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 27, 2011

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

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

(205) 326-2700

(Registrant’s telephone number including area code)

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

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

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

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

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

ITEM 2.02 Results of Operations and Financial Condition

On April 27, 2011, Energen Corporation and Alabama Gas Corporation issued a press release announcing the first quarter financial results. The financial results will be discussed at the Company’s Annual Meeting of Shareholders on April 27, 2011. 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 reconciliations 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. 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 27, 2011
99.2	Supplemental Financial Information
99.3	Non-GAAP Financial Measures Reconciliation

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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 27, 2011	By	/s/ Charles W. Porter, Jr.
		Charles W. Porter, Jr. Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama Gas Corporation

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EXHIBIT INDEX

EXHIBIT NUMBER	DESCRIPTION
99.1	* Press Release dated April 27, 2011
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.

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EX-99.1

Exhibit 99.1

For Release: 6:30 a.m. CDT	Contacts:  Julie S. Ryland
Wednesday, April 27, 2011	205.326.8421

Energen Announces First Quarter Results

Probable, Possible Inventory Increases to 388 MMBOE

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) reported today that earnings in the first quarter of 2011 totaled $94.3 million, or $1.30 per diluted share. As expected, earnings declined from $116.7 million, or $1.62 per diluted share, in the same period last year primarily due to lower realized natural gas prices. The energy company also announced that the estimated probable and possible reserves of its exploration and production unit, Energen Resources Corporation, increased 24 percent to a record 388 million barrels of oil equivalents (MMBOE), or 2.3 trillion cubic feet equivalent (Tcfe).

Ø 2010 PROBABLE, POSSIBLE RESERVES INCREASE 24%

Energen Resources’ estimate of probable and possible reserves at year-end 2010 is a conservative 388 MMBOE. This number does not include any 3^rd Bone Spring potential on acreage the company purchased subsequent to its acquisition of SandRidge Energy’s Bone Spring acreage in late 2010; nor does it include any Avalon shale potential. Energen’s management said it hopes to update its probable and possible reserves for this additional potential in the next few months.

When combined with proved reserves at year end of 303 MMBOE, Energen Resources has total proved, probable, and possible reserves of 691 MMBOE, or 4.1 Tcfe.

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 2010 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.

Reserves at year end, 2010 vs 2009 (MMBOE)

Basin/Area	Proved				Probable				Possible
	2010		2009		2010		2009		2010		2009
San Juan		136		132		85		71		155		119
Permian*		133		92		83		61		58		60
Black Warrior		26		26		1		1		2		1
NLa/ETx/Other		8		8		3		1		3		1
Total		303		258		171		134		217		180

* Reserves do not reflect 3^rd Bone Spring potential on acreage acquired after the purchase of SandRidge Energy’s Bone Spring interests nor is the Avalon shale potential included.

Proved reserves in 2010 were priced at $4.38 per thousand cubic feet (Mcf) of gas (vs. $3.87 per Mcf in the prior year), $79.43 per barrel of oil (vs. $61.18 per barrel in the prior year) and 98 cents per gallon of natural gas liquids (vs. 71 cents per gallon in the prior year).

Ø CAPITAL SPENDING INCREASED

Energen Resources estimates that capital spending in 2011 will be $783 million, or $119 million more than originally estimated.

• Almost half of the increase, $48 million, is related to the unbudgeted acquisition of unproved leasehold.

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• Another $45 million is associated with the drilling of five additional 3^rd Bone Spring wells, bringing the total number of wells to be drilled this year to 22; included in the 22 wells are four exploratory 3^rd Bone Spring wells that were drilled vertically and subsequently converted to horizontal wells at a cost of approximately $30 million.

• Approximately $20 million is associated with increased Wolfberry drilling costs largely due to an increased number of frac stages to date, higher cement costs, and higher oil prices that impacted certain price-based service contracts.

“We are pleased to be drilling our 3^rd Bone Spring wells at a faster pace and believe we can add six wells to our drilling schedule utilizing existing service providers,” said Energen Chairman and Chief Executive Officer James McManus. “While these additional wells will not add materially to our current-year production, they should contribute to make 2012 production even stronger.”

Ø ENERGEN MAINTAINS EARNINGS, CASH FLOW GUIDANCE RANGES

Energen affirmed its 2011 guidance range for earnings of $3.35-$3.75 per diluted share and for after-tax cash flow of $669-$696 million. The company also affirmed its production guidance for the year of 20.5 MMBOE. Embedded in the guidance are assumed commodity prices applicable to the company’s unhedged gas, oil, and natural gas liquids (NGL) production for the remainder of the year of $4.25 per Mcf, $80 per barrel, and $0.83 per gallon, respectively.

Also incorporated into the guidance are year-to-date results, known April commodity prices and basis differentials, higher general and administration (G&A) expense, and lower interest expense.

Key assumptions in Energen’s 2011 guidance include:

• Hedge position covering approximately 69 percent of the company’s 2011 estimated production;

• A 9 percent increase in production to 20.5 MMBOE (123 Bcfe);

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• An average depreciation, depletion, and amortization (DD&A) rate at Energen Resources of $11.40 per barrel of oil equivalent (BOE);

• Lease operating expense (LOE), including production taxes, at Energen Resources of $12.33 per BOE (base LOE and marketing and transportation costs of $9.88 per BOE);

• General & administrative (G&A) expense at Energen Resources of $3.34 per BOE;

• Alabama Gas Corporation (Alagasco), the company’s utility subsidiary, earning on estimated average equity of $346 million; and

• Average diluted shares outstanding of 72.4 million.

Energen Resources’ 2011 hedge position for the remainder of the year is as follows:

Commodity	Hedge Volumes		Estimated Production		Hedge %	NYMEXe Price
Natural Gas		40.0 Bcf		55.2 Bcf	72%		$6.16/Mcf
Oil		3.2 MMBO		5.0 MMBO	64%		$78.01/barrel
NGLs		31.9 MMgal		66.8 MMgal	48%		$0.90/gallon

NOTE: INCLUDES KNOWN BASIS DIFFERENTIALS

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Energen Resources’ natural gas and oil hedge positions by type for the remainder of 2011 are as follows:

Natural Gas Hedges	Volumes (Bcf)	Assumed Differential		NYMEXe Price
San Juan Basin	29.2		$0.40 per Mcf	$6.04 per Mcf
NYMEX	10.7		—	$6.47 per Mcf
Oil Hedges	Volumes (MBO)	Assumed Differential		NYMEXe Price
Sour Oil (WTS)	1,557		$2.50 per barrel	$72.88 per barrel
NYMEX	1,692		—	$82.74 per barrel

NOTE: INCLUDES KNOWN BASIS DIFFERENTIALS

Sensitivity of 2011 Earnings, Cash Flows to Changes in Commodity Prices

Given Energen Resources’ current hedge position for 2011, changes in commodity prices for the remainder of the year are estimated to have the following impact on Energen’s 2011 earnings and cash flows:

• Every 10-cent change in the average NYMEX price of gas from $4.25 represents an estimated net income impact of approximately $575,000 (0.8 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $80 per barrel represents an estimated net income impact of approximately $945,000 (1.3 cents per diluted share).

• Every 1-cent change in the average price of liquids from $0.83 per gallon represents an estimated net income impact of approximately $180,000 (0.3 cents per diluted share).

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

At current market prices for the remainder of the year (i.e., $4.60/Mcf of gas, $112/barrel of oil, and $1.11/gallon for NGL), Energen’s earnings in 2011 could exceed guidance by more than 50 cents per diluted share.

FIRST QUARTER FINANCIAL RESULTS

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For the 3 months ended March 31, 2011, Energen’s net income totaled $94.3 million, or $1.30 per diluted share. This compares with net income in the first quarter of 2010 of $116.7 million, or $1.62 per diluted share. Energen Resources’ net income in the first quarter of 2011 totaled $49.7 million as compared with $71.7 million in the same period last year, and Alagasco’s net income of $44.2 million in the first quarter of 2011 was essentially unchanged from the same period a year ago.

Energen Resources Corporation

Energen Resources’ year-over-year first quarter decrease in net income largely reflected the impact of lower realized natural gas sales prices partially offset by increased oil and NGL production.

Average Realized Sales Prices

Commodity	1Q11		1Q10		Change
Natural Gas (per Mcf)	$	5.52	$	7.20		(23	)%
Oil (per barrel)	$	75.70	$	79.23		(5	)%
NGL (per gallon)	$	0.89	$	0.88		1	%

Production

Commodity	1Q11		1Q10		Change
Natural Gas (Bcf)		17.3		17.4		—
Oil (MBO)		1,364		1,186		15	%
NGL (MMgal)		19.7		18.8		5	%
Total (Bcfe)		28.3		27.2		4	%
Total (MBOE)		4,723		4,535		4	%

Production by Area

Area	1Q11		1Q10		Change
San Juan Basin (Bcfe)		14.1		13.6		3	%
Permian Basin (MBOE)		1,640		1,435		14	%

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Black Warrior Basin (Bcfe)	3.1	3.2	(4	)%
N. LA/E. TX/Other (Bcfe)	1.4	1.8	(23	)%

Permian Basin production increased in the first quarter primarily due to the company’s recent Wolfberry acquisitions; however, severe winter weather and wildfires in the first quarter kept Permian production below internal estimates. San Juan Basin production increased slightly due to new well development and better-than-expected performance from certain Fruitland Coal wells. Decreased production in other areas was small in terms of volumes and reflected the company’s capital investment focus in its Permian Basin oil properties and normal property declines.

Total LOE per unit in the first quarter of 2011 increased approximately 6 percent from the first quarter in 2010 to $12.53 per BOE. Base LOE and marketing and transportation expenses increased about 3 percent while commodity price-drive production taxes rose 19 percent on a per-unit basis.

DD&A expense per unit in the first quarter of 2011 increased 1 percent over the prior year first quarter to $10.67 per BOE.

Per-unit net G&A expense increased 19 percent to $4 per BOE largely due to benefits-related expenses.

Alabama Gas Corporation

Energen’s natural gas utility generated net income of $44.2 million in the first three months of 2011, essentially unchanged from the prior year. The utility remains on track to earn within its allowed range of return on equity at the end of the rate year.

TRAILING 12 MONTHS’ FINANCIAL RESULTS

For the 12 months ended March 31, 2011, Energen’s net income totaled $268.4 million, or $3.73 per diluted share, and compared with net income of $277.5 million, or $3.86 per diluted share, in the same period last year.

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Energen Resources Corporation

Energen Resources’ net income in the trailing 12 months totaled $223.3 million, down from $236.7 million in the same period last year. Current-year results included $24.8 million, or 34 cents per diluted share, of non-cash, after-tax write-offs for capitalized unproved leasehold, while prior-period results included a one-time gain of $3.1 million, or 4 cents per diluted share, generated by the sale of a small, non-operated Permian Basin property.

Absent the non-cash write-off, Energen Resources’ current-year earnings increased largely due to higher realized sales prices for its oil production and increased oil and NGL production partially offset by increased DD&A expense, higher exploration expense, a rise in commodity price-driven production taxes, and increased operating expenses.

Average Realized Sales Prices, Trailing 12 Months Comparison

Commodity	12-M Ended 3/31/11		12-M Ended 3/31/10		Change
Natural Gas (per Mcf)	$	6.41	$	6.52		(2	)%
Oil (per barrel)	$	77.97	$	67.07		16	%
NGL (per gallon)	$	0.83	$	0.91		(9	)%

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Production, Trailing 12 Months Comparison

Commodity	12-M Ended 3/31/11		12-M Ended 3/31/10		Change
Natural Gas (Bcf)		70.8		72.1		(2	)%
Oil (MBbl)		5,309		4,786		11	%
NGL (MMgal)		79.9		76.5		4	%
Total (Bcfe)		114.1		111.7		2	%
Total (MBOE)		19,020		18,623		2	%

Production by Area, Trailing 12 Months Comparison

Area	12-M Ended 3/31/11		12-M Ended 3/31/10		Change
San Juan Basin (Bcfe)		56.7		55.1		3	%
Permian Basin (MBOE)		6,366		5,766		10	%
Black Warrior Basin (Bcfe)		13.0		14.0		(7	)%
N. LA/E. TX/Other (Bcfe)		6.2		8.0		(23	)%

Permian Basin production increased in current-year trailing 12 months largely due to the June 2009 acquisition of Range Resources Corporation’s interests in the Fuhrman-Mascho field and new waterflood development in the North Westbrook unit. San Juan Basin production increased largely due to new well development and better-than-expected performance from certain Fruitland Coal wells. Decreased production in the Black Warrior Basin and other areas, while large on a percentage basis, is relatively slight in terms of volumes and reflects the company’s capital investment focus in its Permian Basin oil properties and normal property declines.

Total per-unit LOE in the 12 months ended March 31, 2011, increased approximately 4 percent from the same period a year ago to $12.11 per BOE. Base LOE and marketing and transportation expenses were essentially unchanged, while commodity price-driven production taxes increased 17 percent on a per-unit basis.

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DD&A expense per unit in the 12 months ended March 31, 2011, increased 6 percent over the same period last year to $10.66 per BOE largely due to higher development costs, the acquisition of oil-rich properties, and a price-driven, downward revision of year-end reserves in 2009.

Per-unit net G&A expense in the 12 months ended March 31, 2011, decreased 2 percent over the same period a year ago to $2.96 per barrel.

Alabama Gas Corporation

Alagasco’s net income for the 12 months ended March 31, 2011, totaled $46.8 million as compared with $42.2 million in the same period a year ago. This increase primarily reflected the utility’s ability to earn on a higher level of equity partially offset by the timing of rate recovery and revenue reductions under Alagasco’s rate-setting mechanism.

STRONG HEDGE POSITIONS IN 2012-2014

Energen continues to utilize hedging of its flowing production in future years to help protect projected earnings and cash flows from commodity price volatility. Natural gas liquids hedges recently were added in 2013. The company’s hedge positions in 2012-2014 are provided in the tables below.

2012

Energen Resources’ hedge position for 2012 is as follows:

Commodity	Hedge Volumes		NYMEXe Price
Natural Gas		40.5 Bcf	$	4.99/Mcf
Oil		3.7 MMBO	$	82.56/barrel
NGL		39.9 MMgal	$	0.86/gallon

Energen Resources’ natural gas and oil hedge positions by hedge type for 2012 are as follows:

Natural Gas Hedges	Volumes (Bcf)		Assumed Differential		NYMEXe Price
San Juan Basin		29.5	$	0.35 per Mcf	$	4.95 per Mcf

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NYMEX		11.0		—	$	5.07 per Mcf
Oil Hedges	Volumes (MBO)		Assumed Differential		NYMEXe Price
Sour Oil (WTS)		672	$	4.00 per barrel	$	85.40 per barrel
NYMEX		3,072		—	$	81.94 per barrel

2013

Energen Resources’ hedge position for 2013 is as follows:

Commodity	Hedge Volumes		NYMEXe Price
Natural Gas		33.9 Bcf	$	5.25/Mcf
Oil (NYMEX)		3.2 MMBO	$	85.32/barrel
NGL		35.2 MMgal	$	1.02/gallon

Energen Resources’ natural gas hedge position by hedge type for 2013 is as follows:

Natural Gas Hedges	Volumes (Bcf)		Assumed Differential		NYMEXe Price
San Juan Basin		25.1	$	0.35 per Mcf	$	5.23 per Mcf
NYMEX		8.8		—	$	5.30 per Mcf

2014

Energen Resources’ hedge position for 2014 is as follows:

Commodity	Hedge Volumes		NYMEXe Price
Oil (NYMEX)		2.7 MMBO	$	87.44/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.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its dominant business is the acquisition, development, and exploration of oil, natural gas, and natural gas liquids. Through Energen Resources Corporation, the company has more than 690 million barrels of oil-equivalent proved,

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probable, and possible reserves. These all-domestic reserves are located mainly in the San Juan and Permian basins. Energen subsidiary Alabama Gas Corporation is the largest distributor of natural gas in Alabama and has a business heritage in the state spanning more than 150 years. For more information, go to 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.

Financial, operating, and support data pertaining to all reporting periods included in this release are unaudited

and subject to revision.

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EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending March 31, 2011 and 2010

	1st Quarter
(in thousands, except per share data)	2011			2010			Change
Operating Revenues
Oil and gas operations	$	216,792		$	237,614		$	(20,822	)
Natural gas distribution		269,572			337,300			(67,728	)
Total operating revenues		486,364			574,914			(88,550	)
Operating Expenses
Cost of gas		131,749			197,156			(65,407	)
Operations and maintenance		103,782			91,702			12,080
Depreciation, depletion and amortization		61,128			61,735			(607	)
Taxes, other than income taxes		28,175			30,637			(2,462	)
Accretion expense		1,649			1,486			163
Total operating expenses		326,483			382,716			(56,233	)
Operating Income		159,881			192,198			(32,317	)
Other Income (Expense)
Interest expense		(9,404	)		(9,960	)		556
Other income		1,230			977			253
Other expense		(163	)		(163	)		—
Total other expense		(8,337	)		(9,146	)		809
Income Before Income Taxes		151,544			183,052			(31,508	)
Income tax expense		57,276			66,342			(9,066	)
Net Income	$	94,268		$	116,710		$	(22,442	)
Diluted Earnings Per Average Common Share	$	1.30		$	1.62		$	(0.32	)
Basic Earnings Per Average Common Share	$	1.31		$	1.63		$	(0.32	)
Diluted Avg. Common Shares Outstanding		72,240			72,039			201
Basic Avg. Common Shares Outstanding		72,001			71,810			191
Dividends Per Common Share	$	0.135		$	0.13		$	0.005

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending March 31, 2011 and 2010

	Trailing 12 Months
(in thousands, except per share data)	2011			2010			Change
Operating Revenues
Oil and gas operations	$	937,940		$	871,040		$	66,900
Natural gas distribution		552,044			660,188			(108,144	)
Total operating revenues		1,489,984			1,531,228			(41,244	)
Operating Expenses
Cost of gas		251,581			351,141			(99,560	)
Operations and maintenance		441,245			383,940			57,305
Depreciation, depletion and amortization		247,258			242,241			5,017
Taxes, other than income taxes		82,499			82,506			(7	)
Accretion expense		6,341			5,285			1,056
Total operating expenses		1,028,924			1,065,113			(36,189	)
Operating Income		461,060			466,115			(5,055	)
Other Income (Expense)
Interest expense		(38,664	)		(39,556	)		892
Other income		4,536			7,242			(2,706	)
Other expense		(643	)		(663	)		20
Total other expense		(34,771	)		(32,977	)		(1,794	)
Income Before Income Taxes		426,289			433,138			(6,849	)
Income tax expense		157,924			155,685			2,239
Net Income	$	268,365		$	277,453		$	(9,088	)
Diluted Earnings Per Average Common Share	$	3.73		$	3.86		$	(0.13	)
Basic Earnings Per Average Common Share	$	3.73		$	3.87		$	(0.14	)
Diluted Avg. Common Shares Outstanding		72,026			71,869			157
Basic Avg. Common Shares Outstanding		71,902			71,728			174
Dividends Per Common Share	$	0.525		$	0.505		$	0.02

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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending March 31, 2011 and 2010

	1st Quarter
(in thousands, except sales price data)	2011			2010			Change
Oil and Gas Operations
Operating revenues
Natural gas	$	95,599		$	125,427		$	(29,828	)
Oil		103,256			93,975			9,281
Natural gas liquids		17,533			16,536			997
Other		404			1,676			(1,272	)
Total	$	216,792		$	237,614		$	(20,822	)
Production volumes
Natural gas (MMcf)		17,334			17,412			(78	)
Oil (MBbl)		1,364			1,186			178
Natural gas liquids (MMgal)		19.7			18.8			0.9
Total production volumes (MMcfe)		28,338			27,209			1,129
Total production volumes (MBOE)		4,723			4,535			188
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	5.52		$	7.20		$	(1.68	)
Oil (barrel)	$	75.70		$	79.23		$	(3.53	)
Natural gas liquids (gallon)	$	0.89		$	0.88		$	0.01
Other data
Lease operating expense (LOE)
LOE and other	$	46,945		$	43,839		$	3,106
Production taxes		12,283			9,941			2,342
Total	$	59,228		$	53,780		$	5,448
Depreciation, depletion and amortization	$	51,348		$	48,696		$	2,652
General and administrative expense	$	18,894		$	15,183		$	3,711
Capital expenditures	$	140,323		$	38,563		$	101,760
Exploration expenditures	$	614		$	1,184		$	(570	)
Operating income	$	85,059		$	117,285		$	(32,226	)
Natural Gas Distribution
Operating revenues
Residential	$	187,674		$	241,406		$	(53,732	)
Commercial and industrial		66,906			84,290			(17,384	)
Transportation		16,493			17,833			(1,340	)
Other		(1,501	)		(6,229	)		4,728
Total	$	269,572		$	337,300		$	(67,728	)
Gas delivery volumes (MMcf)
Residential		12,591			14,962			(2,371	)
Commercial and industrial		5,000			5,727			(727	)
Transportation		12,970			12,682			288
Total		30,561			33,371			(2,810	)
Other data
Depreciation and amortization	$	9,780		$	13,039		$	(3,259	)
Capital expenditures	$	13,540		$	16,360		$	(2,820	)
Operating income	$	75,059		$	75,255		$	(196	)

3

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending March 31, 2011 and 2010

	Trailing 12 Months
(in thousands, except sales price data)	2011			2010			Change
Oil and Gas Operations
Operating revenues
Natural gas	$	454,107		$	470,162		$	(16,055	)
Oil		413,906			320,983			92,923
Natural gas liquids		66,158			69,268			(3,110	)
Other		3,769			10,627			(6,858	)
Total	$	937,940		$	871,040		$	66,900
Production volumes
Natural gas (MMcf)		70,848			72,099			(1,251	)
Oil (MBbl)		5,309			4,786			523
Natural gas liquids (MMgal)		79.9			76.5			3.4
Total production volumes (MMcfe)		114,120			111,741			2,379
Total production volumes (MBOE)		19,020			18,623			397
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.41		$	6.52		$	(0.11	)
Oil (barrel)	$	77.97		$	67.07		$	10.9
Natural gas liquids (gallon)	$	0.83		$	0.91		$	(0.08	)
Other data
Lease operating expense (LOE)
LOE and other	$	185,286		$	179,744		$	5,542
Production taxes		45,063			37,752			7,311
Total	$	230,349		$	217,496		$	12,853
Depreciation, depletion and amortization	$	206,473		$	190,822		$	15,651
General and administrative expense	$	56,260		$	56,385		$	(125	)
Capital expenditures	$	819,542		$	391,347		$	428,195
Exploration expenditures	$	64,014		$	11,268		$	52,746
Operating income	$	374,503		$	389,784		$	(15,281	)
Natural Gas Distribution
Operating revenues
Residential	$	360,356		$	436,638		$	(76,282	)
Commercial and industrial		142,030			171,055			(29,025	)
Transportation		55,599			57,129			(1,530	)
Other		(5,941	)		(4,634	)		(1,307	)
Total	$	552,044		$	660,188		$	(108,144	)
Gas delivery volumes (MMcf)
Residential		22,092			24,692			(2,600	)
Commercial and industrial		10,258			11,092			(834	)
Transportation		46,767			42,617			4,150
Total		79,117			78,401			716
Other data
Depreciation and amortization	$	40,783		$	51,419		$	(10,636	)
Capital expenditures	$	90,746		$	78,059		$	12,687
Operating income	$	88,187		$	78,400		$	9,787

4

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 are a Non-GAAP financial measure. 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.

Reconciliation To GAAP Information

($ in millions)

	Years Ended 12/31
	2010 Actual			2011 Estimate (e)
Net Income (GAAP)		291			243	—	270
Depreciation, depletion and amortization		248			278	—	278
Deferred income taxes, net		134			148	—	148
After-tax Cash Flows (Non-GAAP)		673			669	—	696
Changes in assets and liabilities and other adjustments		(2	)		40	—	40
Net Cash Provided by Operating Activities (GAAP)		671			709	—	736

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.