Energen Increases 2007 Natural Gas, Liquids Hedge Positions.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE: EGN) announced today that is has added a significant amount of natural gas and natural gas liquids (NGL) hedges applicable to the production of its oil and gas subsidiary, Energen Resources Corporation (ERC).

On Thursday, the Company sold NYMEX and basin-specific natural gas contracts totaling approximately 8.5 billion cubic feet (Bcf) at an average NYMEX-equivalent price of $8.03 per thousand cubic feet (Mcf); Energen also hedged approximately 3 million gallons of NGL production at an average price of 80 cents per gallon.

These recent hedges bring ERC's total 2007 hedge position by commodity as follows:

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

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

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Average oil and gas revenues per unit of production for ERC's 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, ERC will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were 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 are the acquisition and development of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources 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 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.