SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of
the Securities Exchange Act of 1934
For the fiscal year ended December 31, 1997
Commission File No. 33-46641
ENERGEN CORPORATION EMPLOYEE SAVINGS PLAN
(Full title of the plan)
ENERGEN CORPORATION
2101 Sixth Avenue North
Birmingham, Alabama 35203
Required Information. The Plan is subject to the Employee Retirement Income
Security Act of 1974 ("ERISA"). Therefore, in lieu of the requirements of Items
1-3 of Form 11-K, the financial statements and schedules of the Plan for the two
fiscal years ended December 31, 1997 and 1996, which have been prepared in
accordance with the financial reporting requirements of ERISA, and the consent
of Coopers & Lybrand, are filed as a part of this annual report:
Signatures. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the Plan) have duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
ENERGEN CORPORATION EMPLOYEE SAVINGS PLAN
/s/ W. D. Self June 24, 1998
W. D. Self Date
Chairman of Energen Benefits Committee and
Vice President - Human Resources and
Administration, Energen Corporation
/s/ G. C. Ketcham June 24, 1998
G. C. Ketcham Date
Member of Energen Benefits Committee and
Executive Vice President, CFO and Treasurer,
Energen Corporation
<PAGE>
Consent of Independent Auditors
We consent to the incorporation by reference in the registration statement on
Form S-8 (file No. 33-46641) of our report dated May 26, 1998 on our audits of
the financial statements and supplemental schedules of Energen Corporation
Employee Savings Plan as of December 31, 1997 and 1996, and for the years then
ended, which report is included in this Annual Report on Form 11-K.
/s/ COOPERS & LYBRAND L.L.P.
Birmingham, Alabama
June 26, 1998
<PAGE>
*
ENERGEN CORPORATION EMPLOYEE SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
<PAGE>
Energen Corporation Employee Savings Plan
Table of Contents
Pages
Report of Independent Accountants 1
Financial Statements:
Statements of Participants' Balances 2
December 31, 1997 and 1996
Statements of Changes in Participants' Balances
For the years ended December 31, 1997 and 1996 3
Notes to Financial Statements 4 - 10
Supplemental Schedules:
*Item 27a - Schedule of Assets Held for Investment
Purposes
As of December 31, 1997 11
*Item 27d - Schedule of Reportable Transactions
For the year ended December 31, 1997 12 - 13
* Refers to item number in Form 5500 (Annual Return/Report
of Employee Benefit Plan)
for plan year ended December 31, 1997.
<PAGE>
Report of Independent Accountants
To the Energen Benefits Committee
Energen Corporation Employee Savings Plan
We have audited the financial statements of the Energen Corporation Employee
Savings Plan listed in the accompanying table of contents, as of December 31,
1997 and 1996 and for the years then ended. These financial statements are the
responsibility of the Energen Benefits Committee. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Energen Corporation
Employee Savings Plan as of December 31, 1997 and 1996, and the changes in
participants' balances for the years then ended, in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
table of contents are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
reporting and disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Coopers & Lybrand L.L.P.
Birmingham, Alabama
May 26, 1998
<PAGE>
Energen Corporation Employee Savings Plan
Statements of Participants' Balances
December 31, 1997 and 1996
<TABLE>
<CAPTION>
ASSETS 1997 1996
<S> <C> <C>
Investment in Energen Corporation common stock
(cost $29,829,287
and $26,296,438 at December 31, 1997 and $ 55,455,693 $40,347,108
1996, respectively)
Other investments (cost $29,848,717 and
$24,904,288 at
December 31, 1997 and 1996, respectively) 37,451,724 29,533,539
Loans to participants 4,868,064 4,213,494
Cash surrender value of life insurance 85,870 93,956
Employer contributions receivable 558,308 558,214
Employee contributions receivable 266,323 268,391
Interest, dividends, and other receivables 35,818 29,256
$ 98,721,800 $75,043,958
LIABILITIES AND PARTICIPANTS' BALANCES
Participants' balances $ 98,721,800 $75,043,958
The accompanying notes are an integral part of these financial
statements.
</TABLE>
<PAGE>
Energen Corporation Employee Savings Plan
Statements of Changes in Participants' Balances
for the years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
Additions:
<S>
<C> <C>
Employer contributions $ 3,041,481 $ 3,000,871
Employee contributions 3,444,204 3,081,909
Interest and dividend income 4,364,801 3,433,734
Net appreciation in the fair value of 17,109,970 10,523,358
investments
Increase (decrease) in cash surrender (508) 14,078
value
Other receipts (disbursements) (32) 71,962
27,959,916 20,125,912
Deductions:
Distributions to participants 4,273,328 3,152,095
Insurance premiums 7,578 7,326
Fees and other distributions 1,168 1,975
4,282,074 3,161,396
Net increase 23,677,842 16,964,516
Participants' balances:
Beginning of year 75,043,958 58,079,442
End of year $ 98,721,800 $ 75,043,958
The accompanying notes are an integral part of these financial
statements.
</TABLE>
<PAGE>
Energen Corporation Employee Savings Plan
Notes to Financial Statements
1.Description of Plan
General - The Energen Corporation Employee Savings Plan is a defined
contribution plan covering substantially all employees of Energen
Corporation, Alabama Gas Corporation, Taurus Exploration, Inc., Alagasco
Pipeline Company, Taurus Exploration USA, Inc., EGN Services, Inc. and Basin
Pipeline Corp. (collectively referred to as the Company).
Employees are eligible to participate in the Plan after completing six
months of service as defined in the Plan. Individual accounts are maintained
for each participant in the Plan and are adjusted for allocation of assets
purchased with the Company's Employee Stock Ownership Plan (ESOP)
contribution, employee contributions, Company matching contributions, and
investment results. An administrative committee and a trustee are appointed
by the Company to administer the Plan and trust, respectively. The Company
generally absorbs the administrative expenses of the Plan.
Contributions - Contributions to the Plan consist of employee elective
contributions, Company matching and ESOP contributions, and rollover
contributions. Employee elective contributions, if any, are made in an
amount equal to any whole percentage of the employee's compensation,
generally not to exceed 15% thereof and not less than 2% thereof. Company
matching contributions are presently being funded at the end of each month.
This contribution is currently 50% of each employee's elective contribution
up to 6% of the employee's compensation. This contribution level is at the
discretion of the board of directors of the Company. Contributions by highly
compensated employees are subject to certain limitations as prescribed by
the Plan.
Company ESOP contributions are presently being funded each quarter and are
at the discretion of the board of directors. The formula used to allocate
the ESOP contribution is determined annually. Current contribution levels
range from 2.25% to 7% of the employee's annual compensation, based on the
employee's age. The amount of forfeited nonvested accounts at December 31,
1997 was approximately $10,800 and was held primarily in the Vanguard Money
Market Reserve-Prime Portfolio account. The Company plans to use all of this
amount to reduce its future contributions to the Plan.
Vesting - Each participant has a fully vested and nonforfeitable right in
any elective and rollover contributions and earnings thereon. A
participant's matching and ESOP contribution accounts become fully vested
upon the earlier of normal retirement, disability, death, termination of the
Plan, three years of service as a plan member, or five years of service.
Individual Accounts - Each participant has an individual account which is
divided into an elective contribution account, a matching contribution
account, an ESOP contribution account, and a rollover account. Purchases of
stock are allocated to individual participants' elective, matching, and ESOP
accounts as set forth in the Plan. Stock purchased with the Company matching
contributions is allocated based on the ratio of a participant's
compensation, as defined in the Plan, for the plan year to total
compensation of all such participants for the plan year. Stock purchased
with cash dividends or with the proceeds of other distributions from the
Plan's assets and stock received in kind by the trustee as a stock split,
dividend, or other distribution of stock so held is allocated based on the
ratio of a participant's account balance to the total account balances of
all participants as of the record dates of the dividend or distribution.
Cash dividends attributable to shares which have not yet been allocated to
individual participants' accounts shall be used to purchase shares for
allocation in the same manner that shares purchased with the Company
matching contributions are allocated.
Investments - As of December 31, 1997, participants may elect one of
fourteen options: The Vanguard Money Market Reserves - Prime Portfolio, a
money market fund with a portfolio of high quality money market instruments
that mature in one year or less; the Vanguard/Wellington Fund, a balanced
fund which invests in bonds and common stocks; the Vanguard Index Trust -
500 Portfolio, a growth and income fund that invests in all of the stocks
included in the Standard and Poor (S&P)'s 500 Index in approximately the
same proportions as they are represented in the S&P 500 Index; the
Vanguard/Windsor II, a growth and income fund which invests in common
stocks; the Vanguard/Morgan Growth Fund, a growth fund which invests in a
portfolio of common stocks; the Vanguard International Growth Portfolio, a
growth fund which invests in the common stocks of companies based outside of
the United States; the Vanguard Fixed Income Securities Fund - Long-Term
Corporate Portfolio, an income fund which invests in a diversified portfolio
of long-term investment-grade bonds; the Energen Stock Fund, which invests
exclusively in the stock of Energen Corporation; the Vanguard Fixed Income
Securities Fund - Intermediate-Term Corporate Portfolio, an income fund
which invests in corporate bonds, U.S. Treasury and Government agency
securities that mature in five to twelve years; the Vanguard Index Trust -
Small Capitalization Stock Portfolio, an aggressive growth stock fund which
invests in stocks from the Russell 2000 Index and is constructed so that, in
the aggregate, the Portfolio's industry capitalization and fundamental
characteristics resemble those of the Russell 2000; the Vanguard Life
Strategy Funds - Growth Portfolio, Vanguard Life Strategy Funds - Moderate
Growth Portfolio, Vanguard Life Strategy Funds - Conservative Growth
Portfolio, and Vanguard Life Strategy Funds - The Income Portfolio, funds
which invest in carefully selected portfolios of Vanguard Mutual Funds.
Prior to December 31, 1986, there was a life insurance option available to
participants of the Plan. No new contracts may be purchased under this
option; however, participants that were enrolled in this option may still
contribute to this fund which invests in universal life insurance policies.
The number of employees participating in each option as of December 31, 1997
and 1996 is as follows:
<TABLE>
<CAPTION>
1997 1996
<C> <C>
<S>
Vanguard Money Market Reserves - Prime Portfolio 878 941
Vanguard Fixed Income Securities Fund - Long-Term 274 284
Corporate Portfolio
Vanguard/Wellington Fund 636 625
Vanguard Index Trust - 500 Portfolio 863 836
Vanguard/Windsor II 537 477
Vanguard/Morgan Growth Fund 556 547
Vanguard International Growth Portfolio 363 357
Energen Stock Fund 1,519 1,519
Insurance 20 39
Loan Fund 650 646
Vanguard Index Trust - Small Capitalization Stock 66 55
Portfolio
Vanguard Life Strategy Funds - The Income 9 6
Portfolio
Vanguard Life Strategy Funds - Conservative 22 18
Growth Portfolio
Vanguard Fixed Income Securities Fund - 26 19
Intermediate-Term Corporate Portfolio
Vanguard Life Strategy Funds - Moderate Growth 45 37
Portfolio
Vanguard Life Strategy Funds - Growth Portfolio 53 39
Loans - Participants may borrow from their vested individual accounts up to
amounts prescribed in the Plan. The interest rates on these loans at
December 31, 1997 ranged from 7.00% to 11.50%.
Termination of the Plan - While the Company has not expressed any intent to
terminate the Plan or suspend contributions, it may do so at any time and
for any reason. In the event of termination, the Energen Benefits Committee
may, with the Company's approval either (1) continue the Trust Fund either
through the existing trust agreement or through successor funding media or
(2) terminate the Trust Fund, pay all expenses, and direct the payment of
benefits, either in the form of lump-sum distributions, transfer to another
qualified plan, or any form selected by the committee. Any assets
attributable to unallocated financed shares that remain after all vested
account balances under the Plan have been paid will be returned to the
employer. Distribution to a member of his elective contribution account
which is not otherwise distributable on account of his separation from
service, attainment of age 59-1/2, or hardship will be made only where no
successor to the Plan is established.
2.Summary of Significant Accounting Policies
Basis of Financial Statements - The financial statements of the Plan are
maintained on the accrual basis and have been prepared in conformity with
generally accepted accounting principles.
Investment Valuation - The investment in common stock of Energen Corporation
is stated at quoted market value as determined by the latest sales price
thereof reported by the principal securities exchange on which the stock is
traded on the last business day of the year. Purchases of securities are
recorded on the trade dates. The investment in money market instruments
represents the value of contributions made, adjusted for investment income,
benefit payments, and administrative expenses. Investments in mutual funds
are carried at the fair value of funds' shares, which is based upon the
market value of the underlying investments. The cost of securities sold is
determined at average cost.
The Plan presents in the statement of changes in net assets the net
appreciation (depreciation) in the fair value of its investments which
consists of the realized gains and losses and the unrealized appreciation
(depreciation) on those investments.
3.Income Tax Status
The Plan is exempt from federal income taxes under Section 501(a) of the
Internal Revenue Code. The Plan obtained its latest determination letter on
July 3, 1997, in which the Internal Revenue Service stated that the Plan, as
then designed, was in compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since receiving the
determination letter. However, the plan administrator and the Plan's tax
counsel believe that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Internal Revenue Code.
Therefore, no provision for income taxes has been included in the Plan's
financial statements.
4.Investments
Investments at December 31, 1997 and 1996 are as follows:
1997 1996
Market Cost Market Cost
<C> <C> <C> <C>
<S>
Energen Corporation
common stock $ 55,455,693 $29,829,287 $ 40,347,108 $ 26,296,438
Money market and
guaranteed rate
Short-term
investments $ 7,381,184 $ 7,381,184 $ 7,336,491 $ 7,336,491
Mutual funds 30,070,540 22,467,533 22,197,048 17,567,797
$ 37,451,724 $29,848,717 $ 29,533,539 $ 24,904,288
</TABLE>
The change in unrealized appreciation was $14,549,492 and $9,338,386 in 1997
and 1996, respectively.
<PAGE>
The following is a summary of assets held in excess of 5% of the Plan's net
assets at December 31:
<TABLE>
<CAPTION>
1997 1996
<C> <C>
<S>
Energen Corporation common stock $ 55,455,693 $ 40,347,108
Vanguard Index 500 Portfolio $ 10,721,152 $ 7,336,491
VMMR - Prime Portfolio $ 7,381,184 $ 7,966,920
Vanguard Wellington Fund $ 0 $ 3,865,773
</TABLE>
The investments of the Plan at December 31, 1997 and 1996, as described in
the accompanying Statements of Participants' Balances, are held by Vanguard
Fiduciary Trust Company, under a trust agreement dated October 1, 1991.
5.Allocation of Net Assets Available for Plan Benefits
The allocation of net assets available for plan benefits to the Plan's
separate investment program for the years ended December 31, 1997 and 1996
is as follows:
<TABLE>
<CAPTION>
Life Energen
Strategy Vanguard
1997 Consolidated Elimination Stock Growth
Wellington
ASSETS Totals Entries Fund Portfolio
Fund
<S> <C> <C> <C> <C> <C>
Energen common stock $ 55,455,693 $55,455,693
Loans to participants 4,868,064
Other investments 37,451,724 $ 618,340$
4,824,648
Employer contributions
receivable 558,308 558,308
Employee contributions
receivable 266,323 27,391 4,970
34,808
Other receivables 0
Interest and dividends
receivable 35,818
Due from other funds 0 $ (146,970) 20,327 1,065
18,632
Cash surrender value-
life insurance 85,870
Total Assets $ 98,721,800 $ (146,970)$56,061,719 $624,375$
4,878,088
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds $ 0 $ (146,970)
Participants' balances 98,721,800 $56,061,719$ 624,375$
4,878,088
Total liabilities
and participants'
balances $ 98,721,800 $ (146,970)$56,061,719$ 624,375$
4,878,088
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard
Vanguard Fixed Vanguard
Morgan Income VMMR Vanguard Index
1997 Growth Securities Prime Index 500 Small
ASSETS CONTINUED Fund Fund Portfolio Portfolio
Cap.Port.
<S> <C> <C> <C> <C> <C>
Energen common stock
Loans to participants
Other investments $ 4,877,326 $1,113,373 $ 7,381,184
$10,721,152 $ 328,673
Employer contributions
receivables
Employee contributions
receivables 29,080 11,196 43,001 60,699
2,338
Other receivables
Interest and dividends
receivable
Due from other funds 15,744 5,349 27,786 33,047
944
Cash surrender value-
life insurance
Total assets $ 4,922,150 $1,129,918 $ 7,451,971
$10,814,898 $331,955
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds
Participants' balances $ 4,922,150 $1,129,918 $ 7,451,971
$10,814,898 $331,955
Total liabilities
and participants'
balances $ 4,922,150 $1,129,918 $ 7,451,971 $10,814,898 $331,955
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Life Life Immediate Vanguard
Strategy Strategy Term. Intern'tl
1997 Income Conserv. Corp. Vanguard Growth
ASSETS CONTINUED Portfolio Growth Portfolio Windsor II Portfolio
<S> <C> <C> <C> <C> <C>
Energen common stock
Loans to participants
Other investments $ 69,394 $ 437,773 $ 252,244 $ 4,036,175 $
2,454,055
Employer contributions
receivables
Employee contributions
receivables 254 932 967 30,538
16,704
Other receivables
Interest and dividends
receivable
Due from other funds 936 34 12,549
9,267
Cash surrender value-
life insurance
Total assets $ 69,648 $ 439,641 $ 253,245 $4,079,262 $
2,480,026
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds
Participants' balances $ 69,648 $ 439,641 $ 253,245 $4,079,262 $
2,480,026
Total liabilities
and participants'
balances $ 69,648 $ 439,641 $ 253,245 $4,079,262 $
2,480,026
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard
Life
Strategy
Mod.
1997 Growth Loan
ASSETS CONTINUED Portfolio Fund Insurance
<S> <C> <C> <C>
Energen common stock
Loans to participants $4,868,064
Other investments $ 337,387
Employer contributions
receivables
Employee contributions
receivables 3,445
Other receivables
Interest and dividends
receivable 35,818
Due from other funds 1,290
Cash surrender value-
life insurance $ 85,870
Total assets $ 342,122 $4,903,882 $ 85,870
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds $ 146,970
Participants' balances $ 342,122 $4,756,912 $ 85,870
Total liabilities
and participants'
balances $ 342,122 $4,903,882 $ 85,870
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Energen Strategy Vanguard
1996 Consolidated Elimination Stock Growth
Wellington
ASSETS Totals Entries Fund Portfolio
Fund
<S> <C> <C> <C> <C> <C>
Energen common stock $ 40,347,108 $40,347,108
Loans to participants 4,213,494
Other investments 29,533,539 $406,749
$3,865,773
Employer contributions
receivable 558,214 558,214
Employee contributions
receivable 268,391 26,752 5,407
34,490
Other receivables 0
Interest and dividends
receivable 29,256
Due from other funds 0 $ (125,398) 15,417 797
15,921
Cash surrender value-
life insurance 93,956
Total Assets $ 75,043,958 $ (125,398)$40,947,491 $412,953
$3,916,184
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds $ 0 $ (125,398)
Participants' balances 75,043,958 $40,947,491 $412,953
$3,916,184
Total liabilities
and participants'
balances $ 75,043,959 $ (125,398)$40,947,491 $412,953
$3,916,184
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard
Vanguard Fixed Vanguard
Morgan Income VMMR Vanguard Index
1996 Growth Securities Prime Index 500 Small
ASSETS CONTINUED Fund Fund PortfolioPortfolio
Cap.Port.
<S> <C> <C> <C> <C> <C>
Energen common stock
Loans to participants
Other investments $ 3,386,813 $ 906,051 $7,336,491 $7,966,920 $268,088
Employer contributions
receivable
Employee contributions
receivable 28,738 11,057 46,804 61,124 2,310
Other receivables
Interest and dividends
receivable
Due from other funds 13,186 4,792 25,281 28,522 643
Cash surrender value-
life insurance
Total Assets $ 3,428,737 $ 921,900 $7,408,576 $8,056,566 $271,041
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds
Participants' balances $3,428,737 $ 921,900 $7,408,576 $8,056,566 $271,041
Total liabilities
and participants'
balances $3,428,737 $ 921,900 $7,408,576 $8,056,566 $271,041
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Life Life Immediate Vanguard
Strategy Strategy Term. Intern'tl
1996 Income Conserv. Corp. Vanguard Growth
ASSETS CONTINUED Portfolio Growth Portfolio Windsor II Portfolio
<S> <C> <C> <C> <C> <C>
Energen common stock
Loans to participants
Other investments $ 9,181 $ 356,043 $ 34,551 $2,738,486$2,090,623
Employer contributions
receivable
Employee contributions
receivable 30 1,168 408 26,652 20,202
Other receivables
Interest and dividends
receivable
Due from other funds 916 6 10,439 7,937
Cash surrender value-
life insurance
Total Assets $ 9,211 $ 358,127 $ 34,965 $2,775,577 $2,118,762
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds
Participants' balances $ 9,211 $ 358,127 $ 34,965 $2,775,577 $2,118,762
Total liabilities
and participants'
balances $ 9,211 $ 358,127 $ 34,965 $2,775,577 $2,118,762
</TABLE>
<PAGE>
<TABLE>
<CAPTION
Vanguard
Life
Strategy
Mod.
1996 Growth Loan
ASSETS CONTINUED Portfolio Fund Insurance
<S> <C> <C> <C>
Energen common stock
Loans to participants $4,213,494
Other investments $ 167,770
Employer contributions
receivables
Employee contributions
receivables 3,249
Other receivables
Interest and dividends
receivable 29,256
Due from other funds 1,541
Cash surrender value-
life insurance $ 93,956
Total assets $ 172,560 $4,242,750 $ 93,956
LIABILITIES AND
PARTICIPANTS' BALANCES
Due to other funds $ 125,398
Participants' balances $ 172,560 4,117,352 $ 93,956
Total liabilities
and participants'
balances $ 172,560 $4,242,750 $ 93,956
</TABLE>
<PAGE>
6. Changes in Net Assets Available for Plan Benefits
The allocation of changes in net assets available for plan benefits to the
Plan's separate investment programs for the years ended December 31, 1997 and
1996 are as follows:
<TABLE>
<CAPTION>
Life
Energen Strategy Vanguard
1997 Consolidated Elimination Stock Growth
Wellington
ADDITIONS Totals Entries Fund Portfolio
Fund
<S> <C> <C> <C> <C> <C>
Employer contributions $ 3,041,481 $ 3,041,481
Employee contributions 3,444,204 329,208 $ 59,048 $ 435,794
Interest and dividend
income 4,364,801 1,661,879 24,919 405,604
Net realized gains
on investments 838,122 356,569 2,233 76,886
Net increase (decrease)
in unrealized
appreciation of
investments 16,271,848 12,626,927 76,090 422,036
Increase (decrease)in
cash surrender (508)
Other receipts
(disbursements) (32)
Transfers from other
accounts 0 $(4,494,735) 279,068 25,750 253,818
Total additions 27,959,916 (4,494,735) 18,295,132 188,040 1,594,138
DEDUCTIONS
Distributions to
participants 4,273,328 1,371,676 1,560 243,411
Insurance premiums 7,578
Fees and other
distributions 1,168
Transfers to other
accounts 0 (4,494,735) 1,809,228 (24,942) 388,823
Total deductions 4,282,074 (4,494,735) 3,180,904 (23,382) 632,234
Net increase/decrease 23,677,842 0 15,114,228 211,422
961,904
Participants' balance
beginning of year 75,043,958 40,947,491 412,953
3,916,184
Participants' balance
end of year $98,721,800 $ 0 $56,061,719 $ 624,375
$4,878,088
</TABLE>
<PAGE>
<TABLE>
<CAPTION> Vanguard
Vanguard Fixed Vanguard
Morgan Income VMMR Vanguard Index
1997 Growth Securities Prime Index 500 Small
ADDITIONS CONTINUED Fund Fund Portfolio Portfolio Cap.Port.
<S> <C> <C> <C> <C> <C>
Employer contributions
Employee contributions $ 384,519 $ 129,738 $ 531,566 $ 842,261 $ 31,596
Interest and dividend
income 647,617 70,718 387,944 225,370 19,527
Net realized gains
on investments 40,703 (1,668) 222,926
9,044 Net increase (decrease)
in appreciation of
investments 397,917 47,876 2,204,876 28,449
Increase (decrease)
in cash surrender
Other receipts
(disbursements)
Transfers from other
accounts 225,426 69,914 372,105 481,934 12,381
Total additions 1,696,182 316,578 1,291,615 3,977,367 100,997
DEDUCTIONS
Distributions to
participants 71,873 47,796 1,524,567 437,726 95,500
Insurance premiums
Fees and other
distributions 1,168
Transfers to other
accounts 129,728 60,764 (276,347) 781,309 (55,417)
Total deductions 202,769 108,560 1,248,220 1,219,035 40,083
Net increase/decrease 1,493,413 208,018 43,395 2,758,332 60,914
Participants' balance
beginning of year 3,428,737 921,900 7,408,576 8,056,566 271,041
Participants' balance
end of year $4,922,150 $1,129,918 $7,451,971 $10,814,898 $ 331,955
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Life Life Immediate Vanguard
Strategy Strategy Term. Intern'tl
1997 Income Conserv. Corp. Vanguard Growth
ADDITIONS CONTINUED Portfolio Growth Portfolio Windsor II
Portfolio
<S> <C> <C> <C> <C> <C>
Employer contributions
Employee contributions $ 947 $ 11,600 $ 8,411 $ 398,100 $ 227,105
Interest and dividend
income 2,524 23,347 7,875 365,994 105,063
Net realized gains
on investments 87 1,922 (85) 79,725 48,922
Net increase (decrease)
in unrealized
appreciation of
investments 1,593 36,639 4,573 510,106 (114,283)
Increase(decrease) in
cash surrender
Other receipts
(disbursements)
Transfers from other
accounts 11,309 333 183,917 144,022
Total additions 5,151 84,817 21,107 1,537,842 410,829
DEDUCTIONS
Distributions to
participants 532 3,933 114,990 258,270
Insurance premiums
Fees and other
distributions
Transfers to other
accounts (55,818) 3,303 (201,106) 119,167
(208,705)
Total deductions (55,286) 3,303 (197,173) 234,157
49,565
Net increase/decrease 60,437 81,514 218,280 1,303,685 361,264
Participants' balance
beginning of year 9,211 358,127 34,965 2,775,577 2,118,762
Participants' balance
end of year $ 69,648 $ 439,641 $ 253,245 $ 4,079,262$2,480,026
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard
Life
Strategy
Mod.
1997 Growth Loan
ADDITIONS CONTINUED Portfolio Fund Insurance
<S> <C> <C> <C>
Employer contributions
Employee contributions $ 54,311
Interest and dividend
income 14,829 $ 401,591
Net realized gains
on investments 858
Net increase (decrease)
in unrealized
appreciation of
investments 29,049
Increase (decrease) in
cash surrender $ (508)
Other receipts
(disbursements) (32)
Transfers from other
accounts 17,887 2,416,871
Total additions 116,934 2,818,430 (508)
DEDUCTIONS
Distributions to
participants 489 101,005
Insurance premiums 7,578
Fees and other
distributions
Transfers to other
accounts (53,117) 2,077,865
Total deductions (52,628) 2,178,870 7,578
Net increase/decrease 169,562 639,560 (8,086)
Participants' balance
beginning of year 172,560 4,117,352 93,956
Participants' balance
ending of year $ 342,122 $4,756,912 $ 85,870
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Life
Energen Strategy Vanguard
1996 Consolidated Elimination Stock Growth
Wellington
ADDITIONS Totals Entries Fund Portfolio
Fund
<S> <C> <C> <C> <C> <C>
Employer contributions $ 3,000,871 $ 3,012,943
Employee contributions 3,081,909 328,190 $ 46,833 $ 404,434
Interest and dividend
income 3,433,734 1,519,151 16,344 295,887
Net realized gains
on investments 279,044 97,668 1,670 27,734
Net increase (decrease)
in unrealized
appreciation of
investments 10,244,314 8,135,589 28,503 208,461
Increase in cash
surrender 14,078
Other receipts 71,962 17,832 1,185 340
Transfers from other
accounts 0 $(7,551,843) 699,948 136,750 509,878
Total additions 20,125,912 (7,551,843) 13,811,321 231,285 1,446,734
DEDUCTIONS
Distributions to
participants 3,152,095 1,432,432 2,029 223,188
Insurance premiums 7,326
Fees and other
distributions 1,975
Transfers to other
accounts 0 (7,551,843) 1,521,416 74,771 348,206
Total deductions 3,161,396 (7,551,843) 2,953,848 76,800 571,394
Net increase/decrease 16,964,516 0 10,857,473 154,485
875,340
Participants' balance
beginning of year 58,079,442 30,090,018 258,468
3,040,844
Participants' balance
end of year $75,043,958 $ 0 $40,947,491$ 412,953$
3,916,184
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard
Vanguard Fixed Vanguard
Morgan Income VMMR Vanguard Index
1996 Growth Securities Prime Index 500 Small
ADDITIONS CONTINUED Fund Fund Portfolio Portfolio Cap.Port.
<S> <C> <C> <C> <C> <C>
Employer contributions $ (12,548)
Employee contributions $ 323,678 $ 123,542 $ 590,072 $ 668,932 $ 31,119
Interest and dividend
income 326,192 73,304 373,366 169,902 18,713
Net realized gains
on investments 40,371 (12,811) 63,880
(491) Net increase (decrease)
in appreciation of
investments 256,580 (44,056) 1,197,783
10,792
Increase in cash surrender
Other receipts 17,109 1,937 16,847
Transfers from other
accounts 419,056 170,688 1,719,876 776,953 166,402
Total additions 1,382,986 310,667 2,685,251 2,881,749 226,535
DEDUCTIONS
Distributions to
participants 118,700 51,093 678,386 234,771 7,195
Insurance premiums
Fees and other
distributions 1,975
Transfers to other
accounts 392,257 158,511 2,079,544 568,583 81,492
Total deductions 510,957 209,604 2,757,930 803,354 90,662
Net increase/decrease 872,029 101,063 (72,679) 2,078,395
135,873
Participants' balance
beginning of year 2,556,708 820,837 7,481,255 5,978,171 135,168
Participants' balance
end of year $3,428,737 $ 921,900 $7,408,576 $ 8,056,566 $271,041
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Life Life Immediate Vanguard
Strategy Strategy Term. Intern'tl
1996 Income Conserv. Corp. Vanguard Growth
ADDITIONS CONTINUED Portfolio Growth Portfolio Windsor II Portfolio
<S> <C> <C> <C> <C> <C>
Employer contributions $ 476
Employee contributions $ 319 $ 11,147 $ 5,268 287,901 $ 231,715
Interest and dividend
income 688 19,840 3,122 191,646 88,547
Net realized gains
on investments 1 341 (830) 34,141 27,162
Net increase (decrease)
in unrealized
appreciation of
investments 88 10,749 (773) 284,984 148,944
Increase in cash surrender
Other receipts 16,161 412 139
Transfers from other
accounts 3,247 44,147 49,090 485,704 318,499
Total additions 4,343 102,385 55,877 1,285,264 815,006
DEDUCTIONS
Distributions to
participants 613 17,297 134,855 138,143
Insurance premiums
Fees and other
distributions
Transfers to other
accounts 6,009 37,052 39,494 250,185 283,849
Total deductions 6,009 37,665 56,791 385,040 421,992
Net increase/decrease (1,666) 64,720 (914) 900,224
393,014
Participants' balance
beginning of year 10,877 293,407 35,879 1,875,353 1,725,748
Participants' balance
end of year $ 9,211 $ 358,127 $ 34,965 $ 2,775,577 $2,118,762
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
Vanguard
Life
Strategy
Mod.
1996 Growth Loan
ADDITIONS CONTINUED Portfolio Fund Insurance
<S> <C> <C> <C>
Employer contributions
Employee contributions $ 28,759
Interest and dividend
income 7,804 $ 329,228
Net realized gains
on investments 208
Net increase (decrease)
in unrealized
appreciation of
investments 6,670
Increase in cash surrender $ 14,078
Other receipts
Transfers from other
accounts 68,313 1,983,292
Total additions 111,754 2,312,520 14,078
DEDUCTIONS
Distributions to
participants 14,527 98,866
Insurance premiums 7,326
Fees and other
distributions
Transfers to other
accounts 17,765 1,692,709
Total deductions 32,292 1,791,575 7,326
Net increase/decrease 79,462 520,945 6,752
Participants' balance
beginning of year 93,098 3,596,407 87,204
Participants' balance
ending of year $ 172,560 $4,117,352 $ 93,956
</TABLE>
<PAGE>
Supplemental Schedules
Energen Corporation Employee Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C>
c Description of
. Investment
Including
b Identity of Issuer, Maturity Date, e Current
. Borrower, Rate of Interest, .
a Lessor, or Similar Collateral, Par, d. Cost Value
. Party or Maturity Value
* Energen Corporation Common stock $ 29,829,287 $ 55,455,693
* W.L. Morgan Growth Mutual fund 4,047,804 4,877,326
Fund
* Vanguard Index 500 Mutual fund 6,317,068 10,721,152
Portfolio
* VMMR-Prime Portfolio Money market fund 7,381,184 7,381,184
* Wellington Fund Mutual fund 3,892,413 4,824,648
* VFISF-Corporate Bond Mutual fund 1,067,303 1,113,373
Fund
* Windsor II Fund Mutual fund 3,062,848 4,036,175
* International Growth Mutual fund 2,305,373 2,454,055
Fund
* Life Strategy Growth Mutual fund 487,905 618,340
Portfolio
* Vanguard Index Small Mutual fund 294,424 328,673
Cap Portfolio
* Life Strategy Income Mutual fund 67,629 69,394
Portfolio
* Life Strategy Mutual fund 379,295 437,773
Conservative Growth
* Intermediate-Term Mutual fund 247,868 252,244
Corporate Bond
* Life Strategy Mutual fund 297,602 337,387
Moderate Growth
* Loan Fund 7% to 11.5% 4,756,912 4,756,912
(participant loans)
Cash surrender value 85,870 85,870
of life insurance
$ 64,520,785 $ 97,750,199
* Represents party-in-
interest
</TABLE>
<PAGE>
Energen Corporation Employee Savings Plan
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1997
<TABLE>
<CAPTION>
<S> <C>
I. Single transactions exceeding 5% of assets.
NONE
II. Series of transactions involving property other than
securities.
Schedule attached.
NOTE: Information required in Columns e, f, and h is
inapplicable.
III. Series of transactions of same issue exceeding 5% of assets.
Schedule attached.
NOTE: Information required in Columns e, f, and h is
inapplicable.
IV. Transaction in conjunction with same person involved in
reportable single transactions.
NONE
Energen Corporation Employee Savings Plan
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1997
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
aIdentity bDescript c. Purchases d. Sales g Cost of i Net Gain
. of . ion . .
Party of Asset Price Number Price Number Asset (Loss)
Involved
Energen Common
Corporati stock $6,008,999 99 $3,883,911 170 $2,483,237 $1,400,674
on
VMMR Money
Prime market $3,474,305 157 $4,060,041 176 $4,060,041 $0
Portfolio
</TABLE>
