Energen Corporation (NYSE: EGN) announced today that its earnings in the three months ended December 31, 2012, totaled $62.8 million, or $0.87 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 $47.2 million, or $0.65 per diluted share, and compared with 4 th quarter 2011 adjusted net income of $71.0 million, or $0.98 per diluted share. Non-cash, mark-to-market revenue gains in the 4th quarter 2012 were $24.7 million ($15.7 million after tax, or $0.22 per diluted share). Non-cash, mark-to-market revenue losses in the same period in 2011 totaled $90.8 million ($56.6 million after tax, or $0.78 per diluted share). [See “Non-GAAP Financial Measures” for more information and reconciliation.] Relative to the same period a year ago, production in the 4th quarter of 2012 increased 14 percent and realized oil prices rose 3 percent. More than offsetting these gains were significantly lower natural gas and natural gas liquids (NGL) prices, increased depreciation expense (DD&A), and higher lease operating expense (LOE). Also in the 4 th quarter of 2012, Energen wrote off $5.3 million ($3.4 million after tax, or $0.05 per diluted share) of Delaware Basin leasehold set to expire in the first half of 2013; the bulk of this acreage was located west of the Pecos River in Reeves County, Texas. ( See pp 9-10 for additional 4th quarter information). Consolidated adjusted EBITDA (a non-GAAP measure) totaled $209.3 million and compared with $208.5 million in the prior-year 4th quarter. The company’s oil and gas exploration and production unit, Energen Resources Corporation, had adjusted EBITDA of $175.3 million in the 4th quarter of 2012 and $177.2 million in the same period a year ago. [ See “Non-GAAP Financial Measures” for more information and reconciliation.]“2012 was an exciting year for Energen. Record activity in the Permian Basin led to excellent performances from our 3rd Bone Spring and Wolfberry wells as well as double-digit production growth,” said James McManus, Energen’s chairman and chief executive officer.“We expect our continued development of the 3rd Bone Spring sand east of the Pecos River in the Delaware Basin and the vertical Wolfberry in the Midland Basin to drivestrong, double-digit production growth in the Permian Basin in 2013.“And, at the same time, we are looking forward to exploring the potential offered by emerging horizontal plays in the Midland and Delaware basins.”2012 Financial Results Energen’s 2012 net income totaled $253.6 million, or $3.51 per diluted share. Excluding non-cash items, adjusted net income (a non-GAAP measure) totaled $229.7 million, or $3.18 per diluted share, and compared with prior-year adjusted results of $283.0 million, or $3.91 per diluted share.