million as compared with a net loss of $10.5 million in the same period a year ago.

Energen today also announced a variety of key data:

• 2008, 2009 EARNINGS GUIDANCE REVISED

2008: Energen narrowed its 2008 earnings guidance range to $4.35-$4.55 per diluted share; this revised guidance range reflects near-strip commodity price assumptions applicable to Energen Resources’ unhedged production for November and December of $7 per thousand cubic feet (Mcf) of natural gas, $70 per barrel of oil and $0.91 per gallon of natural gas liquids (NGL). Energen’s prior 2008 guidance range of $4.30-$4.70 per diluted share, included price assumptions applicable to unhedged gas, oil and NGL production of $10 per Mcf, $100 per barrel, and $1.30 per gallon, respectively.

Approximately 73 percent of Energen Resources’ estimated fourth quarter production of 26.5 billion cubic feet (Bcf) equivalent has been hedged, resulting in significant insulation for Energen from near-term commodity price volatility.

2009: After adjusting downward its 2009 commodity price assumptions to better reflect the current market outlook, Energen lowered its 2009 earnings guidance range to $3.70-$4.10 per diluted share. Energen’s new 2009 commodity price assumptions applicable to Energen Resources’ unhedged production are $7 per Mcf for gas, $70 per barrel for oil and $0.91 per gallon for NGL volumes. Energen’s prior 2009 guidance of $5.15-$5.55 per diluted share included price assumptions applicable to unhedged gas, oil and NGL production of $10 per Mcf, $100 per barrel, and $1.30 per gallon, respectively.

The lower commodity price assumptions account for the bulk of the difference between earnings guidance ranges. The new guidance also reflects higher per-unit lease operating expense (excluding production taxes) and increased per-unit depreciation, depletion and amortization (DD&A) expense.

Energen management said that 2009 guidance does not include potential benefits from property acquisitions, Alabama shales exploration or stock repurchases, nor does the guidance make any assumption related to the potential impairment of capitalized unproved leasehold related to Alabama shales (approximately $41 million in total).

Energen management noted, too, that work continues on a formal 2009 budget; based on changing market conditions, the budget could differ from the current model upon which guidance is based.

• 2008 PRODUCTION ESTIMATE RAISED

Based on a 3 percent increase in production year to date, Energen has raised its estimate for 2008 production to 102 Bcfe. Production in 2007 totaled 98.6 Bcfe. In the San Juan Basin, Energen Resources’ largest area of operations, a 2 Bcf increase in production is being driven by new drilling and continued development of the company’s Fruitland Coal properties; production also is up in the North Louisiana/East Texas area largely due to new field development.

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• 5 PERCENT ORGANIC PRODUCTION GROWTH IN 2009

In addition to the approximately 3 percent organic production growth expected in 2008, Energen estimates that production will increase another 5 percent in 2009, to 107.5 Bcfe. With approximately 1.9 trillion cubic feet equivalent of probable and possible reserves, Energen Resources plans to continue its efforts to develop unproved reserves and prove up its probable and possible reserves in its existing areas of operation, primarily the San Juan and Permian basins; Energen Resources’ reserves are long-lived, with a reserves-to-production ratio of approximately 17.

• 2009 CAPITAL SPENDING AT ENERGEN RESOURCES

Energen Resources’ estimates that 2009 capital spending will be approximately 26 percent below estimated 2008 capital spending of $400 million. The revised capital spending outlook for 2009 has been increased from previous guidance to approximately $295 million. This additional $25 million largely reflects a continuation of increased development drilling costs that the company has experienced.

Energen Resources has not yet experienced a decline in costs despite lower commodity prices and capital spending cuts by some energy companies that may result in increased rig availability and, thus, lower rig costs. The company said it will monitor cost trends closely and adjust capital spending, as warranted.

• HEDGE POSITION

FOURTH QUARTER 2008: Energen Resources has hedges in place for 73 percent of its estimated gas production at an average NYMEX-equivalent price of $8.95 per Mcf, 74 percent of its estimated oil production at an average NYMEX-equivalent price of $69.06 per barrel, and 68 percent of its estimated NGL production at an average price of $0.96 per gallon.

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CALENDAR YEAR 2009: Energen Resources has hedges in place for approximately 62 percent of its estimated gas production at an average NYMEX-equivalent price of $8.89 per Mcf, 58 percent of its estimated oil production at an average NYMEX-equivalent price of $72.14 per barrel, and 64 percent of its estimated NGL production at an average price of $1.15 per gallon.

COUNTERPARTIES: As of the close of business on Monday, October 20, Energen Resources’ hedges were in a receivables position of approximately $175 million. Counterparties are Morgan Stanley, Goldman Sachs, Citigroup, Bank of Montreal, Merrill Lynch and Wachovia.

• ALABAMA SHALES UPDATE

At the end of September, Energen Resources and Chesapeake Energy Corporation had leased jointly approximately 660,000 acres in the Alabama shale prospects. Energen Resources’ net position is approximately 330,000 acres.

Work continues on the companies’ initial three-well test program. A completion has been performed on the Marchant well in Bibb County as well as on the Krout well in Bibb County, and completion of the Lamb well in Greene County is scheduled to begin later this week.

Once data from the wells has been analyzed and Energen Resources and Chesapeake determine their next steps, a public disclosure will be made. Energen management said it anticipates disclosing results of the initial 3-well test program before the end of 2008.

• CASH FLOWS OUTLOOK

In addition to identified capital spending and Funding a small portion of Energen’s annual cash dividend with after-tax cash flows, Energen Resources has used a portion of its remaining available cash flows in 2008 to repay $84 million of long- and short-term debt and estimates that it will have a cash balance at the end of 2008 of approximately $65 million.

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In 2009, Energen Resources estimates that after identified capital spending and funding a small portion of Energen’s dividend, it will have after-tax cash flows of $170-$200 million available to help fund Energen’s strategic investment opportunities. These opportunities include share repurchases, oil and gas property acquisitions and the potential development of Alabama shales.

In general, Alagasco utilizes all of its after-tax cash flows to fund its capital expenditures and the majority of Energen’s dividend.

MANAGEMENT COMMENTS

“In these uncertain economic times, we are pleased that Energen’s 2008 earnings have continued to grow,” said James T. McManus, Energen’s chairman and chief executive officer. “Based on our excellent year-to-date results, prospects for increased production and significant hedge position in the fourth quarter, we believe Energen is well on its way to achieving its seventh consecutive year of record earnings in 2008.

“Looking ahead to 2009: Energen offers 5 percent organic production growth. Energen offers a strong hedge position that helps insulate our 2009 earnings from commodity price volatility. Energen also offers solid after-tax cash flows, a strong balance sheet and untapped lines of credit with which to pursue our strategic investment opportunities,” McManus said.

“The U.S. and global economies have changed, but Energen’s strategic objectives and financial capacity to achieve them have not changed.”

THIRD QUARTER RESULTS

For the three months ended September 30, 2008, Energen generated net income of $73.1 million, or $1.01 per diluted share, as compared with $58 million, or $0.80 per diluted share, in the same period in 2007.

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Energen Resources Corporation

Energen Resources’ third quarter 2008 net income totaled $79.6 million and compared with $69.3 million in the same period last year. This 15 percent increase in year-over-year net income largely reflects higher average realized sales prices for Energen Resources’ production, a 3 percent rise in production to 26.1 Bcfe, and lower per-unit general and administrative (G&A) expense.

Negatively influencing Energen Resources’ net income in the third quarter of 2008 were increased lease operating expense including production taxes (LOE), increased DD&A expense, and a higher effective tax rate due to reduced tax benefit under Section 199 of the Internal Revenue Code.

Average Realized Sales Prices, Third Quarter Comparison

Commodity	3Q2008		3Q2007		Change
Natural Gas (per Mcf)	$	8.42	$	7.49	12	%
Oil (per barrel)	$	78.08	$	65.06	20	%
NGL (per gallon)	$	1.03	$	0.89	16	%

Production, Third Quarter Comparison

Commodity	3Q2008	3Q2007	Change
Natural Gas (Bcf)	17.3	16.5	5	%
Oil (MBbl)	1,055	1,025	3	%
NGL (MMgal)	17.8	19.6	(9	)%
Total (Bcfe)	26.1	25.4	3	%

Production By Area (Bcfe), Third Quarter Comparison

Area	3Q2008	3Q2007	Change
San Juan Basin	12.7	12.2	4	%
Permian Basin	7.4	7.5	(1	)%
Black Warrior Basin	3.5	3.8	(8	)%
N. LA/E. TX/Other	2.5	1.9	32	%

Production increases in the San Juan Basin in the current quarter largely are due to new drilling and continued development of Fruitland Coal properties, while increases in the North Louisiana/East Texas area largely are due to new field development. In the Black Warrior Basin, the decrease in production mainly was associated with higher commodity prices that resulted in lower net volumes due to pay-out calculations.

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Per-unit net G&A expense in the third quarter of 2008 declined 22 percent over the same period in 2007 largely due to lower benefits related to the company’s performance-based compensation plan.

Per-unit LOE in the third quarter of 2008 increased 22 percent from the same period a year ago to $2.47 per Mcfe. This increase was due to a 55 percent rise in per-unit production taxes resulting from increased commodity prices as well as increased repairs and maintenance expenses, higher workover expenses in the San Juan and Black Warrior basins, and increased marketing & transportation costs in San Juan and Permian basins.

DD&A expense per unit in the third quarter of 2008 increased 14 percent over the same period last year to $1.30 per Mcfe due to higher development costs.

Alabama Gas Corporation

Energen’s natural gas utility reported a seasonal net loss of $5.8 million in the third quarter of 2008 as compared with a net loss of $10.5 million in the third quarter of 2007. This year-over-year improvement was due to the utility (1) drawing down its Enhanced Stability Reserve (ESR) to help compensate for industrial and commercial load loss; (2) keeping its increase in operations & maintenance (O&M) expense below the inflation-based cost control measurement feature of its rate-setting mechanism, Rate Stabilization and Equalization (RSE); and (3) earning on a higher level of equity. Included in the prior-year third quarter net loss was a $2.3 million after-tax reduction designed to keep the utility earning within its allowed range of return on average equity at the end of the 2007 rate year.

Alagasco, which ended its 2008 rate year on September 30, made a $2.5 million after-tax ($4.0 million pre-tax) draw against the ESR in the third quarter to help mitigate rate-year revenue losses from certain large commercial and industrial (LC&I) customers; under terms of the ESR, which was approved by the Alabama Public Service Commission (APSC) and implemented at the start of the 1998 rate year, Alagasco may charge against the reserve (which has a maximum funding limit of $4.0 million) the full amount of individual industrial and commercial customer revenue losses that exceed $250,000 in the rate year, provided such losses cause Alagasco’s return on average equity to fall below 13.15 percent. Under the terms of the 2007 extension of RSE, Alagasco is not able to add funds to this reserve until December 31, 2010, absent a significant natural disaster and APSC approval to resume accretions to the ESR.

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In addition, the percentage change in Alagasco’s O&M expense in the current rate year was less than 0.75 points below the Consumer Price Index for all Urban Customers; under the terms of the inflation-based cost control measurement feature of RSE, the utility benefits by retaining one-half of the difference; this amount ($1.8 million after-tax) will be recovered through future rate adjustments.

YTD 2008 RESULTS

For the nine months ended September 30, 2008, Energen’s net income totaled $256.6 million, or $3.56 per diluted share as compared with earnings of $229.8 million, or $3.18 per diluted share, in the first nine months of 2007. The current-year period included a one-time, $6.4 million, or $0.09 per diluted share, gain from the sale of Permian Basin properties in the first quarter of 2008.

Energen Resources Corporation

Energen Resources’ net income for the year-to-date 2008 totaled $222.6 million and compared with $199.4 million in the same period last year. This 12 percent increase largely reflects higher average realized sales prices, a 3 percent rise in production to 75.6 Bcfe, and a one-time gain from the sale of Permian Basin properties in the first quarter of 2008, partially offset by higher LOE and DD&A expense as well as a higher effective tax rate due to a reduced tax benefit under Section 199.

Average Realized Sales Prices, YTD Comparison

Commodity	YTD2008		YTD2007		Change
Natural Gas (per Mcf)	$	8.22	$	7.78	6	%
Oil (per barrel)	$	73.69	$	62.58	18	%
NGL (per gallon)	$	1.06	$	0.85	25	%

Production, YTD Comparison

Commodity	YTD2008	YTD2007	Change
Natural Gas (Bcf)	50.1	47.7	5	%
Oil (MBbl)	3,005	2,898	4	%
NGL (MMgal)	52.7	57.6	(9	)%
Total (Bcfe)	75.6	73.4	3	%

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Production By Area (Bcfe), YTD Comparison

Area	YTD2008	YTD2007	Change
San Juan Basin	37.2	35.3	5	%
Permian Basin	21.2	21.5	(1	)%
Black Warrior Basin	10.5	11.1	(5	)%
N. LA/E. TX/Other	6.7	5.5	22	%

Production increases in the San Juan Basin in the current year-to-date period largely are due to new drilling and continued development of Fruitland Coal properties, while increases in the North Louisiana/East Texas area largely are due to new field development and additional non-operated field development. In the Black Warrior Basin, the decrease in production mainly was associated with higher commodity prices that resulted in lower net volumes due to pay-out calculations.

Per-unit LOE in the first nine months of 2008 increased 20 percent from the same period a year ago to $2.48 per Mcfe. This increase largely was due to a 47 percent rise in per-unit production taxes resulting from increased commodity prices and to increased compression, increased workover expense, increased transportation costs, weather-related road maintenance, and increased environmental compliance expense.

Year-to-date per-unit DD&A expense in 2008 increased 13 percent over the same period last year to $1.25 per Mcfe largely due to higher development costs.

Alabama Gas Corporation

Alagasco reported net income of $34.8 million in the first nine months of 2008 as compared with net income of $31.2 million in the same period a year ago. This year-over-year increase was due to the utility (1) drawing down its ESR to help compensate for industrial and commercial load loss; (2) keeping its increase in O&M expense below RSE’s inflation-based cost control measurement feature; and (3) earning on a higher level of equity. Included in the prior-year period net income was a $2.3 million after-tax reduction designed to keep the utility earning within its allowed range of return on average equity at the end of the 2007 rate year.

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TRAILING 12 MONTHS’ RESULTS

For the 12 months ended September 30, 2008, Energen’s net income totaled $336.0 million, or $4.66 per diluted share, and compared with $324.9 million, or $4.50 per diluted share, for the same period a year ago. The current-year period included a one-time, $6.4 million, or $0.09 per diluted share, gain from the sale of Permian Basin properties in the first quarter of 2008. The prior-year period included a $34.5 million, or $0.48 per diluted share, gain from the sale of one-half of its acreage position in Alabama shales to Chesapeake Energy Corporation in October 2006, and a $6.7 million, or $0.09 per diluted share, gain from the settlement of its Enron bankruptcy claim.

Energen Resources Corporation

Energen Resources’ net income for the current-year trailing 12 months totaled $296.5 million as compared with $286.9 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, and the current-year period included a $6.4 million gain from the sale of Permian Basin properties.

Energen Resources benefited in the current 12-months’ period from increased average realized sales prices and a 4 percent increase in production to 101 Bcfe, partially offset by increased LOE and DD&A, and a higher effective tax rate due to a reduced tax benefit under Section 199.

Average Realized Sales Prices, T12M at September 30 Comparison

Commodity	2008		2007		Change
Natural Gas (per Mcf)	$	8.09	$	7.53	7	%
Oil (per barrel)	$	73.14	$	59.55	23	%
NGL (per gallon)	$	1.04	$	0.80	30	%

Production, T12M at September 30 Comparison

Commodity	2008	2007	Change
Natural Gas (Bcf)	66.6	63.5	5	%
Oil (MBbl)	3,986	3,807	5	%
NGL (MMgal)	72.3	76.9	(6	)%
Total (Bcfe)	100.9	97.3	4	%

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Per-unit LOE totaled $2.36 per Mcfe in the 12 months ending September 30, 2008, up 17 percent from $2.02 per Mcfe in the same period a year ago; this increase largely was due to higher production taxes, increased repairs and maintenance and work-over expenses, additional compression and a general rise in field service costs.

Per-unit DD&A expense in the 12 months ended September 30, 2008, increased 13 percent over the same period last year from $1.10 per Mcfe to $1.24 per Mcfe, largely due to higher development costs.

Alabama Gas Corporation

Alagasco generated net income in the 12 months ended September 30, 2008, of $40.4 million as compared with $39.3 million in the same period a year ago. This year-over-year increase was due to the utility (1) drawing down its ESR to help compensate for industrial and commercial load loss; (2) keeping its increase in O&M expense below RSE’s inflation-based cost control measurement feature; and (3) earning on a higher level of equity. Included in the prior-year period net income was a $2.3 million after-tax reduction designed to keep the utility earning within its allowed range of return on average equity at the end of the 2007 rate year. For the 2008 rate year ended September 30, 2008, the utility earned a return on average equity of 13.1 percent.

2008 EARNINGS GUIDANCE RANGE NARROWED

Energen today narrowed its earnings guidance for 2008 to $4.35-$4.55 per diluted share. Key assumptions in Energen’s 2008 earnings guidance include:

• Record year-to-date results;

• A hedge position covering about 73 percent of estimated production for the remainder of the year;

• Assumed prices for unhedged natural gas, oil and NGL production of $7 per Mcf, $70 per barrel and $0.91 per gallon, respectively;

• Annual production of 102 Bcfe;

• Capital spending of approximately $460 million, including approximately $400 million by Energen Resources and $60 million by Alagasco.

• Per-unit DD&A rate at Energen Resources of $1.30 per Mcfe;

• Per-unit LOE, including production taxes, at Energen Resources, including production taxes, of $2.36 per Mcfe;

• Per-unit G&A expense at Energen Resources of $0.50 per Mcfe;

• Alagasco’s earning $39-$40 million on average equity of approximately $310 million;

• Average diluted shares outstanding of 72.1 million.

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2008 Hedge Position Summary

Energen Resources’ hedge position for the last three months of 2008 is as follows:

Commodity	Hedge Volumes	2008e Production	Hedge %		NYMEXe Price
Natural Gas	12.6 Bcf	17.3 Bcf	73	%	$	8.95/ Mcf
Oil	0.8 MMBbl	1.1 MMBbl	74	%	$	69.06/barrel
NGL	11.7 MMgal	17.3 MMgal	68	%	$	0.96/gallon

Note: October actuals used where known

Energen Resources’ hedge positions by type for the last three months of 2008 are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	8.0	$	0.98 per Mcf	$	9.20 per Mcf
NYMEX	4.6		—	$	8.51 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	652	$	3.61 per barrel	$	67.30 per barrel
NYMEX	174		—	$	75.66 per barrel

Note: October actuals used where known

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’ hedge position and using the price assumptions given above for the Company’s unhedged production, changes in commodity prices over the remainder of the year 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 represents an estimated net income impact of approximately $125,000 (0.2 cents per diluted share).

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• Every $1.00 change in the average NYMEX price of oil from $70 per barrel represents an estimated net income impact of approximately $130,000 (0.2 cents per diluted share).

• Every 1-cent change in the average price of liquids from $0.91 per gallon represents an estimated net income impact of approximately $23,000 (NM).

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

2009 EARNINGS GUIDANCE LOWERED FOR COMMODITY PRICES

Energen today lowered its earnings guidance for 2009 primarily due to using lower assumed commodity prices applicable to Energen Resources’ unhedged production. Energen’s new guidance for 2009 is a range of $3.70—$4.10 per diluted share.

Energen management said that 2009 guidance does not include any potential impact from its Alabama shales project, nor does it make any assumptions regarding possible share repurchases or acquisitions. Energen management noted, too, that work continues on a formal 2009 budget; based on changing market conditions, the budget could differ from the current model upon which guidance is based.

Key assumptions in Energen’s 2009 earnings guidance are:

• Existing hedge position covering approximately 62 percent of estimated 2009 production;

• Assumed prices for unhedged natural gas, oil and NGL production of $7 per Mcf, $70 per barrel and $0.91 per gallon, respectively;

• Annual production of 107.5 Bcfe;

• Capital spending of $360 million, including approximately $295 million by Energen Resources and $65 million by Alagasco;

• Per-unit DD&A rate at Energen Resources of $1.52 per Mcfe;

• Per-unit LOE, including production taxes, at Energen Resources, of $2.34 per Mcfe;

• Per-unit G&A expense at Energen Resources of $0.48 per Mcfe;

• Alagasco’s earning within its allowed range of return on average equity of approximately $325 million; and

• Average diluted shares outstanding of 72.2 million.

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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	70.3 Bcf	62	%	$	8.89/Mcf
Oil	2.7 MMBbl	4.6 MMBbl	58	%	$	72.14/barrel
NGL	43.3 MMgal	67.5 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	$	1.30 per Mcf	$	9.07 per Mcf
Permian Basin	1.2	$	1.15 per Mcf	$	8.82 per Mcf
NYMEX	14.2		—	$	8.55 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	2,136	$	4.40 per barrel	$	69.04 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 $7 represents an estimated net income impact of approximately $1.3 million (1.8 cents per diluted share).

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• Every $1.00 change in the average NYMEX price of oil from $70 per barrel represents an estimated net income impact of approximately $1.1 million (1.5 cents per diluted share).

• Every 1-cent change in the average price of liquids from $0.91 per gallon represents an estimated net income impact of approximately $110,000 (0.1 cent 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 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 3.6 trillion cubic feet equivalent of proved, 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.

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.

15

EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending September 30, 2008 and 2007

	3rd Quarter
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	247,753		$	208,423		$	39,330
Natural gas distribution		82,452			67,599			14,853
Total operating revenues		330,205			276,022			54,183
Operating Expenses
Cost of gas		35,901			31,088			4,813
Operations and maintenance		88,168			84,857			3,311
Depreciation, depletion and amortization		47,111			41,457			5,654
Taxes, other than income taxes		27,266			18,988			8,278
Accretion expense		1,081			1,000			81
Total operating expenses		199,527			177,390			22,137
Operating Income		130,678			98,632			32,046
Other Income (Expense)
Interest expense		(10,319	)		(11,418	)		1,099
Other income		725			885			(160	)
Other expense		(2,009	)		(244	)		(1,765	)
Total other expense		(11,603	)		(10,777	)		(826	)
Income from Continuing Operations Before Income Taxes		119,075			87,855			31,220
Income tax expense		46,011			29,841			16,170
Income from Continuing Operations		73,064			58,014			15,050
Discontinued Operations, Net of Taxes
Income from discontinued operations		—			2			(2	)
Gain on disposal of discontinued operations		—			18			(18	)
Income from Discontinued Operations		—			20			(20	)
Net Income	$	73,064		$	58,034		$	15,030
Diluted Earnings Per Average Common Share
Continuing operations	$	1.01		$	0.80		$	0.21
Discontinued operations		—			—			—
Net Income	$	1.01		$	0.80		$	0.21
Basic Earnings Per Average Common Share
Continuing operations	$	1.02		$	0.81		$	0.21
Discontinued operations		—			—			—
Net Income	$	1.02		$	0.81		$	0.21
Diluted Avg. Common Shares Outstanding		72,116			72,275			(159	)
Basic Avg. Common Shares Outstanding		71,590			71,623			(33	)
Dividends Per Common Share	$	0.12		$	0.115		$	0.005

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 9 months ending September 30, 2008 and 2007

	Year-to-date
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	704,428		$	605,812		$	98,616
Natural gas distribution		488,689			477,793			10,896
Total operating revenues		1,193,117			1,083,605			109,512
Operating Expenses
Cost of gas		253,159			252,584			575
Operations and maintenance		268,147			251,011			17,136
Depreciation, depletion and amortization		133,641			118,184			15,457
Taxes, other than income taxes		92,039			71,170			20,869
Accretion expense		3,181			2,921			260
Total operating expenses		750,167			695,870			54,297
Operating Income		442,950			387,735			55,215
Other Income (Expense)
Interest expense		(31,699	)		(35,655	)		3,956
Other income		1,455			2,396			(941	)
Other expense		(3,057	)		(626	)		(2,431	)
Total other expense		(33,301	)		(33,885	)		584
Income from Continuing Operations Before Income Taxes		409,649			353,850			55,799
Income tax expense		153,019			124,052			28,967
Income from Continuing Operations		256,630			229,798			26,832
Discontinued Operations, Net of Taxes
Income from discontinued operations		—			3			(3	)
Gain on disposal of discontinued operations		—			18			(18	)
Income from Discontinued Operations		—			21			(21	)
Net Income	$	256,630		$	229,819		$	26,811
Diluted Earnings Per Average Common Share
Continuing operations	$	3.56		$	3.18		$	0.38
Discontinued operations		—			—			—
Net Income	$	3.56		$	3.18		$	0.38
Basic Earnings Per Average Common Share
Continuing operations	$	3.58		$	3.21		$	0.37
Discontinued operations		—			—			—
Net Income	$	3.58		$	3.21		$	0.37
Diluted Avg. Common Shares Outstanding		72,129			72,173			(44	)
Basic Avg. Common Shares Outstanding		71,604			71,566			38
Dividends Per Common Share	$	0.36		$	0.345		$	0.015

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending September 30, 2008 and 2007

	Trailing 12 Months
(in thousands, except per share data)	2008			2007			Change
Operating Revenues
Oil and gas operations	$	924,208		$	826,141		$	98,067
Natural gas distribution		620,364			638,223			(17,859	)
Total operating revenues		1,544,572			1,464,364			80,208
Operating Expenses
Cost of gas		319,004			341,489			(22,485	)
Operations and maintenance		350,579			321,448			29,131
Depreciation, depletion and amortization		176,834			155,798			21,036
Taxes, other than income taxes		116,700			93,447			23,253
Accretion expense		4,208			3,849			359
Total operating expenses		967,325			916,031			51,294
Operating Income		577,247			548,333			28,914
Other Income (Expense)
Interest expense		(43,144	)		(46,497	)		3,353
Other income		1,727			1,859			(132	)
Other expense		(3,390	)		(886	)		(2,504	)
Total other expense		(44,807	)		(45,524	)		717
Income from Continuing Operations Before Income Taxes		532,440			502,809			29,631
Income tax expense		196,396			177,888			18,508
Income from Continuing Operations		336,044			324,921			11,123
Discontinued Operations, Net of Taxes
Income from discontinued operations		—			3			(3	)
Gain on disposal of discontinued operations		—			18			(18	)
Income from Discontinued Operations		—			21			(21	)
Net Income	$	336,044		$	324,942		$	11,102
Diluted Earnings Per Average Common Share
Continuing operations	$	4.66		$	4.50		$	0.16
Discontinued operations		—			—			—
Net Income	$	4.66		$	4.50		$	0.16
Basic Earnings Per Average Common Share
Continuing operations	$	4.69		$	4.54		$	0.15
Discontinued operations		—			—
Net Income	$	4.69		$	4.54		$	0.15
Diluted Avg. Common Shares Outstanding		72,141			72,170			(29	)
Basic Avg. Common Shares Outstanding		71,626			71,598			28
Dividends Per Common Share	$	0.475		$	0.455		$	0.02

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2008 and 2007

	3rd Quarter
(in thousands, except sales price data)	2008			2007			Change
Oil and Gas Operations
Operating revenues
Natural gas	$	145,283		$	123,499		$	21,784
Oil		82,375			66,689			15,686
Natural gas liquids		18,404			17,486			918
Other		1,691			749			942
Total	$	247,753		$	208,423		$	39,330
Production volumes from continuing operations
Natural gas (MMcf)		17,258			16,495			763
Oil (MBbl)		1,055			1,025			30
Natural gas liquids (MMgal)		17.8			19.6			(1.8	)
Production volumes from continuing ops. (MMcfe)		26,134			25,445			689
Total production volumes (MMcfe)		26,134			25,445			689
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	8.42		$	7.49		$	0.93
Oil (barrel)	$	78.08		$	65.06		$	13.02
Natural gas liquids (gallon)	$	1.03		$	0.89		$	0.14
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	43,890		$	38,706		$	5,184
Production taxes		20,610			12,968			7,642
Total	$	64,500		$	51,674		$	12,826
Depreciation, depletion and amortization	$	34,849		$	29,610		$	5,239
General and administrative expense	$	10,228		$	12,844		$	(2,616	)
Capital expenditures	$	122,597		$	94,274		$	28,323
Exploration expenditures	$	906		$	1,396		$	(490	)
Operating income	$	137,270		$	112,899		$	24,371
Natural Gas Distribution
Operating revenues
Residential	$	38,347		$	35,685		$	2,662
Commercial and industrial		24,121			21,384			2,737
Transportation		10,816			10,575			241
Other		9,168			(45	)		9,213
Total	$	82,452		$	67,599		$	14,853
Gas delivery volumes (MMcf)
Residential		1,505			1,537			(32	)
Commercial and industrial		1,390			1,520			(130	)
Transportation		10,706			12,779			(2,073	)
Total		13,601			15,836			(2,235	)
Other data
Depreciation and amortization	$	12,262		$	11,847		$	415
Capital expenditures	$	15,959		$	14,023		$	1,936
Operating loss	$	(5,891	)	$	(13,673	)	$	7,782

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2008 and 2007

	Year-to-date
(in thousands, except sales price data)	2008		2007		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	411,453	$	371,436	$	40,017
Oil		221,402		181,388		40,014
Natural gas liquids		55,915		49,076		6,839
Other		15,658		3,912		11,746
Total	$	704,428	$	605,812	$	98,616
Production volumes from continuing operations
Natural gas (MMcf)		50,081		47,732		2,349
Oil (MBbl)		3,005		2,898		107
Natural gas liquids (MMgal)		52.7		57.6		(4.9	)
Production volumes from continuing ops. (MMcfe)		75,639		73,350		2,289
Total production volumes (MMcfe)		75,639		73,349		2,290
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	8.22	$	7.78	$	0.44
Oil (barrel)	$	73.69	$	62.58	$	11.11
Natural gas liquids (gallon)	$	1.06	$	0.85	$	0.21
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	128,627	$	113,236	$	15,391
Production taxes		58,739		38,568		20,171
Total	$	187,366	$	151,804	$	35,562
Depreciation, depletion and amortization	$	97,240	$	83,083	$	14,157
General and administrative expense	$	37,755	$	39,582	$	(1,827	)
Capital expenditures	$	295,507	$	254,795	$	40,712
Exploration expenditures	$	4,215	$	1,671	$	2,544
Operating income	$	377,852	$	329,672	$	48,180
Natural Gas Distribution
Operating revenues
Residential	$	301,633	$	306,312	$	(4,679	)
Commercial and industrial		133,004		130,279		2,725
Transportation		37,825		36,509		1,316
Other		16,227		4,693		11,534
Total	$	488,689	$	477,793	$	10,896
Gas delivery volumes (MMcf)
Residential		16,247		16,303		(56	)
Commercial and industrial		8,349		8,373		(24	)
Transportation		36,267		38,396		(2,129	)
Total		60,863		63,072		(2,209	)
Other data
Depreciation and amortization	$	36,401	$	35,101	$	1,300
Capital expenditures	$	44,955	$	45,596	$	(641	)
Operating income	$	67,125	$	59,734	$	7,391

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending September 30, 2008 and 2007

	Trailing 12 Months
(in thousands, except sales price data)	2008		2007		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	539,423	$	477,923	$	61,500
Oil		291,511		226,701		64,810
Natural gas liquids		75,462		61,182		14,280
Other		17,812		60,335		(42,523	)
Total	$	924,208	$	826,141	$	98,067
Production volumes from continuing operations
Natural gas (MMcf)		66,649		63,500		3,149
Oil (MBbl)		3,986		3,807		179
Natural gas liquids (MMgal)		72.3		76.9		(4.6	)
Production volumes from continuing ops. (MMcfe)		100,895		97,321		3,574
Total production volumes (MMcfe)		100,895		97,320		3,575
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	8.09	$	7.53	$	0.56
Oil (barrel)	$	73.14	$	59.55	$	13.59
Natural gas liquids (gallon)	$	1.04	$	0.80	$	0.24
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	163,671	$	147,300	$	16,371
Production taxes		73,969		49,623		24,346
Total	$	237,640	$	196,923	$	40,717
Depreciation, depletion and amortization	$	128,398	$	109,333	$	19,065
General and administrative expense	$	52,985	$	43,640	$	9,345
Capital expenditures	$	420,191	$	357,867	$	62,324
Exploration expenditures	$	5,438	$	2,340	$	3,098
Operating income	$	499,747	$	473,905	$	25,842
Natural Gas Distribution
Operating revenues
Residential	$	383,613	$	409,743	$	(26,130	)
Commercial and industrial		167,629		172,465		(4,836	)
Transportation		50,571		49,348		1,223
Other		18,551		6,667		11,884
Total	$	620,364	$	638,223	$	(17,859	)
Gas delivery volumes (MMcf)
Residential		20,609		22,032		(1,423	)
Commercial and industrial		10,569		11,040		(471	)
Transportation		49,318		51,209		(1,891	)
Total		80,496		84,281		(3,785	)
Other data
Depreciation and amortization	$	48,436	$	46,465	$	1,971
Capital expenditures	$	58,221	$	62,806	$	(4,585	)
Operating income	$	80,133	$	76,491	$	3,642

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		314		—	328		267		—	296
Depreciation, depletion and amortization	161		184		—	184		218		—	218
Deferred income taxes, net	1		183		—	183		77		—	77
After-tax Cash Flows (Non-GAAP)	471		681		—	695		562		—	591
Changes in assets and liabilities and other adjustments	13		(97	)	—	(91	)	47		—	47
Net Cash Provided by Operating Activities (GAAP)	484		584		—	604		609		—	638
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		584		—	604		609		—	638
Changes in assets and liabilities and other adjustments	(13	)	97		—	91		(47	)	—	(47	)
After-tax Cash Flow (Non-GAAP)	471		681		—	695		562		—	591
Less: AGC cash flows from operations (GAAP) and other	(94	)	(134	)	—	(134	)	(90	)	—	(90	)
Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP)	377		547		—	561		472		—	501

(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.