Energen Doubles 2006 Natural Gas Hedge Position.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE:EGN) announced today that it continues to capitalize on commodity price volatility by hedging another 5.9 billion cubic feet (Bcf) of its 2006 estimated natural gas production at an average NYMEX-equivalent price of $6.79 per thousand cubic feet (Mcf).

The new San Juan Basin-specific hedges are spread equally throughout the year and bring Energen's total natural gas hedge position for 2006 to 11.8 Bcf of San Juan Basin-specific hedges at an average NYMEX-equivalent price of $6.66 per Mcf. Energen now has hedges in place for approximately 20 percent of its estimated 2006 natural gas production.

Energen's oil and gas acquisition and development subsidiary, Energen Resources Corporation, utilizes derivative hedge instruments to help mitigate the negative earnings impact of commodity price volatility.

Energen Resources' total current hedge position with respect to its estimated 2006 production is as follows:

NYMEX-
                                                               equiv.
Commodity Hedge Vols. Estimated 2006 Production   % Hedged     price
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Natural                                                         $6.66
 Gas       11.8 Bcf    65.6 Bcf(1)  58.7 Bcf(2) 18%(1) 20%(2)  per Mcf
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                                                               $40.27
                            3,800        3,500                    per
Oil        720 MBbl        MBbl(1)      MBbl(2) 19%(1) 21%(2)   barrel
----------------------------------------------------------------------
                                                                $0.56
                             86.6         79.7                    per
NGL       30.2 MMgal      MMgal(1)     MMgal(2) 35%(1) 38%(2)   gallon
----------------------------------------------------------------------

(1)    With unidentified 4th quarter acquisition in 2005 and 2006
(2)    Without unidentified 4th quarter acquisition in 2005 and 2006

Realized prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price, regardless of basis differentials. Realized NGL prices will reflect transportation and fractionation fees. All basin-specific contract prices in this news release have been converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed basis differentials.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are the acquisition and development of natural gas, oil and natural gas liquids onshore in North America and natural gas distribution in central and north Alabama. 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.