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Gold/Mining/Energy : PRVB - Powder River Basin & Gas Corp. -- Ignore unavailable to you. Want to Upgrade?

To: egemony who wrote (168)	1/26/2006 12:44:52 PM
From: whenitgoesup	Respond to of 308

Energen enjoys San Juan NM success..read last paragraph. Oil & Gas Unit Drives 35% Increase in Energen's 2005 EPS; Management Reaffirms 2006 Earnings Guidance BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 25, 2006--Energen Corporation (NYSE: EGN) today announced that its oil and gas acquisition and development subsidiary, Energen Resources Corporation, was the dominant driver of the diversified energy company's 35 percent increase in earnings per diluted share (EPS) for 2005. Energen's 2005 net income of $173 million, or $2.35 per diluted share, compared favorably with 2004 net income of $127.5 million, or $1.74 per diluted share. Representing 78 percent of Energen's 2005 consolidated earnings, Energen Resources benefited from higher commodity prices and record production of 91 billion cubic feet equivalent (Bcfe). Energen Resources' net income for the year totaled $135.3 million as compared with $94.1 million in 2004. Energen's utility subsidiary, Alabama Gas Corporation (Alagsaco), also contributed to the holding company's higher earnings in 2005, generating net income of $37 million as compared with $33.8 million in 2004. "Our two lines of business continue to perform very well," said Energen's Chairman and Chief Executive Officer Mike Warren. "Not only did each business improve their earnings in 2005, but the acquisition of largely proved undeveloped oil reserves in the Permian Basin late in the year helped set the stage for growth into the future," he added. "Energen Resources' proved reserves at year-end topped 1.7 trillion cubic feet equivalent - a new record," Warren noted. "And, perhaps, of even greater significance is that 2005 reserve additions from development activities basically replaced our annual production. "Over the last five years, Energen's earnings have increased at an annual compound growth rate of just under 20 percent a year. At the same time, Energen common stock has generated a five-year, annualized total return to shareholders of 20 percent, including a 24.6 percent return in 2005," Warren added. "As we begin 2006, Energen expects to benefit from solid base-business operations, a hedge position that helps protect earnings from falling commodity prices while leaving room for upside potential in today's price environment, and a solid strategic plan with a proven track record," Warren said. "With those attributes in mind, we are pleased to reaffirm our 2006 earnings guidance of $3.25-$3.60 per diluted share." "We look forward in 2006 to the start of development drilling associated with our most recent property acquisition; we also are excited about a new coalbed methane drilling program in the Black Warrior Basin, and work continues on more fully developing our extensive San Juan Basin holdings in New Mexico and Colorado," Warren added. "In addition, we continue to rely on Alagasco to contribute modest earnings growth and provide the majority of dividend income for our shareholders." 2005 RESULTS For the 12 months ended December 31, 2005, Energen Resources' 2005 income from continuing operations totaled $135.2 million, up 44 percent from $93.9 million in 2004. Discontinued operations totaled $126,000 and $158,000 in 2005 and 2004, respectively. The Company's revenues for its natural gas production in 2005 increased 24 percent to $5.99 per thousand cubic feet (Mcf) as compared with the same period a year ago; oil production revenues rose 23 percent to $35.18 per barrel; and revenues for natural gas liquids (NGL) production increased 22 percent to 55 cents per gallon. Energen Resources' production from continuing operations in 2005 increased 4 percent over 2004 to 91 Bcfe. Natural gas production increased 7 percent to 61 Bcf, largely due to the Company's August 2004 acquisition of San Juan Basin properties, development drilling in the San Juan Basin and increased drilling activity in the North Louisiana/East Texas area; the Company's oil production declined 3 percent to 3.3 million barrels, while NGL production increased 3 percent to 70.5 million gallons.