DD&A expense per unit in 2012, excluding the first quarter write-down of natural gas properties in East Texas, increased approximately 32 percent from the same period last year to $15.50 per BOE; this increase generally reflected year-over-year increases in development costs.ALAGASCO Energen’s utility operations under Alagasco generated net income of $49.4 million in 2012; this $2.8 million increase from 2011 reflects the utility’s ability to earn on a higher level of equity representing investment in utility plant. 3 rd Bone Spring and Wolfberry Programs Generate Excellent Results in 2012 Energen Resources’ 3rd Bone Spring and Wolfberry programs wrapped up a successful 2012 with continued strong results in the 4 th quarter. In the company’s horizontal 3 rd Bone Spring program in the Delaware Basin, Energen Resources tested 10 gross (10 net) wells in the 4 th quarter of 2012 that had an average initial stabilized rate of 1,007 BOE per day (61% oil). The 30-day average production rate of 7 gross (7 net) wells tested was 609 BOE per day (57% oil). For the calendar year 2012, Energen Resources drilled 42 gross (40 net) 3 rd Bone Spring wells. The average initial stabilized rate of 38 gross (35 net) wells was 1,031 BOE per day (68% oil). The 30-day average production rate of 35 gross (32 net) wells with sufficient production history was 661 BOE per day (65% oil). On the east side of the Pecos River, the company’s core holdings total approximately 30,000 net acres, of which 9,500 remain undeveloped. Energen Resources estimates that it has approximately 59 potential locations remaining to be drilled on 160-acre spacing in this core area.