News Release

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02/20/18

4Q17 Production Beats Guidance by 14%, Approaches 100 mboepd

2018 Production Estimated to Grow 25% YOY at Midpoint

3-Year Production CAGR (2018-2020) Expected to Exceed 28% Per Year

****NOTE: 4Q17 conference call slides available at www.energen.com****

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Feb. 20, 2018-- Energen Corporation (NYSE: EGN) (“Energen” or the “company”) today announced financial and operating results for the fourth quarter ended December 31, 2017.

FINANCIAL AND OPERATING HIGHLIGHTS

STRONG EXECUTION DRIVES STRONG 4Q17 AND CY17

  • 4Q17 production of 97.4 mboepd exceeded guidance by 14% and surpassed 3Q17 production by 20%.
  • 4Q17 oil production of 58.1 mbopd exceeded guidance by 8% and surpassed 3Q17 oil production by 19%.
  • CY17 production of 76.1 mboepd grew 39% from CY16 on strength of Generation 3 completions and greater activity level.
  • 4Q17 adjusted EBITDAX of $241 mm grew 39% from 3Q17 and beat internal expectations by 24%.
  • Per-unit LOE and net SG&A beat guidance midpoints by 10% and 9%, respectively.
  • Additions in 2017 replaced production by ≈415%, driving 40% increase in YE17 proved reserves.
  • CY17 proved developed F&D cost totaled $8.38/boe.
  • Updated inventory supports net undeveloped resource potential of 2.7 billion BOE.

GEN 3 PATTERN WELLS CONTINUE TO GENERATE OUTSTANDING RESULTS

  • Gen 3 performance drives strong IRRs through higher EURs and/or acceleration.
  • Updated type curves support superior economics.
  • 25 gross/21 net wells turned to production in 4Q17; 64% were multi-zone pattern wells completed in batches.
  • New wells reflect outstanding 24-hr. and 30-day IP rates in Midland and Delaware basins; 4Q17 Delaware Basin wells generated average 24-hour IP rate of 402 boepd/1,000’ and average 30-day IP rate of 272 boepd/1,000’.

BRINGING VALUE FORWARD IN CY18

  • Drilling and development capital (including facilities) estimated to range from $1.1 billion to $1.3 billion.
  • Annual production estimated to range from 91.5-98.5 mboepd.
  • Capital plans include drilling approximately 130 gross/120 net horizontal wells and completing approximately 123 gross/113 net horizontal wells (including 30 gross/28 net DUCs at YE17).

3-YEAR OUTLOOK (2018-2020) LEVERAGES SUPERIOR ECONOMICS TO FURTHER DRIVE SHAREHOLDER VALUE

  • Annual oil production estimated to grow at 3-year CAGR of ≈28%.
  • Annual production estimated to reach ≈160 mboepd in 2020, with 4Q exit rate of ≈170 mboepd.
  • Drilling and development capital estimated to increase to $1.6-$1.8 billion in 2020.
  • YE20 EBITDAX estimated to be ≈$1.6 billion (3-year CAGR: ≈35%).
  • Balance sheet ensures capital flexibility as net debt to EBITDAX expected to remain between 1.0x-1.5x.

Comments from the CEO

“Energen’s breakout year of 2017 culminated with another excellent quarter of execution, growth, and financial strength,” said Energen Chief Executive Officer James McManus. “In the 4th quarter as well as the year, we delivered on our drilling and development plans and exceeded expectations for oil and total production as well as for lease operating and net SG&A expenses.

“As a result of implementing a clearly-defined strategy based on decisions made by the company’s Board and management, Energen is poised to build on its strong performance in 2017. Over the last five years, the Board and management have strategically divested non-core assets and transformed Energen into a low-cost Permian pure-pay with a strong foundation for profitable growth. As we look out over the next three years, we plan to leverage the superior economics of our Permian Basin assets in the Delaware and Midland basins to further drive shareholder value.

“We begin 2018 with a portfolio of high quality, oil-focused assets in the Delaware and Midland basins,” McManus said. “The company is delivering strong returns with the continued implementation of Generation 3 frac designs that are driving significant production growth. At the same, the company remains focused on cost reductions and operating efficiencies and a strong balance sheet that supports growth, capital flexibility, and value creation,” he added.

“Our Gen 3 frac designs are generating strong internal rates of return through higher EURs and/or acceleration, and we estimate that we can generate a 3-year compound annual growth rate (2018-2020) in excess of 28 percent a year while maintaining a net debt to EBITDAX multiple between 1.0x and 1.5x,” McManus said.

“We are extremely pleased with our performance this quarter and confident that Energen is well-positioned to continue delivering strong results and creating shareholder value.”

4Q17 Operations Update

In 4Q17 Energen turned to production 20 gross (16 net) wells in the Midland Basin and 5 gross (5 net) wells in the Delaware Basin. Their early performance continues to reflect outstanding results from Gen 3 frac designs; 64 percent were multi-zone pattern wells completed in batches. During the quarter, Energen operated 6 horizontal drilling rigs and 2 frac crews.

4Q17 Wells Turned to Production

       
Area # Wells

Avg.
Completed
Lateral
Length

 

Avg. Peak 24-Hr IP

Avg. Peak 30-Day IP

      Boepd  

Boepd/
1,000’

  % Oil   Boepd  

Boepd/
1,000’

  % Oil
Delaware Basin   5  

Wolfcamp A (4)
3rd BS Sand (1)

  6,297’   2,529   402   74   1,716   272   73
N. Midland Basin   4  

Wolfcamp A (2)
Wolfcamp B (2)

  7,548‘   1,469   195   90   1,020   135   84
N. Midland Basin   5   Lower Spraberry   7,451‘   1,779   239   93   1,425   191   90
N. Midland Basin *   9  

M. Spraberry (5)
Jo Mill (4)

  7,964‘   867   109   89   676   85   86
C. Midland Basin   2   Wolfcamp A   9,160‘   1,766   193   91   1,159   126   82
         

* Includes a Middle Spraberry well and a Jo Mill well turned to production in late 3Q17 but not previously disclosed due to timing of first production

 

Note: 2 test wells drilled in other formations in the Midland Basin are not included

 

4Q17 Financial Results

For the 3 months ended December 31, 2017, Energen reported GAAP net income from all operations of $262.4 million, or $2.68 per diluted share. Adjusting for a non-cash loss on mark-to-market derivatives of $(37.5 million); a one-time, non-cash tax benefit of $240.1 million resulting from the Tax Cuts and Jobs Act; and miscellaneous non-cash items totaling $(1.4) million: Energen had adjusted net income in 4Q17 of $61.3 million, or $0.63 per diluted share. This compares with an adjusted net loss in 4Q16 of $(26.6 million), or $(0.27) per diluted share. [See “Non-GAAP Financial Measures” beginning on p. 10 for more information and reconciliation.]

Energen’s adjusted 4Q17 net income of $61.3 million exceeded internal expectations by $28.6 million largely due to better-than-expected production; lower-than-expected depreciation, depletion and amortization expense (DD&A), lease operating expense (LOE), and net salaries and general and administrative expense (SG&A); and higher realized oil prices.

Energen’s adjusted EBITDAX in 4Q17 totaled $241.0 million; this was 39 percent higher than adjusted EBITDAX in 3Q17 and 24 percent above internal expectations. In the same period a year ago, Energen’s adjusted EBITDAX totaled $82.1 million. [See “Non-GAAP Financial Measures” beginning on p. 10 for more information and reconciliation.]

4Q17 Production (mboepd)

     
Commodity 4Q17
  Actual

 

Guidance

 

% ∆

Oil   58.1

 

54.0

 

8

NGL   19.4

 

14.9

 

30

Natural Gas   20.0

 

16.8

 

19

Total   97.4

 

85.7

 

14

 
Area 4Q17
  Actual   Guidance   % ∆
Midland Basin   51.7   45.4   14
Delaware Basin   37.4   32.4   15
Platform/Other   8.2   7.8   5
Total   97.4   85.7   14
 

Note: Totals may not sum due to rounding.

 

4Q17 Expenses

 
Per BOE, except where noted 4Q17
  Actual   Guidance Mdpt  

% ∆

LOE (production costs, marketing & transportation)  

$

6.02

*

  $ 6.70     (10 )

Production & ad valorem taxes (% of revenues exc. hedges)

    5.3 %     6.2 %   (15 )
DD&A   $ 14.43     $ 16.30     (11 )
SG&A   $ 2.58     $ 2.85     (9 )
Exploration (includes seismic, delay rentals, etc.)   $ 0.19     $ 0.20     (5 )
Interest ($mm)   $ 10.3     $ 10.0     3  
   

* LOE in the Midland/Delaware basins totaled $4.94/boe

 

4Q17 Average Realized Prices

   
Commodity   With Hedges   W/O Hedges
Oil (per barrel)   $ 50.71   $ 52.75
NGL (per gallon)   $ 0.46   $ 0.52
Natural Gas (per mcf)   $ 2.25   $ 2.08
 

CY17 Financial Results

For CY17, Energen reported GAAP net income from all operations of $306.8 million, or $3.14 per diluted share. Adjusting for a non-cash items, Energen had adjusted net income in CY17 of $73.6 million, or $0.75 per diluted share. This compares with an adjusted net loss in CY16 of $(128.8 million), or $(1.36) per diluted share. Energen’s adjusted EBITDAX in CY17 totaled $653.0 million – more than double the company’s adjusted EBITDAX in CY16 of $293.2 million. [See “Non-GAAP Financial Measures” beginning on p. 10 for more information and reconciliation.]

CY17 Production (mboepd)

     
By Commodity   CY17   CY16*   % ∆
Oil   46.4   34.5   34  
NGL   14.4   9.4   53  
Natural Gas   15.3   10.7   43  
Total   76.1   54.6   39  
 
By Basin   CY17   CY16*   % ∆
Midland Basin   42.4   35.3   20  
Delaware Basin   25.6   10.3   149  
Platform/Other   8.1   9.0   (10 )
Total   76.1   54.6   39  
 

* Excludes 2016 asset sales

Note: Totals may not sum due to rounding

 

CY17 Expenses

     
Per BOE, except where noted   CY17   CY16*   % ∆
LOE (production costs, marketing & transportation)   $ 6.61     $ 7.86     (16 )

Production & ad valorem taxes (% of revenues exc. hedges)

    6.0 %     6.6 %   (9 )
DD&A   $ 17.23     $ 21.45     (20 )
SG&A   $ 3.05     $ 4.32     (29 )
Exploration (includes seismic, delay rentals, etc.)   $ 0.29     $ 0.27     7  
Interest ($mm)   $ 38.4     $ 36.9     4  
 

* Excludes 2016 asset sales

LOE in the Midland and Delaware basins totaled $5.28/boe in CY17, down 15 percent from $6.23/boe in CY16

 

2017 Capital

Drilling and development capital in 2017 totaled $902 million, including $197 million in the fourth quarter. Total capital invested in 2017 including leasehold/mineral acquisitions and FF&E totaled $1.2 billion in 2017 and $217 million in the fourth quarter. During 4Q17, Energen added approximately 1,600 net acres of proved and unproved leasehold for some $16 million.

Liquidity and Leverage Update

At December 30, 2017, Energen had cash of $0.4 million, long-term debt of $527.9 million, and $255.0 million drawn on its $1.05 billion line of credit. The company’s net debt-to-adjusted EBITDAX at year-end 2017 totaled 1.2x.

2018 Overview

Energen plans to invest $1.1 billion to $1.3 billion of capital for drilling and development activities in 2018 (approximately $550-$650 million in each of the Delaware and Midland basins). Approximately 81 percent of the capital will be invested in drilling and developing operated wells; some 13 percent is allocated to saltwater disposal wells and other facilities; and the remainder is expected to be spent on non-operated and other activities. For its unhedged volumes, Energen’s 2018 plans assume recent strip prices of $58 WTI per barrel of oil, $0.65 per gallon of NGL, and $2.75 Henry Hub per Mcf of gas.

The company plans to drill approximately 130 gross/120 net horizontal wells in 2018 and complete approximately 123 gross/113 net horizontal wells, including 30 gross/28 net year-end 2017 drilled but uncompleted wells (DUCs). The working interest of completed wells in 2018 is approximately 90 percent, and the average lateral length is approximately 8,000’. The company estimates its YE18 DUCs will total approximately 37 gross/35 net. Energen also plans to drill 7 gross/7 net vertical wells in the Midland Basin and complete 6 gross/6 net of them.

During 2018, the company plans to run an average of 9 drilling rigs and 4.5 frac crews.

Primary horizontal well targets in 2018 are the Wolfcamp A and B in the Delaware Basin; the Jo Mill, Middle Spraberry, Lower Spraberry and Wolfcamp A and B zones in the northern Midland Basin; and the Wolfcamp A and B in the central Midland Basin. [See 4Q17 conference slides for updated DC&E costs, type curves, EURs, and internal rates of return for Energen’s 2018 program.]

2018 Production Guidance

Energen’s production in 2018 is estimated to range from 91.5-98.5 mboepd, reflecting a 25 percent increase from 2017 at midpoint.

       
Area

2018 Guidance

2018 Guidance 2017 Actual

% Change

   

Range

  Midpoint      

Mdpt. vs Actual

Midland Basin   48.5 - 51.5   50.0   42.4   18
Delaware Basin   37.0 - 39.0   38.0   25.6   48
Platform/Other   6.0 - 8.0   7.0   8.1   (14)
Total   91.5 - 98.5   95.0   76.1   25
 

NOTE: Totals may not sum due to rounding

 
       
Commodity 2018 Guidance 2018 Guidance 2017 Actual

% Change

    Range   Midpoint      

Mdpt. vs Actual

Oil   55.5 - 58.5   57.0   46.4   23
NGL   17.0 - 19.0   18.0   14.4   25
Gas   19.0 - 21.0   20.0   15.3   31
Total   91.5 - 98.5   95.0   76.1   25
 

NOTE: Totals may not sum due to rounding

 
             
Guidance by Basin   1Q18e     2Q18e     3Q18e     4Q18e
Midland Basin   49.5 - 52.5     48.5 - 51.5     46.5 - 49.5     50.0 - 53.0
Delaware Basin   30.0 - 32.0     33.0 - 35.0     37.0 - 39.0     47.5 - 49.5
Platform/Other   6.5 - 8.5     6.0 - 8.0     6.0 - 8.0     6.0 - 8.0
Total   86.0 - 93.0     87.5 - 94.5     89.5 - 96.5     103.5 - 110.5
 

NOTE: Totals may not sum due to rounding

 
             
Guidance by Commodity   1Q18e     2Q18e     3Q18e     4Q18e
Oil   51.5 - 54.5     51.5 - 54.5     54.0 - 57.0     65.0 - 68.0
NGL   16.5 - 18.5     17.0 - 19.0     16.5 - 18.5     18.0 - 20.0
Gas   18.0 - 20.0     19.0 - 21.0     19.0 - 21.0     20.0 - 22.0
Total   86.0 - 93.0     87.5 - 94.5     89.5 - 96.5     103.5 - 110.5
 

NOTE: Totals may not sum due to rounding

 

2018 First Production/Flow back (Operated Horizontal Wells – Gross/Net)

         
    1Q18e   2Q18e   3Q18e   4Q18e   CY18e
Midland Basin   9/8   16/15   15/14   26/22   66/58
Delaware Basin   4/4   12/10   14/13   21/21   51/48
 

NOTE: Totals may not sum due to rounding

 

2018 Expenses

Energen expects most of its per-unit expenses to continue declining year-over-over in 2018 as production increases. LOE per boe in CY18 is estimated to range from $5.05-$5.25 in the Midland Basin, $5.35-$5.55 in the Delaware Basin, and $21.55-$21.75 in the Central Basin Platform/Northeast Shelf areas (“Platform”). Net SG&A per boe in CY18 is estimated to be comprised of cash of $1.85-$2.05 per boe and non-cash, equity-based compensation of $0.45-$0.65 per boe.

   
Per BOE, except where noted   2018e   CY17 Actual
LOE (production costs, marketing & transportation)   $6.40 - $6.60   $6.61
Production & ad valorem taxes (% of revenues, excluding hedges)   6.2%   6.0%
DD&A expense   $14.00 - $14.50   $17.23
Salaries and general & administrative expense, net   $2.30 - $2.70   $3.05
Exploration expense (seismic, delay rentals, etc.)   $0.15 - $0.20   $0.29
Interest expense ($MM)   $46.5 - $51.5   $38.4
FF&E depreciation ($MM)   $4.0 - $5.0   $ 4.6
Accretion of discount on ARO ($MM)   $5.5 - $7.0   $5.8
Effective tax rate (%)   22% - 24%   37%
 
       
Per BOE, except where noted   1Q18e   2Q18e   3Q18e   4Q18e
LOE   $6.20 - $6.40   $6.75 - $6.95   $6.55 - $6.75   $6.15 - $6.35
Production & ad valorem taxes*   6.4%   6.2%   6.2%   6.2%
DD&A expense   $14.70 - $15.20   $14.45 - $14.95   $13.85 - $14.35   $13.15 - $13.65
SG&A, net   $2.80 - $3.20   $2.40 - $2.80   $2.30 - $2.70   $1.80 - $2.20
Exploration expense   $0.15 - $0.20   $0.15 - $0.20   $0.15 - $0.20   $0.15 - $0.20
Effective tax rate (%)   22% - 24%   22% - 24%   22% - 24%   22% - 24%
 

* % of revenues, excluding hedges

 

3-Year Outlook

Energen’s management believes the quality of its deep inventory in the Permian Basin supports a 3-year compound annual production growth rate of more than 28 percent a year (2018-2020). This growth comes as Energen maintains an outstanding balance sheet while increasing capital investment to bring forward the value of its inventory. Energen estimates that its annual production will grow from 95 mboepd (at guidance midpoint) in 2018 to more than 160 mboepd in 2020 and that 4Q production will increase from 107 mboepd (at guidance midpoint) in 2018 to approximately 135 mboepd in 2019 and 170 mboepd in 2020.

At recent strip prices, Energen estimates that its capital plans support annual investment in drilling and development activities in a range of $1.4-$1.6 billion in 2019 and $1.6-$1.8 billion in 2020. Energen’s EBITDAX at year-end 2020 is estimated to be approximately $1.6 billion, representing a 3-year CAGR of approximately 35 percent a year. (Oil prices used in the 3-year outlook reflect recent strip prices of $58 per barrel in 2018, $54 in 2019, and $52 in 2020).

YE17 Proved Reserves Increase 40% to 444 MMBOE

Energen’s proved reserves at year-end 2017 totaled 444 mmboe, up approximately 40 percent from year-end 2016. Reserve additions of 115.5 mmboe replaced production by 415 percent and were driven by an active drilling and completion program in the Midland and Delaware basins that featured Gen 3 frac designs. Proved reserves in the Delaware Basin alone rose 177 percent. The CY17 proved developed finding and development (F&D) cost totaled $8.38 per boe.

Proved developed F&D per boe is defined as exploration and development costs divided by the sum of reserves associated with discoveries and extensions placed on production during 2017, transfers from proved undeveloped reserves at year-end 2016, and revisions (excluding price-related revisions) of previous estimates of proved developed reserves in 2017.

Commodity prices used for calculating reserves at year-end 2017 were higher than those at year-end 2016. WTI oil prices rose 20 percent to $51.34, while NGL prices (before transportation and fractionation) increased 46 percent to 57 cents per gallon and Henry Hub natural gas prices increased 20 percent to 2.98 per thousand cubic feet (Mcf).

Proved Reserves by Basin (MMBOE)

           
2017 2017 2017
Basin YE16

2017

Acquisitions/ Additions Price/Other YE17
       

Production

  (Divestitures)       Revisions    
Midland Basin   236.4   (15.5 )   --   49.0   23.9   293.8
Delaware Basin   39.1   (9.4 )   0.2   66.3   11.8   108.1
Platform/Other   40.9   (3.0 )   --   0.1   4.1   41.1
TOTAL   316.3   (27.8 )   0.2   115.5   39.8   444.0
 

NOTE: Totals may not sum due to rounding

 

Proved Reserves by Commodity (MMBOE)

   
Commodity   2017   2016
Oil   257   200
Natural gas liquids   91   58
Natural gas   96   58
TOTAL   444   316
 

NOTE: Totals may not sum due to rounding

 

YE17 3P Reserves & Contingent Resources (MMBOE)

         
Basin Proved Probable Possible Contingent Total
                Resources    
Midland Basin   294   154   130   979   1,557
Delaware Basin   108   40   46   1,243   1,437
Platform/Other   42   --   --   1   43
TOTAL   444   194   176   2,223   3,037

 

NOTE: Totals may not sum due to rounding

 

The definitions of probable and possible reserves and contingent resources imply different probabilities of potential recovery in each classification; the quantities reported here are unrisked and based on the company’s estimate of current costs to drill wells in each basin and bring associated production to market. [See Cautionary Statements on p. 9].

Hedges

Energen entered 2018 with 13.5 mmbo, or 65 percent of its estimated production guidance midpoint, hedged with 3-way collars at an average call price of $60.04 per barrel. Approximately 38 percent of its estimated NGL volumes has been hedged an average price of $0.59 per gallon; and some 8 percent of its gas volumes has been hedged at an average NYMEX-equivalent price of $3.56 per Mcf.

Energen also has hedged the WTI Midland to WTI Cushing differential for 10.8 million barrels, or 58 percent of its estimated sweet oil production, at an average price of $(1.01) per barrel.

2018 Hedges

     
Oil   2018 Hedge Volumes   % Hedged   Avg. NYMEX Price
Three-way Collars   13.5 mmbo   65%    
Call Price           $ 60.04 per barrel
Put Price           $ 45.47 per barrel
Short Put Price           $ 35.47 per barrel
 
     
Commodity   2018 Hedge Volumes   % Hedged   Avg. NYMEXe Price
NGL   105.8 mm gallons   38%   $ 0.59 per gallon
Natural Gas   3.6 bcf   8%   $ 3.56 per mcf
 

Energen’s average realized prices in 2018 will reflect commodity and basis hedges, oil transportation charges of approximately $1.95 per barrel, NGL T&F fees of approximately $0.14 per gallon, and basis differentials applicable to unhedged production. Gas and NGL production also are subject to percent of proceeds contracts of approximately 85%.

The assumed natural gas basis for 2018 is $(1.00) per Mcf, and the assumed WTI Midland to WTI Cushing basis differential is $(1.15). Assumed prices for unhedged volumes in 2018 are $58/barrel, $0.65/gallon, and $2.75 per Mcf.

All 2018 hedges are pro rata throughout the year.

Estimated Price Realizations (pre-hedge):

   
    CY18e   1Q18e
Crude oil (% of NYMEX/WTI)   95 %   96 %
NGL (after T&F) (% of NYMEX/WTI)   32 %   33 %
Natural gas (% of NYMEX/Henry Hub)   52 %   59 %
 

2019 Hedges

   
Oil   2019 Hedge Volumes   Avg. NYMEX Price
Three-way Collars   5.4 mmbo    
Call Price       $ 61.53 per barrel
Put Price       $ 45.67 per barrel
Short Put Price       $ 35.67 per barrel
 

In addition, Energen has hedges in place for 25.2 million gallons of 2019 NGL production at an average price of $0.66 per gallon and has hedged the Midland to Cushing differential on approximately 5.0 million barrels of its 2019 oil production at an average price of $(0.44).

Conference Call

4Q17 slides associated with Energen’s quarterly release and conference call are available at www.energen.com. Energen will hold its quarterly conference call Tuesday, February 20, at 8:30 a.m. ET. Investment community members may participate by calling 1-877-407-8289 (reference Energen earnings call). A live audio Webcast of the program as well as a replay may be accessed via www.energen.com.

Energen Corporation is an oil-focused exploration and production company with operations in the Permian Basin in west Texas and New Mexico. For more information, go to www.energen.com.

FORWARD LOOKING STATEMENTS: All statements, other than statements of historical fact, appearing in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements about our expectations, beliefs, intentions or business strategies for the future, statements concerning our outlook with regard to the timing and amount of future production of oil, natural gas liquids and natural gas, price realizations, the nature and timing of capital expenditures for exploration and development, plans for funding operations and drilling program capital expenditures, the timing and success of specific projects, operating costs and other expenses, proved oil and natural gas reserves, liquidity and capital resources, outcomes and effects of litigation, claims and disputes and derivative activities. Forward-looking statements may include words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “foresee”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “seek”, “will” or other words or expressions concerning matters that are not historical facts. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this news release. Except as otherwise disclosed, the forward-looking statements do not reflect the impact of possible or pending acquisitions, investments, divestitures or restructurings. The absence of errors in input data, calculations and formulas used in estimates, assumptions and forecasts cannot be guaranteed. We base our forward-looking statements on information currently available to us, and we undertake no obligation to correct or update these statements whether as a result of new information, future events or otherwise. Additional information regarding our forward‐looking statements and related risks and uncertainties that could affect future results of Energen, can be found in the Company’s periodic reports filed with the Securities and Exchange Commission and available on the Company’s website - www.energen.com.

CAUTIONARY STATEMENTS: The SEC permits oil and gas companies to disclose in SEC filings only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. Outside of SEC filings, we use the terms “estimated ultimate recovery” or “EUR,” reserve or resource “potential,” “contingent resources” and other descriptions of volumes of non-proved reserves or resources potentially recoverable through additional drilling or recovery techniques. These estimates are inherently more speculative than estimates of proved reserves and are subject to substantially greater risk of actually being realized. We have not risked EUR estimates, potential drilling locations, and resource potential estimates. Actual locations drilled and quantities that may be ultimately recovered may differ substantially from estimates. We make no commitment to drill all of the drilling locations that have been attributed these quantities. Factors affecting ultimate recovery include the scope of our on-going drilling program, which will be directly affected by the availability of capital, drilling, and production costs, availability of drilling and completion services and equipment, drilling results, lease expirations, regulatory approvals, and geological and mechanical factors. Estimates of unproved reserves, type/decline curves, per-well EURs, and resource potential may change significantly as development of our oil and gas assets provides additional data. Additionally, initial production rates contained in this news release are subject to decline over time and should not be regarded as reflective of sustained production levels.

Financial, operating, and support data pertaining to all reporting periods included in this release are unaudited and subject to revision.

 

Non-GAAP Financial Measures

 
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, income (loss) associated with divestitures, and the benefit of the Tax Cut and Jobs Act. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
 
   
Three Months Ended 12/31/17
Energen Net Income ($ in millions except per share data)   Net Income  

Per Diluted

Share

Net Income (Loss) All Operations (GAAP) 262.4   2.68
Non-cash mark-to-market losses (net of $20.6 tax) 37.5 0.38
Asset impairment, other (net of $0.8 tax) 1.4 0.01
Benefit of Tax Cuts and Jobs Act   (240.1 )     (2.45 )
Adjusted Income from Continuing Operations (Non-GAAP)   61.3       0.63  
 
       
Three Months Ended 12/31/16
Energen Net Income ($ in millions except per share data)   Net Income  

Per Diluted

Share

Net Income (Loss) All Operations (GAAP) (54.5 ) (0.56 )
Non-cash mark-to-market losses (net of $12.5 tax) 22.8 0.23
Asset impairment, other (net of $0.0 tax) * nm nm
Loss associated with property sales (net of $1.3 tax)   5.0       0.05  
Adjusted Income from Continuing Operations (Non-GAAP)   (26.6 )     (0.27 )
 

Note: Amounts may not sum due to rounding

 

*Approximately $25,000 (net of tax)

 
 

Non-GAAP Financial Measures

 
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, certain prior period losses associated with a reduction in force, pension settlement expenses, income associated with divestitures, and the benefit of the Tax Cut and Jobs Act. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
 
       
Year Ended 12/31/17
Energen Net Income ($ in millions except per share data)   Net Income  

Per Diluted

Share

Net Income (Loss) All Operations (GAAP) 306.8   3.14
Non-cash mark-to-market losses (net of $3.8 tax) 6.9 0.07
Asset impairment, other (net of $1.4 tax) 2.4 0.03
Income associated with property sales (net of $2.0 tax)

(2.5

)

 

(0.03

)

 

Benefit of Tax Cuts and Jobs Act  

(240.1

)

 

(2.46

)

 

Adjusted Income from Continuing Operations (Non-GAAP)   73.6     0.75  
 
     
Year Ended 12/31/16
Energen Net Income ($ in millions except per share data)   Net Income  

Per Diluted

Share

Net Income (Loss) All Operations (GAAP) (167.5 ) (1.77 )
Non-cash mark-to-market losses (net of $25.3 tax) 45.9 0.49
Asset impairment, other (net of $67.5 tax) 121.7 1.29
Income associated with property sales (net of $76.1 tax) (134.6 ) (1.42 )
Pension settlement expenses (net of $1.2 tax) 2.2 0.02
Reduction in force expenses (net of $1.9 tax)   3.5     0.04  
Adjusted Income from Continuing Operations (Non-GAAP)   (128.8 )   (1.36 )
 

Note: Amounts may not sum due to rounding

 
 

Non-GAAP Financial Measures

 
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes impairment losses, certain non-cash mark-to-market derivative financial instruments, and income (loss) associated with divestitures. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
 
   
Reconciliation To GAAP Information Three Months Ended 12/31
($ in millions)   2017   2016
 
Energen Net Income (Loss) (GAAP) 262.4 (54.5 )
Loss associated with property sales, net of tax   0.0     5.0  
Net Income (Loss) Excluding Property Sales (Non-GAAP)   262.4     (49.5 )
Interest expense 10.3 9.0
Income tax expense (benefit) ** (225.8 ) (21.5 )
Depreciation, depletion and amortization 130.4 103.4
Accretion expense 1.5 1.6
Exploration expense 1.7 3.6
Adjustment for asset impairment 2.2 nm
Adjustment for mark-to-market (gains)/ losses   58.2     35.3  
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)   241.0     82.1  
 

Note: Amounts may not sum due to rounding

 

** Amount adjusted to exclude 2016 property sales in prior period.  See reconciliation to GAAP Information for the Three Months Ended 12/31/2016.

 
 

Non-GAAP Financial Measures

 
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes impairment losses, certain non-cash mark-to-market derivative financial instruments, prior period losses associated with a reduction in force, pension settlement expenses, and income associated with divestitures. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
 
   
Reconciliation To GAAP Information Year Ended 12/31
($ in millions)   2017   2016
 
Energen Net Income (Loss) (GAAP) 306.8 (167.5 )
Income associated with property sales, net of tax*   (2.5 )   (134.6 )
Net Income (Loss) Excluding Property Sales (Non-GAAP)   304.3     (302.1 )
Interest expense 38.4 36.9
Income tax expense (benefit) ** (201.4 ) (155.7 )
Depreciation, depletion and amortization ** 483.4 433.4
Accretion expense ** 5.8 6.2
Exploration expense ** 7.9 5.3
Adjustment for asset impairment 3.8 189.2
Adjustment for mark-to-market (gains)/ losses 10.8 71.2
Adjustment for pension settlement expenses 0.0 3.3
Adjustment for reduction in force expenses   0.0     5.5  
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)   653.0     293.2  
 

Note: Amounts may not sum due to rounding

 

*For quarter to quarter comparability, excluded from GAAP income in the current quarter is an immaterial sale of certain unproved leasehold properties in Wyoming.

 

** Amount adjusted to exclude 2016 property sales in prior period.  See reconciliation to GAAP Information for the Year Ended 12/31/2016.

 
 

Non-GAAP Financial Measures

 
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with 2016 property sales provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
 
     
Energen Net Income (Loss) Excluding 2016 Property Sales
Reconciliation to GAAP Information Three Months Ended
December 31, 2016
(in thousands except per share and production data)          
GAAP   2016 Property Sales   Non-GAAP
Revenues
Oil, natural gas liquids and natural gas sales $ 162,992 $ 42 $ 162,950
Gain (loss) on derivative instruments     (48,472 )     -       (48,472 )
Total Revenues     114,520       42       114,478  
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production 38,867 258 38,609
Production and ad valorem taxes 9,516 209 9,307
O&G Depreciation, depletion and amortization 102,230 - 102,230
FF&E Depreciation, depletion and amortization 1,167 - 1,167
Asset impairment 40 - 40
Exploration 3,635 - 3,635
General and administrative 20,906 1 20,905
Accretion of discount on asset retirement obligations 1,580 - 1,580
(Gain) loss on sale of assets and other     5,175       5,889       (714 )
Total costs and expenses     183,116       6,357       176,759  
Operating Income (Loss)     (68,596 )     (6,315 )     (62,281 )
Other Income/(Expense)
Interest expense (9,041 ) - (9,041 )
Other income     398       8       390  
Total other expense     (8,643 )     8       (8,651 )
 
Loss Before Income Taxes (77,239 ) (6,307 ) (70,932 )
Income tax expense (benefit)     (22,769 )     (1,293 )     (21,476 )
Net Income (Loss)   $ (54,470 )   $ (5,014 )   $ (49,456 )
             
Diluted Earnings Per Average Common Share   $ (0.56 )   $ (0.05 )   $ (0.51 )
             
Basic earning Per Average Common Share   $ (0.56 )   $ (0.05 )   $ (0.51 )
 
Oil 2,944 1 2,943
NGL 892 1 891
Natural Gas     1,084       -       1,084  
Total Production (mboe)     4,920       2       4,918  
Total Production (boepd)     53,478       22       53,457  
 
Note: Amounts may not sum due to rounding
 
 

Non-GAAP Financial Measures

 
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with 2016 property sales provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
 
     
Energen Net Income (Loss) Excluding 2016 Property Sales
Reconciliation to GAAP Information Year Ended
December 31, 2016
(in thousands except per share and production data)          
GAAP   2016 Property Sales   Non-GAAP
Revenues
Oil, natural gas liquids and natural gas sales $ 621,366 $ 29,808 $ 591,558
Gain (loss) on derivative instruments     (88,477 )     -       (88,477 )
Total Revenues     532,889       29,808       503,081  
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production 171,714 14,784 156,930
Production and ad valorem taxes 42,938 3,589 39,349
O&G Depreciation, depletion and amortization 443,007 14,366 428,641
FF&E Depreciation, depletion and amortization 4,954 153 4,801
Asset impairment 220,652 31,407 189,245
Exploration 5,415 117 5,298
General and administrative 95,689 523 95,166
Accretion of discount on asset retirement obligations 6,672 501 6,171
(Gain) loss on sale of assets and other     (246,922 )     (246,283 )     (639 )
Total costs and expenses     744,119       (180,843 )     924,962  
Operating Income (Loss)     (211,230 )     210,651       (421,881 )
Other Income/(Expense)
Interest expense (36,899 ) - (36,899 )
Other income     978       58       920  
Total other expense     (35,921 )     58       (35,979 )
 
Loss Before Income Taxes (247,151 ) 210,709 (457,860 )
Income tax expense (benefit)     (79,638 )     76,102       (155,740 )
Net Income (Loss)   $ (167,513 )   $ 134,607     $ (302,120 )
             
Diluted Earnings Per Average Common Share   $ (1.77 )   $ 1.43     $ (3.20 )
             
Basic earning Per Average Common Share   $ (1.77 )   $ 1.43     $ (3.20 )
 
Oil 13,213 597 12,616
NGL 3,892 432 3,460
Natural Gas     4,534       629       3,905  
Total Production (mboe)     21,639       1,658       19,981  
Total Production (boepd)     59,123       4,530       54,593  
 
Note: Amounts may not sum due to rounding
 
   

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 3 months ending December 31, 2017 and 2016

 
4th Quarter
 
(in thousands, except per share data)   2017   2016   Change
 
Revenues
Oil, natural gas liquids and natural gas sales $ 343,226 $ 162,992 $ 180,234
Loss on derivative instruments, net     (71,430 )     (48,472 )     (22,958 )
 
Total revenues     271,796       114,520       157,276  
 
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production 53,951 38,867 15,084
Production and ad valorem taxes 18,083 9,516 8,567
Depreciation, depletion and amortization 130,419 103,397 27,022
Asset impairment 82 40 42
Exploration 3,816 3,635 181

General and administrative (including stock-based compensation of $4,301 and $5,148 for the three months ended December 31, 2017, and 2016, respectively)

23,158

20,906

2,252

Accretion of discount on asset retirement obligations 1,501 1,580 (79 )
(Gain) loss on sale of assets and other, net     (6,031 )     5,175       (11,206 )
 
Total operating costs and expenses     224,979       183,116       41,863  
 
Operating Income (Loss)     46,817       (68,596 )     115,413  
 
Other Income (Expense)
Interest expense (10,327 ) (9,041 ) (1,286 )
Other income     131       398       (267 )
 
Total other expense     (10,196 )     (8,643 )     (1,553 )
 
Income (Loss) Before Income Taxes 36,621 (77,239 ) 113,860
Income tax benefit     (225,809 )     (22,769 )     (203,040 )
 
Net Income (Loss)   $ 262,430     $ (54,470 )   $ 316,900  
                   
Diluted Earnings Per Average Common Share   $ 2.68     $ (0.56 )   $ 3.24  
Basic Earnings Per Average Common Share   $ 2.70     $ (0.56 )   $ 3.26  
Diluted Average Common Shares Outstanding     97,831       97,074       757  
Basic Average Common Shares Outstanding     97,202       97,074       128  
 
   

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 12 months ending December 31, 2017 and 2016

 
Year-to-date
 
(in thousands, except per share data)   2017   2016   Change
 
Revenues
Oil, natural gas liquids and natural gas sales $ 987,438 $ 621,366 $ 366,072
Loss on derivative instruments, net     (26,393 )     (88,477 )     62,084  
 
Total revenues     961,045       532,889       428,156  
 
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production 183,697 171,714 11,983
Production and ad valorem taxes 59,447 42,938 16,509
Depreciation, depletion and amortization 483,376 447,961 35,415
Asset impairment 1,671 220,652 (218,981 )
Exploration 10,075 5,415 4,660
General and administrative (including stock-based compensation of $15,402 and $19,641 for the years ended December 31, 2017, and 2016, respectively)

 

84,823

 

95,689

 

(10,866

 

)

Accretion of discount on asset retirement obligations 5,831 6,672 (841 )
Gain on sale of assets and other, net     (13,011 )     (246,922 )     233,911  
 
Total operating costs and expenses     815,909       744,119       71,790  
 
Operating Income (Loss)     145,136       (211,230 )     356,366  
 
Other Income (Expense)
Interest expense (38,366 ) (36,899 ) (1,467 )
Other income     617       978       (361 )
 
Total other expense     (37,749 )     (35,921 )     (1,828 )
 
Income (Loss) Before Income Taxes 107,387 (247,151 ) 354,538
Income tax benefit     (199,441 )     (79,638 )     (119,803 )
 
Net Income (Loss)   $ 306,828     $ (167,513 )   $ 474,341  
                   
Diluted Earnings Per Average Common Share   $ 3.14     $ (1.77 )   $ 4.91  
Basic Earnings Per Average Common Share   $ 3.16     $ (1.77 )   $ 4.93  
Diluted Average Common Shares Outstanding     97,707       94,476       3,231  
Basic Average Common Shares Outstanding     97,182       94,476       2,706  
 
   

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2017 and 2016

 
 

 

           
(in thousands)   December 31, 2017  

December 31, 2016

 
 
ASSETS
Current Assets
Cash and cash equivalents $ 439 $ 386,093
Accounts receivable, net 158,787 73,322
Inventories, net 13,177 14,222
Derivative instruments 50
Income tax receivable 6,905 27,153
Prepayments and other     12,085     5,071
 
 
Total current assets     191,393     505,911
 
 
Property, Plant and Equipment
Oil and natural gas properties, net 4,718,939 4,016,683
Other property and equipment, net     44,581     44,869
 
 
Total property, plant and equipment, net     4,763,520     4,061,552
 
 
Other postretirement assets 2,646 3,619
Noncurrent derivative instruments 70,716
Other assets     5,620     8,741
 
 
TOTAL ASSETS   $ 5,033,895   $ 4,579,823
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities
Long-term debt due within one year $ $ 24,000
Accounts payable 75,167 65,031
Accrued taxes 2,631 7,252
Accrued wages and benefits 26,170 25,089
Accrued capital costs 74,909 79,988
Revenue and royalty payable 54,072 51,217
Derivative instruments 71,379 65,467
Other     17,916     20,160
 
 
Total current liabilities     322,244     338,204
 
 
Long-term debt 782,861 527,443
Asset retirement obligations 88,378 81,544
Noncurrent derivative instruments 8,886 3,006
Deferred income taxes 387,807 495,888
Other long-term liabilities     5,262     13,136
 
 
Total liabilities     1,595,438     1,459,221
 
 
Total Shareholders’ Equity     3,438,457     3,120,602
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 5,033,895   $ 4,579,823
 
     

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2017 and 2016

 
 
4th Quarter
 

(in thousands, except sales price and per unit data)

  2017   2016   Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil $ 281,818 $ 134,112 $ 147,706
Natural gas liquids 38,522 14,068 24,454
Natural gas     22,886     14,812     8,074
Total $ 343,226 $ 162,992 $ 180,234
 
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil $ (53,388) $ (23,704) $ (29,684)
Natural gas liquids (4,863) (5,914) 1,051
Natural gas     54     (5,712)     5,766
Total   $ (58,197)   $ (35,330)   $ (22,867)
 
Closed gains (losses) on derivative instruments
Oil $ (10,894) $ (12,380) $ 1,486
Natural gas liquids (4,312) (4,312)
Natural gas     1,973     (762)     2,735
Total   $ (13,233)   $ (13,142)   $ (91)
Total revenues   $ 271,796   $ 114,520   $ 157,276
 
Production volumes
Oil (MBbl) 5,343 2,944 2,399
Natural gas liquids (MMgal) 74.8 37.5 37.3
Natural gas (MMcf)     11,028     6,504     4,524
Total production volumes (MBOE)     8,961     4,920     4,041
 
Average daily production volumes

Oil (MBbl/d)

58.1

 

32.0

26.1

Natural gas liquids (MMgal/d) 0.8 0.4 0.4
Natural gas (MMcf/d)     119.9     70.7     49.2
Total average daily production volumes (MBOE/d)     97.4     53.5     43.9
 
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel) $ 50.71 $ 41.35 $ 9.36
Natural gas liquids (per gallon) $ 0.46 $ 0.38 $ 0.08
Natural gas (per Mcf) $ 2.25 $ 2.16 $ 0.09
 
Average realized prices excluding effects of all derivative instruments
Oil (per barrel) $ 52.75 $ 45.55 $ 7.20
Natural gas liquids (per gallon) $ 0.52 $ 0.38 $ 0.14
Natural gas (per Mcf) $ 2.08 $ 2.28 $ (0.20)
 
Costs per BOE
Oil, natural gas liquids and natural gas production expenses

$

6.02

$

7.90

$

(1.88)

Production and ad valorem taxes $ 2.02 $ 1.93 $ 0.09
Depreciation, depletion and amortization $ 14.55 $ 21.02 $ (6.47)
Exploration expense $ 0.43 $ 0.74 $ (0.31)
General and administrative $ 2.58 $ 4.25 $ (1.67)
Capital expenditures (including acquisitions)   $ 217,475   $ 154,455   $ 63,020
 
   
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending December 31, 2017 and 2016
 
           
Year-to-date
 
(in thousands, except sales price and per unit data)   2017   2016   Change
Operating and production data
Oil, natural gas liquids and natural gas sales
Oil $ 814,470 $ 521,017 $ 293,453
Natural gas liquids 98,298 48,652 49,646
Natural gas     74,670       51,697       22,973  
Total $ 987,438 $ 621,366 $ 366,072
 
Open non-cash mark-to-market gains (losses) on derivative instruments
Oil $ (10,658 ) $ (57,148 ) $ 46,490
Natural gas liquids (9,011 ) (6,868 ) (2,143 )
Natural gas     8,910       (7,174 )     16,084  
Total   $ (10,759 )   $ (71,190 )   $ 60,431  
 
Closed gains (losses) on derivative instruments
Oil $ (11,364 ) $ (17,701 ) $ 6,337
Natural gas liquids (7,780 ) (7,780 )
Natural gas     3,510       414       3,096  
Total   $ (15,634 )   $ (17,287 )   $ 1,653  
Total revenues   $ 961,045     $ 532,889     $ 428,156  
 
Production volumes
Oil (MBbl) 16,951 13,213 3,738
Natural gas liquids (MMgal) 220.7 163.5 57.2
Natural gas (MMcf)     33,528       27,204       6,324  
Total production volumes (MBOE) 27,794       21,639       6,155  
 
Average daily production volumes

Oil (MBbl/d)

46.4

 

36.1

10.3

Natural gas liquids (MMgal/d) 0.6 0.4 0.2
Natural gas (MMcf/d)     91.9       74.3       17.6  
Total average daily production volumes (MBOE/d)     76.1       59.1       17.0  
 
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments
Oil (per barrel) $ 47.38 $ 38.09 $ 9.29
Natural gas liquids (per gallon) $ 0.41 $ 0.30 $ 0.11
Natural gas (per Mcf) $ 2.33 $ 1.92 $ 0.41
 
Average realized prices excluding effects of all derivative instruments
Oil (per barrel) $ 48.05 $ 39.43 $ 8.62
Natural gas liquids (per gallon) $ 0.45 $ 0.30 $ 0.15
Natural gas (per Mcf) $ 2.23 $ 1.90 $ 0.33
 
Costs per BOE
Oil, natural gas liquids and natural gas production expenses

$

6.61

$

7.94

$

(1.33

)

Production and ad valorem taxes $ 2.14 $ 1.98 $ 0.16
Depreciation, depletion and amortization $ 17.39 $ 20.70 $ (3.31 )
Exploration expense $ 0.36 $ 0.25 $ 0.11
General and administrative $ 3.05 $ 4.42 $ (1.37 )
Capital expenditures (includes acquisitions)   $ 1,189,342     $ 582,898     $ 606,444  
 

Source: Energen Corporation

Energen Corporation
Julie S. Ryland, 205-326-8421