Energen Resources Adds Gas, Oil Hedges for 2005.

Energy Editors/Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--March 8, 2004

Energen Corporation (NYSE:EGN) today announced that its oil and gas acquisition and development company, Energen Resources Corporation, has hedged an additional 4.2 billion cubic feet (Bcf) of its 2005 natural gas production at a New York Mercantile Exchange (NYMEX)-equivalent price of $5.51 per thousand cubic feet (Mcf). The Company also initiated a hedge position for its 2005 oil production by selling contracts for 300,000 barrels of oil at a NYMEX-equivalent price of $30.50 per barrel.

With the addition of today's San Juan Basin-specific hedges, Energen Resources' total natural gas hedge position for 2005 is approximately 11.4 Bcf at a NYMEX-equivalent price of $4.94 per Mcf. These hedges represent some 17 percent of the Company's estimated 2005 natural gas production of 65.8 Bcf (including unidentified acquisitions). The hedges include approximately 1.2 Bcf of contracts at a NYMEX price of $3.75 per Mcf and approximately 10.2 Bcf of San Juan Basin-specific contracts at an average NYMEX-equivalent price of $5.07 per Mcf. Energen Resources' assumed basis differential for San Juan Basin gas is 81 cents per Mcf.

Energen Resources' oil hedge position represents just under 9 percent of its estimated 2005 oil production of 3.5 million barrels (including unidentified acquisitions). Energen Resources' natural gas liquids production in 2005 is not hedged at present.

The Company continues to monitor the commodity price environment and remains prepared to enter into additional oil and gas hedges in the coming months, in keeping with its past hedging practices.

Energen's earnings guidance for 2005 continues to be $3.50-$3.70 per diluted share and assumes that prices applicable to Energen Resources' unhedged production will average $5.25 per Mcf for gas, $28 per barrel for oil, and 46.5 cents per gallon for NGL.

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.