Diversified energy holding company Energen Corp. added to its 2006 natural gas hedge position and as a result, raised its earnings forecast for next year by 10 cents to a range of between $3.05-3.35/share. Prior guidance, issued Aug. 1, was $2.95-3.25.

The company, headquartered in Birmingham, AL, hedged an additional 5.43 Bcf its 2006 natural gas production at a New York Mercantile Exchange-equivalent price of $9.14/Mcf. Energen’s total natural gas hedge position for 2006 now stands at approximately 38.2 Bcf at an average Nymex-equivalent price of $7.62/Mcf. The latest hedges mostly complete Energen’s gas and oil hedging programs until after January 2006, at which time additional hedges may be sold without incurring inter-year, mark-to-market net income variances.

Embedded in Energen’s 2006 earnings guidance is the assumption that average Nymex prices applicable to its unhedged natural gas and oil production will average $7/Mcf and $45/bbl. The assumed average price for unhedged natural gas liquids (NGL) production in 2006 is approximately 70 cents/gallon. Also included in the company’s 2006 guidance is an estimated 8 cent/share from unidentified oil and gas property acquisitions of approximately $200 million each in the fourth quarters of 2005 and 2006.

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