Energen’s oil and gas exploration and production subsidiary, Energen Resources Corporation, is a Top 20 U.S. independent producer on the basis of domestic reserves. Energen Resources contributes 85 percent of Energen's net income and is the primary driver of corporate growth…past, present and future.

The bulk of Energen Resources’ 1.7 trillion cubic feet equivalent of natural gas, oil and natural gas liquids reserves is in the San Juan Basin in New Mexico, the Permian Basin in west Texas, and the Black Warrior Basin in Alabama. Energen Resources also has another 1.9 Tcfe of probable and possible reserves and is pursuing the exploration of multiple shale opportunities in Alabama in conjunction with Chesapeake Energy Corporation.

Over the last 12 years, Energen Resources has invested approximately $2.7 billion to acquire and develop 2.6 Tcfe of U.S. reserves. The company’s reserve additions have added 54 percent to its as-acquired reserves and outpaced cumulative production of more than 850 billion cubic feet equivalent.

Over the next several years, Energen Resources expects to generate organic production growth of 4 percent to 5 percent a year by accelerating the development of its probable and possible reserve inventory. And, during 2008, Energen Resources and Chesapeake Energy plan to undertake a 5- to 10-well test program to help define the productive potential of their extensive joint acreage position in Alabama shales.