Energen Estimates Annual Production To Grow 20% A Year, 2017-2019

For the 3 months ended September 30, 2016, Energen Corporation (NYSE: EGN) reported GAAP net income from all operations of $53.3 million, or $0.55 per diluted share. Excluding mark-to-market derivatives losses, income from the sale of properties, and pension expenses, Energen's adjusted loss in 3Q16 totaled $(21.4) million, or $(0.22) per diluted share. This compares with adjusted income in 3Q15 of $32.4 million, or $0.41 per diluted share. [See "Non-GAAP Financial Measures" beginning on pp 9 for more information and reconciliation.]
Reconciliation of Consolidated GAAP Net Income to Adjusted Income from Continuing Operations
[See "Non-GAAP Financial Measures" beginning on pp 9 for more information]
      3Q16       3Q15
      $M     $/dil. sh.       $M     $/dil. sh.
Net Income/(Loss) All Operations (GAAP)     $ 53,314       $ 0.55       $ (227,904 )     $ (2.89 )
Less: Non-cash mark-to-market gains/(losses)       16,142         0.17         (784 )       (0.01 )
Less: Asset impairments       (277 )     nm         (250,582 )       (3.18 )
Less: Pension settlement and RIF settlement expenses       (332 )     nm         (601 )       (0.01 )
Less: Income/(loss) associated 2016 asset sales       59,213         0.61         (8,299 )       (0.11 )
Adj. Income Continuing Operations (Non-GAAP)     $ (21,432 )     $ (0.22 )     $ 32,362       $ 0.41  

Note: Per share amounts may not sum due to rounding

Energen's adjusted 3Q16 per-share loss was 24 percent better than internal expectations largely due to lower-than-expected operating expenses and better-than-expected production. Per-unit lease operating expense (LOE) was 10 percent better-than-expected and benefited largely from lower workover expense and lower water disposal and other costs; net salaries and general and administrative expense (SG&A) also was 10 percent better-than-expected per-unit due to a wide variety of cost reductions partially offset by higher non-cash compensation. Exploration expense was below budget primarily due to the timing of geological and geophysical costs.

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