(RTTNews) - Wednesday, energy holding company Energen Corp. (EGN: News ), reported a decline in profit for the third quarter, impacted by decline in oil prices. However, the company's significant hedges helped to realize a smaller decline in oil prices. The company also raised its full year earnings guidance and provided its outlook for the full year 2010.

Energen's net income for the third quarter declined to $47.1 million or $0.65 per share from $73.1 million or $1.01 per share a year earlier. Net income for the quarter included a one-time gain of $3.1 million or $0.04 per share from the sale of a Permian Basin property.

On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the third quarter.

Total operating revenues declined to $287.29 million from $330.21 million for the same period last year. Analysts expected the company to report revenues of $284.69 million.

Revenues from oil and gas operations declined by $29.25 million to $218.50 million from $247.75 million for the year-ago period. The decline in oil prices more than offset increase in production, as compared with same period last year. Average realized sales price of oil was $64.03, down 18% year-over-year, average realized sales price for natural gas price per thousand cubic feet or mcf was $6.10, a 28% decline from last year and average realized sales price for NGL per gallon declined by 15% to $0.88.

Oil production was 19% higher at 1.25 million barrels from 1.05 million barrels in the same period last year. Natural gas production rose 9% to 18.9 billion cubic feet or bcf from 17.3 bcf a year-ago.
The Birmingham, Alabama-based company had hedged more than 70% of Energen Resources' third quarter production at market prices which helped to realize average sales price at 23% lower than last year, as without hedges average realized sales prices would have declined 56%.

Energen Resources Corp., the company's oil and gas exploration and production subsidiary expects to begin completion of its Chattanooga shale well within the week and if this well is unsuccessful, the company would expect to record a loss of approximately $0.17 per share in the fourth quarter.

For the nine months period, the net income declined to $197.70 million or $2.75 per share from $256.63 million or $3.56 per share for the prior year period. Total operating revenues declined to $1.08 billion from $1.19 billion for the year-ago period.

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