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Energen Corporation
Energen's New Gen 3 Wells Delivering Outstanding Results in All Key Areas of Permian Operations



Aug 9, 2017

Energen Corporation (NYSE: EGN) ("Energen" or the "company") announced financial and operating results for the second quarter ended June 30, 2017.

FINANCIAL AND OPERATING HIGHLIGHTS

2Q17

  • Production beats June revised guidance by 2% and May guidance by 17%
  • On track to generate 29% YOY growth in total production and 37% YOY growth in Midland and Delaware production
  • Adjusted EBITDAX grows 49% from 1Q17 and beats internal expectations
  • Per-unit LOE (including marketing and transportation) beats June revised guidance midpoint by 8.1%
  • Per unit SG&A beats June revised guidance midpoint by 10.4%
  • Lease acquisitions in first six months of 2017 total 9,732 net acres for $215 mm
  • Energen adds 158 net locations to Wolfcamp/Spraberry/Cline inventory and identifies 413 net locations in other Delaware Basin formations for total identified inventory of 4,116 net locations

2Q17 WELL RESULTS

  • 45 gross and net wells in the Midland and Delaware basins were turned to production in 2Q17 and generated excellent initial production rates in all key areas of operational focus in 2017; 78% are multi-zone pattern wells completed in batches
  • 59 Gen 3 wells are outperforming the highest EUR type curve and significantly outperforming the midpoint EUR type curve; 76% are multi-zone pattern wells completed in batches
  • Public data shows Gen 3 wells in Midland and Delaware basins outperforming other operators' wells

Comments from the CEO

"The success we are achieving with our Generation 3 frac design and multi-zone pattern wells completed in batches has set the stage for 2017 to be the break-out year we have been working toward, underscoring our top-tier assets and solid execution," said Energen Chief Executive Officer James McManus. "We are delivering outstanding well performance in all our areas of operational focus in the Midland and Delaware basins; and we continue to drive down our operating costs and G&A and are competitive with the best in the Midland and Delaware basins.

"Importantly, our Gen 3 wells are outperforming wells completed by other operators. The public well data also supports our position that the best way to maximize the full development of our assets is to complete them in multi-zone batches at original reservoir pressure," McManus said. "We expect our Gen 3 multi-zone pattern wells to continue driving production growth as we move forward.

"We have continued executing on our bolt-on acquisition program, which we believe has created significant value for Energen. Over the last 18 months, we have added approximately 19,000 net acres in prime Delaware and Midland basin locations for an average price of about $17,600 an acre," McManus said. "This includes some 9,700 net acres acquired in the first six months of this year that helped contribute to an increase in our inventory of identified locations.

"We are pleased with our performance this quarter and excited about our future prospects as we successfully implement our 2017 drilling and development program. We plan to maintain our focus on the further optimization of well performance and returns, and we are confident that Energen is well-positioned to continue delivering strong results and creating shareholder value in 2017 and beyond."

Click here to read the full press release.

For more information:

Organization:
Energen Corporation

Address:
605 Richard Arrington, Jr. Blvd. North
Birmingham, Alabama
United States, 35203-2707
www.energen.com


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