Energen Resources adds 2003 gas hedges

BIRMINGHAM, Ala., May 16, 2002 — Energen Corp announced that its oil and gas acquisition and exploitation subsidiary, Energen Resources Corp., has again capitalized on commodity price volatility by adding to its natural gas hedge position for 2003.

The 40 new natural gas contracts in each of the 12 months of 2003 represent 4.8 billion cubic feet (Bcf) of production at an average New York Mercantile Exchange (NYMEX) price of $4.10 per thousand cubic feet (Mcf).

Including the new hedges, Energen Resources now has 6.7 Bcf of gas, or approximately 13 percent of its estimated 2003 gas production of 50.5 Bcf, hedged at an average NYMEX price of approximately $4.07 per Mcf. At present, the company’s estimated oil production remains unhedged.

The Company said that Energen’s earnings guidance for 2003 should not be impacted materially by these additional hedges. Energen’s earnings guidance for 2003 assumes average NYMEX prices for its unhedged gas and oil production of $3.65 per Mcf and $23 per barrel, respectively. Management also noted that it continues to monitor the commodity price environment and remains prepared to capitalize on future volatility by entering into additional 2003 hedges, in keeping with its past hedging practices.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are natural gas distribution in central and north Alabama and the acquisition, exploitation, exploration and production of natural gas, oil and natural gas liquids onshore in North America. Additional information on Energen is available at www.energen.com .


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