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- EGN 54.87 (1.57%) 0.85
Headquartered in Birmingham, Alabama, Energen Corporation is a growing oil and gas exploration and production company complemented by a single-state natural gas utility.
Oil and Gas Exploration and Production
Energen Resources Corporation (ERC) is a top 20 independent producer of domestic oil, natural gas, and natural gas liquids (based on U.S. proved reserves at year-end 2010). More than ninety percent of ERC's proved reserves of 343 million barrels of oil equivalents (MMBOE) are located in the Permian Basin in west Texas and in the San Juan Basin in New Mexico and Colorado. The company’s legacy assets are in the Black Warrior Basin, where it pioneered the exploration and development of coalbed methane in Alabama in the mid- to late-1980s. ERC also has 598 MMBOE of probable and possible reserves.
Over the last several years, ERC has positioned itself as a major producer of oil and natural gas liquids through acquisitions and drilling in the Permian Basin. Total liquids production in 2013 is estimated to increase more than 86 percent from 2010 levels and reflect a three-year compound average growth rate of 23-26 percent.
Supported by an aggressive hedging strategy that generates more predictable cash flows, ERC is capitalizing on its balance sheet strength and financial capacity to embark in 2012 on another record year of capital investment to drill and develop its liquids-rich Permian assets. The company plans to continue to focus on developing its extensive Wolfberry inventory while pursuing multiple opportunities in the Permian’s Delaware Basin; these include the 3rd Bone Spring sands, the Avalon and Wolfcamp shales, and the Wolfbone play.
Natural Gas Distribution
Alagasco provides Energen with the strength and stability of a mature natural gas utility. Regulated by the Alabama Public Service Commission, Alagasco is the largest distributor of natural gas in Alabama. It provides clean-burning, energy-efficient natural gas to more than 425,000 homes, businesses and industries in central and parts of north Alabama.
With an Alabama heritage spanning some 160 years, Alagasco today remains focused on its three core processes: customer service, new growth, and system integrity.
Alagasco is the primary contributor to Energen’s dividend, returning more than 65 percent of its net income to shareholders each year.