Energen Adds to 2007 Oil Hedges.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE:EGN) announced today that it has entered into additional hedge contracts applicable to the 2007 production of its oil and gas acquisition and exploitation company, Energen Resources Corporation.

The Company today sold contracts for 504,000 barrels of its sour oil production at a NYMEX-equivalent price of $76.23 per barrel; the assumed sour oil differential is $6 per barrel.

These latest oil hedges bring Energen Resources' total 2007 hedge position to:

--25.08 billion cubic feet of natural gas at an average NYMEX-equivalent price of $9.66 per Mcf;

--2.2 million barrels of oil at an average NYMEX-equivalent price of $68.80 per barrel; and

--10.08 million gallons of natural gas liquids (NGL) at an average price of 79.5 cents per gallon.

"When we implemented our aggressive growth strategy more than a decade ago now, Energen's over-riding objective was to generate consistent earnings growth in the often-volatile oil and gas business," said Mike Warren, Energen's chairman and chief executive officer. "This remains our objective today."

"Part of our discipline and risk mitigation efforts has been to sell hedge contracts for future production," Warren said. "In this way, we lock-in certain commodity prices for associated production and lessen the impact of commodity price fluctuations on our earnings. That is precisely what we did today," Warren said.

"As we announced two weeks ago, our 2007 earnings guidance of $3.80-$4.20 per diluted share is based, in part, on oil prices of $65 per barrel applicable to our unhedged oil production.

"While today's hedging activity is just one more step in our hedging discipline, we are particularly pleased that these hedges exceed our 2007 oil price assumption for unhedged production by more than $10 per barrel," Warren said.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition and development of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. More information 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 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.