Energen Fourth-Quarter Profit Surges as Oil, Gas Revenue Rises

       By Nathalie Tadena 

    Energen Corp.'s (EGN) fourth-quarter earnings surged as the energy company saw a double-digit revenue increase from its oil and gas operations and as mark-to-market gains on certain financial commodity contracts boosted bottom-line results.

    However, adjusted earnings and revenue missed analyst expectations.

    Energen, which produces oil and gas and operates a natural-gas utility in Alabama, last month lowered its production guidance for 2012 and 2013, citing infrastructure problems in the Permian Basin. The company has recently cut natural-gas production as low prices have weighed on profit. Energen has instead turned its attention to the oil- and liquids-rich Permian Basin in Texas, where it bought up additional acreage last year. The company plans to spend around $900 million in 2013 on capital projects, primarily focused on exploration and development of the Permian Basin.

    For the quarter ended Dec. 31, Energen reported a profit of $62.8 million, or 87 cents a share, up from $14.4 million, or 20 cents a share, a year earlier. Excluding mark-to-market gains in the latest period and a mark-to-market loss in the year-ago quarter, adjusted earnings fell to 65 cents a share from 98 cents.

    Operating revenue climbed 50%, to $433 million.

    Analysts polled by Thomson Reuters recently forecast earnings of 74 cents a share on revenue of $443 million.

    Operating revenue for oil and gas operations advanced 83%, to $308.6 million, while natural-gas distribution revenue improved 4.1% to $124.4 million. Average realized oil prices per barrel were up 4.7%, while natural-gas prices slumped 30%. Natural gas liquids prices slipped 18%.

    Energen also raised its quarterly dividend 3.6% to 14.5 cents. It affirmed its 2013 earnings outlook.

    Shares closed at $48.55 and were unchanged after hours. The stock is off 5.9% over the past 12 months.

    Write to Nathalie Tadena at nathalie.tadena@dowjones.com