A replay of the conference call will be available approximately two hours following its conclusion. A link to the live broadcast and the replay will be available on Energen's Web site at http://www.energen.com. Institutional investors can access the call via Thomson/CCBN's password-protected event management site, StreetEvents, at www.streetevents.com.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.75 Tcfe of proved reserves and 1.9 Tcfe of probable and possible reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at www.energen.com.

SOURCE: Energen Corporation

Energen Corporation
Julie S. Ryland, 205-326-8421

"As I'm sure you are well aware, oil and gas market prices have surged. We have capitalized on this upward momentum over the past six months by strengthening our hedge position for 2009 and 2010 production; in this way, we are helping lock in earnings and cash flow growth for the next several years," McManus said.

"In recognition of the market strength of commodity prices, we also are raising the prices we assume for our unhedged production in our earnings models; this, in turn, is leading us to increase our earnings guidance ranges for 2008 and 2009 by 20 cents per diluted share," McManus added. "Energen's new guidance for 2008 earnings is $4.15-$4.55 per diluted share; and we estimate that 2009 earnings -- stimulated by organic production growth of some 6-8 percent -- will range from $4.65-$5.05 per diluted share.

"Our new price assumptions are still well below current strip pricing and leave the door wide open to commodity price-driven earnings upside," McManus added. "Based on the estimated sensitivity of our earnings to commodity price changes - data we routinely incorporate with earnings guidance - it is clear that, at current strip prices for the rest of 2008 and for 2009, Energen could easily generate additional price-driven earnings of 35 cents per diluted share in 2008 and more than 75 cents per diluted share in 2009. (Calculations based on average NYMEX natural gas prices of $11 per Mcfe for the remainder of 2008 and $10.50 per Mcfe for 2009, and on average NYMEX oil prices of $115 per barrel for the remainder of 2008 and $110 per barrel for 2009).

"Energen continues to benefit from the accelerated development of our unproved reserve base, and the annual review of our year-end reserves once again supported 1.9 trillion cubic feet equivalent (Tcfe) of probable and possible reserves in our existing areas of operation," McManus said. "This is an encouraging development given that approximately 125 billion cubic feet equivalent (Bcfe) of our reserves were reclassified as 'proved' in 2007. In addition, these numbers have been adjusted downward to reflect the sale just last month of a small Permian Basin oil property with an estimated 65 Bcfe of probable and possible reserves.

"Energen Resources Corporation, our oil and gas exploration and production unit, is continuing to focus on ways to extend the accelerated pace of drilling on our properties to bring the remaining unproved reserves to production as quickly as possible," McManus said.

"Meanwhile, our net acreage position in multiple Alabama shale plays has grown to approximately 315,000 acres, and drilling activities continue on our first three test wells in Bibb and Greene counties," he added. "As you know, we do not plan to disclose results on a well-by-well basis; rather, our plans are to work as thoroughly and expediently as possible and to announce our findings when sufficient data has been gathered."

FIRST QUARTER 2008 RESULTS

For the three months ended March 31, 2008, Energen's net income totaled $116.7 million, or $1.62 per diluted share, and compares with first quarter 2007 net income of $103.9 million, or $1.44 per diluted share.

Energen Resources Corporation

Energen Resources' net income for the first three months of 2008 totaled $72.5 million and compared with $63.2 million in the same period last year. This increase largely reflects the impact of higher average realized sales prices for Energen Resources' oil and natural gas liquids (NGL) production, a $6.4 million gain on the sale of 4.4 Bcfe of proved oil reserves in the Permian Basin, and a 3 percent increase in production.

Average Realized Sales Prices, First Quarter Comparison

       Commodity             1Q2008          1Q2007         Change
----------------------------------------------------------------------
Natural Gas (per Mcf)              $7.97          $7.93             1%
----------------------------------------------------------------------
Oil (per barrel)                  $67.90         $58.36            16%
----------------------------------------------------------------------
NGL (per gallon)                   $1.04          $0.80            30%
----------------------------------------------------------------------

Production, First Quarter Comparison

       Commodity             1Q2008          1Q2007         Change
----------------------------------------------------------------------
Natural Gas (Bcf)                   16.4            15.5           6%
----------------------------------------------------------------------
Oil (MBbl)                           944             927           2%
----------------------------------------------------------------------
NGL (MMgal)                         16.7            18.9         (12)%
----------------------------------------------------------------------
Total (Bcfe)                        24.5            23.8           3%
----------------------------------------------------------------------

Production By Area (Bcfe), First Quarter Comparison

            Area                 1Q2008         1Q2007       Change
----------------------------------------------------------------------
San Juan Basin                         12.0           11.5         4%
----------------------------------------------------------------------
Permian Basin                           6.8            6.8         0%
----------------------------------------------------------------------
Black Warrior Basin                     3.5            3.6        (3)%
----------------------------------------------------------------------
N. LA/E. TX/Other                       2.2            1.9        16%
----------------------------------------------------------------------

Per-unit lease operating expense (LOE) increased to $2.44 per thousand cubic feet equivalent (Mcfe) from $1.99 per Mcfe in the same period a year ago. This 23 percent increase largely was due to a 36 percent rise in commodity price-driven production taxes and to increased compression, increased workover expense, weather-related road maintenance, and increased environmental compliance expense.

Depreciation, depletion and amortization expense (DD&A) per unit in the first quarter of 2008 increased 11 percent over the same period last year to $1.21 per Mcfe largely due to higher development costs.

Alabama Gas Corporation

Energen's natural gas utility, Alabama Gas Corporation (Alagasco), generated net income of $43.7 million in the first quarter of 2008 as compared with $40.3 million in the same period a year ago. This increase primarily was due to the utility's earning on a higher level of equity; a decrease in customer usage was largely offset by the timing of operations and maintenance expense.

TRAILING 12-MONTHS RESULTS

For the 12 months ended March 31, 2008, Energen's net income totaled $322.0 million, or $4.47 per diluted share, and compared with $290.0 million, or $3.99 per diluted share, for the same period a year ago. The prior-year period included a $34.5 million, or 47 cents per diluted share, gain from the sale of one-half of its acreage position in Alabama shales to Chesapeake Energy Corporation, and a $6.7 million, or 9 cents per diluted share, gain from the settlement of its Enron bankruptcy claim.

Energen Resources Corporation

Energen Resources' net income for the trailing 12 months totaled $282.6 million as compared with $251.0 million in the same period a year ago. The prior-year period included $41.2 million of one-time gains associated with the sale of one-half of its acreage position in Alabama shales and the settlement of its Enron bankruptcy claim.

In addition to a $6.4 million gain on the sale of Permian Basin properties during the first quarter of 2008, Energen Resources benefited in the current 12-months' period from increased average realized sales prices and higher production, partially offset by increased LOE and DD&A.

Average Realized Sales Prices, T12M Comparison

       Commodity               2008            2007         Change
----------------------------------------------------------------------
Natural Gas (per Mcf)               $7.78          $7.05           10%
----------------------------------------------------------------------
Oil (per barrel)                   $67.11         $52.93           27%
----------------------------------------------------------------------
NGL (per gallon)                    $0.95          $0.71           34%
----------------------------------------------------------------------

Production, T12M Comparison

       Commodity               2008            2007          Change
----------------------------------------------------------------------
Natural Gas (Bcf)                    65.2            63.0          3%
----------------------------------------------------------------------
Oil (MBbl)                        3,897.0           3,654          7%
----------------------------------------------------------------------
NGL (MMgal)                          75.1            78.6         (4)%
----------------------------------------------------------------------
Total (Bcfe)                         99.3            96.2          3%
----------------------------------------------------------------------

Per-unit LOE totaled $2.16 per Mcfe in the 12 months ending March 31, 2008, up 12.5 percent from $1.92 per Mcfe in the same period a year ago; this increase largely was due to higher production taxes, additional compression and a general rise in field service costs.

DD&A expense per unit in the 12 months ended March 31, 2008, increased 14 percent over the same period last year from $1.02 per Mcfe to $1.16 per Mcfe, largely due to higher development costs.

Alabama Gas Corporation

Alagasco generated net income in the 12 months ended March 31, 2008, of $40.2 million as compared with $40.3 million in the same period a year ago.

2008 EARNINGS GUIDANCE RANGE INCREASED

Energen today raised its 2008 earnings guidance range by 20 cents to $4.15 to $4.55 per diluted share; the new guidance captures:

-- Higher price assumptions for Energen Resources' unhedged production for the remainder of the year;

-- First quarter results, including the $6.4 million gain on the sale of 4.4 Bcfe of Permian Basin properties;

-- A 1 Bcfe reduction in production largely due to the first quarter property sale and the impact of severe winter weather in the San Juan Basin; and

-- Anticipated declines in customer usage at Alagasco in the fourth quarter of 2008.

Energen's earnings guidance does not include potential benefits from property acquisitions, Alabama shales exploration or stock repurchases. The guidance also makes no assumption related to the potential impairment of $34 million of capitalized unproved leasehold related to Alabama shales.

Key assumptions in Energen's 2008 budget are:

-- A hedge position that covers approximately 76 percent of estimated production for the remaining nine months of the year;

-- Assumed prices for unhedged natural gas, oil and NGL production of $8.50 per Mcf, $85 per barrel and $1.12 per gallon, respectively;

-- Production of 101 Bcfe;

-- Capital spending of $400 million, including approximately $330 million by Energen Resources and $70 million by Alagasco;

-- An average DD&A rate at ERC of $1.26 per Mcfe;

-- LOE at ERC, including production taxes, of $2.31 per Mcfe;

-- General and administrative expense at ERC of 50 cents per Mcfe;

-- Alagasco's earning an estimated 12.6 percent on average equity of approximately $311 million;

-- Average diluted shares outstanding of 72.1 million.

2008 Hedge Position Summary

Energen Resources' hedge position for the remaining nine months of 2008 is as follows:

  Commodity    Hedge Volumes  2008e Production Hedge %  NYMEXe Price
----------------------------------------------------------------------
Natural Gas          38.0 Bcf         50.2 Bcf     76%       $8.61/Mcf
----------------------------------------------------------------------
Oil                 2.4 MMBbl        3.1 MMBbl     78%   $70.72/barrel
----------------------------------------------------------------------
NGL                35.7 MMgal       51.7 MMgal     69%    $0.96/gallon
----------------------------------------------------------------------


NOTE: Known basis differentials for April included

Energen Resources' natural gas and oil hedge positions by type for the remaining nine months of 2008 are as follows:

Natural Gas Hedges  Volumes (Bcf) Assumed Differential  NYMEXe Price
----------------------------------------------------------------------
San Juan Basin               24.0   $1.20 per Mcf        $8.68 per Mcf
----------------------------------------------------------------------
NYMEX                        14.0                   --   $8.51 per Mcf
----------------------------------------------------------------------


NOTE: Known basis differentials for April included

Oil Hedges     Volumes (MBbl) Assumed Differential    NYMEXe Price
----------------------------------------------------------------------
Sour Oil (WTS)          1,922   $5.55 per barrel     $69.36 per barrel
----------------------------------------------------------------------
NYMEX                     533                   --   $75.61 per barrel
----------------------------------------------------------------------

NOTE: Known basis differentials for April included

Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.

For production associated with basin-specific contracts, Energen Resources 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 Energen Resources' assumed basis differentials.

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources' hedge position for the remainder of 2008 and using the price assumptions given above for the Company's unhedged production, changes in commodity prices over the next nine months are estimated to have the following impact on Energen's 2008 earnings:

-- Every 10-cent change in the average NYMEX price of gas from $8.50 represents an estimated net income impact of approximately $775,000 (1.0 cent per diluted share).

-- Every $1.00 change in the average NYMEX price of oil from $85.00 per barrel represents an estimated net income impact of approximately $300,000 (0.4 cents per diluted share).

-- Every 1-cent change in the average price of liquids from $1.12 per gallon represents an estimated net income impact of approximately $68,000 (0.1 cents per diluted share).

Price-related events such as substantial basis differential changes could cause earnings sensitivities to be materially different from those outlined above.

2009 EARNINGS GUIDANCE RANGE RAISED

Energen today also increased its 2009 earnings guidance range by 20 cents as a result of increasing its underlying assumption for commodity prices applicable to unhedged production. The adjusted guidance range also incorporates the Company's most recent hedges.

The new range is $4.65-$5.05 per diluted share and provides a better, although still conservative, reflection of the market's expectations of continued commodity price strength into 2009.

Energen's earnings guidance does not include potential benefits from property acquisitions, Alabama shales exploration or stock repurchases. The guidance also makes no assumption related to the potential impairment of $34 million of capitalized unproved leasehold related to Alabama shales.

Key assumptions in Energen's 2009 earnings guidance:

-- Existing hedge position covering approximately 61 percent of estimated 2009 production;

-- Assumed prices for unhedged natural gas, oil and NGL production of $8.50 per Mcf, $85 per barrel and $1.105 per gallon, respectively;

-- Production of 108 Bcfe;

-- Capital spending of $345 million, including approximately $270 million by Energen Resources and $75 million by Alagasco;

-- An average DD&A rate at Energen Resources of $1.36 per Mcfe;

-- LOE at Energen Resources, including production taxes, of $2.30 per Mcfe;

-- General and administrative expense at Energen Resources of 51 cents per Mcfe;

-- Alagasco's earning within its allowed range of return on average equity of approximately $323 million; and

-- Average diluted shares outstanding of 72.3 million.

2009 Hedge Position Summary

Energen Resources' 2009 hedge position by commodity is as follows:

  Commodity    Hedge Volumes  2009e Production Hedge %  NYMEXe Price
----------------------------------------------------------------------
Natural Gas          43.8 Bcf         69.5 Bcf     63%       $8.76/Mcf
----------------------------------------------------------------------
Oil                 2.7 MMBbl        4.8 MMBbl     56%   $72.73/barrel
----------------------------------------------------------------------
NGL                43.3 MMgal       68.0 MMgal     64%    $1.15/gallon
----------------------------------------------------------------------

Energen Resources' 2009 natural gas and oil hedge positions by hedge type are as follows:

                                       Assumed
Natural Gas Hedges Volumes (Bcf)     Differential      NYMEXe Price
----------------------------------------------------------------------
San Juan Basin               28.4   $1.10 per Mcf      $8.87 per Mcf
----------------------------------------------------------------------
Permian Basin                 1.2   $0.96 per Mcf      $8.63 per Mcf
----------------------------------------------------------------------
NYMEX                        14.2                 --   $8.55 per Mcf
----------------------------------------------------------------------


                                       Assumed
    Oil Hedges     Volumes (MBbl)    Differential      NYMEXe Price
----------------------------------------------------------------------
Sour Oil (WTS)              2,136   $5.15 per barrel $69.79 per barrel
----------------------------------------------------------------------
NYMEX                         564                 -- $83.89 per barrel
----------------------------------------------------------------------

Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.

For production associated with basin-specific contracts, Energen Resources 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 Energen Resources' assumed basis differentials.

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources' current hedge position for 2009 and using the price assumptions given above for the Company's unhedged production, changes in commodity prices are estimated to have the following impact on Energen's 2009 earnings:

-- Every 10-cent change in the average NYMEX price of gas from $8.50 represents an estimated net income impact of approximately $1.2 million (1.7 cents per diluted share).

-- Every $1.00 change in the average NYMEX price of oil from $85.00 per barrel represents an estimated net income impact of approximately $1.2 million (1.7 cents per diluted share).

-- Every 1-cent change in the average price of liquids from $1.105 per gallon represents an estimated net income impact of approximately $115,000 (0.2 cents per diluted share).

Price-related events such as substantial basis differential changes could cause earnings sensitivities to be materially different from those outlined above.

2010 HEDGE POSITION CONTINUES TO BUILD

Energen continues to add to its 2010 hedge position. At present, the Company has hedged 36.6 Bcf of natural gas production at an average NYMEX-equivalent price of $9.29 per Mcf and 1.7 million barrels of oil production at an average NYMEX-equivalent price of $92.38 per barrel. Energen Resources' 2010 natural gas and oil hedge positions by hedge type are as follows:

  Natural Gas                         Assumed
      Hedges      Volumes (Bcf)     Differential       NYMEXe Price
----------------------------------------------------------------------
San Juan Basin              25.8   $1.13 per Mcf      $9.29 per Mcf
----------------------------------------------------------------------
NYMEX                       10.8                 --   $9.28 per Mcf
----------------------------------------------------------------------


----------------------------------------------------------------------
                                      Assumed
   Oil Hedges     Volumes (MBbl)    Differential       NYMEXe Price
----------------------------------------------------------------------
Sour Oil (WTS)               960   $5.30 per barrel $100.77 per barrel
----------------------------------------------------------------------
NYMEX                        720                 -- $81.20 per barrel
----------------------------------------------------------------------

Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. For production associated with basin-specific contracts, Energen Resources 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 Energen Resources' assumed basis differentials.

PROBABLE, POSSIBLE RESERVES UPDATE

An update of Energen Resources' probable and possible reserves shows that the Company's unproved reserve inventory remains an estimated 1.9 Tcfe, with probable reserves totaling 638 Bcfe and possible reserves totaling 1,257 Bcfe. These reserves do not include an estimated 65 Bcfe of probable and possible reserves associated with a Permian Basin property that was sold during the first quarter of 2008, nor do these numbers include any reserve potential associated with the Company's pursuit of natural gas in Alabama shales.

The estimated unrisked cost for Mcfe is well under $2 per unit: $1.23 per Mcfe of probable reserves and $1.01 per Mcfe of possible reserves. Applying the Company's own risking to its unproved inventory, the total cost per Mcfe is an estimated $1.57 per Mcfe.

The Company cannot include such information about unproved reserve potential in its financial statements and notes filed with the Securities and Exchange Commission.

Location, Amount and Estimated Finding Cost of Reserves (Bcfe) --
 Unrisked

                     Proved @        Probable           Possible
    Basin/Area       12/31/07(a)     Reserves(a)        Reserves(a)
----------------------------------------------------------------------
                                 Quantity Unit Cost Quantity Unit Cost
----------------------------------------------------------------------
San Juan                     943      304     $1.25      811     $0.85
----------------------------------------------------------------------
Permian                      498      292     $1.14      398     $1.25
----------------------------------------------------------------------
Black Warrior                234       17     $0.66       30     $0.97
----------------------------------------------------------------------
N. LA/E. TX/Other             74       25     $2.29       18     $2.72
----------------------------------------------------------------------
Total                      1,749      638     $1.23    1,257     $1.01
----------------------------------------------------------------------

(a) As of December 31, 2007, pro forma for 1Q08 Permian Basin property
 sale

The definitions of probable and possible reserves imply different probabilities of potential recovery in each classification; the quantities reported here are unrisked. All the estimates were prepared by Energen Resources' technical staff and were 100 percent reviewed by independent reservoir engineers. The same commodity prices used to calculate year-end 2007 proved reserves were applied in establishing the Company's probable and possible reserves.

Additional investment is necessary to develop the Company's probable and possible reserve inventory. The per-unit cost estimates in the table are unrisked and are based on the Company's best estimate of current costs to drill wells in each basin/area and bring associated production to market. Future development costs are dependent on the timing of development.

Previously reported proved reserves were based on Security and Exchange Commission (SEC) definitions. Since the SEC does not define unproved reserves, Energen Resources follows definitions for probable and possible reserves provided by the Petroleum Resources Management System.

Probable reserves are those that analysis of geoscience and engineering data indicate are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated proved plus probable reserves. In this context, when probabilistic methods are used, there should be at least a 50 percent probability that the actual quantities recovered will equal or exceed the estimate.

Possible Reserves are those that analysis of geoscience and engineering data suggests are less likely to be recoverable than probable reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of proved plus probable plus possible reserves, which is equivalent to the high estimate scenario. In this context, when probabilistic methods are used, there should be at least a 10 percent probability that the actual quantities recovered will equal or exceed the estimate.

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.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.75 Tcfe of proved reserves and 1.9 Tcfe of probable and possible reserves in the San Juan, Permian and Black Warrior basins. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at http://www.energen.com.

            CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
           For the 3 months ending March 31, 2008 and 2007


======================================================================
                                              1st Quarter
                                          -------------------

(in thousands, except per share data)       2008      2007     Change
======================================================================


Operating Revenues
Oil and gas operations                    $224,895  $194,033  $30,862
Natural gas distribution                   296,751   298,628   (1,877)
----------------------------------------------------------------------


       Total operating revenues            521,646   492,661   28,985
----------------------------------------------------------------------


Operating Expenses
Cost of gas                                161,389   168,138   (6,749)
Operations & maintenance                    86,552    82,043    4,509
Depreciation, depletion and amortization    42,416    38,020    4,396
Taxes, other than income taxes              34,905    30,312     4593
Accretion expense                            1,045       950       95
----------------------------------------------------------------------


       Total operating expenses            326,307   319,463    6,844
----------------------------------------------------------------------


Operating Income                           195,339   173,198   22,141
----------------------------------------------------------------------


Other Income (Expense)
Interest expense                           (11,122)  (12,221)   1,099
Other income                                   244       561     (317)
Other expense                                 (596)     (195)    (401)
----------------------------------------------------------------------


       Total other expense                 (11,474)  (11,855)     381
----------------------------------------------------------------------


Income from Continuing Operations Before
 Income Taxes                              183,865   161,343   22,522
Income tax expense                          67,177    57,462    9,715
----------------------------------------------------------------------


Income from Continuing Operations          116,688   103,881   12,807
----------------------------------------------------------------------


Discontinued Operations, Net of Taxes
Income from discontinued operations              -         1       (1)
Gain on disposal of discontinued
 operations                                      -         -        -
----------------------------------------------------------------------


Income from Discontinued Operations              -         1       (1)
----------------------------------------------------------------------


Net Income                                $116,688  $103,882  $12,806
======================================================================


Diluted Earnings Per Average Common Share
Continuing operations                     $   1.62  $   1.44  $  0.18
Discontinued operations                          -         -        -
----------------------------------------------------------------------


Net Income                                $   1.62  $   1.44  $  0.18
======================================================================


Basic Earnings Per Average Common Share
Continuing operations                     $   1.63  $   1.45  $  0.18
Discontinued operations                          -         -        -
----------------------------------------------------------------------


Net Income                                $   1.63  $   1.45  $  0.18
======================================================================


Diluted Avg. Common Shares Outstanding      72,125    72,124        1
======================================================================

Basic Avg. Common Shares Outstanding        71,637    71,482      155
======================================================================

Dividends Per Common Share                $   0.12  $  0.115  $ 0.005
======================================================================

            CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)2
           For the 12 months ending March 31, 2008 and 2007


======================================================================
                                       Trailing 12 Months
                                     -----------------------

(in thousands, except per share data)   2008        2007       Change
======================================================================


Operating Revenues
Oil and gas operations               $  856,454  $  755,056  $101,398
Natural gas distribution                607,591     643,449   (35,858)
----------------------------------------------------------------------


       Total operating revenues       1,464,045   1,398,505    65,540
----------------------------------------------------------------------


Operating Expenses
Cost of gas                             311,680     347,185   (35,505)
Operations & maintenance                337,952     309,717    28,235
Depreciation, depletion and
 amortization                           165,773     145,809    19,964
Taxes, other than income taxes          100,424      93,360     7,064
Accretion expense                         4,043       3,671       372
----------------------------------------------------------------------


       Total operating expenses         919,872     899,742    20,130
----------------------------------------------------------------------


Operating Income                        544,173     498,763    45,410
----------------------------------------------------------------------


Other Income (Expense)
Interest expense                        (46,001)    (47,696)    1,695
Other income                              2,351         865     1,486
Other expense                            (1,360)     (1,072)     (288)
----------------------------------------------------------------------


       Total other expense              (45,010)    (47,903)    2,893
----------------------------------------------------------------------


Income from Continuing Operations
 Before Income Taxes                    499,163     450,860    48,303
Income tax expense                      177,144     160,957    16,187
----------------------------------------------------------------------


Income from Continuing Operations       322,019     289,903    32,116
----------------------------------------------------------------------


Discontinued Operations, Net of Taxes
Income from discontinued operations           2           2         -
Gain on disposal of discontinued
 operations                                  18          53       (35)
----------------------------------------------------------------------


Income from Discontinued Operations          20          55       (35)
----------------------------------------------------------------------


Net Income                           $  322,039  $  289,958  $ 32,081
======================================================================


Diluted Earnings Per Average Common
 Share
Continuing operations                $     4.47  $     3.99  $   0.48
Discontinued operations                       -           -         -
----------------------------------------------------------------------


Net Income                           $     4.47  $     3.99  $   0.48
======================================================================


Basic Earnings Per Average Common
 Share
Continuing operations                $     4.49  $     4.02  $   0.47
Discontinued operations                       -           -         -
----------------------------------------------------------------------


Net Income                           $     4.49  $     4.02  $   0.47
======================================================================


Diluted Avg. Common Shares
 Outstanding                             72,088      72,674      (586)
======================================================================

Basic Avg. Common Shares Outstanding     71,650      72,138      (488)
======================================================================

Dividends Per Common Share           $    0.465  $    0.445  $   0.02
======================================================================

              SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
           For the 3 months ending March 31, 2008 and 2007


======================================================================
                                               1st Quarter
                                            -----------------

(in thousands, except sales price data)       2008     2007    Change
======================================================================


Oil and Gas Operations
Operating revenues
   Natural gas                              $130,954 $123,225 $ 7,729
   Oil                                        64,099   54,084  10,015
   Natural gas liquids                        17,446   15,042   2,404
   Other                                      12,396    1,682  10,714
----------------------------------------------------------------------


          Total                             $224,895 $194,033 $30,862
----------------------------------------------------------------------


Production volumes from continuing
 operations
   Natural gas (MMcf)                         16,427   15,547     880
   Oil (MBbl)                                    944      927      17
   Natural gas liquids (MMgal)                  16.7     18.9    (2.2)

Production volumes from continuing ops.
 (MMcfe)                                      24,483   23,806     677
Total production volumes (MMcfe)              24,483   23,805     678

Revenue per unit of production including
 effects of all derivative instruments
   Natural gas (Mcf)                        $   7.97 $   7.93 $  0.04
   Oil (barrel)                             $  67.90 $  58.36 $  9.54
   Natural gas liquids (gallon)             $   1.04 $   0.80 $  0.24

Other data from continuing operations
   Lease operating expense (LOE)
       LOE and other                        $ 43,135 $ 35,409 $ 7,726
       Production taxes                       16,576   12,011   4,565
----------------------------------------------------------------------


          Total                             $ 59,711 $ 47,420 $12,291
----------------------------------------------------------------------


   Depreciation, depletion and amortization $ 30,396 $ 26,473 $ 3,923
   General and administrative expense       $ 11,899 $ 13,792 $(1,893)
   Capital expenditures                     $ 74,397 $ 53,395 $21,002
   Exploration expenditures                 $    349 $     97 $   252
   Operating income                         $121,495 $105,301 $16,194
======================================================================


Natural Gas Distribution
Operating revenues
   Residential                              $199,575 $203,798 $(4,223)
   Commercial and industrial                  77,505   77,722    (217)
   Transportation                             15,503   14,567     936
   Other                                       4,168    2,541   1,627
----------------------------------------------------------------------


          Total                             $296,751 $298,628 $(1,877)
----------------------------------------------------------------------

Gas delivery volumes (MMcf)
   Residential                                11,531   11,579     (48)
   Commercial and industrial                   4,976    4,872     104
   Transportation                             14,297   13,420     877
----------------------------------------------------------------------


         Total                                30,804   29,871     933
----------------------------------------------------------------------


Other data
   Depreciation and amortization            $ 12,020 $ 11,547 $   473
   Capital expenditures                     $ 13,070 $ 14,967 $(1,897)
   Operating income                         $ 74,488 $ 68,437 $ 6,051
======================================================================

              SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
           For the 12 months ending March 31, 2008 and 2007


======================================================================
                                          Trailing 12 Months
                                          ------------------

(in thousands, except sales price data)      2008     2007     Change
======================================================================


Oil and Gas Operations
Operating revenues
   Natural gas                             $507,135 $444,701 $ 62,434
   Oil                                      261,512  193,401   68,111
   Natural gas liquids                       71,027   55,623   15,404
   Other                                     16,780   61,331  (44,551)
----------------------------------------------------------------------


          Total                            $856,454 $755,056 $101,398
----------------------------------------------------------------------


Production volumes from continuing
 operations
   Natural gas (MMcf)                        65,180   63,044    2,136
   Oil (MBbl)                                 3,897    3,654      243
   Natural gas liquids (MMgal)                 75.1     78.6     (3.5)

Production volumes from continuing ops.
 (MMcfe)                                     99,283   96,193    3,090
Total production volumes (MMcfe)             99,283   96,191    3,092

Revenue per unit of production including
 effects of all derivative instruments
   Natural gas (Mcf)                       $   7.78 $   7.05 $   0.73
   Oil (barrel)                            $  67.11 $  52.93 $  14.18
   Natural gas liquids (gallon)            $   0.95 $   0.71 $   0.24

Other data
   Lease operating expense (LOE)
       LOE and other                       $156,006 $136,400 $ 19,606
       Production taxes                      58,363   48,427    9,936
----------------------------------------------------------------------


          Total                            $214,369 $184,827 $ 29,542
----------------------------------------------------------------------


   Depreciation, depletion and
    amortization                           $118,164 $100,764 $ 17,400
   General and administrative expense      $ 48,971 $ 39,714 $  9,257
   Capital expenditures                    $400,481 $268,168 $132,313
   Exploration expenditures                $  3,146 $  4,169 $ (1,023)
   Operating income                        $467,761 $421,911 $ 45,850
======================================================================


Natural Gas Distribution
Operating revenues
   Residential                             $384,068 $411,358 $(27,290)
   Commercial and industrial                164,686  175,065  (10,379)
   Transportation                            50,191   47,782    2,409
   Other                                      8,646    9,244     (598)
----------------------------------------------------------------------


          Total                            $607,591 $643,449 $(35,858)
----------------------------------------------------------------------

Gas delivery volumes (MMcf)
   Residential                               20,617   22,204   (1,587)
   Commercial and industrial                 10,697   11,157     (460)
   Transportation                            52,324   50,821    1,503
----------------------------------------------------------------------


         Total                               83,638   84,182     (544)
----------------------------------------------------------------------


Other data
   Depreciation and amortization           $ 47,609 $ 45,045 $  2,564
   Capital expenditures                    $ 56,965 $ 72,279 $(15,314)
   Operating income                        $ 78,793 $ 78,984 $   (191)
======================================================================

SOURCE: Energen Corporation

Energen Corporation
Julie S. Ryland, 205-326-8421

The oil and gas company attributed the higher earnings to the rise in commodity prices, an after-tax gain of $6.4 million on the sale of one of its oil fields and a 3% increase in production.

The mean estimate of analysts polled by Thomson Reuters was for earnings of $1.54 a share.

Energen raised its 2008 and 2009 earnings guidance by 20 cents a share. It is forecasting current year earnings in the range of $4.15 to $4.55 a share. For 2009, it now sees earnings between $4.65 and $5.05 a share, driven by organic production growth expected to be in the region of 6% to 8%.

The Thomson Reuters mean estimate is for 2008 earnings of $4.42 a share and 2009 earnings of $4.78 a share.

Energen shares rose 1.5% to $72.21 in late morning trading. mark.cotton@thomsonreuters.com mc1/vj

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MMMM

SOURCE: Energen Corporation

Energen Corporation
Julie S. Ryland, 205-326-8421