Energen Corp. on Tuesday forecast earnings in the range of $4.65-4.85/share in 2006, assuming that average New York Mercantile Exchange prices for unhedged natural gas will average $6.15/Mcf and oil production will average $35/bbl. Energen has hedged 10% of its estimated 2006 gas production and increased its oil hedge position.

Included in the company’s 2006 guidance is an estimated 16 cents per diluted share from unidentified oil and gas property acquisitions of approximately $200 million each in 4Q2005 and 4Q2006. Energen’s 2006 production is forecast to total approximately 101 Bcfe, which is broken down as 65.6 Bcf of gas, including 6.9 Bcf from unidentified acquisitions in 2005 and 2006; and 3.8 million bbl of oil, including 0.3 million bbl from unidentified acquisitions in 2005 and 2006.

“Our 2006 price assumptions leave a lot of potential for commodity price-driven earnings upside given that current 2006 strip prices are approximately $44.50 per barrel for oil and $6.50 per Mcf for natural gas,” said CEO Mike Warren. “In 2006 Energen once again will look to its oil and gas acquisition and development subsidiary, Energen Resources Corp., as the company’s growth driver. We also plan to continue relying on Alagasco, our strong natural gas utility, to contribute moderate earnings growth and provide the majority of dividend income for our shareholders.”

The company on Tuesday added its first natural gas hedges for 2006, selling contracts for approximately 5.9 Bcf (0.49 Bcf per month) of San Juan Basin-specific gas at a Nymex-equivalent price of $6.52/Mcf. It also has doubled its oil hedge position for 2006 with the addition of contracts for 360,000 bbl (30,000 bbl per month) of sour oil at a Nymex-equivalent price of $43.41/bbl.

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