Energen Builds Substantial 2007 Hedge Position; Energy Company Also Adds 2008 Oil Hedges.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE:EGN) announced today that it has increased its 2007 hedge position for natural gas, oil and natural gas liquids (NGL) in recent weeks by selling NYMEX and basin-specific contracts and swaps applicable to the production of its oil and gas acquisition and development company, Energen Resources Corporation. In addition, Energen has capitalized on the strength of oil prices by adding to its 2008 oil hedge position.

Through recent transactions applicable to 2007 production, Energen has hedged:

--5 billion cubic feet (Bcf) of San Juan basin-specific gas at a NYMEX-equivalent price of $9.25 per thousand cubic feet (Mcf);

--348,000 barrels of oil at a NYMEX price of $75.42 per barrel;

--160,000 barrels of sour oil at a NYMEX-equivalent price of $75.42 per barrel; and

--31.8 million gallons (MMgal) of NGL at an average price of approximately 98 cents per gallon.

In addition, Energen has added hedges for 1 million barrels of its 2008 sour oil production at a NYMEX-equivalent price of $74.99 per barrel. This brings Energen's total 2008 oil hedge position to 1.9 million barrels (MMBbl) at a NYMEX-equivalent price of $66.89 per barrel.

"We have now hedged almost 60 percent of our total estimated production in 2007 at attractive commodity prices and have more than doubled our 2008 oil hedge position in today's strong price environment," said Mike Warren, Energen's chairman and chief executive officer.

"During recent years, oil and gas prices have been both high and very volatile. Energen's practice of hedging production has locked in commodity prices for substantial portions of our production and helped protect earnings and cash flows. That strategy has served us well in the past, and it is even more important today," Warren added.

2007 Hedge Position

In aggregate, Energen Resources' 2007 hedge position by commodity
is as follows:
                            Estimated
                              2007
Commodity     Hedge Vols.   Production    % Hedged  NYMEX-equiv. price
----------------------------------------------------------------------
Natural Gas     30.1 Bcf    58.6 Bcf        51%          $9.59 per Mcf
----------------------------------------------------------------------
Oil            2.7 MMBbl    3.6 MMBbl       76%      $70.04 per barrel
----------------------------------------------------------------------
NGL           41.8 MMgal   65.2 MMgal       64%       $0.93 per gallon
----------------------------------------------------------------------

Energen Resources' 2007 natural gas hedge position by hedge type
is as follows:

                                            Assumed Basis   Price/Mcf
Hedge Type                    Volumes (Bcf)  Difference  (NYMEX equiv)
----------------------------------------------------------------------
NYMEX Hedges                         8.0            --          $9.48
----------------------------------------------------------------------
San Juan Basin-specific             19.1         $1.75          $9.61
----------------------------------------------------------------------
SNG-Louisiana                        3.0         $0.04          $9.76
----------------------------------------------------------------------

Energen Resources' 2007 oil hedge position by hedge type is as
follows:

                                        Assumed Sour Oil  Price/Barrel
Hedge Type               Volumes (MBbl)    Difference    (NYMEX equiv)
----------------------------------------------------------------------
NYMEX Hedges                      948               --         $65.44
----------------------------------------------------------------------
Sour Oil (WTS)                  1,768            $6.00         $72.51
----------------------------------------------------------------------

Average oil and gas revenues per unit of production for Energen Resources' production associated with NYMEX contracts as well as for unhedged production 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, Energen Resources will receive the contracted hedge price. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed basis differentials.

Energen typically hedges basis differentials where applicable; more information on Energen's basis differential hedges can be found in the Company's 10-Q filed with the Securities and Exchange Commission.

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.