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News Detail
Energen Adds to 2011, 2012 Hedge Positions
3/31/2010 4:48:00 PM  Click here for a PDF version of this release
BIRMINGHAM, Ala., Mar 31, 2010 (BUSINESS WIRE) --Energen Corporation (NYSE: EGN) announced today that it has sold additional 2011 natural gas liquids (NGL) swaps at an average price of 87 cents per gallon; these new hedges bring the energy company's total 2011 hedge position - natural gas, oil and NGL -- to 63.5 billion cubic feet equivalent (Bcfe) at an average NYMEX-equivalent price of $8.79 per thousand cubic feet equivalent (Mcfe). Energen, through its oil and gas exploration and production company, Energen Resources Corporation, also hedged another 2.3 million barrels (MMBbl) of 2012 oil production at an average NYMEX-equivalent price of $85.40 per barrel. These recent hedges bring the company's 2012 oil hedge position to 3.1 MMBbl at an average NYMEX-equivalent price of $81.56 per barrel, or $13.59 per Mcfe. Energen Resources' 2010 hedge position remains unchanged, with more than 72 percent of its estimated production of 114 Bcfe hedged at an average NYMEX-equivalent price of $9.70 per Mcfe. Oil comprises approximately 30 percent of Energen Resources' estimated 2010 production and is the focus of the company's 2010 drilling capital plans. 2011 Hedge Position Energen Resources' hedge position for 2011 is as follows:
Energen Resources' natural gas and oil hedge positions by hedge type for 2011 are as follows:
2012 Hedge Position Energen Resources' hedge position for 2012 is as follows:
Energen Resources' oil hedge position by hedge type for 2012 is as follows:
2010 Hedge Position Energen Resources' hedge position for 2010 is as follows:
Energen Resources' natural gas and oil hedge positions by hedge type for 2010 are as follows:
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. 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. 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 3.4 trillion cubic feet equivalent of proved, 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. 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. SOURCE: Energen Corporation Energen Corporation |
