Underscoring Energen’s financial strength is an equity-rich balance sheet, significant discretionary cash flows, and lines of credit totaling some $465 million. Our capital discipline is highlighted by spending plans that reflect today’s commodity price environment and outlook. As a result of our financial strength and capital discipline, Energen enjoyed a successful 2009 that included the acquisition of an excellent oil property in the Permian Basin. Importantly, we paid for it with internally generated cash.

Contributing approximately 85 percent of consolidated net income, Energen Resources Corporation is the company’s non-regulated oil and gas exploration and production subsidiary and the dominant driver of consolidated growth. The bulk of Energen Resources’ 1.55 trillion cubic feet equivalent of natural gas, oil and natural gas liquids reserves are in the San Juan Basin in New Mexico and Colorado, the Permian Basin in West Texas, and the Black Warrior Basin in Alabama. Energen Resources also is pursuing the Chattanooga and Conasauga shales in Alabama.

As Energen’s regulated subsidiary, Alabama Gas Corporation (Alagasco) provides Energen with the strength and stability of a mature natural gas utility. Alagasco is the largest natural gas distributor in Alabama. It provides clean-burning, energy-efficient natural gas to more than 440,000 homes, businesses and industries.