Energen Corporation (NYSE: EGN) announced today that its earnings in the three months ended June 30, 2012, totaled $131.3 million, or $1.82 per diluted share. Excluding non-cash mark-to-market gains on certain financial commodity contracts, Energen’s adjusted net income (a non-GAAP measure) totaled $52.8 million, or $0.73 per diluted share. The non-cash gains were $121.5 million ($78.5 million after tax, or $1.09 per diluted share). Earnings in the second quarter of 2011 were $63.3 million, or $0.87 per diluted share. [See “Non-GAAP Financial Measures” for more information and reconciliation.]
Significantly lower natural gas and NGL prices together with higher depreciation expense (DD&A) and increased lease operating expense (LOE) more than offset strong production growth in the second quarter of 2012 as compared with the same period a year ago. Energen Resources’ production increased 21 percent year-over-year, including a 46 percent increase in oil production, and the average realized sales price for oil increased 8 percent. The average realized price of natural gas, however, fell 36 percent from the second quarter of 2011, and NGL prices dropped 21 percent.
Consolidated adjusted EBITDA (a non-GAAP measure) totaled $201.2 million and compared with $172.6 million in the prior-year second quarter. Energen’s oil and gas exploration and production company, Energen Resources Corporation, had adjusted EBITDA of $186.4 million in the second quarter of 2012 and $161.5 million in the same period a year ago. [ See “Non-GAAP Financial Measures” for more information and reconciliation.]
Energen Adds 1,280 Wolfcamp, Cline Wells to Midland Basin Potential Drilling Inventory (See www.energen.com for maps and other associated data).The pace of drilling in the horizontal Wolfcamp and Cline plays has increased, and more information is now available that supports the viability of these emerging shale plays across much of Energen’s Midland Basin acreage position as well as in Mitchell County, where the company has legacy waterflood operations.