Energen Builds 2008 NGL Hedge Position.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE: EGN) announced today that it has added to the 2008 natural gas liquids (NGL) hedge position of its oil and gas subsidiary, Energen Resources Corporation (ERC). The Company has entered into swap contracts for an additional 12.6 million gallons of ERC's 2008 NGL production at an average price of 93.1 cents per gallon. This brings the Company's total NGL hedge position in 2008 to approximately 17.1 million gallons at an average price of approximately 91.4 cents per gallon and represents 27 percent of ERC's estimated 2008 NGL production of 63.7 million gallons.

As previously disclosed, Energen also has hedged some of its 2008 natural gas and oil production:

* 10.8 billion cubic feet (Bcf), or 17 percent of its estimated 2008 natural gas production of 64.8 Bcf, at an average NYMEX-equivalent price of $8.79 per thousand cubic feet.

* Approximately 2.2 million barrels, or 53 percent of its 2008 oil production of approximately 4 million barrels, at an average NYMEX-equivalent price of $66.62 per barrel.

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.