Energen Initiates Hedging for 2007.

BIRMINGHAM, Ala. -- Energen Corporation (NYSE:EGN) announced today that it has entered into its first hedge contracts applicable to the 2007 production of its oil and gas acquisition and exploitation company, Energen Resources Corporation (ERC).

The Company today sold contracts for 3 billion cubic feet of ERC's 2007 natural gas production at a NYMEX-equivalent price of approximately $9.72 per thousand cubic feet.

"Energen's long-held practice is to hedge future production to take advantage of attractive commodity prices," said Mike Warren, Energen's chairman and chief executive officer. "We are not trying to be market-timers, but we do plan to lock-in the benefits of current high prices."

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 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.