Financial Financial StrengthStrength

To Pursue To Pursue OpportunitiesOpportunitiesUBS Natural Gas, Electric,

Power and Coal ConferenceLost Pines, TXMarch 5, 2009

UBS Natural Gas, Electric, Power and Coal Conference

Lost Pines, TXMarch 5, 2009

2

Safe Harbor Disclosure

This presentation contains statements expressing expectations offuture plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor Provision ofthe Private Securities Litigation Reform Act of 1995. Unless noted, these statements do not reflect possible or pending acquisitions, divestitures, or restructurings. All statements based on expectationsare forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. A discussion of risks and uncertainties is included in the Company’s periodic reports filed with the Securities and Exchange Commission.

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Diversified Energy Company

EnergenResources

88%Net Income

Contribution(2008)

Earnings stabilitySingle-state utilityPrimary dividend source

Large unproved reserves inventoryLow-cost acquirerAlabama shales potential

AlabamaGas Corp.

12%Net Income

Contribution(2008)

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Minimizing Risk

Hedging strategy to protect cash flows, earningsAll-in reserve acquisition cost of $1.41 per Mcfe84% of 1.6 Tcfe of proved reserves developed (2008 YE)1.9 Tcfe inventory of low-cost drilling opportunities (2007 YE)Utility foundation with progressive regulatory environment

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Earnings Outlook

$4.47$3.10-$3.50

$4.28

$2.35

$3.73

2005 2006 2007 2008 2009eAlagasco Energen Resources

* New York Mercantile Exchange (NYMEX) equivalent prices

2009e4% organic production growth65% hedgedAssumed prices of $6 and $50LOE: $2.24/McfeDD&A: $1.58/Mcfe

2009 hedges at $8.70/Mcf* and $72.31/barrel* help offset lower commodity prices

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Hedges Minimize Price Risk2009e Production: 106.5 Bcfe65% Hedged

65% Hedged @ $1.15/gallonTotal NGL: 66.4 MMgal

68% Hedged @ $8.70/McfTotal Gas: 69.3 Bcf

Total Oil: 4.6 MMBbl59% Hedged @ $72.31/bbl

2010: 42.6 Bcf at $9.12, 2.2 MMBO at $96.85

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Price Sensitivity Reduced

Every $0.01 changeEvery $1 changeEvery $0.10 change

0.1¢1.3¢1.2¢EPS (diluted) Impact

$100,000$900,000$850,000Net Income Impact

$0.65/Gal$50/Bbl$6/McfAssumed Price (unhedged)

NGLOilGas2009

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Significant After-Tax Cash Flows

Development of existing properties

Development of Alabama Shales

Acquisitions of Oil and Gas Properties

$498-$528

$698

$471$514*

$363

05 06 07 08 09e

Alagasco Energen Resources

($ in Millions)

* Includes one-time net gains of $41.3 million

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Identified Capital Spending

$65$63$76 $59$73

$225

$457

$363

$237

$168

$18

$30

$186

2005 2006 2007 2008 2009e

Alagasco Energen Resources Acquisitions

2009ePermian Basin:� $ 112 MMSan Juan Basin:� $ 71 MMBlack Warrior Basin:� $ 12 MMNo. LA/E. TX:� $ 18 MMExploration/Other:� $ 12 MM

($ in Millions)

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Estimated Cash Available for Discretionary Spending 2008-2009: $210-$240 MM

$225

$186-$216

2009eDividends/Other Debt Repayment

Capital Spending Available Cash

Discretionary Cash FlowsEnergen Resources ($MM)

2008YE Cash

Position:

$24 MM

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Committed Credit Facilities

July 31, 2009$ 25$ 00First Commercial

$ 105$ 10$ 15

$ 55AGC-DEDICATED ($MM)

Oct. 21, 2009$ 20RBCOct.14, 2009$ 15Northern Trust

Jan. 22, 2010$ 25BNYAug. 6, 2009$ 70 *Compass

Oct. 31, 2009April 24, 2009

RENEWAL

$ 375

ENERGEN ($MM)BANK

Total

$ 100 *Wachovia$ 145Regions

* Facility may be utilized by Energen or Alagasco

Consolidated Facilities: $480 MM

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OpportunitiesOpportunities

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DevelopmentDevelopmentOfOf

Existing Existing PropertiesProperties

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* Based on U.S. Reserves

Black Warrior Basin: 217 Bcf (14%)

TX

N. LA/E. TX/Other: 63 Bcfe (4%)

San Juan Basin: 871 Bcfe (55%)

Permian Basin: 434 Bcfe (27%)

Farmington

Midland ArcadiaBirmingham

NM

CO

LA

AL

Top 20 Independent Producer*

$3.2 B invested to acquire, develop U.S. reserves

1.6 Tcfe proved reserves in 4 key areas

1.9 Tcfe probable and possible reserves

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$ 0.9730$ 0.6617Black Warrior

1,25718

398811

RsrvsPossible

$ 1.23$ 2.29

$ 1.14$ 1.25

Cost/Mcfe Cost/McfeRsrvs

$ 1.01638Total$ 2.7225NLa/ETx/Other

$ 1.25292Permian$ 0.85304San Juan

ProbableBasin/Area

By Basin/Area (Bcfe)Unrisked

* As of December 31, 2007 – Pro Forma for 1Q08 Property Sale

Unproved Reserves Potential*

Infill drilling

Step-out drilling

Performance improvements

Horizontal technology application

CO2 injectionEstimated Risked Cost:

$2.15 - $2.30/Mcfe

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FruitlandPictured Cliffs

Mesa Verde

GallupDakota

4th largest gas producer in San Juan Basin

12th largest oil producer in Permian Basin

Largest producer in Black Warrior Basin

Existing Operations

$ 18$ 12$112$ 71

$ MM

2009 CAPITAL

2009e2008

9.014.128.950.3

181796

1,6361,419

NET WELLS

7.7N. LA/E. TX/Other13.8Black Warrior31.953.0

PRODUCTION (Bcfe)

BASIN/AREA

PermianSan Juan

Note: Excludes Alabama shales

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San San JuanJuanBasinBasin

Over-pressured Coal

Tiffany/Navajo Lakes

COCO

NMNM

Carracas/32-5

30-4

SW Basin

4th largest gas producer in San Juan Basin4th largest gas producer in San Juan Basin

Jicarilla

SGI

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NMNM

TXTX

West Lovington North Robertson

East Penwell

North Westbrook

Southwest Westbrook

Warwink

12th largest oil producer in Permian Basin12th largest oil producer in Permian BasinStrawn

Bone Spring

Devonian

Ellenburger

PermianPermianBasinBasin

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Bayview

Oak GroveShoal Creek

Vance

BIRMINGHAM

ALAL

Largest gas producer in BWBLargest gas producer in BWB

BlackBlackWarriorWarriorBasinBasin

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Property Property AcquisitionsAcquisitions

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$1.41/McfeReserve Replacement Cost

2.65 TcfeReserves

$ 3.75 BTotal Investment$ .50 BFuture Development Costs$ 2.00 BDevelopment Costs to Date$ 1.25 BCapital Investment

San Juan Basin:� Dominion (2006)� Private Seller (2004)� BP America (2003)� Burlington (1997)Permian Basin:� Private Seller (2005)� First Permian (2002)� EEX (1998)� BC Oil & Gas (1997)Black Warrior Basin:� Amoco (1997)� Burlington (1996)No. LA/E. TX:� Minatome (1998)

Proven, Low-cost Acquirer

Note: As of December 31, 2008

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1,716

929 984

As-Acquired Additions/Revisions Cum. Production

* October 1, 1995 – December 31, 2008

Organic Reserve Replacement*

Net reserve additions, revisions add 54% to as-acquired reserves

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Oil & Gas Acquisitions

AcquisitionFocus

Onshore N.A.

Operated properties

PDP + Unproved potential

Financial constraints and lower commodity prices should result in attractive acquisition opportunities

Primary interest: In/around existing properties

Would consider company and/or asset purchases

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Alabama Alabama ShalesShales

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Pursuing Alabama Shales

343,000 net acres

Focus on Chattanooga and Conasauga shales

Test-program results neither positive nor conclusvie

Additional testing planned

Chesapeake to end participation

Marchant 22-16 No. 1

Black Warrior Basin

Lamb 1-3H No. 1

ConasaugaConasaugaTotal Acreage: 351,000Total Acreage: 351,000

Krout 10-14 No. 1

Chattanooga Thrust/FloydTotal Acreage: 82,000

Chattanooga Sub-Basin Total Acreage: 213,000

Total Acreage: 660,000

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CarbonateCarbonate--dominated dominated faciesfaciesStrong mud log showsStrong mud log shows66--8 potential pay zones8 potential pay zonesGood Good wellborewellbore (minimal deviation) (minimal deviation) and cement to 12,400and cement to 12,400��Hydraulically stimulated Hydraulically stimulated 11,55811,558�� �� 11,72311,723�� on Sept. 15, 2008on Sept. 15, 2008165,000 gal. of x165,000 gal. of x--link gellink gel220,000 lbs. sand220,000 lbs. sandFlowbackFlowback analysis: low porosity and analysis: low porosity and permeabilitypermeabilityDisappointing flow of Disappointing flow of << 50 50 mcf/dmcf/d

Marchant Well: Conasauga Play

Future PlansExamine larger, alternative fracture stimulation designs

Perform lateral drill-outs

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Lamb Well: Chattanooga Play

Future PlansDrill additional well to test Chattanooga and evaluate Penn Sands

Chattanooga Shale (93Chattanooga Shale (93�� gross, 91gross, 91�� netnet��))Gas shows in Penn SandsGas shows in Penn SandsPoor well conditions make detailed Poor well conditions make detailed analysis inconclusiveanalysis inconclusiveHydraulically stimulated 2,035Hydraulically stimulated 2,035�� lateral in lateral in Chattanooga section (9,150Chattanooga section (9,150�� vertical vertical depth) on Oct. 30, 2008depth) on Oct. 30, 200844--stage stage fracfrac2,000,000 gal. of 2,000,000 gal. of slickwaterslickwater2,000,000 lbs. sand2,000,000 lbs. sandFlowbackFlowback analysis: low porosity and analysis: low porosity and permeabilitypermeability50% fluid recovery: No meaningful gas 50% fluid recovery: No meaningful gas showsshows

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Krout Well: Chattanooga Thrust/Floyd

Future PlansExamine Floyd Section

Geologically complex settingGeologically complex settingFive, separate Chattanooga zones Five, separate Chattanooga zones (262(262�� net)net)Floyd Shale section (416Floyd Shale section (416�� gross, 158gross, 158�� net)net)Hydraulically stimulated lower Chattanooga Hydraulically stimulated lower Chattanooga interval (8,210interval (8,210--8,250 & 8,3008,250 & 8,300--8,390) on 8,390) on Oct. 8, 2008Oct. 8, 2008200,000 gal. x200,000 gal. x--link gel, link gel, slickwaterslickwater150,000 lbs. sand 150,000 lbs. sand FlowbackFlowback analysis: Very low permeability analysis: Very low permeability (structurally related)(structurally related)Disappointing flow of <Disappointing flow of < 50 50 mcf/dmcf/d

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Share Repurchase ActivityAvailable - 8,992,700

12.5% Percent of Diluted Shares Outstanding

Repurchased in 2006: 2,158,000 shares at $39.08

Opportunity: Stock Repurchase

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AlagascoAlagascoOperationsOperations

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12.912.313.113.512.813.5Earned

13.15 - 13.65Allowed

200820072006200520042003CY ROE(%)

Single-state utilityApprox. 450,000 customersProgressive regulation

RSE extended through rate-year 2015Allowed ROE: 13.15-13.65%Forward-looking test yearReal-time temperature adjustment

Birmingham

Montgomery

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27 Years of Dividend Growth

$0.50$0.48$0.46$0.44$0.40$0.39

2004 2005 2006 2007 2008 2009

5-year CAGR: 5.1%

January 2009: Dividend raised 4.2%

Alagasco funds Energen�sdividend at utility payout of 65+%

Energen Resources makes small payout contribution

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Lower-risk Energy Investment OpportunityStrong After-tax Cash FlowsExcellent FundamentalsProven Track Record

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(a)The U.S. Securities and Exchange Commission (SEC) requires public companies, such as Energen, to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. After-tax Cash Flow is a Non-GAAP financial measure. Energen believes after-tax cash flow is relevant because it is a measure of cash available to fund the company's capital expenditures, dividends and to service its debt.

This estimate is a "forward-looking statement" as defined by the SEC. 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. The Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties that could affect futureresults of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.

ATFC Reconciliation to GAAP($ in millions)

2008Net Income (GAAP) 322 222 ― 252Depreciation, depletion and amortization 188 223 ― 223Deferred income taxes, net 188 53 ― 53After-tax Cash Flows (Non-GAAP) 698 498 ― 528 Changes in assets and liabilities and other adjustments (103) 96 ― 96Net Cash Provided by Operating Activities (GAAP) 595 594 ― 624

Years Ended 12/312009 Estimate

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(a)The U.S. Securities and Exchange Commission (SEC) requires public companies, such as Energen, to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. After-tax Cash Flow is a Non-GAAP financial measure. Energen believes after-tax cash flow is relevant because it is a measure of cash available to fund the company's capital expenditures, dividends and to service its debt.

This estimate is a "forward-looking statement" as defined by the SEC. 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. The Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties that could affect futureresults of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.

ERC ATFC Reconciliation to GAAP($ in millions)

2008Net Cash Provided by Operating Activities (GAAP) 595 594 ― 624 Changes in assets and liabilities and other adjustments 103 (96) ― (96)After-tax Cash Flow (Non-GAAP) 698 498 ― 528Less: AGC cash flows from operations (GAAP) (133) (81) ― (81)Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP) 565 417 ― 447

Years Ended 12/312009 Estimate

Financial Financial StrengthStrength

To Pursue To Pursue OpportunitiesOpportunitiesUBS Natural Gas, Electric,

Power and Coal ConferenceLost Pines, TXMarch 5, 2009

UBS Natural Gas, Electric, Power and Coal Conference

Lost Pines, TXMarch 5, 2009