Energen Corporation is a diversified energy company engaged primarily in oil and gas exploration and production in the continental United States. Headquartered in Birmingham, Alabama, Energen has proved domestic oil and gas reserves of 1.7 trillion cubic feet equivalent (Tcfe) and another 1.9 Tcfe of probable and possible reserves. The $2.7 billion market-cap company also distributes natural gas in central and north Alabama and is the State's largest natural gas utility.
For the five years ended December 31, 2008, Energen's after-tax cash flows and earnings per diluted share have increased at average compound rates of 20% and 24%, respectively. In addition, Energen common stock has generated an annualized total shareholder return for the five years ended June 30, 2009, of 12 percent. Energen pays a quarterly cash dividend that has increased in each of the last 27 years; and, over the last five years, Energen's dividend has increased at an average compound rate of more than 5% a year.
The dominant driver of Energen's growth is its non-regulated oil and gas exploration and production subsidiary, Energen Resources Corporation, which comprises approximately 85 percent of consolidated net income. The bulk of Energen Resources' 3.6 Tcfe of proved, probable and possible reserves are located in the San Juan Basin in New Mexico, the Permian Basin in west Texas, the Black Warrior Basin in Alabama and the North Louisiana/East Texas region. Energen Resources continues to increase its reserves through a successful acquisition and exploitation strategy. Today, Energen Resources also is exploring multiple shale opportunities in Alabama on its 660,000-acre lease position.
Energen's regulated subsidiary, Alabama Gas Corporation (Alagasco), provides Energen with the strength and stability of a mature natural gas utility. Alagasco provides clean-burning, energy-efficient natural gas to more than 400,000 homes, businesses and industries.
