Energen Increases Natural Gas Hedge Position for 2007.

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 5.04 billion cubic feet (Bcf) of Energen Resources' 2007 natural gas production at a NYMEX price of $9.34 per thousand cubic feet (Mcf). Energen also entered into swaps for 10.08 million gallons (MMgal) of its 2007 natural gas liquids (NGL) production an average price of 79.5 cents per gallon.

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

--17.04 Bcf of natural gas at an average NYMEX-equivalent price of $9.29 per Mcf;

--1.2 MMBbl of oil at an average NYMEX-equivalent price of $62.80 per barrel; and

--10.08 MMgal of NGL at an average price of 79.5 cents per gallon.

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.