Energen Initiates 2010 Natural Gas Hedging

BIRMINGHAM, Ala.--(Business Wire)--
Energen Corporation (NYSE: EGN) announced today that its oil and
gas exploration and production subsidiary, Energen Resources
Corporation, has hedged 6.6 billion cubic feet of its 2010 San Juan
Basin natural gas production at an average NYMEX-equivalent price of
$9.14 per thousand cubic feet (Mcf). The 55 contracts per month are
Energen Resources' first hedges for its 2010 natural gas production.
The assumed basis differential used to calculate the NYMEX-equivalent
price is $1.03 per Mcf.

Energen Resources previously disclosed that it has hedges in place
for 720,000 barrels of its 2010 oil production at a NYMEX price of
$81.20 per barrel.

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.

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

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