Birmingham, Alabama-based Energen Resources Corporation, the oil and gas exploration and production subsidiary of Energen Corporation, contributes approximately 85 percent of Energen's consolidated net income and is the dominant driver of corporate growth.

In the five years ending December 31, 2009, Energen Resources' net income has grown at an annual compound rate of approximately 17.8 percent and is the primary reason Energen’s common stock generated a total shareholder return in 2009 of 61.6 percent.

As a result of financial strength and capital discipline, Energen Resources enjoyed a successful 2009 that included the acquisition of an excellent oil property in the Permian Basin with current production and significant upside potential. Importantly, at a time when credit markets were tight, Energen Resources was able to fund the acquisition with internally generated cash. 

A major contributor to Energen Resources’ overall financial strength is a long-standing practice of hedging to limit the impact of commodity price volatility on earnings and cash flows. More than 72 percent of Energen Resources’ estimated 2010 production of 114 billion cubic feet equivalent is hedged at above-market prices.

Energen Resources has approximately 3.4 trillion cubic feet equivalent of proved and unproved reserves located in the San Juan Basin in New Mexico and Colorado, the Permian Basin in west Texas, the Black Warrior Basin in Alabama and the North Louisiana/East Texas area.

A Top 25* independent U.S. oil and gas exploration and production company, Energen Resources also is pursuing the potential of the Conasauga and Chattanooga shales in Alabama.

* On the basis of U.S. proved reserves