Energen Adds to 2003 NGL Hedge Position.

Business Editors & Energy Writers

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Dec. 19, 2002

Energen Corporation (NYSE:EGN) today announced that its oil and gas acquisition and exploitation company, Energen Resources Corporation, has hedged an additional 714,000 barrels (30 million gallons) of natural gas liquids (NGL) production for 2003. The new hedges were sold at an average price of $17.56 per barrel (41.81 cents per gallon).

The diversified energy company is not altering its earnings guidance for 2003 at this time and maintains the range announced last week of $2.25-$2.40 per diluted share, with a pre-tax cash flow outlook of $7-$7.15 per diluted share.

For 2003 as a whole, Energen Resources now has approximately 905,000 barrels (38 million gallons), or some 53 percent of its estimated NGL production, hedged at an average price of $17.54 per barrel (41.77 cents per gallon). All the NGL hedges are spread in equal monthly increments throughout the year.

In addition to NGL production, Energen Resources has hedges in place for just over 40 Bcf, or 78 percent of its estimated 2003 natural gas production, at an average New York Mercantile Exchange (NYMEX) equivalent price of $4.10 per Mcf and for approximately 2.5 million barrels, or 68 percent of its estimated 2003 oil production, at an average NYMEX price of $26.26 per barrel.

Earnings Sensitivity to Changes in Commodity Prices Updated

The single largest influence on Energen's earnings in 2003 is commodity prices applicable to the unhedged production of Energen Resources. Given Energen Resources' current hedge position and assuming the NYMEX price for Energen Resources' unhedged production in 2003 averages $4 per Mcf for gas and $25 per barrel for oil, Energen's earnings' sensitivities to changes in the NYMEX price of gas and oil are as follows.

Relative to the company's unhedged volumes:

-- Every 10-cent change in the 2003 average NYMEX price of gas from $4 per Mcf is estimated to have a net income impact of $829,000 (2.3 cents per diluted share).

-- Every $1 change in the 2003 average NYMEX price of oil -- together with a corresponding change in the price of NGLs -- from $25 per barrel is estimated to have a net income impact of $797,000 (2.2 cents per diluted share).

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are natural gas distribution in central and north Alabama and the acquisition, exploitation, exploration and production of natural gas, oil and natural gas liquids onshore in North America. Additional information on Energen is available at www.energen.com.

FORWARD-LOOKING STATEMENTS

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 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.