BIRMINGHAM, Ala.--(BUSINESS WIRE)-- The Board of Directors of Energen Corporation (NYSE: EGN) today increased the quarterly cash dividend 4.2 percent to 12.5 cents per share. This marks the 27th consecutive year that Energen’s cash dividend has been increased. On an annualized basis, the Company’s new dividend rate is 50 cents per share. The dividend is payable March 2, 2009, to shareholders of record on February 13, 2009.

“This increase reflects a projected payout of net income from our natural gas utility, Alabama Gas Corporation (Alagasco), that is in line with traditional gas utility payouts of 65%-75%,” said James McManus , Energen’s chairman and chief executive officer. “In addition, our oil and gas exploration and production subsidiary, Energen Resources Corporation, contributes a small portion of its net income to the dividend; however, the majority of Energen Resources’ cash flows are reinvested in that business to help fund future growth.”

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 3.5 trillion cubic feet equivalent of proved, probable and possible reserves in the San Juan, Permian and Black Warrior basins. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at http://www.energen.com

Source: Energen Corporation

Energen Corporation
Julie S. Ryland, 205-326-8421