8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report

January 25, 2012

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

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

(205) 326-2700

(Registrant’s telephone number including area code)

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

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

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

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

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

ITEM 2.02 Results of Operations and Financial Condition

On January 25, 2012, Energen Corporation and Alabama Gas Corporation issued a press release announcing the fourth quarter and year-to-date 2011 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 reconciliations of certain Non-GAAP financial measures to the related GAAP financial measures. The reconciliations are 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 January 25, 2012
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
January 26, 2012	By /s/ Charles W. Porter, Jr.
	Charles W. Porter, Jr. Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama Gas Corporation

EXHIBIT INDEX

EXHIBIT NUMBER	DESCRIPTION
99.1	*  Press Release dated January 25, 2012
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.

2

EX-99.1

Exhibit 99.1

For Release: 4:30 p.m. EDT	Contacts: Julie S. Ryland
Wednesday, January 25, 2012	205.326.8421

ENERGEN CORPORATION REPORTS RESULTS OF YEAR, 4^TH QUARTER 2011

Highlights

• EPS adjusted for non-cash MTM losses totals $3.91 in 2011 and 98 cents in 4th quarter

• Oil and natural gas liquids production jumps 21 percent in 2011

• 4^th quarter Wolfberry, 3^rd Bone Spring wells produce positive results

• Year-end proved reserves reach record 343 MMBOE

BIRMINGHAM, Alabama – Energen Corporation (NYSE: EGN) today announced that its calendar year 2011 net income totaled $259.6 million, or $3.59 per diluted share, including non-cash mark-to-market losses on certain financial commodity contracts of $37.6 million ($23.4 million after tax, or 32 cents per diluted share). Prior-year results totaled $290.8 million, or $4.04 per diluted share, and included a non-cash write-off of unproved capitalized leasehold of $24.8 million after-tax, or 34 cents per diluted share.

Adjusting both periods for these non-cash items, net income comparable to analysts’ estimates (a non-GAAP measure), totaled $283.0 million, or $3.91 per diluted share, in 2011 and $315.6 million, or $4.38 per diluted share, in 2010. See “Non-GAAP Financial Measures” for explanation and reconciliation. Despite a 21 percent increase in 2011 oil and natural gas liquids (NGL) production, adjusted 2011 earnings declined largely due to a substantial decline in realized natural gas prices, higher lease operating expense (LOE), and increased depreciation, depletion and amortization expense (DD&A).

Production in 2011 totaled 20.45 million barrels of oil equivalents (MMBOE) and was on target with forecast production of 20.5 MMBOE despite weather- and fire-related production issues in the first half of the year. Reflective of the company’s focus on liquids production in the Permian Basin, oil and NGL volumes increased 23 percent and 16 percent, respectively, while natural gas production rose only 1 percent.

1

Consolidated net cash provided by operating activities before changes in operating assets and liabilities (a non-GAAP measure) totaled $736.5 million at the end of 2011 as compared with $740.0 million in the same period last year.

Positive Permian Results Continue

Energen remains pleased with the progress the company is making in developing the vertical Wolfberry play in the Midland sub-basin of the Permian Basin and is seeing good results from its more recent 3^rd Bone Spring wells that have been drilled on the east side of the Pecos River. The Avalon potential remains unclear, and Energen likely will redirect planned Avalon capital to the deeper Wolfcamp shale formation in 2012; the Wolfcamp is thought to have a higher mix of oil to gas, and its production will hold the shallower Avalon shale.

Wolfberry: Energen Resources (Energen’s exploration and production subsidiary) drilled 153 net Wolfberry wells in 2011 and completed another 22 wells that were spudded in 2010. Of these 175 wells, 122 are producing and 53 are waiting on completion.

Initial stabilized rates (consistent flow rates after clean-up of stimulation fluid) from the 39 wells brought on line during the fourth quarter averaged 65 barrels of oil per day and 150 Mcf per day of wet gas. Energen’s risked model initial stabilized rate is 55 barrels of oil per day and 110 Mcf per day of wet gas.

Energen Resources has approximately 32,000 net undeveloped acres in the Wolfberry play and some 800 potential drilling locations based on 40-acre spacing. The company’s estimated cost to drill and complete a well in the Wolfberry trend in 2012 is $2.3 million.

3^rd Bone Spring: Energen Resources has drilled and completed 18 net 3^rd Bone Spring wells in 2011 and completed two additional wells spudded in 2010; another five wells are drilling, waiting on completion, or testing.

2

The seven wells brought on line during the 4th quarter of 2011 had an initial stabilized rate of approximately 485 barrels of oil per day and 1,085 Mcf per day of wet gas. The initial stabilized rate of all 20 net wells brought on line in 2011 averaged approximately 400 barrels of oil per day and 1,035 Mcf per day of wet gas. The initial stabilized rate in Energen’s risked, weighted average, 3^rd Bone Spring model is 260 barrels of oil per day and 735 Mcf per day of wet gas.

While the Company is pleased with the average initial stabilized rate of its 2011 3^rd Bone Spring wells, the majority of 12 wells drilled on the west side of the Pecos River have underperformed relative to wells drilled on the east side. In general, the western wells have encountered higher amounts of water, and efforts to optimize production from nine wells that have experienced steeper-than-expected declines have been hampered by limited infrastructure. With water disposal wells drilled late in 2011, Energen has recently been able to install pumps on three of the west-side Bone Spring wells and continues to work to improve production.

3

Energen Resources has approximately 68,000 net undeveloped acres that are prospective for the 3^rd Bone Spring sands and approximately 210 potential drilling locations based on 320-acre spacing. The company’s estimated cost to drill and complete a well in the 3^rd Bone Spring trend in 2012 is $7.5 million.

Avalon: Energen Resources’ Avalon shale test well in Loving County had an initial stabilized rate of 200 barrels of oil per day and 750 Mcf per day of wet gas. The well has not been able to sustain its oil rate and currently is producing about 75 barrels of oil per day and 750 Mcf of wet gas. The well’s completion design utilized smaller fracs in an effort to reduce produced water and maximize hydrocarbon production; instead, hydrocarbon production may actually have been hampered by the use of smaller fracs.

Energen Resources has approximately 110,000 net undeveloped acres that are prospective for Avalon shale and approximately 340 potential drilling locations based on 320-acre spacing.

Year-end Proved Reserves: Record 343 MMBOE

Energen’s proved reserves at year-end 2011 totaled a record 343 MMBOE, reflecting a 20 percent increase from 2010 after adjusting for production of 20.4 MMBOE. Proved reserves added through acquisition totaled 21 MMBOE, and another 45 MMBOE of additions resulted from proving up probable and possible reserves, primarily in the Permian Basin. Energen replaced 194 percent of its 2011 production organically.

Oil and natural gas liquids now comprise more than half of Energen’s year-end proved reserves, and 54 percent of the company’s proved reserves now reside in the Permian Basin, where Energen Resources has focused its acquisition and development efforts over the last three years. Proved reserves in the Permian at year-end 2011 increased 38 percent to 183.6 MMBOE.

Proved Reserves by Basin, YE2010 to YE2011 (MMBOE)

Basin	YE2010		2011 Production			2011 Acquisitions		Additions/ Divestitures		Price/Other Revisions			YE2011
San Juan		135.9		(9.6	)		0.0		5.8		(2.5	)		129.6
Permian		132.8		(7.8	)		21.0		39.3		(1.7	)		183.6
Black Warrior		25.7		(2.1	)		0.0		0.0		(0.3	)		23.3
Other		8.5		(0.9	)		0.0		0.0		(1.0	)		6.6
TOTAL		302.9		(20.4	)		21.0		45.0		(5.5	)		343.1

Proved reserves in 2011 were priced at $4.12 per Mcf of gas (vs. $4.38 per Mcf in the prior year), $96.19 per barrel of oil (vs. $79.43 per barrel in the prior year) and $1.23 cents per gallon of NGL (vs. 98 cents per gallon in the prior year).

4

2012 Guidance Revised

Energen has revised its guidance ranges for consolidated after-tax cash flows and earnings in 2012 to reflect lower assumed natural gas prices and higher assumed oil prices applicable to its unhedged volumes. Revised 2012 guidance also reflects increased DD&A expense resulting largely from higher costs coupled with less-than-expected results from some of the 3^rd Bone Spring wells drilled on the west side of the Pecos River in 2011.

The new after-tax cash flows and earnings guidance ranges for 2012 are $764-$793 million and $3.15-$3.55 per diluted share, respectively. Guidance excludes non-cash mark-to-market impacts.

Approximately 63 percent of the company’s total estimated production in 2012 is hedged. Assumed prices applicable to Energen’s unhedged oil and natural gas volumes have been revised to $95 per barrel and $3 per Mcf (prior guidance was $85 and $4, respectively); the assumed price for unhedged NGL production remains unchanged at $1.11 per gallon.

Energen’s estimated exploration and production expenses per BOE in 2012 are:

Lease Operating Expense
Base, marketing, and transportation	$	9.47
Production taxes	$	2.41
DD&A expense	$	15.34
Unidentified exploration expense	$	1.00
General & Administrative expense, net	$	2.93
Interest expense	$	2.01

Energen’s drilling and development capital investment in 2012 also has been revised upward to approximately $935 million to reflect increased drilling costs associated with higher oil prices and plans to increase the lateral lengths and frac stages in 3^rd Bone Spring wells. Adjustments were made, accordingly, to projected costs to drill and complete Wolfberry and 3^rd Bone Spring wells in 2012 (see pages 2-3).

5

Energen Resources’ hedge position for 2012 is as follows:

Commodity	Hedge Volumes		Estimated Production		Hedge %			NYMEXe Price
Oil		6.9 MMBO		8.5 MMBO		82	%	$	88.13
NGL		58.5 MMgal		117.9 MMgal		50	%	$	0.98
Natural Gas		40.5 Bcf		76.5 Bcf		53	%	$	4.86

NOTE: Reflects known actuals

6

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

Oil Hedges	Volumes		Assumed Differential		NYMEXe Price
Sour Oil (WTS)		3,124 MBO	$	2.00 per barrel	$	82.10 per barrel
NYMEX		3,789 MBO		—	$	93.10 per barrel
Gas Hedges	Volumes		Assumed Differential		NYMEXe Price
San Juan Basin		29.5 Bcf	$	0.20 per Mcf	$	4.79 per Mcf
NYMEX		11.0 Bcf		—	$	5.07 per Mcf

NOTE: Reflects known actuals

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 may hedge basis differentials as applicable. In the tables above, basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials. Gains and losses from the change in fair value of derivative instruments that do not qualify for cash flow hedge accounting are reported in operating revenues each applicable reporting period and can cause non-cash earnings volatility.

7

Sensitivity of 2012 Cash Flows, Earnings to Changes in Commodity Prices

Given Energen Resources’ current hedge position for 2012, changes in commodity prices for the remainder of the year are estimated to have the following impact on Energen’s 2012 cash flows and earnings:

• Every 10-cent change in the average NYMEX price of gas from $3.00 represents an estimated net income impact of approximately $1.7 million (2.3 cents per diluted share).

• Every $1.00 change in the average NYMEX price of oil from $95 per barrel represents an estimated net income impact of approximately $750,000 (1.0 cents per diluted share).

• Every 1-cent change in the average price of liquids from $1.11 per gallon represents an estimated net income impact of approximately $260,000 (0.4 cents per diluted share).

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

Alabama Gas Corporation (Alagasco), the company’s utility subsidiary, has the opportunity to earn a return on average equity that is estimated to be approximately $360 million in 2012. Alagasco is expected to invest approximately $75 million of capital in 2012 for normal distribution and support system needs and technology-related projects designed to improve customer service.

CY2011 FINANCIAL RESULTS

For the 2011 calendar year, Energen’s net income totaled $259.6 million, or $3.59 per diluted share, including non-cash mark-to-market losses on certain financial commodity contracts of $23.4 million after tax, or 32 cents per diluted share. Net income in 2010 totaled $290.8 million, or $4.04 per diluted share, and included non-cash write-offs for capitalized unproved leasehold of $24.8 million after tax, or 34 cents per diluted share.

Energen Resources: Excluding the non-cash items in both periods (non-GAAP measures), Energen Resources’ adjusted 2011 net income totaled $236.4 million as compared with $270.1 million in 2010. While Energen Resources’ production increased 8.6 percent year-over-year, including a 21 percent increase in oil and NGL production, net income was negatively affected by a 21 percent decline in realized natural gas prices, higher LOE including production taxes, and increased DD&A expense.

Average Realized Sales Prices

Commodity	CY11		CY10		Change
Natural Gas (per Mcf)	$	5.39	$	6.82		(21.0	)%
Oil (per barrel)	$	79.90	$	78.86		1.3	%
NGL (per gallon)	$	0.96	$	0.83		15.7	%

8

Production

Commodity	CY11		CY10		Change
Natural Gas (Bcf)		71.7		70.9		1.1	%
Oil (MBO)		6,318		5,131		23.1	%
NGL (MMgal)		91.4		79.0		15.7	%
Total (MBOE)		20,448		18,832		8.6	%

Production by Area (MBOE)

Area	CY11		CY10		Change
San Juan Basin		9,622		9,379		2.6	%
Permian Basin		7,815		6,161		26.8	%
Black Warrior Basin		2,098		2,187		(4.1	)%
N. LA/E. TX/Other		913		1,105		(17.4	)%

9

Permian Basin production in 2011 increased year-over-year largely due to the company’s 2010 acquisitions and associated development, increased development of older Wolfberry properties, and new well development at Fuhrman-Mascho. San Juan Basin production increased primarily due to new well development. 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 2011 period increased approximately 5 percent from 2010 to $12.57 per BOE. Base LOE and marketing and transportation expenses increased about 2 percent to $9.88 per BOE. Commodity price-drive production taxes rose 18.5 percent on a per-unit basis.

DD&A expense per unit in 2011 increased approximately 11 percent from the prior year to $11.75 per BOE, reflecting year-over-year increases in development costs and production.

Per-unit net G&A expense increased approximately 13 percent in 2011 to $3.15 per BOE due in part to performance-based compensation and increased labor costs.

Alagasco: Energen’s natural gas utility generated net income in 2011 of $46.6 million as compared with earnings of $46.9 million in 2010. This decrease primarily is due to the timing of rate recovery largely offset by the utility’s ability to earn on a higher level of equity.

4TH QUARTER FINANCIAL RESULTS

For the 3 months ended December 31, 2011, Energen’s net income totaled $14.4 million, or $0.20 per diluted share, and included non-cash mark-to-market losses on certain financial commodity contracts of $90.8 million ($56.6 million after tax, or 78 cents per diluted share). Excluding the non-cash item (non-GAAP measure), Energen’s 4^th quarter 2011 net income totaled $71.0 million, or 98 cents per diluted share. Prior-year results totaled $80.3 million, or 1.11 per diluted share.

Energen Resources: The adjusted net income of Energen’s exploration and production unit in 2011 totaled $59.9 million as compared with $70.6 million in the fourth quarter of 2011. This decline largely was the result of lower realized natural gas prices and higher DD&A expense, partially offset by an 11 percent rise in production.

10

Average Realized Sales Prices

Commodity	4Q11		4Q10		Change
Natural Gas (per Mcf)	$	5.14	$	6.53		(21.3	)%
Oil (per barrel)	$	79.18	$	80.93		(2.2	)%
NGL (per gallon)	$	0.97	$	0.87		11.5	%

Production

Commodity	4Q11		4Q10		Change
Natural Gas (Bcf)		18.8		18.2		3.3	%
Oil (MBO)		1,744		1,397		24.8	%
NGL (MMgal)		24.8		21.3		16.4	%
Total (MBOE)		5,470		4,932		10.9	%

Production by Area (MBOE)

Area	4Q11		4Q10		Change
San Juan Basin		2,480		2,437		1.8	%
Permian Basin		2,216		1,695		30.7	%
Black Warrior Basin		539		546		(1.3	)%
N. LA/E. TX/Other		235		254		(7.5	)%

Permian Basin production increased in the fourth quarter of 2011 primarily due to the company’s 2010 acquisitions and associated development. San Juan Basin production was essentially unchanged, and slightly decreased production in other areas reflected the company’s capital investment focus in its Permian Basin oil properties and normal property declines.

Total LOE per unit in the fourth quarter of 2011 was essentially unchanged relative to the same period in 2010. Base LOE and marketing and transportation expenses in 2011 declined 3 percent to $9.12 per BOE while commodity price-driven production taxes increased 9 percent to $2.58 per BOE.

11

DD&A expense per unit in the fourth quarter of 2011 increased 26 percent over the prior-year fourth quarter to $13.38 per BOE, reflecting year-over-year increases in development costs and production.

Per-unit net G&A expense increased 25 percent in the fourth quarter of 2011 to $3.10 per BOE due in part to performance-based compensation and increased labor costs

Alagasco: Energen’s natural gas utility reported net income in the last three months of 2011 of $11.3 million as compared with net income of $10.1 million in the same period last year. This increase primarily is due to the utility’s ability to earn on a higher level of equity.

12

ENERGEN ADDS TO 2013, 2014 HEDGE POSITIONS

Energen Resources’ has hedges in place through 2014 to help protect its future cash flows from commodity price volatility. The company’s current hedge position for 2013 is as follows:

Commodity	Hedge Volumes		Estimated Production		NYMEXe Price
Oil		7.9 MMBO		10.0-10.5 MMBO	$	90.11
NGL		44.5 MMgal		126.0-147.0 MMgal	$	1.02
Natural Gas		33.9 Bcf		72.0-78.0 Bcf	$	5.21

Energen Resources’ oil and natural gas hedge positions by hedge type for 2013 are as follows:

Oil Hedges	Volumes		Assumed Differential		NYMEXe Price
Sour Oil (WTS)		2,768 MBO	$	3.00 per barrel	$	85.34 per barrel
NYMEX		5,090 MBO		—	$	92.70 per barrel
Gas Hedges	Volumes		Assumed Differential		NYMEXe Price
San Juan Basin		25.1 Bcf	$	0.30 per Mcf	$	5.18 per Mcf
NYMEX		8.8 Bcf		—	$	5.30 per Mcf

13

Energen Resources’ 2014 hedges are as follows:

Commodity	Hedge Volumes		NYMEXe Price
Oil		6.1 MMBO	$	90.85
Natural Gas		19.8 Bcf	$	5.50

Energen Resources’ natural gas hedge positions by hedge type for 2014 are as follows:

Gas Hedges	Volumes		Assumed Differential		NYMEXe Price
San Juan Basin		16.8 Bcf	$	0.30 per Mcf	$	5.46 per Mcf
NYMEX		3.0 Bcf		—	$	5.72 per Mcf

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.

14

For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen may hedge basis differentials as applicable. In the tables above, basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials. Gains and losses from the change in fair value of derivative instruments that do not qualify for cash flow hedge accounting are reported in operating revenues each applicable reporting period and, therefore, can cause non-cash earnings volatility.

CONFERENCE CALL

Energen Corporation will hold its quarterly conference call Thursday, January 26, at 11 a.m. ET. Members of the investment community may participate by calling 866-821-5457 (reference Energen earnings call). A live Webcast of the program as well as the replay may be accessed via www.energen.com.

Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. Through Energen Resources Corporation, the company has approximately 900 million barrels of oil-equivalent proved, probable, and possible reserves. These all-domestic reserves are located mainly in the Permian and San Juan basins. For more information, go to http://www.energen.com.

FORWARD LOOKING STATEMENT: 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.

15

EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending December 31, 2011 and 2010

	4th Quarter
(in thousands, except per share data)	2011			2010			Change
Operating Revenues
Oil and gas operations	$	168,692		$	252,451		$	(83,759	)
Natural gas distribution		119,456			121,640			(2,184	)
Total operating revenues		288,148			374,091			(85,943	)
Operating Expenses
Cost of gas		47,607			54,038			(6,431	)
Operations and maintenance		100,356			99,584			772
Depreciation, depletion and amortization		84,438			62,840			21,598
Taxes, other than income taxes		22,335			20,453			1,882
Accretion expense		1,771			1,610			161
Total operating expenses		256,507			238,525			17,982
Operating Income		31,641			135,566			(103,925	)
Other Income (Expense)
Interest expense		(13,979	)		(9,827	)		(4,152	)
Other income		1,706			1,730			(24	)
Other expense		(106	)		(102	)		(4	)
Total other expense		(12,379	)		(8,199	)		(4,180	)
Income Before Income Taxes		19,262			127,367			(108,105	)
Income tax expense		4,830			47,117			(42,287	)
Net Income	$	14,432		$	80,250		$	(65,818	)
Diluted Earnings Per Average Common Share	$	0.20		$	1.11		$	(0.91	)
Basic Earnings Per Average Common Share	$	0.20		$	1.12		$	(0.92	)
Diluted Avg. Common Shares Outstanding		72,269			72,081			188
Basic Avg. Common Shares Outstanding		72,082			71,862			220
Dividends Per Common Share	$	0.135		$	0.13		$	0.005

1

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending December 31, 2011 and 2010

	Year-to-date
(in thousands, except per share data)	2011			2010			Change
Operating Revenues
Oil and gas operations	$	948,526		$	958,762		$	(10,236	)
Natural gas distribution		534,953			619,772			(84,819	)
Total operating revenues		1,483,479			1,578,534			(95,055	)
Operating Expenses
Cost of gas		233,523			316,988			(83,465	)
Operations and maintenance		419,119			429,165			(10,046	)
Depreciation, depletion and amortization		283,997			247,865			36,132
Taxes, other than income taxes		91,734			84,961			6,773
Accretion expense		6,837			6,178			659
Total operating expenses		1,035,210			1,085,157			(49,947	)
Operating Income		448,269			493,377			(45,108	)
Other Income (Expense)
Interest expense		(44,822	)		(39,222	)		(5,600	)
Other income		2,334			4,285			(1,951	)
Other expense		(456	)		(643	)		187
Total other expense		(42,944	)		(35,580	)		(7,364	)
Income Before Income Taxes		405,325			457,797			(52,472	)
Income tax expense		145,701			166,990			(21,289	)
Net Income	$	259,624		$	290,807		$	(31,183	)
Diluted Earnings Per Average Common Share	$	3.59		$	4.04		$	(0.45	)
Basic Earnings Per Average Common Share	$	3.60		$	4.05		$	(0.45	)
Diluted Avg. Common Shares Outstanding		72,332			72,051			281
Basic Avg. Common Shares Outstanding		72,056			71,845			211
Dividends Per Common Share	$	0.54		$	0.52		$	0.02

2

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2011 and December 31, 2010

(in thousands)	December 31, 2011		December 31, 2010
ASSETS
Current Assets
Cash and cash equivalents	$	9,541	$	22,659
Accounts receivable, net of allowance		231,925		286,849
Inventories		74,012		59,302
Regulatory asset		57,143		28,286
Other		71,547		89,187
Total current assets		444,168		486,283
Property, Plant and Equipment
Oil and gas properties, net		3,783,842		2,919,144
Utility plant, net		813,428		782,622
Other property, net		23,506		17,461
Total property, plant and equipment, net		4,620,776		3,719,227
Other Assets
Regulatory asset		95,633		105,365
Long-term derivative instruments		31,056		—
Other		45,783		52,685
Total other assets		172,472		158,050
TOTAL ASSETS	$	5,237,416	$	4,363,560
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Long-term debt due within one year	$	1,000	$	5,000
Notes payable to banks		15,000		305,000
Accounts payable		302,048		268,214
Regulatory liability		58,279		75,703
Other		167,552		164,694
Total current liabilities		543,879		818,611
Long-term debt		1,153,700		405,254
Deferred Credits and Other Liabilities
Regulatory liability		87,234		110,447
Deferred income taxes		806,127		615,084
Long-term derivative instruments		34,663		112,936
Other		179,650		147,185
Total deferred credits and other liabilities		1,107,674		985,652
Total Shareholders’ Equity		2,432,163		2,154,043
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,237,416	$	4,363,560

3

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2011 and 2010

	4th Quarter
(in thousands, except sales price data)	2011		2010		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	96,654	$	118,633	$	(21,979	)
Oil		47,490		113,082		(65,592	)
Natural gas liquids		23,975		18,626		5,349
Other		573		2,110		(1,537	)
Total	$	168,692	$	252,451	$	(83,579	)
Production volumes
Natural gas (MMcf)		18,810		18,156		654
Oil (MBbl)		1,744		1,397		347
Natural gas liquids (MMgal)		24.8		21.3		3.5
Total production volumes (MMcfe)		32,820		29,588		3,232
Total production volumes (MBOE)		5,470		4,931		539
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	5.14	$	6.53	$	(1.39	)
Oil (barrel)	$	27.23	$	80.93	$	(53.70	)
Natural gas liquids (gallon)	$	0.97	$	0.87	$	0.10
Revenue per unit of production including effects of qualifying cash flow hedges
Natural gas (Mcf)	$	5.14	$	6.53	$	(1.39	)
Oil (barrel)	$	79.18	$	80.93	$	(1.75	)
Natural gas liquids (gallon)	$	0.97	$	0.87	$	0.10
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	3.45	$	3.67	$	(0.22	)
Oil (barrel)	$	90.89	$	80.14	$	10.75
Natural gas liquids (gallon)	$	1.14	$	0.95	$	0.19
Other data
Lease operating expense (LOE)
LOE and other	$	49,874	$	46,215	$	3,659
Production taxes		14,109		11,659		2,450
Total	$	63,983	$	57,874	$	6,109
Depreciation, depletion and amortization	$	74,128	$	53,176	$	20,952
General and administrative expense	$	16,973	$	12,230	$	4,743
Capital expenditures	$	448,851	$	330,972	$	117,879
Exploration expenditures	$	514	$	10,217	$	(9,703	)
Operating income	$	11,323	$	117,344	$	(106,021	)

4

Natural Gas Distribution
Operating revenues
Residential	$	74,157	$	80,441		$	(6,284	)
Commercial and industrial		29,186		31,442			(2,256	)
Transportation		14,665		15,006			(341	)
Other		1,448		(5,249	)		6,697
Total	$	119,456	$	121,640		$	(2,184	)
Gas delivery volumes (MMcf)
Residential		4,407		4,790			(383	)
Commercial and industrial		2,151		2,250			(99	)
Transportation		10,901		12,491			(1,590	)
Total		17,459		19,531			(2,072	)
Other data
Depreciation and amortization	$	10,310	$	9,662		$	648
Capital expenditures	$	16,814	$	17,756		$	(942	)
Operating income	$	20,675	$	19,005		$	1,670

5

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2011 and 2010

	Year-to-date
(in thousands, except sales price data)	2011		2010		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	386,894	$	483,935	$	(97,041	)
Oil		467,320		404,625		62,695
Natural gas liquids		87,466		65,161		22,305
Other		6,846		5,041		1,805
Total	$	948,526	$	958,762	$	(10,236	)
Production volumes
Natural gas (MMcf)		71,718		70,924		794
Oil (MBbl)		6,318		5,131		1,187
Natural gas liquids (MMgal)		91.4		79.0		12.4
Total production volumes (MMcfe)		122,688		112,989		9,699
Total production volumes (MBOE)		20,448		18,832		1,616
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	5.39	$	6.82	$	(1.43	)
Oil (barrel)	$	73.97	$	78.86	$	(4.89	)
Natural gas liquids (gallon)	$	0.96	$	0.83	$	0.13
Revenue per unit of production including effects of qualifying cash flow hedges
Natural gas (Mcf)	$	5.39	$	6.82	$	(1.43	)
Oil (barrel)	$	79.90	$	78.86	$	1.04
Natural gas liquids (gallon)	$	0.96	$	0.83	$	0.13
Revenue per unit of production excluding effects of all derivative instruments
Natural gas (Mcf)	$	3.93	$	4.22		(0.29	)
Oil (barrel)	$	90.53	$	75.06		15.47
Natural gas liquids (gallon)	$	1.11	$	0.86		0.25
Other data
Lease operating expense (LOE)
LOE and other	$	202,094	$	182,180	$	19,914
Production taxes		54,951		42,721		12,230
Total	$	257,045	$	224,901	$	32,144
Depreciation, depletion and amortization	$	244,081	$	203,821	$	40,260
General and administrative expense	$	64,322	$	52,549	$	11,773
Capital expenditures	$	1,115,452	$	717,782	$	397,670
Exploration expenditures	$	13,110	$	64,584	$	(51,474	)
Operating income	$	363,131	$	406,729	$	(43,598	)

6

Natural Gas Distribution
Operating revenues
Residential	$	343,740		$	414,870		$	(71,130	)
Commercial and industrial		136,469			159,658			(23,189	)
Transportation		55,234			57,049			(1,815	)
Other		(490	)		(11,805	)		11,315
Total	$	534,953		$	619,772		$	(84,819	)
Gas delivery volumes (MMcf)
Residential		21,132			24,463			(3,331	)
Commercial and industrial		9,994			10,985			(991	)
Transportation		44,614			46,479			(1,865	)
Total		75,740			81,927			(6,187	)
Other data
Depreciation and amortization	$	39,916		$	44,042		$	(4,126	)
Capital expenditures	$	73,984		$	93,566		$	(19,582	)
Operating income	$	86,216		$	88,383		$	(2,167	)

7

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. Adjusted Net Income is a Non-GAAP financial measure which excludes certain non-cash mark-to-market derivative financial instruments in current periods and certain non-cash leasehold write-offs in the prior periods. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.

	Year-to-Date Ended 12/31/2011
Consolidated Net Income ($ in millions except per share data)	Net Income		Per Diluted Share
Net Income (GAAP)		259.6		3.59
Non-cash mark-to-market losses (net of $14.2 tax)		23.4		0.32
Adjusted Net Income (Non-GAAP)		283.0		3.91
	Year-to-Date Ended 12/31/2010
Consolidated Net Income ($ in millions except per share data)	Net Income		Per Diluted Share
Net Income (GAAP)		290.8		4.04
Non-cash leasehold write-off (net of $14.9 tax)		24.8		0.34
Adjusted Net Income (Non-GAAP)		315.6		4.38
	Quarter Ended 12/31/2011
Consolidated Net Income ($ in millions except per share data)	Net Income		Per Diluted Share
Net Income (GAAP)		14.4		0.20
Non-cash mark-to-market losses (net of $34.2 tax)		56.6		0.78
Adjusted Net Income (Non-GAAP)		71.0		0.98

Non-GAAP Financial Measures

The United States Securities and Exchange Commission requires public companies to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. Adjusted Net Income is a Non-GAAP financial measure which excludes certain non-cash mark-to-market derivative financial instruments in current periods and certain non-cash leasehold write-offs in the prior periods. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.

	Quarter Ended 12/31/2011		Year-to-Date Ended 12/31/2011
Energen Resources Income ($ in millions)	Net Income		Net Income
Net Income (GAAP)		3.3		213.0
Non-cash mark-to-market losses (net of $34.2 and $14.2 tax)		56.6		23.4
Adjusted Net Income (Non-GAAP)		59.9		236.4

	Year-to-Date Ended 12/31/2010
Energen Resources Income ($ in millions)	Net Income
Net Income (GAAP)		245.3
Non-cash leasehold write-off (net of $14.9 tax)		24.8
Adjusted Net Income (Non-GAAP)		270.1

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. Net Cash Provided by Operating Activities Before Changes in Operating Assets and Liabilities is a Non-GAAP financial measure. Energen believes this measure allows analysts and investors to understand the operating cash flows of the company before the impact of changes in working capital. This measure is useful in understanding cash available to fund the company’s capital expenditures, dividends, debt reduction and other investments.

Reconciliation To GAAP Information

($ in millions)

	Year-to-Date Ended 12/31
	2010			2011
Net Income (GAAP)		290.8			259.6
Depreciation, depletion and amortization		247.9			284.0
Deferred income taxes, net		133.8			129.0
Other adjustments to reconcile net income to net cash provided by operating activities		67.5			63.9
Net Cash Provided by Operating Activities Before Changes in Operating Assets and Liabilities (Non-GAAP)		740.0			736.5
Changes in assets and liabilities		(69.0	)		25.3
Net Cash Provided by Operating Activities (GAAP)		671.0			761.8

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 is 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 Actual		2012 Estimate (e)
Net Income (GAAP)		291			260		228 — 257
Depreciation, depletion and amortization		248			284		415 — 415
Deferred income taxes, net		134			129		121 — 121
After-tax Cash Flows (Non-GAAP)		673			673		764 — 793
Changes in assets and liabilities and other adjustments		(2	)		89		(13) — (13)
Net Cash Provided by Operating Activities (GAAP)		671			762		751 — 780

(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.