<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH
31, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
TO
Commission IRS
File State of Identification
Number Registrant Incorporation Number
1-7810 Energen Corporation Alabama 63-0757759
2-38960 Alabama Gas Corporation Alabama 63-0022000
2101 Sixth Avenue North
Birmingham, Alabama 35203
Telephone Number 205/326-2700
Alabama Gas Corporation, a wholly-owned subsidiary of Energen
Corporation, meets the conditions set forth in General Instruction
H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with
reduced disclosure format pursuant to General Instruction H(2).
Indicate by a check mark whether the registrants (1) have filed all
reports required to be filed by Section 13 or 15(d) of the
Securities and Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrants were required to
file such reports), and (2) have been subject to such filing
requirements for the past 90 days. YES X NO
Indicate the number of shares outstanding of each of the issuers'
classes of common stock, as of May 6, 1994:
Energen Corporation, $0.01 par value 10,917,355 shares
Alabama Gas Corporation, $0.01 par value 1,972,052 shares
<PAGE>
<PAGE>
ENERGEN CORPORATION AND ALABAMA GAS
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1994
TABLE OF CONTENTS
Page
PART I: FINANCIAL INFORMATION (Unaudited)
Item 1. Financial Statements
(a) Consolidated Statements of Income
of Energen Corporation 4
(b) Consolidated Balance Sheets of Energen Corporation 5
(c) Consolidated Statements of Cash Flows
of Energen Corporation 7
(d) Statements of Income of Alabama Gas Corporation 8
(e) Balance Sheets of Alabama Gas Corporation 9
(f) Statements of Cash Flows of Alabama Gas Corporation 11
(g) Notes of Unaudited Financial Statements 12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 14
Selected Business Segment Data of
Energen Corporation 18
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 19
SIGNATURES 20
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<TABLE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF INCOME
Energen Corporation and Subsidiaries
(Unaudited)
<CAPTION>
Three months ended Six months ended
March 31, March 31,
(in thousands, except share data) 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Natural gas distribution $ 158,268 $ 142,314 $ 237,261 $ 219,180
Oil and gas production activities 6,170 4,973 12,371 9,878
Other 5,561 4,441 10,809 8,707
Intercompany eliminations (1,912) (2,082) (4,435) (4,011)
Total operating revenues 168,087 149,646 256,006 233,754
Operating Expenses
Cost of gas 93,912 83,080 137,286 126,986
Operations 23,697 21,260 46,840 41,541
Maintenance 2,438 2,569 4,689 4,736
Depreciation, depletion and amortization 6,796 6,216 13,507 12,187
Taxes, other than income taxes 10,874 9,654 17,601 16,071
Total operating expenses 137,717 122,779 219,923 201,521
Operating Income 30,370 26,867 36,083 32,233
Other Income (Expense)
Interest expense, net of amounts capitalized (2,823) (2,741) (5,745) (5,333)
Dividends on preferred stock of subsidiary - (21) - (42)
Other, net 648 587 844 993
Total other income (expense) (2,175) (2,175) (4,901) (4,382)
Income Before Income Taxes 28,195 24,692 31,182 27,851
Income taxes 6,003 4,747 6,690 5,236
Net Income $ 22,192 $ 19,945 $ 24,492 $ 22,615
Earnings Per Average Common Share $ 2.03 $ 1.95 $ 2.28 $ 2.22
Dividends Per Common Share $ 0.27 $ 0.26 $ 0.54 $ 0.52
Average Common Shares Outstanding 10,917 10,211 10,750 10,197
The accompanying Notes are an integral part of these statements.
</TABLE>
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<TABLE>
CONSOLIDATED BALANCE SHEETS
Energen Corporation and Subsidiaries
(Unaudited)
<CAPTION>
March 31, September 30,
(in thousands) 1994 1993
<S> <C><C> <C> <C>
ASSETS
Property, Plant and Equipment
Utility plant $ 442,504 $ 429,115
Less accumulated depreciation 224,212 215,892
Utility plant, net 218,292 213,223
Oil and gas properties, successful efforts method 87,717 86,077
Less accumulated depreciation, depletion and amortization 38,537 35,150
Oil and gas properties, net 49,180 50,927
Other property, net 8,493 8,947
Total property, plant and equipment, net 275,965 273,097
Current Assets
Cash and cash equivalents 38,480 15,008
Accounts receivable, net of allowance for doubtful
accounts of $2,128 at March 31, 1994, and
$1,927 at September 30, 1993 52,636 36,181
Inventories, at average cost
Storage gas 17,954 -
Materials and supplies 8,555 8,957
Liquified natural gas in storage 3,341 3,636
Deferred gas costs 7,920 2,966
Deferred income taxes 9,853 4,090
Prepayments and other 2,990 4,034
Total current assets 141,729 74,872
Other Assets
Notes receivable 5,632 6,798
Deferred charges and other 11,825 15,918
Total other assets 17,457 22,716
TOTAL ASSETS $ 435,151 $ 370,685
The accompanying Notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
Energen Corporation and Subsidiaries
(Unaudited)
<CAPTION>
March 31, September 30,
(in thousands) 1994 1993
<S> <C> <C> <C> <C>
CAPITAL AND LIABILITIES
Capitalization
Preferred stock, cumulative, $0.01 par value, 5,000,000
shares authorized $ - $ -
Common shareholders' equity
Common stock, $0.01 par value; 30,000,000 shares authorized,
10,916,871 shares outstanding at March 31, 1994, and
10,320,317 shares outstanding at September 30, 1993 109 103
Premium on capital stock 81,052 66,368
Capital surplus 2,802 2,802
Retained earnings 89,789 71,040
Total common shareholders' equity 173,752 140,313
Long-term debt 125,792 85,852
Total capitalization 299,544 226,165
Current Liabilities
Long-term debt due within one year 4,643 5,043
Notes payable to banks - 40,000
Accounts payable 42,398 27,609
Accrued taxes 18,558 9,656
Customers' deposits 17,842 16,719
Amounts due customers 9,794 5,105
Accrued wages and benefits 9,230 8,054
Other 14,727 13,232
Total current liabilities 117,192 125,418
Deferred Credits and Other Liabilities
Deferred income taxes 881 480
Accumulated deferred investment tax credits 4,834 5,077
Other 12,700 13,545
Total deferred credits and other liabilities 18,415 19,102
Commitments and Contingencies - -
TOTAL CAPITAL AND LIABILITIES $ 435,151 $ 370,685
The accompanying Notes are an integral part of these statements.
</TABLE>
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<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Energen Corporation and Subsidiaries
(Unaudited)
<CAPTION>
Six months ended March 31, (in thousands) 1994 1993
<S> <C> <C> <C> <C>
Operating Activities
Net income $ 24,492 $ 22,615
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 13,507 12,187
Deferred income taxes, net (5,643) (2,009)
Deferred investment tax credits, net (243) (265)
Gain on sale of equity securities (1,375) -
Net change in:
Accounts receivable (16,455) (20,677)
Inventories (17,257) 1,266
Accounts payable 14,789 16,682
Other current assets and liabilities 13,475 (11,295)
Other, net 149 731
Net cash provided by operating activities 25,439 19,235
Investing Activities
Additions to property, plant and equipment (16,090) (23,139)
Proceeds from sale of equity securities 3,305 -
Payments on notes receivable 1,073 655
Other, net 1,588 171
Net cash used in investing activities (10,124) (22,313)
Financing Activities
Payment of dividends on common stock (5,745) (5,305)
Issuance of common stock 14,692 981
Reduction of long-term debt and preferred stock of subsidiary (10,460) (4,518)
Proceeds from issuance of medium-term notes 49,670 -
Net change in short-term debt (40,000) 9,000
Net cash provided by financing activities 8,157 158
Net change in cash and cash equivalents 23,472 (2,920)
Cash and cash equivalents at beginning of period 15,008 10,303
Cash and cash equivalents at end of period $ 38,480 $ 7,383
The accompanying Notes are an integral part of these statements.
</TABLE>
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<TABLE>
STATEMENTS OF INCOME
Alabama Gas Corporation
(Unaudited)
<CAPTION>
Three months ended Six months ended
March 31, March 31,
(in thousands) 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues $ 158,268 $ 142,314 $ 237,261 $ 219,180
Operating Expenses
Cost of gas 94,930 84,352 139,540 129,641
Operations 18,282 16,451 36,530 32,710
Maintenance 2,342 2,458 4,495 4,510
Depreciation 4,441 4,278 8,868 8,540
Income taxes
Current 15,119 8,684 15,480 9,044
Deferred, net (5,787) (316) (5,819) (268)
Deferred investment tax credits, net (121) (133) (243) (265)
Taxes, other than income taxes 10,577 9,333 16,980 15,508
Total operating expenses 139,783 125,107 215,831 199,420
Operating Income 18,485 17,207 21,430 19,760
Other Income
Allowance for funds used during construction 111 34 187 51
Other, net 189 104 (19) 287
Total other income 300 138 168 338
Interest Charges
Interest on long-term debt 1,659 1,442 3,078 2,965
Other interest expense 438 583 1,136 928
Total interest charges 2,097 2,025 4,214 3,893
Net Income 16,688 15,320 17,384 16,205
Less cash dividends on cumulative
preferred stock - 21 - 42
Net Income Available for Common $ 16,688 $ 15,299 $ 17,384 $ 16,163
The accompanying Notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
BALANCE SHEETS
Alabama Gas Corporation
(Unaudited)
<CAPTION>
March 31, September 30,
(in thousands) 1994 1993
<S> <C> <C> <C> <C>
ASSETS
Property, Plant and Equipment
Utility plant $ 442,504 $ 429,115
Less accumulated depreciation 224,212 215,892
Utility plant, net 218,292 213,223
Other property, net 174 83
Current Assets
Cash and cash equivalents 27,044 480
Accounts receivable
Gas 40,403 23,563
Merchandise 1,079 1,256
Other 1,244 1,011
Allowance for doubtful accounts (2,000) (1,800)
Inventories, at average cost
Storage gas 17,954 -
Materials and supplies 5,704 5,851
Liquified natural gas in storage 3,341 3,636
Deferred gas costs 7,920 2,966
Deferred income taxes 8,339 2,587
Prepayments and other 1,969 2,520
Total current assets 112,997 42,070
Deferred Charges and Other Assets 8,730 9,172
TOTAL ASSETS $ 340,193 $ 264,548
The accompanying Notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
BALANCE SHEETS
Alabama Gas Corporation
(Unaudited)
<CAPTION>
March 31, September 30,
(in thousands) 1994 1993
<S> <C> <C> <C> <C>
CAPITAL AND LIABILITIES
Capitalization
Common shareholder's equity
Common stock, $0.01 par value; 3,000,000 shares authorized,
1,972,052 shares outstanding in 1993 and 1992 $ 20 $ 20
Premium on capital stock 31,682 21,682
Capital surplus 2,802 2,802
Retained earnings 86,525 74,886
Total common shareholder's equity 121,029 99,390
Cumulative preferred stock, $0.01 par value, 120,000 shares
authorized, issuable in series - $4.70 Series - -
Long-term debt 84,452 43,912
Total capitalization 205,481 143,302
Current Liabilities
Long-term debt due within one year 2,793 3,193
Notes payable to banks - 29,000
Accounts payable
Other 35,351 18,772
Affiliated companies 8,180 1,252
Accrued taxes 19,506 8,960
Customers' deposits 17,784 16,717
Supplier refunds due customers 806 740
Other amounts due customers 8,988 4,365
Accrued wages and benefits 6,147 5,261
Other 7,225 4,821
Total current liabilities 106,780 93,081
Deferred Credits and Other Liabilities
Deferred income taxes 12,630 12,416
Accumulated deferred investment tax credits 4,834 5,077
Regulatory liability 7,344 7,717
Customer advances for construction and other 3,124 2,955
Total deferred credits and other liabilities 27,932 28,165
Commitments and Contingencies - -
TOTAL CAPITAL AND LIABILITIES $ 340,193 $ 264,548
The accompanying Notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS
Alabama Gas Corporation
(Unaudited)
<CAPTION>
Six months ended March 31, (in thousands) 1994 1993
<S> <C> <C> <C> <C>
Operating Activities
Net income $ 17,384 $ 16,205
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,868 8,540
Deferred income taxes, net (5,819) (268)
Deferred investment tax credits (243) (265)
Net change in:
Accounts receivable (16,783) (19,108)
Inventories (17,512) 137
Accounts payable 18,017 15,953
Other current assets and liabilities 15,189 (8,568)
Other, net 684 234
Net cash provided by operating activities 19,785 12,860
Investing Activities
Additions to property, plant and equipment (13,745) (8,980)
Net advances from holding company 87 (119)
Other, net (118) 5
Net cash used in investing activities (13,776) (9,094)
Financing Activities
Payment of dividends on common stock (5,745) (5,305)
Payment of dividends on preferred stock - (42)
Reduction of long-term debt and preferred stock (9,860) (3,708)
Proceeds from issuance of medium-term notes 49,670 -
Proceeds from equity infusion from parent 10,000 -
Net advances from (to) affiliates 5,490 (6,299)
Net change in short-term debt (29,000) 12,000
Net cash provided by (used in) financing activities 20,555 (3,354)
Net change in cash 26,564 412
Cash at beginning of period 480 2,394
Cash at end of period $ 27,044 $ 2,806
The accompanying Notes are an integral part of these statements.
</TABLE>
<PAGE>
NOTES TO UNAUDITED FINANCIAL STATEMENTS
Energen Corporation and Alabama Gas Corporation
1. BASIS OF PRESENTATION
All adjustments to the unaudited financial statements which are, in
the opinion of management, necessary for a fair statement of the
results of operations for the interim periods have been recorded.
Such adjustments consisted only of normal recurring items. The
consolidated financial statements and notes thereto should be read
in conjunction with the financial statements and notes for the
years ended September 30, 1993, 1992, and 1991 included in the 1993
Annual Report of Energen Corporation (the Company) on Form 10-K.
Certain reclassifications were made to conform prior years'
financial statements to the current quarter presentation. The
Company's primary business is seasonal in character and influenced
by weather conditions. Results of operations for the interim
periods are not necessarily indicative of the results which may be
expected for the fiscal year.
2. REGULATORY
As a public utility in the state of Alabama, Alagasco is subject to
regulation by the Alabama Public Service Commission (APSC), which
has adopted several innovative approaches to rate regulation,
including Alabama's Rate Stabilization and Equalization (RSE) rate-
setting process. Implemented in 1983 and modified in 1985, 1987,
and 1990, RSE replaces the traditional utility rate case with APSC-
monitored periodic rate adjustments presently designed to give
Alagasco the opportunity to earn an average return on equity (ROE)
at its fiscal year-end within a specified range. Under Alagasco's
current RSE order, which became effective December 1990, Alagasco's
allowed ROE range is 13.15 percent to 13.65 percent. The APSC
conducts quarterly reviews to determine, based on Alagasco's budget
and fiscal year-to-date performance, whether Alagasco's projected
ROE for the fiscal year will be within the allowed range.
Reductions in rates can be made quarterly to bring the projected
ROE within the allowed range. Increases, however, are permitted
only once each fiscal year effective on December 1, and cannot
exceed 4 percent of prior-year revenues.
RSE limits Alagasco's equity upon which a return is permitted to 60
percent of total capitalization and provides for a cost control
measure designed to monitor Alagasco's operations and maintenance
(O & M) expense. If increases in O & M expense per customer fall
within 1.25 percent above or below the Consumer Price Index for all
Urban Customers (index range), no adjustment is required. If,
however, increases in O & M expense per customer exceed the index
range, three-fourths of the difference is returned to customers.
To the extent increases in O & M expense per customer are less than
the index range, Alagasco will benefit by one-half of the
difference through future rate adjustments. Effective December 15,
1990, the APSC approved a temperature adjustment to customers'
monthly bills to mitigate the effect of departures from normal
temperature on Alagasco's earnings. The calculation is performed
monthly and adjusted on customer's bills in the actual month the
weather variation occurs.
Under RSE as extended, a $.5 million annual decrease in revenue
became effective October 1, 1993, and a $7.2 million annual
increase in revenue became effective December 1, 1993. As of April
1, 1994, the Company was within its allowed range; accordingly, no
annual adjustment was required.
<PAGE>
3. SUPPLEMENTAL CASH FLOW INFORMATION
Energen Corporation
Six months ended March 31, (in thousands) 1994 1993
Interest paid, net of amounts capitalized $ 5,919 $ 6,411
Income taxes paid $ 3,984 $ 3,646
Noncash investing activities (capitalized
depreciation and allowance for funds
used during construction) $ 269 $ 140
Noncash financing activities
(debt issuance costs) $ 330 $ -
Alabama Gas Corporation
Six months ended March 31, (in thousands) 1994 1993
Interest paid $ 4,247 $ 4,861
Income taxes paid $ 4,612 $ 3,623
Noncash investing activities (capitalized
depreciation and allowance for funds
used during construction) $ 269 $ 140
Noncash financing activities (debt
issuance costs) $ 330 $ -
<PAGE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Consolidated net income for the second quarter was $22,192,000
($2.03 per share), compared with consolidated net income of
$19,945,000 ($1.95 per share) for the same period last year.
Consolidated net income for the six months was $24,492,000 ($2.28
per share) compared with $22,615,000 ($2.22 per share) for the same
period of the prior year. Strong performances by Energen
Corporation's two core businesses, Alabama Gas Corporation
(Alagasco) and Taurus Exploration, Inc. (Taurus) were responsible
for both the quarter and year-to-date increases.
The 11 percent increase in the current quarter earnings was
attributable primarily to both the utility earning its allowed
return on additional equity (resulting from its investment in
underground storage working gas), and to Taurus's higher
conventional gas production, coalbed methane operating fees, and
lower exploration expense. Net income from the Company's other
activities rose slightly as a result primarily of increased
merchandising operations. The 8 percent increase in year-to-date
net income was due primarily to the utility earning its allowed
return on additional equity. Higher conventional gas production at
Taurus, as well as increased merchandising and propane operations
from Energen's other activities, also contributed to the increase.
Natural gas revenues increased 11 percent for the quarter and 8
percent for the six-month period. Increases for both periods were
due to a combination of the recovery of Gas Supply Realignment
(GSR) costs in connection with the implementation of Order 636, and
to an 11 percent increase in volumes sold to residential customers,
and 6 percent increase year-to-date.
Oil and gas revenues increased 24 percent for the quarter primarily
due to significantly higher conventional gas production, increased
operating fees associated with increased production, and decreased
exploration expense. Offsetting these increases to some degree was
the effect of decreased oil and gas prices. The average sales
price of gas for the current quarter was $1.95 per Mcf compared
with $2.03 per Mcf in the prior year. The average sales price of
oil for the current quarter was $12.98 per barrel compared with
$16.96 per barrel in the prior year. Oil and gas revenues year-to-
date increased 25 percent. Similar to the quarter, conventional
gas production was the dominant component of the revenue increase;
a 32 percent growth in operating fees primarily related to
production was offset in part by decreased consulting fees
following the conclusion of a major consulting contract and
decreased oil prices. The average sales price of gas for the six
months ended March 31, 1994, and 1993, was $1.98 per Mcf. The
average sales price of oil for the six months ended March 31, 1994,
was $14.05 per barrel compared with $17.60 per barrel in the prior
year. To hedge its exposure to such price fluctuations on oil and
gas production, Taurus periodically enters into futures contracts.
Under this program, Taurus has entered into futures contracts for
the sale of 4.3 Bcf of its gas production with an average contract
price of $1.94, and for the sale of 24,000 barrels of its oil
production at an average contract price of $20.30 over the
remainder of this fiscal year. Taurus has extended its program
into fiscal 1995 for the sale of 3.4 Bcf of its gas production with
an average contract price of $2.16.
Other revenues for the quarter and year-to-date were 25 percent and
24 percent higher, respectively, due primarily to increased
merchandising sales.
The 13 percent increase in cost of gas for the quarter and 8
percent increase in cost of gas for the year were due to the
recovery of GSA costs and greater volumes sold, partially offset by
lower commodity cost of gas.
Operations and maintenance expense increased 10 percent in the
current quarter and 12 percent for the year. Impacting these
expenses for both periods were increased labor and related expenses
at Alagasco, and increased operations expenses associated with
merchandising operations.
Depreciation expense for the quarter and year-to-date increased 9
and 11 percent, respectively, due largely to higher conventional
gas production at Taurus and normal plant growth at Alagasco.
The Company's expense for taxes other than income taxes primarily
reflects various state and local business taxes paid by Alagasco as
well as various payroll-related taxes. The state and local
business taxes are generally based on gross receipts of Alagasco
and fluctuate accordingly.
Interest expense for the quarter rose only 3 percent as the effect
of the issuance of both $15 million in unsecured notes in the third
quarter of the prior year and $50 million unsecured notes in the
current year was largely offset by significantly lower average
short-term debt outstanding. For the year, interest expense rose
8 percent due to the effects of the debt issuances above, offset by
slightly lower average short-term debt outstanding.
Other income was virtually unchanged for the quarter. For the
year, the variation in other income was due to redemption fees
incurred related to the refinancing of long-term debt during the
current year.
The increase in income tax expense for the quarter and year-to-date
was associated with increased pretax income. The Company
anticipates effective tax rates to remain lower than statutory
rates through the year 2002 as it expects to recognize all section
29 tax credits generated for financial statement purposes.
As previously discussed, the Company's business is seasonal in
character and influenced by weather conditions. Results of
operations for the interim periods are not necessarily indicative
of the results that may be expected for the fiscal year.
LIQUIDITY AND CAPITAL RESOURCES
Three factors were primarily responsible for the $6.2 million
increase in cash provided by operations. The recovery of GSR
costs, and increases in accrued taxes payable (both reflected in
other current assets and liabilities) were largely offset by
Alagasco's current year purchase of storage gas. Fluctuations in
accounts receivable and payable are generally the result of timing
of payments.
Net cash provided by investing activities increased $12.2 million
over the prior year. The most significant factor contributing to
the increase was the current year reduction in capital
expenditures. Capital expenditures for the prior year included the
Company's investment of approximately $13 million in conventional
producing properties following the 1992 sale of nonconventional
properties. Offsetting the current year decrease at Taurus was an
increase in capital expenditures at Alagasco due in part to the
development of a new customer information system. Also
contributing to the increase were proceeds of $3.3 million
resulting from the sale of equity securities.
The increase in net cash provided by financing activities of $8
million is attributable to several occurrences in the current year.
Proceeds from the issuance of 550,000 shares of Energen common
stock in November of 1993 totaled $13.5 million and were used to
help fund the purchase of storage gas. Alagasco also issued $50
million of medium-term notes which offered investors a combination
of interest rates and investment periods ranging from 5.4 percent
to 7.2 percent for notes redeemable December 1, 1998, to
December 15, 2023. Alagasco used proceeds from these notes to fund
the balance of the storage investment, redeem its 8.75 percent
debentures, reduce its short-term debt outstanding, and to fund
additional capital needs.
Energen has short-term credit facilities totaling $110 million
available for working capital needs, with $29 million outstanding
at March 31, 1993.
CAPITAL EXPENDITURES: Capital and exploration expenditures could
approximate $52 million in 1994, excluding municipal gas system
acquisitions, and primarily will be used to fund normal
distribution system expansion and the development of a new customer
information system at Alagasco, and oil and gas development
activities. The Company anticipates funding these capital
expenditures through internally generated capital and the
utilization of short-term credit facilities. In addition to the
capital expenditures, the Company will maintain an investment in
storage working gas which is anticipated to average $26.0 million.
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<TABLE>
SELECTED BUSINESS SEGMENT DATA
Energen Corporation
<CAPTION>
Three months ended Six months ended
March 31, March 31,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Natural Gas Distribution
Operating revenues (in thousands)
Residential $ 110,586 $ 96,338 $ 162,184 $ 146,775
Commercial and industrial - small 39,523 35,772 58,635 55,075
Commercial and industrial - large 710 964 733 1,240
Transportation 8,248 8,089 16,056 15,367
Other (799) 1,151 (347) 723
Total $ 158,268 $ 142,314 $ 237,261 $ 219,180
Volumes sold and transported (thousands of Mcf)
Residential 16,841 15,155 23,773 22,426
Commercial and industrial - small 6,429 6,118 9,502 9,427
Commercial and industrial - large 86 188 91 266
Transportation 13,747 13,454 26,915 26,440
Total 37,103 34,915 60,281 58,559
Other data (in thousands)
Depreciation and amortization $ 4,441 $ 4,278 $ 8,868 $ 8,540
Capital expenditures $ 8,678 $ 5,631 $ 14,014 $ 9,188
Operating income $ 27,696 $ 25,442 $ 30,848 $ 28,271
Oil and Gas Exploration and Production
Operating revenues (in thousands)
Natural gas $ 4,136 $ 3,028 $ 8,155 $ 5,405
Oil 649 916 1,461 1,707
Other 1,385 1,029 2,755 2,766
Total $ 6,170 $ 4,973 $ 12,371 $ 9,878
Sales volume - natural gas (thousands of Mcf) 2,126 1,492 4,117 2,733
Sales volume - oil (thousands of barrels) 50 54 104 97
Average sales price - natural gas (per Mcf) $ 1.95 $ 2.03 $ 1.98 $ 1.98
Average sales price - oil (per barrel) $ 12.98 $ 16.96 $ 14.05 $ 17.60
Other data (in thousands)
Depreciation, depletion and amortization $ 2,090 $ 1,655 $ 4,045 $ 3,083
Capital expenditures $ 315 $ 1,087 $ 2,148 $ 13,890
Exploration expenditures $ 139 $ 468 $ 194 $ 564
Operating income $ 1,913 $ 905 $ 4,011 $ 3,213
Other Businesses (in thousands)
Operating revenues $ 5,561 $ 4,441 $ 10,809 $ 8,707
Depreciation and amortization $ 265 $ 283 $ 594 $ 564
Capital expenditures $ 51 $ 189 $ 197 $ 271
Operating income $ 1,071 $ 850 $ 1,845 $ 1,392
Eliminations and Corporate Expenses (in thousands)
Operating loss $ (310) $ (330) $ (621) $ (643)
</TABLE>
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
None.
b. Reports on Form 8-K
No reports on Form 8-K were filed for the three months ended
March 31, 1994.
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
ENERGEN CORPORATION
ALABAMA GAS CORPORATION
May 13, 1994 By/s/ Rex J. Lysinger
Date Rex J. Lysinger
Chairman of the Board and Chief
Executive Officer
May 13, 1994 By/s/ G. C. Ketcham
Date G. C. Ketcham
Executive Vice President, Chief
Financial Officer and Treasurer
May 13, 1994 By/s/ J. T. McManus
Date J. T. McManus
Vice President-Finance and
Corporate Development of
Energen and Vice President
Finance and Planning of
Alagasco
