Profile: Energen Corp (EGN.N)

EGN.N on New York Stock Exchange

17 Apr 2014
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Energen Corporation, incorporated on October 26, 1978, is a diversified energy holding company engaged in the development, acquisition, exploration and production of oil, natural gas and natural gas liquids in the continental United States and in the purchase, distribution and sale of natural gas in central and north Alabama. Its two principal subsidiaries are Energen Resources Corporation and Alabama Gas Corporation (Alagasco).

The Company is engaged in two business segments: the acquisition, development, exploration and production of oil and gas in the continental United States (oil and gas operations) and the purchase, distribution and sale of natural gas in central and north Alabama (natural gas distribution).The areas of operations include the Permian Basin, the San Juan Basin, the Black Warrior Basin and North Louisiana/East Texas.

Oil and Gas Operations

nergen's oil and gas operations focus on increasing production and adding proved reserves through the development and acquisition of oil and gas properties. In addition, Energen Resources explores for and develops new reservoirs, primarily in areas in which it has an operating presence. All oil, gas and natural gas liquids production is sold to third parties. Energen Resources also provides operating services in the Permian, San Juan and Black Warrior basins for its joint interest and third parties. These services include overall project management and day-to-day decision-making relative to project operations. As of December 31, 2012, Energen Resources' proved oil and gas reserves totaled 346.4 million barrels of oil equivalent (MMBOE). Substantially all of these reserves are located in the Permian Basin in west Texas, the San Juan Basin in New Mexico and Colorado and the Black Warrior Basin in Alabama.

Oil, natural gas and natural gas liquids represent approximately 45%, 39% and 16%, respectively, of Energen Resources' proved reserves. During the three years ended December 31, 2012, the Company's development and exploratory efforts have added 130 MMBOE of proved reserves from the drilling of 1,300 gross development, exploratory and service wells (including 18 sidetrack wells) and 326 well recompletions and pay-adds. In 2012, Energen Resources development and exploratory wells and other activities added approximately 57 million barrels of oil equivalent of proved reserves; the Company drilled 434 gross development, exploratory and service wells (including 3 sidetrack wells), performed some 116 well recompletions and pay-adds, and conducted other operational enhancements. Energen Resources' production totaled 24.1 million barrels of oil equivalent in 2012 .

There were 10 wells with multiple completions in 2012. All wells and acreage are located onshore in the United States, with the majority of the net undeveloped acreage located in Texas and Colorado.

Natural Gas Distribution

Alagasco is the natural gas distribution utility in the state of Alabama. Alagasco purchases natural gas through interstate and intrastate suppliers and distributes the purchased gas through its distribution facilities for sale to residential, commercial and industrial customers and other end-users of natural gas. Alagasco also provides transportation services to industrial and commercial customers located on its distribution system. These transportation customers, using Alagasco as their agent or acting on their own, purchase gas directly from marketers or suppliers and arrange for delivery of the gas into the Alagasco distribution system. Alagasco charges a fee to transport such customer-owned gas through its distribution system to the customers' facilities.

Alagasco's service territory is located in central and parts of north Alabama and includes 186 cities and communities in 28 counties. The aggregate population of the counties served by Alagasco is estimated to be 2.5 million. Among the cities served by Alagasco are Birmingham, the center of the metropolitan area in Alabama, and Montgomery, the state capital. During 2012, Alagasco served an average of 393,467 residential customers and 31,450 commercial, industrial and transportation customers. The Alagasco distribution system includes approximately 11,298 miles of main and more than 11,899 miles of service lines, odorization and regulation facilities, and customer meters. Alagasco's distribution system is connected to two interstate natural gas pipeline systems, Southern Natural Gas Company (Southern) and Transcontinental Gas Pipe Line Company (Transco). It is also connected to two intrastate natural gas pipeline systems and to Alagasco's two liquified natural gas (LNG) facilities. As of December 31, 2012, Alagasco had the contracts in place for firm natural gas pipeline transportation and storage services: Southern firm transportation, Southern storage and no notice transportation, Transco firm transportation and Various intrastate transportation.

Alagasco purchases natural gas from various natural gas producers and marketers. Certain volumes are purchased under firm contractual commitments with other volumes purchased on a spot market basis. The purchased volumes are delivered to Alagasco's system using a variety of firm transportation, interruptible transportation and storage capacity arrangements designed to meet the system's varying levels of demand. Alagasco's LNG facilities can provide the system with up to an additional 200,000 thousand cubic feet per day (Mcfd) of natural gas to meet peak day demand. The properties of Alagasco consist primarily of its gas distribution system, which includes approximately 11,298 miles of main and more than 11,899 miles of service lines, odorization and regulation facilities, and customer meters. Alagasco also has two LNG facilities, thirteen operation centers, two business centers, and other related property and equipment, some of which are leased by Alagasco.

Company Address

Energen Corp

605 Richard Arrington Jr.
Boulevard North
BIRMINGHAM   AL   35203-2707
P: +1205.3262997
F: +1205.3262704

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