Energen Affirms 2009 Profit Outlook

BIRMINGHAM, Ala. (AP) — Oil and natural gas producer Energen Corp. on Wednesday reaffirmed its full-year earnings outlook and provided 2009 production estimates.

The company said it still expects 2009 profit to range between $3.10 and $3.50 per share, based on average price assumptions for its unhedged volumes of $6 per one thousand cubic feet (Mcf) of natural gas, $50 per barrel for oil and 65 cents per gallon for natural gas liquids.

Analysts surveyed by Thomson Reuters have estimated a profit of $3.24 per share, on average.

Production for the full year will likely rise 4 percent to about 106.5 billion cubic feet of natural gas equivalent (Bcfe), the company said. This growth is expected despite a sharply scaled back capital spending program, which will be about half the company's 2008 level. The 2009 capital budget is estimated at about $305 million.

Energen also said Wednesday that its first-quarter profit dropped 18 percent to $95.6 million, or $1.33 per share, compared with $116.7 million, or $1.63 per share.

Results would have been worse, the company said, but its Energen Resources Corp. unit, entered the year with 65 percent of its first quarter 2009 production hedged at prices well above market, which protected earnings and cash flows from natural gas, oil and natural gas liquids price declines.