Our Subsidiaries

Fifteen years ago, Energen Corporation was a small natural gas utility with an even smaller oil and gas company and a market capitalization of less than $300 million. Today, Energen is a $3.5 billion market cap energy firm with a Top 25* independent U.S. oil and gas exploration and production company complemented by a strong, stable natural gas utility.

Energen Resources Corporation
Contributing 85 percent of consolidated net income, Energen Resources Corporation is the dominant driver of Energen’s growth…past, present and future. Energen Resources is a domestic, oil and gas exploration and production company with approximately 3.4 trillion cubic feet equivalent (Tcfe) of proved and unproved reserves. The bulk of these reserves are located in the San Juan Basin in New Mexico and Colorado, the Permian Basin in west Texas, and the Black Warrior Basin in Alabama.

While natural gas comprises approximately 60 percent of Energen’s proved reserves, Energen Resources has a substantial amount of oil (30 percent) and natural gas liquids (10 percent) and is focusing in 2010 on developing its oil properties in the Permian Basin.

As an acquire-and-exploit company, Energen Resources has invested approximately $3.7 billion to acquire and develop 2.7 Tcfe of U.S. reserves over the past 15 years. The company’s reserve additions have added 50 percent to its as-acquired reserves and substantially replaced cumulative production of some 1.1 Tcfe.

In late June 2009, Energen Resources purchased Range Resources’ interests in the Fuhrman-Mascho Field, an oil play in the Permian Basin. Importantly, at a time when credit markets were tight, Energen was able to use available cash and existing credit facilities to pay for the acquisition; and, by the end of 2009, that short-term debt had been repaid with internally generated cash. 

Energen Resources’ production is estimated to increase modestly in 2010 to approximately 114 billion cubic feet equivalent, and more than 72 percent of this production has been hedged at above-market prices.

The exploration of Alabama shales is a potential longer-term investment opportunity for Energen Resources. Test wells to-date have been inclusive. Energen Resources is drilling a new well in the first half of 2010 to test the Chattanooga shale, and additional testing of the Conasauga shale is expected to occur later in 2010. If even one of these two shale plays is economically viable, Energen could benefit from a multi-year development drilling program in its own backyard that significantly enhances organic production growth.

Alabama Gas Corporation (Alagasco)
Energen’s regulated subsidiary provides Energen with the strength and stability of a mature natural gas utility. Alabama Gas Corporation is the largest natural gas distributor in Alabama, providing clean-burning, energy-efficient natural gas to approximately 440,000 homes, businesses and industries.

As an Alabama utility, Alagasco is subject to regulation by the Alabama Public Service Commission and operates under a progressive rate-setting mechanism called Rate Stabilization and Equalization.

With roots dating back more than 150 years, Alagasco has operating divisions in Anniston, Birmingham, Gadsden, Montgomery, Opelika, Selma and Tuscaloosa.

* On the basis of U.S. proved reserves