Energen Increases Natural Gas and Oil Hedge Position for 2005.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE: EGN) announced today that it has increased the hedge position for the 2005 natural gas and oil production of its oil and gas acquisition and development subsidiary, Energen Resources Corporation.

With the addition of the hedges, Energen Resources now has approximately 60 percent of its estimated 2005 natural gas production hedged at an average NYMEX-equivalent price of $5.70 per thousand cubic feet (Mcf), and approximately 65 percent of its estimated 2005 oil production hedged at an average NYMEX-equivalent price of $33.25 per barrel. Energen Resources also has hedges in place for approximately 40 percent of its estimated natural gas liquids (NGL) production at an average price of 48.5 cents per gallon.

(NOTE: 2005 production estimates assume the successful close of Energen Resources' planned acquisition of San Juan Basin coalbed methane properties announced last week.)

The new 2005 hedges are:

--Approximately 1.6 billion cubic feet (Bcf) of SNG-Louisiana basin-specific gas hedges at a NYMEX-equivalent price of $6.13 per Mcf;

--Approximately 1.4 Bcf of NYMEX gas hedges at a price of $6.42 per Mcf;

--1.2 Bcf of Permian Basin-specific gas hedges at a NYMEX-equivalent price of approximately $6.14 per Mcf;

--Approximately 390,000 barrels of sour oil at an average NYMEX-equivalent price of approximately $35.66 per barrel; and

--55,000 barrels of NYMEX oil hedges at a price of $36.13 per barrel.

2005 Hedge Position Summary

                                                          NYMEX-equiv.
Resource  Volumes     Est. 2005 Production     % Hedged       price
----------------------------------------------------------------------
Natural  35.4 Bcf   60.8 Bcf(a) 58.0 Bcf(b)   58%(a) 61%(b)   $5.70
 Gas                                                         per Mcf
----------------------------------------------------------------------
Oil       2.3 MMBbl       3.5 MMBbl                65%       $33.25
                                                            per barrel
----------------------------------------------------------------------
NGL      30.2 MMgal   79 MMgal(a) 78 MMgal(b) 38%(a) 40%(b)  $0.485
                                                            per gallon
----------------------------------------------------------------------
(a)  With unidentified 4th quarter 2005 acquisition
(b)  Without unidentified 4th quarter 2005 acquisition
2005 Natural Gas Hedge Position Summary

                                         Assumed Basis     Price/Mcf
Hedge Type                Volumes (Bcf)  Difference(a)   (NYMEX equiv)
----------------------------------------------------------------------
NYMEX Hedges                      16.4             --           $5.98
----------------------------------------------------------------------
San Juan Basin-specific           15.5          $0.80           $5.33
----------------------------------------------------------------------
Permian Basin-specific             1.8          $0.35           $5.96
----------------------------------------------------------------------
SNG-LA                             1.6          $0.04           $6.13
----------------------------------------------------------------------
(a) Assumed basis differentials have been used to calculate
    NYMEX-equivalent prices.
2005 Oil Hedge Position Summary

                                      Assumed Sour Oil    Price/Barrel
Hedge Type       Volumes (MBbl)         Difference(a)    (NYMEX equiv)
----------------------------------------------------------------------
NYMEX Hedges               535                    --           $31.20
----------------------------------------------------------------------
Sour Oil (WTS)           1,723                 $2.90           $33.89
----------------------------------------------------------------------
(a) Assumed sour oil differential has been used to calculate the
    NYMEX-equivalent price.

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.