2013 Capital, Production Outlook Affirmed

Energen today affirmed its guidance for 2013 capital, production, cash flows, and earnings.

2013e Capital, Drilling, and Production Summary
   

2013e Capital
    2013e Wells     2013e    

Production
     

($MM)
    Gross (Net)     Rig Count    

2013e
   

2012
Midland Basin $ 465 185 (173 ) 10-11

5.6
   

3.5

Wolfberry

$

420

179 (167

)

9-10

 

 

Wolfcamp/Cline

$

45

6 (6

)

1
 
Delaware Basin $ 325 44 (38 ) 6

4.6

2.9

3 rd Bone Spring

$

240

32 (28

)

4

 

 

Wolfcamp/Wolfbone

$

85

12 (10

)

2
 
Other Permian* $ 85 110 (88 ) 1-2 4.5 4.8
 

San Juan Basin/Other
   

$

25
     

0
     

0
   

11.4
   

12.9

TOTAL
   

$

900
     

339 (299

)
   

17-19
   

26.1
   

24.1

* Includes 5 gross (4 net) injector wells
 
 

Production (MMBOE)
Commodity     2013e     2012     Change
Oil     10.6     8.8     20 %
NGL 3.4 2.6 31 %
Natural Gas     12.1     12.7     (5

)%
Total     26.1     24.1     8 %
 

Energen’s guidance range for 2013 consolidated after-tax cash flows is $917-$946 million. Energen Resources’ after-tax cash flows are estimated to be $822-$851 million, and Alagasco’s utility operations are expected to generate after-tax cash flows of approximately $95 million. Net income in 2013 is estimated to be $219-$248 million, or $3.03-$3.43 per diluted share, and includes $22.2 million, or 31 cents per diluted share, of potential dry hole expense. Guidance does not include non-cash, mark-to-market gains or losses. [See “Non-GAAP Financial Measures” for more information and reconciliation.]
   
Energen Resources’ estimated exploration and production expenses per BOE in 2013 are:
 
Lease Operating expense
Base, marketing, and transportation $ 10.25
Production taxes $ 2.48
DD&A expense $ 18.46
General & Administrative expense, net $ 3.57
Interest expense $ 2.27
 

Approximately 70 percent of the company’s total estimated production in 2013 is hedged, including 84 percent of estimated oil production, 31 percent of estimated NGL production, and 69 percent of estimated natural gas. Assumed prices applicable to Energen Resources unhedged volumes are $90.00 per barrel of oil, $0.89 per gallon of NGL, and $3.50 per Mcf of natural gas.

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