Energen Updates Production Impact of Permian Ice Storms

BIRMINGHAM, Ala.--()--Energen Corporation (NYSE: EGN) today updated the estimated production impacts of two fourth quarter 2013 ice storms in the Permian Basin. Direct and indirect impacts of the storms in the fourth quarter are estimated to be 200,000-250,000 barrels of oil equivalents (BOE). The company’s prior guidance range for production from continuing operations for the calendar year 2013 was 23.4-23.8 million barrels of oil equivalents (MMBOE), with a midpoint of 23.6 MMBOE; and the previously implied guidance for 4th quarter production from continuing operations was 6.1-6.5 MMBOE, with a midpoint of 6.3 MMBOE.

Lease operating expense, marketing, and transportation (LOE) is estimated to be higher-than-previously anticipated due to the ice storms; and, ultimately, the severe weather will negatively affect fourth quarter and calendar year 2013 earnings. The ice storms alone are likely to cause 2013 income from continuing operations (excluding mark-to-market and disposal gains or losses) to fall near the low end of the company’s prior guidance range of $3.05-$3.25 per diluted share. The company plans to disclose its 4th quarter and calendar year 2013 financial and operating results on February 11, after market close.

While all the company’s areas of operation in the Permian Basin were impacted, Energen’s Midland Basin operations bore the brunt of the ice storm’s direct impacts; these included widespread power outages, limited access to production and drilling facilities, and frozen facilities. Indirect impacts -- such as wellhead inventory draws and delays in completions, pump installations and well hook-ups -- were experienced in the Delaware Basin as well as the Midland Basin.

Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. Through Energen Resources Corporation, the company has approximately 750 million barrels of oil-equivalent proved, probable, and possible reserve at year-end 2012. These all-domestic reserves are located mainly in the Permian and San Juan basins. For more information, go to http://www.energen.com.

FORWARD LOOKING STATEMENT: This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.

Contacts

Energen Corporation
Julie S. Ryland, 205-326-8421

Sharing

Contacts

Energen Corporation
Julie S. Ryland, 205-326-8421