Energen Corp. on Wednesday raised its 2010 profit outlook by 20 cents per share, due mainly to hedging commodities costs, lower depreciation rates and reduced income taxes.
The oil and natural gas producer now expects earnings between $4.20 and $4.60 per share. That compares with average analyst expectations of $4.25 per share, according to a poll by Thomson Reuters.
"With our latest hedge additions in November and December, we now have above-market prices locked in for 72 percent of our estimated 2010 production," said James McManus, Energen's CEO, in a statement.
The company expects a 3 percent boost in 2010 total production to 114 billion cubic feet equivalent.
Energen's two lines of business include its exploration and production unit Energen Resources and Alabama Gas Corp., which distributes natural gas in the state. Energen Resources plans to invest about $310 million in capital projects next year, while Alabama Gas plans to spend $80 million in capital expenditures.