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, 1998
Commission File No. 33-46641
ENERGEN CORPORATION EMPLOYEE SAVINGS PLAN
(Full title of the plan)
ENERGEN CORPORATION
605 21st Street North
Birmingham, Alabama 35203-2707
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, 1998 and 1997, which have been prepared in
accordance with the financial reporting requirements of ERISA, and the consent
of Pricewaterhouse Coopers, 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 25,1999
W. D. Self Date
Chairman of Energen Benefits Committee and
Vice President-Human Resources and
Administration, Energen Corporation
/s/ G.C. Ketcham June 25, 1999
G. C. Ketcham Date
Member of Energen Benefits Committee and
Executive Vice President, CFO and Treasurer,
Energen Corporation
<PAGE>
ENERGEN CORPORATION EMPLOYEE SAVINGS PLAN
Financial Statements and Supplemental Schedules
for the years ended December 31, 1998 and 1997
<PAGE>
Energen Corporation Employee Savings Plan
Table of Contents
Pages
Report of Independent Accountants 1
Financial Statements:
Statements of Participants' Balances 2
December 31, 1998 and 1997
Statements of Changes in Participants' Balances
for the years ended December 31, 1998 and 1997 3
Notes to Financial Statements 4 - 10
Supplemental Schedules:
*Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1998 11
*Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1998 12 - 13
* Refers to item number in Form 5500 (Annual Return/Report of
Employee Benefit Plan)
for plan year ended December 31, 1998.
<PAGE>
Report of Independent Accountants
To the Energen Benefits Committee
Energen Corporation Employee Savings Plan
In our opinion, the accompanying statements of participants' balances and
changes in participants' balances present fairly, in all material respects, the
financial position of the Energen Corporation Employee Savings Plan (the Plan)
as of December 31, 1998 and 1997 and for the years then ended, in conformity
with generally accepted accounting principles. These financial statements are
the responsibility of the Plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
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/ PricewaterhouseCoopers LLP
June 3, 1999
<PAGE> 1
Energen Corporation Employee Savings Plan
Statements of Participants' Balances
December 31, 1998 and 1997
ASSETS 1998 1997
Investment in Energen Corporation common stock
(cost $34,802,047 and $29,829,287
at December 31, 1998 and $ 58,059,031 $ 55,455,693
1997, respectively)
Other investments (cost $34,039,397 and
$29,848,717 at December 31, 1998 and
1997, respectively) 44,452,945 37,451,724
Loans to participants 5,253,655 4,868,064
Cash surrender value of life insurance 91,123 85,870
Employer contributions receivable 639,591 558,308
Employee contributions receivable 303,645 266,323
Interest, dividends, and other receivables 35,818
$ 108,799,990 $ 98,721,800
LIABILITIES AND PARTICIPANTS' BALANCES
Participants' balances $ 108,799,990 $ 98,721,800
The accompanying notes are an integral part of these financial statements
<PAGE> 2
Energen Corporation Employee Savings Plan
Statements of Changes in Participants' Balances
for the years ended December 31, 1998 and 1997
1998 1997
Additions:
Employer contributions $ 3,227,635 $ 3,041,481
Employee contributions 5,181,373 3,444,204
Interest and dividend income 4,629,171 4,364,801
Net appreciation in the fair value of 3,156,420 17,109,970
investments
Increase (decrease) in cash surrender 10,904 (508)
value
Other receipts (disbursements) 172,275 (32)
16,377,778 27,959,916
Deductions:
Distributions to participants 6,293,204 4,273,328
Insurance premiums 5,651 7,578
Fees and other distributions 733 1,168
6,299,588 4,282,074
Net increase 10,078,190 23,677,842
Participants' balances:
Beginning of year 98,721,800 75,043,958
End of year $ 108,799,990 $ 98,721,800
The accompanying notes are an integral part of these financial
statements.
<PAGE> 3
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 and its subsidiaries, principally Alabama Gas Corporation,
Energen Resources, Inc., Alagasco Pipeline Company, EGN Services, Inc. and
Basin Pipeline Corporation (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, employer 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 pays 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,
1998 and 1997 was approximately $17,500 and $10,800, respectively, 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.
<PAGE> 4
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, 1998, 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 500 Index Fund,
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 Fund, 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 Fund, a growth fund which invests in the
common stocks of companies based outside of the United States; the Vanguard
Long-Term Corporate Fund, 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
Intermediate-Term Corporate Fund, an income fund which invests in corporate
bonds, U.S. Treasury and Government agency securities that mature in five to
twelve years; the Vanguard Small Capitalization Index Fund, 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 Growth Fund, Vanguard Life Strategy
Moderate Growth Fund, Vanguard Life Strategy Conservative Growth Fund, and
Vanguard Life Strategy Income Fund, funds which invest in carefully selected
portfolios of Vanguard Mutual Funds.
<PAGE> 5
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, 1998
and 1997 is as follows:
1998 1997
Vanguard Money Market Reserves - Prime Portfolio 835 878
Vanguard Long-Term Corporate Fund 270 274
Vanguard/Wellington Fund 643 636
Vanguard 500 Index Fund 890 863
Vanguard/Windsor II Fund 593 537
Vanguard/Morgan Growth Fund 557 556
Vanguard International Growth Fund 334 363
Energen Stock Fund 1,567 1,519
Insurance 18 20
Loan Fund 637 650
Vanguard Small Capitalization Index Fund 80 66
Vanguard Life Strategy Income Fund 17 9
Vanguard Life Strategy Conservative Growth Fund 27 22
Vanguard Intermediate-Term Corporate Fund 35 26
Vanguard Life Strategy Moderate Growth Fund 55 45
Vanguard Life Strategy Growth Fund 64 53
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, 1998 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.
<PAGE> 6
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, 1998 and 1997 are as follows:
1998 1997
Market Cost Market Cost
Energen Corporation $58,059,031 $34,802,047 $55,455,693 $29,829,287
common stock
Money market and
guaranteed rate
short-term
investments $ 8,111,875 $ 8,111,875 $ 7,381,184 $ 7,381,184
Mutual funds 36,341,070 25,927,522 30,070,540 22,467,533
$44,452,945 $34,039,397 $37,451,724 $29,848,717
The change in unrealized appreciation was $.4 million and $14.5 million in
1998 and 1997, respectively.
<PAGE> 7
The following is a summary of assets held in excess of 5% of the Plan's net
assets at December 31:
1998 1997
Energen Corporation common stock $ 58,059,031 $ 55,455,693
Vanguard 500 Index Fund $ 13,879,827 $ 10,721,152
VMMR - Prime Portfolio $ 8,111,874 $ 7,381,184
Vanguard Morgan Growth Fund $ 5,887,717
Vanguard Wellington Fund $ 5,468,516
The investments of the Plan at December 31, 1998 and 1997, as described in
the accompanying Statements of Participants' Balances, are held by Vanguard
Fiduciary Trust Company, under a trust agreement dated October 1, 1991.
<PAGE> 8
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, 1998 and 1997
is as follows:
Vanguard
Energen Life Vanguard
Strategy
1998 Consolidated Elimination Stock Growth Wellington
ASSETS Totals Entries Fund Fund Fund
Energen common
stock $58,059,031 $58,059,031
Loans to
participants
(Notes and 5,253,655
mortgages)
Other investments 44,452,945 $838,982 $5,468,516
Employer
contributions
receivable 639,591 639,591
Employee
contributions
receivable 303,645 36,281 5,486 38,531
Cash surrender
value-
life insurance 91,123
Total assets $108,799,990 $58,734,903 $844,468 $5,507,047
LIABILITIES AND
PARTICIPANTS'
BALANCES
Participants'
balances $108,799,990 $58,734,903 $844,468 5,507,047
Total liabilities
and participants'
balances $108,799,990 $58,734,903 $844,468 $5,507,047
Vanguard Vanguard Vanguard Vanguard
Money
Morgan Long Term Market Vanguard Small
1998 Growth Corporate Reserves 500 Index Capitaliza
Prime tion
ASSETS CONTINUED Fund Fund Portfolio Fund Index Fund
Energen common
stock
Loans to
participants
(Notes and
mortgages)
Other investments $5,887,717 $1,312,602 $8,111,874 $13,879,827 $308,196
Employer
contributions
receivable
Employee
contributions
receivable 28,516 13,175 49,007 66,326 4,714
Cash surrender
value-
life insurance
Total assets $5,916,233 $1,325,777 $8,160,881 $13,946,153 $312,910
LIABILITIES AND
PARTICIPANTS'
BALANCES
Participants'
balances $5,916,233 $1,325,777 $8,160,881 $13,946,153 $312,910
Total liabilities
and participants'
balances $5,916,233 $1,325,777 $8,160,881 $13,946,153 $312,910
Vanguard Vanguard Vanguard
Life Life Intermediate Vanguard
Strategy Strategy
1998 Income Conservative Term Windsor II
Corporate
ASSETS CONTINUED Fund Growth Fund Fund Fund
Energen common
stock
Loans to
participants
(Notes and
mortgages)
Other investments $120,814 $505,693 $84,235 $5,395,101
Employer
contributions
receivable
Employee
contributions
receivable 926 1,404 1,373 39,027
Cash surrender
value-
life insurance
Total assets $121,740 $507,097 $85,608 $5,434,128
LIABILITIES AND
PARTICIPANTS'
BALANCES
Participants' $121,740 $507,097 $85,608 $5,434,128
balances
Total liabilities
and
participants' $121,740 $507,097 $85,608 $5,434,128
balances
Vanguard Vanguard
International Life
Strategy
1998 Growth Moderate Loan
ASSETS CONTINUED Fund Growth Fund Fund Insurance
Energen common
stock
Loans to
participants
(Notes and
mortgages) $5,253,655
Other investments $2,047,759 $491,629
Employer
contributions
receivable
Employee
contributions
receivable 14,301 4,578
Cash surrender
value-
life insurance $91,123
Total assets $2,062,060 $496,207 $5,253,655 $91,123
LIABILITIES AND
PARTICIPANTS'
BALANCES
Participants'
balances $2,062,060 $496,207 $5,253,655 $91,123
Total liabilities
and
participants' $2,062,060 $496,207 $5,253,655 $91,123
balances
Vanguard
Energen Life Vanguard
Strategy
1997 Consolidated Elimination Stock Growth Wellington
ASSETS Totals Entries Fund Fund Fund
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
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' $98,721,800 $ 0 $56,061,719 $624,375 $4,878,088
balances
Vanguard Vanguard Vanguard Vanguard
Money
Morgan Long Term Market Vanguard Small
1997 Growth Corporate Reserves 500 Index Capitaliza
Prime tion
ASSETS CONTINUED Fund Fund Portfolio Fund Index Fund
Energen common
stock
Loans to
participants
Other investments $4,877,326 $1,113,373 $7,381,184 $10,721,152 $328,673
Employer
contributions
receivable
Employee
contributions
receivable 29,080 11,196 43,001 60,699 2,338
Interest and
dividends
receivable
Due from other 15,744 5,349 27,786 33,047 944
funds
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
Vanguard Vanguard Vanguard
Life Life Intermediate Vanguard
Strategy Strategy
1997 Income Conservative Term Windsor II
Corporate
ASSETS CONTINUED Fund Growth Fund Fund Fund
Energen common
stock
Loans to
participants
Other investments $69,394 $437,773 $252,244 $4,036,175
Employer
contributions
receivable
Employee
contributions
receivable 254 932 967 30,538
Interest and
dividends
receivable
Due from other 936 34 12,549
funds
Cash surrender
value-
life insurance
Total assets $69,648 $439,641 $253,245 $4,079,262
LIABILITIES AND
PARTICIPANTS'
BALANCES
Due to other funds
Participants' $69,648 $439,641 $253,245 $4,079,262
balances
Total liabilities
and
participants' $69,648 $439,641 $253,245 $4,079,262
balances
Vanguard Vanguard
International Life
Strategy
1997 Growth Moderate Loan
ASSETS CONTINUED Fund Growth Fund Fund Insurance
Energen common
stock
Loans to
participants $4,868,064
Other investments $2,454,055 $337,387
Employer
contributions
receivable
Employee
contributions
receivable 16,704 3,445
Interest and
dividends
receivable 35,818
Due from other 9,267 1,290
funds
Cash surrender
value-
life insurance $85,870
Total assets $2,480,026 $342,122 $4,903,882 $85,870
LIABILITIES AND
PARTICIPANTS'
BALANCES
Due to other funds $146,970
Participants' $2,480,026 $342,122 4,756,912 $85,870
balances
Total liabilities
and
participants' $2,480,026 $342,122 $4,903,882 $85,870
balances
<PAGE> 9
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, 1998
and 1997 are as follows:
Vanguard
Energen Life Vanguard
Strategy
1998 Consolidated Elimination Stock Growth Wellington
ADDITIONS Totals Entries Fund Fund Fund
Employer
contributions $3,227,635 $3,227,635
Employee 5,181,373 427,272 $97,644 $539,092
contributions
Interest and
dividend
income 4,629,171 1,826,227 28,658 596,954
Net appreciation
(depreciation) in
fair
value of 3,156,420 (887,970) 102,405 (6,578)
investment
Increase in cash 10,904
surrender
Other receipts 172,275 93
Transfer from other
accounts 0 330,692 17,252 276,883
$(4,165,607)
Total additions 16,377,778 (4,165,607) 4,923,949 245,959 1,406,351
DEDUCTIONS
Distributions to
participants 6,293,204 2,636,659 2,520 361,250
Insurance premiums 5,651
Fees and other
distributions 733
Transfers to other
accounts 0 (4,165,607) (385,894) 23,346 416,142
Total deductions 6,299,588 (4,165,607) 2,250,765 25,866 777,392
Net
increase/decrease 10,078,190 0 2,673,184 220,093 628,959
Participants'
balance
beginning of year 98,721,800 0 56,061,719 624,375 4,878,088
Participants'
balance
end of year$108,799,990 $0 $58,734,903 $844,468 $5,507,047
Vanguard Vanguard Vanguard Vanguard
Money
Morgan Long Term Market Vanguard Small
1998 Growth Corporate Reserves 500 Index Capitaliza
Prime tion
ADDITIONS CONTINUED Fund Fund Portfolio Fund Index Fund
Employer
contributions
Employee $416,084 $204,379 $910,840 $966,865 $50,213
contributions
Interest and
dividend
income 447,414 101,488 379,231 211,353 25,070
Net appreciation
(depreciation) in
fair
value of 601,938 2,481 2,883,274 (38,498)
investment
Increase in cash
surrender
Other receipts 376
Transfer from other
accounts 199,761 61,960 362,676 441,764 13,433
Total additions 1,665,197 370,308 1,653,123 4,503,256 50,218
DEDUCTIONS
Distributions to
participants 299,021 67,565 649,690 753,843 33,804
Insurance premiums
Fees and other
distributions 733
Transfers to other
accounts 372,093 106,884 294,523 618,158 34,726
Total deductions 671,114 174,449 944,213 1,372,001 69,263
Net 994,083 195,859 708,910 3,131,255 (19,045)
increase/decrease
Participants'
balance
beginning of year 4,922,150 1,129,918 7,451,971 10,814,898 331,955
Participants'
balance
end of year $5,916,233 $1,325,777 $8,160,881$13,946,153 $312,910
Vanguard Vanguard Vanguard
Life Life Intermediate Vanguard
Strategy Strategy Term
1998 Income Conservative Corporate Windsor II
ADDITIONS CONTINUED Fund Growth Fund Fund
Fund
Employer
contributions
Employee $5,092 $11,900 $9,182 $1,177,931
contributions
Interest and
dividend
income 5,263 26,138 5,558 497,431
Net appreciation
(depreciation) in
fair
value of 2,778 42,584 4,067 172,030
investment
Increase in cash
surrender
Other receipts
Transfer from other
accounts 99 10,571 345 181,485
Total additions 13,232 91,193 19,152 2,028,877
DEDUCTIONS
Distributions to
participants 265 63,282 196,668 371,283
Insurance premiums
Fees and other
distributions
Transfers to other
accounts (39,125) (39,545) (9,879) 302,728
Total deductions (38,860) 23,737 186,789 674,011
Net 52,092 67,456 (167,637) 1,354,866
increase/decrease
Participants'
balance
beginning of year 69,648 439,641 253,245 4,079,262
Participants'
balance
end of year $121,740 $507,097 $85,608 $5,434,128
Vanguard Vanguard
International Life
Strategy
1998 Growth Moderate Loan
ADDITIONS CONTINUED Fund Growth Fund Insurance
Fund
Employer
contributions
Employee $255,318 $109,561
contributions
Interest and
dividend
income 40,517 19,634 $418,235
Net appreciation
(depreciation) in
fair
value of 225,827 52,082
investment
Increase in cash $10,904
surrender
Other receipts 171,806
Transfer from other
accounts 130,020 16,723 2,121,943
Total additions 651,682 198,000 2,711,984 10,904
DEDUCTIONS
Distributions to
participants 606,343 79,435 171,576
Insurance premiums 5,651
Fees and other
distributions
Transfers to other
accounts 463,305 (35,520) 2,043,665
Total deductions 1,069,648 43,915 2,215,241 5,651
Net (417,966) 154,085 496,743 5,253
increase/decrease
Participants'
balance
beginning of year 2,480,026 342,122 4,756,912 85,870
Participants'
balance
end of year $2,062,060 $496,207 $5,253,655 $91,123
Vanguard
Energen Life Vanguard
Strategy
1997 Consolidated Elimination Stock Growth Wellington
ADDITIONS Totals Entries Fund Fund Fund
Employer
contributions $3,041,481 $3,041,481
Employee 3,444,204 329,208 $59,048 $435,794
contributions
Interest and
dividend
income 4,364,801 1,661,879 24,919 405,604
Net appreciation
(depreciation) in
fair
value of 17,109,970 12,983,496 78,323 498,922
investment
Increase (decrease)
in
cash surrender (508)
Other receipts
(disbursements) (32)
Transfer 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 23,677,842 0 15,114,228 211,422 961,904
increase/decrease
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
Vanguard Vanguard Vanguard Vanguard
Money
Morgan Long Term Market Vanguard Small
1997 Growth Corporate Reserves 500 Index Capitaliza
Prime tion
ADDITIONS CONTINUED Fund Fund Portfolio Fund Index Fund
Employer
contributions
Employee $384,519 $129,738 $531,566 $842,261 $31,596
contributions
Interest and
dividend
income 647,617 70,718 387,944 225,370 19,527
Net appreciation
(depreciation) in
fair
value of 438,620 46,208 2,427,802 37,493
investment
Increase (decrease)
in
cash surrender
Other receipts
(disbursements)
Transfer 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 1,493,413 208,018 43,395 2,758,332 60,914
increase/decrease
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
Vanguard Vanguard Vanguard
Life Life Intermediate Vanguard
Strategy Strategy
1997 Income Conservative Term Windsor II
Growth Corporate
ADDITIONS CONTINUED Fund Fund Fund Fund
Employer
contributions
Employee $947 $11,600 $8,411 $398,100
contributions
Interest and
dividend
income 2,524 23,347 7,875 365,994
Net appreciation
(depreciation) in
fair
value of 1,680 38,561 4,488 589,831
investment
Increase (decrease)
in
cash surrender
Other receipts
(disbursements)
Transfer from other
accounts 11,309 333 183,917
Total additions 5,151 84,817 21,107 1,537,842
DEDUCTIONS
Distributions to
participants 532 3,933 114,990
Insurance premiums
Fees and other
distributions
Transfers to other
accounts (55,818) 3,303 (201,106) 119,167
Total deductions (55,286) 3,303 (197,173) 234,157
Net 60,437 81,514 218,280 1,303,685
increase/decrease
Participants'
balance
beginning of year 9,211 358,127 34,965 2,775,577
Participants'
balance
end of year $69,648 $439,641 $253,245 $4,079,262
Vanguard Vanguard
International Life
Strategy
1997 Growth Moderate Loan
ADDITIONS CONTINUED Fund Growth Fund Insurance
Fund
Employer
contributions
Employee $227,105 $54,311
contributions
Interest and
dividend
income 105,063 14,829 $401,591
Net appreciation
(depreciation) in
fair
value of (65,361) 29,907
investment
Increase (decrease)
in
cash surrender $(508)
Other receipts
(disbursements) (32)
Transfer from other
accounts 144,022 17,887 2,416,871
Total additions 410,829 116,934 2,818,430 (508)
DEDUCTIONS
Distributions to
participants 258,270 489 101,005
Insurance premiums 7,578
Fees and other
distributions
Transfers to other
accounts (208,705) (53,117) 2,077,865
Total deductions 49,565 (52,628) 2,178,870 7,578
Net 361,264 169,562 639,560 (8,086)
increase/decrease
Participants'
balance
beginning of year 2,118,762 172,560 4,117,352 93,956
Participants'
balance
end of year $2,480,026 $342,122 $4,756,912 $85,870
<PAGE> 10
Supplemental Schedules
<PAGE>
Energen Corporation Employee Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1998
c. Description of
Investment
Including
b.Identity of Issuer, Maturity Date, Rate e. Current
Borrower, of Interest,
a. Lessor, or Similar Collateral, Par, or d. Cost Value
Party Maturity Value
* Energen Corporation Common stock $ 34,802,047 $ 58,059,031
* W.L. Morgan Growth Mutual fund 4,565,042 5,887,717
Fund
* Vanguard Index 500 Mutual fund 7,247,079 13,879,827
Portfolio
* VMMR-Prime Portfolio Money market fund 8,111,874 8,111,874
* Wellington Fund Mutual fund 4,732,478 5,468,516
* VFISF-Corporate Bond Mutual fund 1,272,533 1,312,602
Fund
* Windsor II Fund Mutual fund 4,485,211 5,395,101
* International Growth Mutual fund 1,653,187 2,047,759
Fund
* Life Strategy Growth Mutual fund 621,274 838,982
Portfolio
* Vanguard Index Small Mutual fund 310,108 308,196
Cap Portfolio
* Life Strategy Income Mutual fund 118,286 120,814
Portfolio
* Life Strategy Mutual fund 422,579 505,693
Conservative
Growth
* Intermediate-Term Mutual fund 82,681 84,235
Corporate Bond
* Life Strategy Mutual fund 417,065 491,629
Moderate Growth
* Loan Fund 7% to 11.5% 5,253,655 5,253,655
(participant loans)
Cash surrender value 91,123 91,123
of life insurance
$ 74,186,222 $107,856,754
* Represents party-in-interest
<PAGE> 11
Energen Corporation Employee Savings Plan
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1998
I. Single transactions exceeding 5% of assets.
Schedule attached.
NOTE: Information required in Columns e, f, and h is
inapplicable.
II. Series of transactions involving property other than
securities.
NONE
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
<PAGE> 12
Energen Corporation Employee Savings Plan
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1998
a.Identity b.Descrip- c. Purchases d. Sales g.Cost of i.Net Gain
of Party tion
Involved of Asset Price Number Price Number Asset (Loss)
Energen Common $7,230,003 121 $3,738,695 157 $ 2,292,373 $1,446,322
Corpora- stock
tion
VMMR Money $3,224,855 155 $2,494,165 169 $ 2,494,165 $ 0
Prime market
Portfolio
<PAGE> 13
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-46641) of Energen Corporation of our report dated
June 3,1999 relating to the financial statements and supplemental schedules of
Energen Corporation Employee Savings Plan, which report is included in this
Annual Report on Form 11-K.
/s/ PricewaterhouseCoopers LLP
Birmingham, Alabama
June 25, 1999
<PAGE>
