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 22, 2009

1-7810

2-38960

Commission File Number

Energen Corporation

Alabama Gas Corporation

Registrant

Alabama	63-0757759
Alabama	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 22, 2009, with respect to first quarter and year-to-date 2009 results. The financial results will be discussed at the Company’s Annual Meeting of Shareholders on April 22, 2009.

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 22, 2009, 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 22, 2009
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 22, 2009	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 22, 2009
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 22, 2009	205.326.8421

ENERGEN EARNS $1.33 PER DILUTED SHARE IN FIRST QUARTER 2009

Hedge Position, Increased Production, Lower Per-unit LOE

Help Mitigate Impact of Significantly Lower Commodity Prices

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) today announced that its substantial hedge position together with increased production and decreased per-unit lease operating expense (LOE) helped offset the negative impact on first quarter results of significantly lower oil and gas prices. Net income in the first quarter of 2009 totaled $95.6 million, or $1.33 per diluted share, as compared with $116.7 million, or $1.62 per diluted share, in 2008.

Energen’s oil and gas exploration and production subsidiary, Energen Resources Corporation, entered the year with 65 percent of its first quarter 2009 production hedged at prices well above market. As a result, Energen was able to protect its earnings and cash flows from the full impact of the significant decline in the price of natural gas, oil and natural gas liquids (NGL). For the three months ended March 31, 2009, Energen Resources’ average realized sales price for its production of 26.7 billion cubic feet (Bcf) equivalent declined 19 percent year-over-year; without its hedges, Energen Resources’ averaged realized sales prices in the first quarter of 2009 would have declined approximately 50 percent.

Energen Resources’ first quarter 2009 production increased 9 percent over the same period last year. For the last several years, the company has accelerated development of its unproved reserves, primarily in the San Juan and Permian basins; the positive results of this acceleration are still being felt in 2009 even though the development pace has been slowed significantly due to current economic conditions and low commodity prices. Energen Resources estimates that its 2009 production will grow 4 percent to approximately 106.5 Bcf equivalent (Bcfe) in 2009 despite an estimated 50 percent reduction in identified capital spending relative to 2008.

Energen Resources’ total per-unit LOE in the first quarter declined approximately 18 percent year-over-year to $2.01 per thousand cubic feet (Mcf) equivalent (Mcfe). Base LOE and marketing and transportation expenses in the first quarter of 2009 fell approximately 2 percent largely due to decreased compression expense and lower field service costs, partially offset by increased ad valorem taxes. The biggest decline in per-unit LOE came from commodity price-driven production taxes, which fell 57 percent on a per-unit basis.

• PROBABLE, POSSIBLE RESERVES REVISED TO 1.85 TCFE

An updated estimate of Energen Resources’ probable and possible reserves places the Company’s unrisked, unproved reserves inventory at approximately 1.85 trillion cubic feet (Tcf) equivalent. Unrisked costs are estimated to be $1.24 per Mcf equivalent (Mcfe) of probable reserves and $1.17 per Mcfe of possible reserves. Applying the Company’s own risking to its total unproved inventory, the total finding and development cost per Mcfe is an estimated $1.80-$2.10 per Mcfe.

YE2008 Reserves (Bcfe): Location, Quantity & Estimated Finding Costs (Unrisked – per Mcfe)

Basin/Area	Proved	Probable			Possible
San Juan	871	391	$	0.75	832	$	1.04
Permian	434	227	$	1.91	341	$	1.31
Black Warrior	217	8	$	1.58	13	$	3.47
N. LA/E. TX/Other	62	22	$	2.75	15	$	3.07
Total	1,584	648	$	1.24	1,201	$	1.17

As with the Company’s year-end proved reserves, Energen Resources’ technical staff estimates the physical quantities of its unproved reserves at year-end; these, in turn, are reviewed by independent reservoir engineers. The same commodity prices used to calculate year-end 2008 proved reserves were applied in establishing the Company’s probable and possible reserves estimates.

The definitions of probable and possible reserves imply different probabilities of potential recovery in each classification; the quantities reported here are unrisked and 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.

2

Previously reported proved reserves were based on Security and Exchange Commission 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.

• 2009 EARNINGS GUIDANCE RANGE AFFIRMED

Energen said it is affirming its 2009 earnings guidance range of $3.10-$3.50 per diluted share. A key component of this guidance is Energen’s assumption that commodity prices applicable to its unhedged volumes will average $6 per Mcf for natural gas, $50 per barrel for oil, and 65 cents per gallon for natural gas liquids.

“While our substantial hedge position significantly helps protect our earnings and cash flows from the full impact of current low commodity prices,” McManus told shareholders at today’s Annual Meeting, “we are not immune to prices that average less than $6 and $50. Currently, natural gas strip prices for the remainder of the year are well below $6 per Mcf, while oil strip prices for the remainder of the year are just over $50 a barrel.” (NOTE: Key assumptions and the sensitivity of this guidance to changes in commodity prices can be found on page 7.)

• CASH FLOWS OUTLOOK

Energen Resources ended 2008 with cash available of $24 million and ended the first quarter of 2009 with cash available of $52 million. After funding identified capital spending and a small portion of Energen’s dividend, Energen Resources is expected to generate in 2009 free cash of $184-$214 million, resulting in total cash available of $208-$238 million. These substantial discretionary cash flows may be used to help fund Energen’s strategic investment opportunities, including oil and gas property acquisitions and potential shale development. In general, Alagasco utilizes all of its after-tax cash flows to fund its capital expenditures and the majority of Energen’s dividend.

• CHESAPEAKE AGREES TO FARM OUT ALABAMA SHALE ACREAGE TO ENERGEN

Effective April 1, 2009, Chesapeake Energy Corporation has agreed to farm out its half-interest in approximately 660,000 acres in Alabama shales to Energen Resources. Under terms of the agreement, Energen Resources has 18 months to drill one Conasauga shale well and one Chattanooga shale well; after each well is drilled, Chesapeake will farm out its 50 percent leasehold interest in each shale to Energen Resources.

3

Chesapeake will retain a net overriding royalty interest of approximately 1-2.5 percent convertible to a proportionately reduced working interest of 25 percent (net 12.5 percent) at 125 percent payout on a well-by-well basis. This will result in an after-payout working interest to Energen Resources of approximately 87.5 percent. Energen Resources plans to drill two wells within the terms of the agreement. The independent producer also plans to pursue a new partner as it seeks to unlock the potential of the Conasauga and Chattanooga shales in Alabama.

• CREDIT FACILITIES STRENGTHENED

Energen’s $200 million, bilateral line of credit with Regions has been renewed for another 364 days. This line of credit will be allocated $165 million to Energen and $35 million to Alagasco. Energen also has negotiated a $35 million line of credit with Citibank. Of that amount, $20 million is dedicated to Energen and $15 million to Alagasco. The new, 364-day, bilateral line of credit became effective last week. In total, Energen has access to $515 million of committed credit facilities.

FIRST QUARTER 2009 RESULTS

For the three months ended March 31, 2009, Energen’s net income totaled $95.6 million, or $1.33 per diluted share, and compares with first quarter 2008 net income of $116.7 million, or $1.62 per diluted share. Prior-period results included a $6.4 million, or 9 cents per diluted share, gain from the sale of a small Permian Basin property.

Energen Resources Corporation

Energen Resources’ net income for the first three months of 2009 totaled $47.1 million and compared with $72.5 million in the same period last year. Energen Resources’ substantial hedge position, 9 percent increase in production and 18 percent decrease in per-unit LOE helped offset the negative impact of significantly lower oil and gas prices.

Average Realized Sales Prices, First Quarter Comparison

Commodity	1Q09		1Q08		Change
Natural Gas (per Mcf)	$	6.55	$	7.97	(18	)%
Oil (per barrel)	$	52.97	$	67.90	(22	)%
NGL (per gallon)	$	0.83	$	1.04	(20	)%

4

Production, First Quarter Comparison

Commodity	1Q09	1Q08	Change
Natural Gas (Bcf)	17.7	16.4	8	%
Oil (MBbl)	1,090	944	15	%
NGL (MMgal)	17.5	16.7	5	%
Total (Bcfe)	26.7	24.5	9	%

Production By Area (Bcfe), First Quarter Comparison

Area	1Q09	1Q08	Change
San Juan Basin	13.4	12.0	12	%
Permian Basin	7.8	6.8	15	%
Black Warrior Basin	3.5	3.5	NC
N. LA/E. TX/Other	2.0	2.2	(9	)%

Total per-unit LOE in the first quarter of 2009 declined approximately 18 percent from the prior-year first quarter to $2.01 per Mcfe. Base LOE and marketing and transportation expenses fell approximately 2 percent largely due to decreased compression expense and lower field service costs, partially offset by higher ad valorem taxes. The biggest decline in per-unit LOE came from commodity price-driven production taxes, which fell 57 percent on a per-unit basis.

Depreciation, depletion and amortization expense (DD&A) per unit in the first quarter of 2009 increased 27 percent over the same period last year to $1.54 per Mcfe largely due to higher development costs and lower year-end reserve prices. Per-unit net G&A expense in the first quarter of 2009 declined 13 percent over the same period in 2008 to 46 cents per Mcfe.

Alabama Gas Corporation

Energen’s natural gas utility generated net income of $47.5 million in the first quarter of 2009 as compared with $43.7 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 usage by the utility’s large commercial and industrial customers largely was offset by increased core market revenues.

5

TRAILING 12-MONTHS RESULTS

For the 12 months ended March 31, 2008, Energen’s net income totaled $300.8 million, or $4.17 per diluted share, and compared with $322.0 million, or $4.47 per diluted share, for the same period a year ago. Prior-period results included a $6.4 million, or 9 cents per diluted share, gain from the sale of a small Permian Basin property.

Energen Resources Corporation

Energen Resources’ net income for the trailing 12 months totaled $257.3 million as compared with $282.6 million in the same period a year ago.

Average Realized Sales Prices, T12M Comparison

Commodity	2009		2008		Change
Natural Gas (per Mcf)	$	7.57	$	7.78	(3	)%
Oil (per barrel)	$	67.27	$	67.11	—
NGL (per gallon)	$	0.91	$	0.95	(4	)%

Production, T12M Comparison

Commodity	2009	2008	Change
Natural Gas (Bcf)	68.8	65.2	6	%
Oil (MBbl)	4,260	3,897	9	%
NGL (MMgal)	71.5	75.1	(5	)%
Total (Bcfe)	104.6	99.3	5	%

Per-unit LOE totaled $2.21 per Mcfe in the 12 months ending March 31, 2009, up 2.3 percent from $2.16 per Mcfe in the same period a year ago; this increase largely was due to increased workover expense, increased ad valorem taxes, and increased marketing & transportation expenses, partially offset by a decline in per-unit production taxes.

DD&A expense per unit in the 12 months ended March 31, 2009, increased 24 percent over the same period last year to $1.41 per Mcfe, largely due to higher development costs and a price-driven, downward revision of year-end 2008 proved reserves.

6

Per-unit net G&A expense in the trailing 12 months period declined 19 percent over the same period in 2008 to 43 cents per Mcfe largely due to lower benefits related to the company’s performance-based compensation plan.

Alabama Gas Corporation

Alagasco generated net income in the 12 months ended March 31, 2009, of $44.0 million as compared with $40.2 million in the same period a year ago.

2009 EARNINGS GUIDANCE RANGE AFFIRMED

Energen today affirmed its 2009 earnings guidance range at $3.10 - $3.50 per diluted share. Key assumptions included in the guidance include:

• Results of the first quarter;

• A hedge position at March 31, 2009, that covers approximately 66 percent of estimated production for the remaining nine months of the year;

• Assumed prices for unhedged natural gas, oil and NGL production of $6 per Mcf, $50 per barrel and 65 cents per gallon, respectively;

• Annual production of approximately 106.5 Bcfe (approximately 80 Bcfe for the remainder of 2009);

• Capital spending of $305 million, including approximately $235 million by Energen Resources and $70 million by Alagasco;

• An average DD&A rate at ERC of $1.58 per Mcfe;

• LOE at ERC, including production taxes, of $2.17 per Mcfe;

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

• Alagasco’s earning below its allowed range of return on average equity of approximately $325 million as a result of economy-related declines in large commercial and industrial usage.

• Average diluted shares outstanding of 71.9 million.

7

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 $42 million of capitalized unproved leasehold related to Alabama shales.

2009 Hedge Position Summary

Energen Resources’ hedge position as of March 31, 2009, for the remaining nine months of 2009 is as follows:

Commodity	Hedge Volumes	2009e Production	Hedge %		NYMEXe Price
Natural Gas	35.6 Bcf	51.8 Bcf	69	%	$	8.64/Mcf
Oil	2.0 MMBbl	3.5 MMBbl	58	%	$	72.07/barrel
NGL	32.5 MMgal	49.4 MMgal	66	%	$	1.15/gallon

NOTE: Known basis differentials for April included

Energen Resources’ natural gas and oil hedge positions by hedge type, as of March 31, 2009, for the remainder of the year are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	23.3	$	1.30 per Mcf	$	8.79 per Mcf
Permian Basin	0.9	$	1.15 per Mcf	$	8.79 per Mcf
NYMEX	11.4		—	$	8.33 per Mcf
Oil Hedges	Volumes (MBbl)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	1,602	$	4.77 per barrel	$	68.96 per barrel
NYMEX	423		—	$	83.89 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.

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.

8

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources’ hedge position at March 31, 2009, for the remainder of the year and using the price assumptions applicable to the Company’s unhedged production, changes in commodity prices for the remainder of 2009 are estimated to have the following impact on Energen’s 2009 earnings:

• Every 10-cent change in the average NYMEX price of gas from $6.00 represents an estimated net income impact of approximately $605,000 (0.8 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $50.00 per barrel represents an estimated net income impact of approximately $700,000 (1.0 cent per diluted share).

• Every 1-cent change in the average price of liquids from $0.65 per gallon represents an estimated net income impact of approximately $75,000 (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.

2010 HEDGE POSITION

As of March 31, 2009, Energen Resources also has hedged approximately 42.6 Bcf of its 2010 natural gas production at an average NYMEX-equivalent price of $9.12 per Mcf. Energen Resources’ 2010 oil hedges total 2,160,000 barrels at a NYMEX-equivalent price of $96.85 per barrel.

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 3.4 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.

9

EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending March 31, 2009 and 2008

	1st Quarter
(in thousands, except per share data)	2009			2008			Change
Operating Revenues
Oil and gas operations	$	189,120		$	224,895		$	(35,775	)
Natural gas distribution		294,986			296,751			(1,765	)
Total operating revenues		484,106			521,646			(37,540	)
Operating Expenses
Cost of gas		152,069			161,389			(9,320	)
Operations & maintenance		88,387			86,552			1,835
Depreciation, depletion and amortization		54,578			42,416			12,162
Taxes, other than income taxes		26,460			34,905			(8,445	)
Accretion expense		1,136			1,045			91
Total operating expenses		322,630			326,307			(3,677	)
Operating Income		161,476			195,339			(33,863	)
Other Income (Expense)
Interest expense		(9,781	)		(11,122	)		1,341
Other income		401			244			157
Other expense		(1,886	)		(596	)		(1,290	)
Total other expense		(11,266	)		(11,474	)		208
Income Before Income Taxes		150,210			183,865			(33,655	)
Income tax expense		54,628			67,177			(12,549	)
Net Income	$	95,582		$	116,688		$	(21,106	)
Diluted Earnings Per Average Common Share	$	1.33		$	1.62		$	(0.29	)
Basic Earnings Per Average Common Share	$	1.33		$	1.63		$	(0.30	)
Diluted Avg. Common Shares Outstanding		71,897			72,125			(228	)
Basic Avg. Common Shares Outstanding		71,640			71,637			3
Dividends Per Common Share	$	0.125		$	0.12		$	0.005

10

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending March 31, 2009 and 2008

	Trailing 12 Months
(in thousands, except per share data)	2009			2008			Change
Operating Revenues
Oil and gas operations	$	878,357		$	856,454		$	21,903
Natural gas distribution		653,013			607,591			45,422
Total operating revenues		1,531,370			1,464,045			67,325
Operating Expenses
Cost of gas		342,454			311,680			30,774
Operations & maintenance		356,595			337,952			18,643
Depreciation, depletion and amortization		200,575			165,773			34,802
Taxes, other than income taxes		99,160			100,424			(1,264	)
Accretion expense		4,381			4,043			338
Total operating expenses		1,003,165			919,872			83,293
Operating Income		528,205			544,173			(15,968	)
Other Income (Expense)
Interest expense		(40,640	)		(46,001	)		5,361
Other income		2,042			2,351			(309	)
Other expense		(8,304	)		(1,360	)		(6,944	)
Total other expense		(46,902	)		(45,010	)		(1,892	)
Income from Continuing Operations Before Income Taxes		481,303			499,163			(17,860	)
Income tax expense		180,494			177,144			3,350
Income from Continuing Operations		300,809			322,019			(21,210	)
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	$	300,809		$	322,039		$	(21,230	)
Diluted Earnings Per Average Common Share
Continuing operations	$	4.17		$	4.47		$	(0.30	)
Discontinued operations		—			—			—
Net Income	$	4.17		$	4.47		$	(0.30	)
Basic Earnings Per Average Common Share
Continuing operations	$	4.20		$	4.49		$	(0.29	)
Discontinued operations		—			—			—
Net Income	$	4.20		$	4.49		$	(0.29	)
Diluted Avg. Common Shares Outstanding		72,146			72,088			58
Basic Avg. Common Shares Outstanding		71,639			71,650			(11	)
Dividends Per Common Share	$	0.485		$	0.465		$	0.02

11

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2009 and 2008

	1st Quarter
(in thousands, except sales price data)	2009		2008		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	115,635	$	130,954	$	(15,319	)
Oil		57,742		64,099		(6,357	)
Natural gas liquids		14,522		17,446		(2,924	)
Other		1,221		12,396		(11,175	)
Total	$	189,120	$	224,895	$	(35,775	)
Production volumes
Natural gas (MMcf)		17,650		16,427		1,223
Oil (MBbl)		1,090		944		146
Natural gas liquids (MMgal)		17.5		16.7		0.80
Total production volumes (MMcfe)		26,692		24,483		2,209
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.55	$	7.97	$	(1.42	)
Oil (barrel)	$	52.97	$	67.90	$	(14.93	)
Natural gas liquids (gallon)	$	0.83	$	1.04	$	(0.21	)
Other data
Lease operating expense (LOE)
LOE and other	$	45,872	$	43,135	$	2,737
Production taxes		7,841		16,576		(8,735	)
Total	$	53,713	$	59,711	$	(5,998	)
Depreciation, depletion and amortization	$	41,963	$	30,396	$	11,567
General and administrative expense	$	11,012	$	11,899	$	(887	)
Capital expenditures	$	74,615	$	74,397	$	218
Exploration expenditures	$	150	$	349	$	(199	)
Operating income	$	81,146	$	121,495	$	(40,349	)
Natural Gas Distribution
Operating revenues
Residential	$	204,528	$	199,575	$	4,953
Commercial and industrial		75,376		77,505		(2,129	)
Transportation		15,016		15,503		(487	)
Other		66		4,168		(4,102	)
Total	$	294,986	$	296,751	$	(1,765	)
Gas delivery volumes (MMcf)
Residential		11,191		11,531		(340	)
Commercial and industrial		4,568		4,976		(408	)
Transportation		10,969		14,297		(3,328	)
Total		26,728		30,804		(4,076	)
Other data
Depreciation and amortization	$	12,615	$	12,020	$	595
Capital expenditures	$	16,110	$	13,070	$	3,040
Operating income	$	80,839	$	74,488	$	6,351

12

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending March 31, 2009 and 2008

	Trailing 12 Months
(in thousands, except sales price data)	2009		2008		Change
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	520,964	$	507,135	$	13,829
Oil		286,551		261,512		25,039
Natural gas liquids		65,292		71,027		(5,735	)
Other		5,550		16,780		(11,230	)
Total	$	878,357	$	856,454	$	21,903
Production volumes from continuing operations
Natural gas (MMcf)		68,796		65,180		3,616
Oil (MBbl)		4,260		3,897		363
Natural gas liquids (MMgal)		71.5		75.1		(3.6	)
Production volumes from continuing ops. (MMcfe)		104,563		99,283		5,280
Total production volumes (MMcfe)		104,563		99,283		5,280
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.57	$	7.78	$	(0.21	)
Oil (barrel)	$	67.27	$	67.11	$	0.16
Natural gas liquids (gallon)	$	0.91	$	0.95	$	(0.04	)
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	176,864	$	156,006	$	20,858
Production taxes		53,817		58,363		(4,546	)
Total	$	230,681	$	214,369	$	16,312
Depreciation, depletion and amortization	$	151,106	$	118,164	$	32,942
General and administrative expense	$	40,853	$	48,971	$	(8,118	)
Capital expenditures	$	449,789	$	400,481	$	49,308
Exploration expenditures	$	9,097	$	3,146	$	5,951
Operating income	$	442,239	$	467,761	$	(25,522	)
Natural Gas Distribution
Operating revenues
Residential	$	413,233	$	384,068	$	29,165
Commercial and industrial		175,590		164,686		10,904
Transportation		50,629		50,191		438
Other		13,561		8,646		4,915
Total	$	653,013	$	607,591	$	45,422
Gas delivery volumes (MMcf)
Residential		21,292		20,617		675
Commercial and industrial		10,526		10,697		(171	)
Transportation		43,461		52,324		(8,863	)
Total		75,279		83,638		(8,359	)
Other data
Depreciation and amortization	$	49,469	$	47,609	$	1,860
Capital expenditures	$	66,360	$	56,965	$	9,395
Operating income	$	88,307	$	78,793	$	9,514

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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
	2008 Actual		2009 Estimate (e)
Net Income (GAAP)	322		222	—	252
Depreciation, depletion and amortization	188		223	—	223
Deferred income taxes, net	188		75	—	75
After-tax Cash Flows (Non-GAAP)	698		520	—	550
Changes in assets and liabilities and other adjustments	(130	)	58	—	58
Net Cash Provided by Operating Activities (GAAP)	568		578	—	608

Reconciliation To GAAP Information

($ in millions)

	Years Ended 12/31
	2008 Actual		2009 Estimate (e)
Net Cash Provided by Operating Activities (GAAP)	568		578		—	608
Changes in assets and liabilities and other adjustments	130		(58	)	—	(58	)
After-tax Cash Flow (Non-GAAP)	698		520		—	550
Less: AGC cash flows from operations and other	(133	)	(95	)	—	(95	)
Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP)	565		425		—	455

(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.

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