Energen Corporation is engaged in the development and exploration of oil, natural gas and natural gas liquids in the continental United States. The company purchases, distributes, and sells natural gas in central and north Alabama. Subsidiaries The company’s two principal subsidiaries are Energen Resources Corporation (Energen Resources); and Alabama Gas Corporation (Alagasco). Oil and Gas Operations The company’s oil and gas operations focus on increasing production and adding proved reserves through the development 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 and San Juan 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, 2013, Energen Resources’ proved oil and gas reserves totaled 347.8 million barrels of oil equivalent (MMBOE). In 2013, Energen Resources completed the sale of its Black Warrior Basin coalbed methane properties in Alabama. In January 2014, Energen Resources signed a purchase and sale agreement on its North Louisiana/East Texas natural gas and oil properties. During 2013, Energen Resources classified these natural gas and oil properties as held-for-sale. As of December 31, 2013, proved reserves associated with Energen’s North Louisiana/East Texas properties totaled 23 billion cubic feet of natural gas and 91 thousand barrels of oil. During the three years ended December 31, 2013, the company’s development and exploratory efforts have added 139 MMBOE of proved reserves from the drilling of 1,308 gross development, exploratory and service wells (including 11 sidetrack wells) and 289 well recompletions and pay-adds. In 2013, Energen Resources’ development and exploratory wells and other activities added approximately 37 MMBOE of proved reserves; the company drilled 347 gross development, exploratory and service wells (including no sidetrack wells), performed approximately 87 well recompletions and pay-adds, and conducted other operational enhancements. Strategy: Energen operates under a strategy to grow the oil and gas operations of Energen Resources largely through the development of proved and unproved reserves and through the exploration in and around the basins in which it operates. Drilling Activity: As of December 31, 2013, the company was participating in the drilling of 5 gross development and 11 gross exploratory wells, with its interest equivalent to 2.2 wells and 9.4 wells, respectively. In addition to the development wells drilled, the company drilled 9.8 net service wells during 2013. Natural Gas Distribution Alagasco is the major 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 large 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’s service territory is located in central and parts of north Alabama and includes 187 cities and communities in 28 counties. During 2013, Alagasco served an average of 391,093 residential customers and 31,174 commercial, industrial and transportation customers. The Alagasco distribution system includes approximately 11,229 miles of main and approximately 12,015 miles of service lines, odorization and regulation facilities, and customer meters. Regulation: As an Alabama utility, Alagasco is subject to regulation by the Alabama Public Service Commission (APSC) which established the Rate Stabilization and Equalization (RSE) rate-setting process in 1983. Gas Supply: Alagasco’s distribution system is connected to two major 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. Alagasco’s LNG facilities can provide the system with up to an additional 200,000 thousand cubic feet per day of natural gas to meet peak day demand. Seasonality: Alagasco’s gas distribution business is highly seasonal since a material portion of the utility’s total sales and delivery volumes relate to space heating customers. Environmental Matters: The existing laws and regulations include the Clean Air Act; the Clean Water Act; Oil Pollution Prevention: Spill Prevention, Control, and Countermeasure regulations; Toxic Substances Control Act; Resource Conservation and Recovery Act; and the Federal Endangered Species Act. Compliance with these and other environmental laws and regulations is undertaken as part of the company’s routine operations. History Energen Corporation was founded in 1929.
energen corp (EGN:New York)
605 Richard Arrington Jr. Boulevard North
Birmingham, AL 35203
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