Energen Adds 2008 Oil Hedges.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE: EGN) announced that it has added to the 2008 oil hedge position of its oil and gas subsidiary, Energen Resources Corporation (ERC). The Company has sold contracts for an additional 335,000 barrels of ERC's 2008 oil production at a NYMEX price of $72.30 per barrel. This brings the Company's total oil hedge position in 2008 to 2.5 million barrels (MMBbl), or approximately 62 percent of its estimated oil production of 4 MMBbl, at a NYMEX-equivalent price of $67.39 per barrel.

ERC's total hedge position for 2008 now stands at 32 percent of total estimated production of 98 billion cubic feet (Bcf) equivalent. In addition to oil, Energen has hedged some of its 2008 natural gas and natural gas liquids (NGL) production:

* 14.4 Bcf, or 22 percent of its estimated 2008 natural gas production of 64.8 Bcf, at a NYMEX-equivalent price of $8.87 per thousand cubic feet.

* Approximately 17.1 million gallons, or 27 percent of its estimated 2008 NGL production of 63.7 million gallons, at an average price of approximately 91.4 cents per gallon.

Average natural gas and oil revenues per unit of production for ERC's production associated with NYMEX contracts will reflect the impact of basis differentials. Average NGL revenue per unit of production will be net of transportation and fractionation fees. For production associated with basin-specific contracts, ERC will receive the contracted hedge price and typically hedges basis differentials where applicable. The basin-specific contract prices have been converted for comparability purposes to a NYMEX-equivalent price by adding to them ERC's assumed basis differentials.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business focus on the development and production of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen has approximately 1.7 trillion cubic feet equivalent of proved reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. 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.