UNITED STATES
                      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, 1998

                                      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 Employer
  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
                            http://www.energen.com
                                       
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 11, 1998:


Energen Corporation      $0.01 par value  29,158,505 shares
Alabama Gas Corporation  $0.01 par value   1,972,052 shares





                                       
                ENERGEN CORPORATION AND ALABAMA GAS CORPORATION
                FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1998
                                       
                               TABLE OF CONTENTS
                                       

Page

                   PART I: FINANCIAL INFORMATION (Unaudited)


Item 1.  Financial Statements

  (a)  Consolidated Statements of Income of Energen       Corporation
       3

  (b)  Consolidated Balance Sheets of Energen
        Corporation                                  4

 (c)  Consolidated Statements of Cash Flows of
       Energen Corporation                           6

 (d)  Statements of Income of Alabama Gas
       Corporation                                  7

  (e)   Balance Sheets of Alabama Gas Corporation    8

 (e)  Statements of Cash Flows of Alabama Gas
       Corporation                                 10

  (g)   Notes to Unaudited Financial Statements     11

Item 2. Management's Discussion and Analysis of Financial
         Condition and Results of Operations        15

        Selected Business Segment Data of Energen
         Corporation                                19


                          PART II: OTHER INFORMATION

Item 2. Changes in Securities                       20

Item 4. Submission of Matters to a Vote of Security
         Holders                                    20

Item 6. Exhibits and Reports on Form 8-K            20


SIGNATURES                                          21


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME
ENERGEN CORPORATION
(Unaudited)

<TABLE>
<CAPTION>
                     Three months ended  Six months ended
(in thousands,            March 31,           March 31,
except share data)   1998         1997    1998       1997


Operating Revenues
<S>               <C>       <C>        <C>       <C>
Natural gas
 distribution     $161,747  $160,151   $257,502  $243,456
Oil and gas production
 activities         36,226    22,791     66,359    36,488

   Total operating
     Revenues      197,973   182,942    323,861   279,944


Operating Expenses
Cost of gas         80,299    83,912    131,046   125,372
Operations and
 Maintenance        34,385    32,001     68,526    62,103
Depreciation, depletion,
 and amortization   24,316    12,625     42,152     23,022
Taxes, other than
 income taxes       14,547    12,806     24,569    19,894

   
   Total operating
    Expenses       153,547   141,344    266,293   230,391


Operating Income    44,426    41,598     57,568    49,553


Other Income (Expense)
Interest expense    (7,666)   (5,856)   (14,901) (10,801)
Other, net             507     1,155      1,325     2,330


   Total other
    income (expense)(7,159)   (4,701)  (13,576)   (8,471)


Income Before
 Income Taxes       37,267    36,897    43,992     41,082
Income taxes        (3,025)    6,366    (2,427)     7,374


Net Income         $40,292   $30,531   $46,419    $33,708


Basic Earnings Per Avg.
 Common Share*       $1.39     $1.21     $1.60      $1.41


Diluted Earnings Per Avg.
 Common Share*       $1.37     $1.19     $1.59      $1.40


Dividends Per
 Common Share*      $0.155    $0.150    $0.310      0.300


Basic Avg. Common Shares
 Outstanding*       29,027     25,311    28,956     23,874


*Share amounts reflect a 2-for-1 stock split effective March 2, 1998

The accompanying Notes are an integral part of these statements
</TABLE>
<PAGE>
CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION
<TABLE>
<CAPTION>


                      March 31, 1998   September 30, 1997
(in thousands)         (unaudited)


ASSETS
Current Assets
<S>                             <C>              <C>
Cash and cash equivalents       $  8,200         $105,402
Accounts receivable, net of
 allowance for doubtful
 accounts of $3,850 at
 March 31, 1998, and
 $3,185 at September 30, 1997     84,068           70,676
Inventories, at average cost
 Storage gas                      16,747           25,367
 Materials and supplies            7,646            7,281
 Liquified natural gas in
  storage                          3,616            3,630
Deferred gas cost                  8,231            2,512
Deferred income taxes                   12,559            7,438
Prepayments and other                   18,458           19,859


   Total current assets               159,525          242,165


Property, Plant and Equipment
Oil and gas properties, successful
 efforts method                        539,380          454,210
Less accumulated depreciation,
  depletion and amortization           115,372           87,554

 Oil and gas properties, net          424,008          366,656

Utility plant                          603,284          583,630
Less accumulated depreciation          296,512          287,749

 Utility plant, net                   306,772          295,881

Other property, net                      4,163            4,466


 Total property, plant and
   equipment, net                     734,943          667,003


Other Assets
Deferred income taxes                   11,065            1,144
Deferred charges and other               9,032            9,485


 Total other assets                    20,097           10,629


TOTAL ASSETS                          $914,565          $919,797


The accompanying Notes are an integral part of these financial statements.
</TABLE>
<PAGE>
CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION
<TABLE>
<CAPTION>
(in thousands,       March 31, 1998    September 30, 1997
except share data)     (unaudited)


CAPITAL AND LIABILITIES
Current Liabilities
<S>                        <C>                  <C>
Long-term debt due
 within one year           $   1,859            $   1,855
Notes payable to banks                  46,000          202,000
Accounts payable                        49,109           49,196
Accrued taxes                           22,892           18,300
Customers' deposits                     17,778           16,399
Amounts due customers                    8,692            7,347
Accrued wages and benefits              11,976           13,719
Other                                   25,753           21,935


   Total current liabilities          184,059          330,751


Deferred Credits and Other Liabilities
Other                                    8,299            8,301


   Total deferred credits and
     other liabilities                  8,299            8,301


Commitments and Contingencies               --               --


Capitalization
Preferred stock, cumulative
 $0.01 par value,
 5,000,000 shares authorized               --           --
Common shareholders' equity*
 Common stock, $0.01 par value; 75,000,000
  shares authorized, 29,090,378
  shares outstanding at March 31, 1998, and
  28,796,218 shares outstanding at
  September 30, 1997                       291              288
 Premium on capital stock             191,325          185,841
 Capital surplus                        2,802            2,802
 Retained earnings                    149,645          112,212
 

   Total common shareholders'
    equity                            344,063          301,143
Long-term debt                         378,144          279,602


   Total capitalization               722,207          580,745


TOTAL CAPITAL AND LIABILITIES         $914,565          $919,797


*Share amounts reflect a 2-for-1 stock split effective March 2, 1998


The accompanying Notes are an integral part of these financial statements.
</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
ENERGEN CORPORATION
(Unaudited)
<TABLE>
<CAPTION>

Six months ended March 31,
(in thousands)                 1998            1997

Operating Activities
<S>                              <C>              <C>
Net income                       $46,419          $33,708
Adjustments to reconcile net
  income to net cash provided by
  (used in) operating activities:
 Depreciation, depletion and
    amortization                            42,152      23,022
 Deferred income taxes, net                (15,231)        (683)
 Deferred investment tax
    credits, net                             (235)       (244)
   Net change in:
   Accounts receivable                     (13,392)    (24,023)
   Inventories                                8,269     (1,107)
   Deferred gas cost                       (5,719)     (1,585)
     Accounts payable
      - gas purchases                   4,380       5,580
   Accounts payable - trade                (4,467)     (6,467)
   Other current assets and
    liabilities                             10,792     (17,108)
 Other, net                                  2,859     (3,116)

   Net cash provided by
    operating activities                    75,827       7,977

Investing Activities
Additions to property,
  plant and equipment                       (110,612)   (119,565)
Payments on notes receivable                    423         356
Other, net                                    1,784         627

   Net cash used in investing activities   (108,405)   (118,582)

Financing Activities
Payment of dividends on common stock        (8,980)     (7,285)
Issuance of common stock                      2,685      52,091
Reduction of long-term debt                   (870)       (923)
Proceeds from issuance of
 long-term debt                              98,541          --
Payment of note payable issued to
  purchase U.S. Treasury securities         (98,636)         --
Net change in short-term debt                (57,364)    62,050
Net cash provided by
   (used in) financing activities          (64,624)    105,933

Net change in cash and cash equivalents     (97,202)    (4,672)
Cash and cash equivalents at
  beginning of period                       105,402      17,074

Cash and Cash Equivalents at
  End of Period                             $ 8,200     $12,402

The accompanying Notes are an integral part of these financial statements.
</TABLE>
<PAGE>
STATEMENTS OF INCOME
ALABAMA GAS CORPORATION
(Unaudited)
<TABLE>
<CAPTION>
                  Three months ended     Six months ended
                      March 31,            March 31,
(in thousands)       1998      1997      1998      1997
<S>                <C>       <C>       <C>       <C>
Operating Revenues $161,747  $160,151  $257,502  $243,456


Operating Expenses
Cost of gas                 80,774   84,501     132,178  126,593
Operations and maintenance  23,493   24,588      48,494  48,793
Depreciation                 6,232    5,798      12,429  11,557
Income taxes
 Current                   18,874   12,259      21,022  12,281
 Deferred, net             (4,820)    (550)    (5,747)     416
 Deferred investment
  tax credits, net           (117)    (121)      (234)    (243)
Taxes, other than
  income taxes              10,918   10,712      18,170  17,040


  Total operating expenses 135,354  137,187    226,312  216,437


Operating Income            26,393   22,964      31,190  27,019


Other Income
Allowance for funds used
 during construction            99      165         184     301
Other, net                     168      (86)        247     288


  Total other income          267       79         431     589


Interest Charges
Interest on long-term debt   2,211    2,211       4,422   4,422
Other interest expense         503      669       1,071   1,216


  Total interest charges    2,714    2,880       5,493   5,638


Net Income                  $23,946  $20,163    $26,128  $21,970


The accompanying Notes are an integral part of these financial  statements.
</TABLE>
<PAGE>
BALANCE SHEETS
ALABAMA GAS CORPORATION


                   March  31, 1998   September 30,1997
(in thousands)      (unaudited)

ASSETS
Property, Plant and Equipment

Utility plant            $603,284                $583,630
Less accumulated
 depreciation             296,512                 287,749


 Utility plant, net                   306,772          295,881


Other property, net                        337              347


Current Assets
Cash and cash equivalents                7,435            2,580
Accounts receivable
 Gas                                   54,056           36,098
 Merchandise                            1,739            2,001
 Other                                  3,764            1,442
 Allowance for doubtful
   accounts                           (3,815)           (3,156)
Inventories, at average cost
 Storage gas                           16,747           25,367
 Materials and supplies                 5,781            5,391
 Liquified natural gas in storage       3,616            3,630
Deferred gas cost                        8,231            2,512
Deferred income taxes                   10,761            5,675
Prepayments and other                    6,868            6,696


   Total current assets               115,183           88,236


Deferred Charges and Other Assets        4,654            5,917


TOTAL ASSETS                          $426,946          $390,381




The accompanying Notes are an integral part of these financial statements.
<PAGE>
BALANCE SHEETS
ALABAMA GAS CORPORATION


(in thousands,       March 31, 1998    September 30, 1997
except share data)    (unaudited)


CAPITAL AND LIABILITIES
Capitalization

Common shareholder's equity
 Common stock, $0.01 par value;
   3,000,000 shares
   authorized, 1,972,052 shares
   outstanding at March  31, 1998,
   and September 30, 1997      $     20          $     20
 Premium on capital stock        31,682            31,682
 Capital surplus                        2,802            2,802
 Retained earnings                    129,343          106,894


 Total common shareholder's equity    163,847          141,398
Cumulative preferred stock,
  $0.01 par value, 120,000 shares
 authorized, issuable in series-
 $4.70 Series                             --                  --
Long-term debt                         125,000          125,000

   
 Total capitalization                 288,847          266,398


Current Liabilities
Notes payable to banks                  12,000            11,000
Accounts payable
 Trade                                 32,488           28,923
 Affiliated companies                      --             4,984
Accrued taxes                           28,562           16,745
Customers' deposits                     17,778           16,399
Other amounts due customers              8,692            7,347
Accrued wages and benefits               3,651            3,879
Other                                   11,639           10,481


   Total current liabilities          114,810           99,758


Deferred Credits and Other Liabilities
Deferred income taxes                   16,342           16,739
Accumulated deferred investment
 tax credits                             2,895            3,130
Regulatory liability                     3,283            3,651
Customer advances for construction
 and other                                 769              705


   Total deferred credits and
    other liabilities                  23,289           24,225


Commitments and Contingencies               --               --

TOTAL CAPITAL AND LIABILITIES         $426,946          $390,381




The accompanying Notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS
ALABAMA GAS CORPORATION
(Unaudited)

                                            
Six months ended March 31, (in thousands)     1998       1997


Operating Activities
                                                
Net income                                 $ 26,128     $21,970
Adjustments to reconcile net
  income to net cash provided by
  (used in) operating activities:
 Depreciation and amortization              12,429      11,557
 Deferred income taxes, net                (5,747)         416
 Deferred investment tax credits             (234)       (243)
 Net change in:
   Accounts receivable                    (17,567)     (21,599)
   Inventories                               8,244       (720)
   Deferred gas cost                       (5,719)     (1,585)
   Accounts payable - gas purchases          4,380       5,580
   Accounts payable - other trade            (815)     (3,729)
   Other current assets and liabilities      15,407    (18,919)
 Other, net                                    930     (4,458)


   Net cash provided by (used in)
    operating activities                    37,436     (11,730)


Investing Activities
Additions to property,
 plant and equipment                       (23,455)     (16,034)
Net advances from affiliates                (6,776)      12,802
Other, net                                      330         629


   Net cash used in investing
    activities                            (29,901)     (2,603)


Financing Activities
Payment of dividends on
 common stock                               (3,680)     (6,720)
Net change in short-term debt                 1,000      24,000


   Net cash provided by (used in)
    financing activities                   (2,680)      17,280


Net change in cash and
 cash equivalents                             4,855       2,947
Cash and cash equivalents at
 beginning of period                          2,580         803


Cash and Cash Equivalents at
 End of Period                             $  7,435     $ 3,750




The accompanying Notes are an integral part of these financial statements.

<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   of   normal  recurring  items  and  immaterial   adjustments.    The
consolidated  financial  statements  and  notes  thereto  should  be   read   in
conjunction  with  the  financial statements  and  notes  for  the  years  ended
September  30,  1997,  1996, and 1995, included in the  1997  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 natural gas distribution 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  an  Alabama  utility,  Alabama Gas Corporation  (Alagasco)  is  subject   to
regulation  by  the  Alabama Public Service Commission (APSC)  which,  in  1983,
established   the   Rate  Stabilization  and  Equalization  (RSE)   rate-setting
process.  RSE  was  extended  with modifications in  1985,  1987  and  1990.  On
October  7,  1996,  RSE  was extended, without change, for  a  five-year  period
through  January 1, 2002. Under the terms of that extension, RSE  will  continue
after  January 1, 2002, unless, after notice to the Company and a  hearing,  the
Commission votes to either modify or discontinue its operation.

Under  RSE as extended, the APSC conducts quarterly reviews to determine,  based
on   Alagasco's   projections  and  fiscal  year-to-date  performance,   whether
Alagasco's  return  on  equity for the fiscal year will be  within  the  allowed
range  of  13.15   percent to 13.65 percent. Reductions in  rates  can  be  made
quarterly  to  bring the projected return within the allowed  range;  increases,
however,  are  allowed  only once each fiscal year, effective  December  1,  and
cannot  exceed   4  percent  of prior-year revenues. RSE  limits  the  utility's
equity  upon  which a return is permitted to 60 percent of total  capitalization
and  provides  for certain cost control measures designed to monitor  Alagasco's
operations  and  maintenance (O&M) expense. If the change  in  O&M  expense  per
customer  falls  within  1.25  percentage points above  or  below  the  Consumer
Price  Index  For All Urban Customers (index range), no adjustment is  required.
If,  however,  the change in O&M expense per customer exceeds the  index  range,
three-quarters  of the difference is returned to customers. To  the  extent  the
change  is  less than the index range, the utility benefits by one-half  of  the
difference  through  future rate adjustments. Under RSE as  extended,  an  $11.8
million annual increase in revenue became effective December 1, 1997.

Alagasco  calculates a temperature adjustment to customers' bills to remove  the
effect  of  departures  from  normal temperature  on  Alagasco's  earnings.  The
calculation  is performed monthly, and the adjustments to customers'  bills  are
made in the same billing cycle the weather variation occurs.

Alagasco's  rate schedules for natural gas distribution charges  contain  a  Gas
Supply  Adjustment  (GSA) rider, established in 1993, which  permits  the  pass-
through  to  customers  of  changes in the cost of  gas  supply,  including  Gas
Supply  Realignment  (GSR) surcharges imposed by Alagasco's suppliers  resulting
from  changes in gas supply purchases related to the implementation of   Federal
Energy  Regulatory  Commission (FERC) Order 636. The APSC on  October  7,  1996,
issued  an  order  providing for the refund to customers prior  to  January  31,
1997,  of  approximately  $17 million of supplier refunds,  including  interest.
The  Company  refunded  these  amounts to customers  during  January  1997.  The
refunds  were  collected  from  a variety of sources  and  most  relate  to  the
settlement  of rate case and FERC Order 636 proceedings of Southern Natural  Gas
Company.

In  accordance with APSC-directed regulatory accounting procedures, Alagasco  in
1989  began returning to customers excess utility deferred taxes which  resulted
from  a  reduction  in  the federal statutory tax rate from  46  percent  to  34
percent  using the average rate assumption method. This method provides for  the
return  to  ratepayers of excess deferred taxes over the lives  of  the  related
assets.  In  1993 those excess taxes were reduced as a result of a  federal  tax
rate  increase from 34 percent to 35 percent. Remaining excess utility  deferred
taxes  of  $2.1  million are being returned to ratepayers over approximately  13
years.  At  March  31,  1998,  and September 30, 1997,  a  regulatory  liability
related  to  income  taxes of $3.3 million and $3.7 million,  respectively,  was
included in the consolidated financial statements.

3.  CAPITAL STOCK

On  January 28, 1998, Energen announced a 2-for-1 split of the Company's  common
stock.   The  split  was  in the form of a 100 percent stock  dividend  and  was
payable  on March 2, 1998, to shareholders of record on February 13, 1998.   All
per-share  amounts  and the number of shares of capital stock  outstanding  have
been  adjusted  to  reflect the stock split.  Effective January  30,  1998,  the
Restated  Certificate  of Incorporation of Energen Corporation  was  amended  to
increase  Energen's  authorized common stock, par value $0.01  per  share,  from
30,000,000 shares to 75,000,000 shares.

4.  DERIVATIVE COMMODITY INSTRUMENTS

Taurus  Exploration  Inc. (Taurus) enters into derivative commodity  instruments
to  hedge  its  exposure  to the impact of price fluctuations  on  oil  and  gas
production.   Such  instruments include regulated  natural  gas  and  crude  oil
futures  contracts  traded  on the New York Mercantile  Exchange  and  over-the-
counter    swaps   and  basis  hedges  with  major  energy  derivative   product
specialists.   These transactions are accounted for under the  hedge  method  of
accounting.   Under  this method, any unrealized gains and losses  are  recorded
as  a  current receivable/payable and a deferred gain/loss. Realized  gains  and
losses  are  deferred  until the revenues from the related  hedged  volumes  are
recognized  in the income statement.  These realized deferred gains  and  losses
are  reflected  in  current liabilities or current assets,  respectively.   Cash
flows  from  derivative instruments are recognized as incurred  through  changes
in  working  capital.   The Company had deferred losses  of  $10.8  million  and
$12.9  million  on the balance sheet at March 31,1998, and September  30,  1997,
respectively.

At  March 31, 1998, Taurus had entered into contracts and swaps for 16.8 Bcf  of
its  remaining  estimated 1998 flowing gas production  at  an  average  contract
price  of $2.11 per Mcf and for 405 MBbl of its remaining estimated flowing  oil
production  at an average contract price of $18.47 per barrel.  The program  has
been  extended into fiscal year 1999 with contracts and swaps in place for  25.8
Bcf  of  flowing gas production at an average contract price of $2.32  per  Mcf.
Realized  prices  are anticipated to be lower than hedged prices  due  to  basis
differences and other factors.

All  hedge  transactions  are subject to the Company's risk  management  policy,
approved   by  the  Board  of  Directors,  which  does  not  permit  speculative
positions.    To   apply  the  hedge  method  of  accounting,  management   must
demonstrate  that a high correlation exists between the value of the  derivative
commodity  instrument  and the value of the item hedged.   Management  uses  the
historic  relationships between the derivative instruments and the sales  prices
of the hedged volumes to ensure that a high level of correlation exists.

5.  ACCOUNTING FOR LONG-LIVED ASSETS

Statement of Financial Accounting Standards (SFAS) No. 121, Accounting  for  the
Impairment  of  Long-Lived Assets and for Long-Lived Assets to be  Disposed  Of,
requires  that an impairment loss be recognized when the carrying amount  of  an
asset  exceeds the sum of the undiscounted estimated future cash  flows  of  the
asset.   Accordingly, during the second quarter of 1998, Taurus recorded a  pre-
tax  writedown of $4.7 million on certain oil and gas properties, adjusting  the
carrying  amount  of  the  properties to their fair value  based  upon  expected
future  discounted cash flows. This writedown primarily reflects the  impact  of
the  recent  decline in crude oil prices. The expense was recorded as additional
depreciation, depletion and amortization.

6.   RECENT PRONOUNCEMENTS OF THE FASB

During  the first quarter, the Company adopted SFAS No. 128, Earnings Per  Share
(EPS),  which  specifies computation, presentation, and disclosure  requirements
for  EPS.  SFAS No. 128 requires dual presentation of basic and diluted  EPS  on
the  face  of  the  income  statement  and  requires  a  reconciliation  of  the
numerator  and denominator of the basic EPS computation to that of  the  diluted
computation (see Note 8).

The  Company  also  is  required to adopt during  fiscal  1998,  SFAS  No.  129,
Disclosures  of Information about Capital Structure.  It contains no  change  in
disclosure  requirements  for public entities that were  previously  subject  to
the  requirements of Accounting Principles Board No. 10 and No. 15 and SFAS  No.
47.   As  a  result,  SFAS  No.  129  will  have  no  impact  on  the  Company's
consolidated financial statements.

In  June  1997,  the  FASB issued SFAS No. 130, Reporting Comprehensive  Income,
which  requires  the  reporting  and display of  comprehensive  income  and  its
components  in  an entity's financial statements, and SFAS No. 131,  Disclosures
about  Segments  of  an  Enterprise  and Related  Information,  which  specifies
revised  guidelines for determining an entity's operating segments and the  type
and  level of financial information to be required.  In February 1998, the  FASB
issued   SFAS  No.  132,  Employers'  Disclosures  about  Pensions   and   Other
Postretirement  Benefits,  which revises employers'  disclosures  about  pension
and  other  postretirement  benefit plans.  The Company  is  required  to  adopt
these  statements  in fiscal year 1999.  The impact of these  pronouncements  on
the Company currently is being evaluated and is not expected to be material.
<PAGE>
7.   SUPPLEMENTAL CASH FLOW INFORMATION

ENERGEN CORPORATION


Six months ended March 31, (in thousands)     1998       1997


Interest paid                               $13,195     $ 7,242
Income taxes paid                           $ 6,568     $ 3,124
Noncash investing activities
 (capitalized depreciation
 and allowance for funds used
 during construction)                      $   267     $   385



ALABAMA GAS CORPORATION


Six months ended March 31, (in thousands)     1998       1997


Interest paid                               $   5,871   $  4,623
Income taxes paid                           $   7,570   $  5,827
Noncash investing activities
 (capitalized depreciation
 and allowance for funds used
 during construction)                      $   267     $   385







<PAGE>8.  RECONCILIATION OF EARNINGS PER SHARE*
(in thousands,except per share amounts)

                              Per share             Per Share
                  Income Shares Amount  Income Shares Amount


                   Three months ended    Three months ended
                     March 31, 1998          March 31, 1997

Basic EPS
Income available to common
 stockholders    $40,292    29,027  $ 1.39   $ 30,531  25,311  $1.21
Effect of Dilutive Securities
Long-range
  performance shares           121                       121
Non-qualified stock options    212                       117


Diluted EPS
Income available to
  common stockholders plus
  assumed conversions   $40,292  29,360  $1.37   $ 30,531  25,549  $1.19


                      Six months ended    Six months ended
                       March 31, 1998      March 31,1997
Basic EPS
Income available to
 common stockholders   $46,419  28,956  $ 1.60   $ 33,708  23,874    $1.41
Effect of Dilutive Securities
Long-range
 performance shares                115                        112
Non-qualified
 stock options                     191                        103


Diluted EPS
Income available to
  common stockholders
 plus assumed
 conversions          $46,419  29,262  $ 1.59   $ 33,708    24,089  $1.40

Share amounts reflect a 2-for-1 stock split effective March 2, 1998 (see
Note 3)
<PAGE>

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
      RESULTS OF OPERATIONS

Energen's  net  income  totaled $40.3 million ($1.39 per share)  for  the  three
months  ended   March 31,1998, and compared favorably with net income  of  $30.5
million  ($1.21  per  share)  recorded in the  same  period  last  year.  Taurus
Exploration  Inc.  (Taurus),  Energen's oil and gas exploration  and  production
subsidiary,  realized  a 65 percent increase in  net income  to  $16.4  million.
Gains  resulting  from production-related income and  increased  nonconventional
fuels  tax  credits  were  partially offset by a $3 million after-tax  writedown
of  certain  oil  and  gas  properties under Statement of  Financial  Accounting
Standards  (SFAS)  No. 121 and increased interest expense.  Alagasco,  Energen's
natural  gas  utility,  earned an allowed return on a  higher  level  of  equity
representing  investment in utility plant.  Alagasco's net income totaled  $23.9
million  in  the  current quarter and compared with $20.2 in  the  same  quarter
last year.

For  the  1998  fiscal year-to-date, Energen's net income totaled $46.4  million
($1.60  per  share) compared with $33.7 ($1.41 per share) for  the  same  period
last  year.   Taurus's net income totaled $20.2 million and  compared  favorably
with  $11.4  million of net income in the first half of fiscal 1997.  Alagasco's
earnings  increased  $4.2 million to $26.1 million. Major  factors  contributing
to  Taurus's  and  Alagasco's financial success during the current  period  were
the same as those influencing each subsidiary during the second quarter.

Natural Gas Distribution:
Natural  gas  distribution revenues varied only slightly in quarter  comparisons
and  increased  $14 million  for the year-to-date. For the quarter,  residential
sales  volumes  increased due to weather that was 11.2 percent  colder  than  in
the  prior  year but were largely offset by decreased gas costs.  A decrease  in
the  commodity cost of gas which was offset partially by increased gas  purchase
volumes  also  contributed to a 4.4 percent decrease in cost of  gas.   For  the
year-to-date,  weather that was 10.7 percent colder than the  same  period  last
year  contributed  to  a  10.6  percent increase in residential  sales  volumes.
Increased  gas  purchase volumes were offset partially  by  a  decrease  in  the
commodity cost of gas, resulting in a 4.4 percent increase in cost of  gas.  Gas
price  fluctuations are passed through volumetrically to the  customer  via  the
Company's  Gas  Supply  Adjustment rider. The temperature  adjustment  provision
allows  customer  bills to be adjusted on a real-time basis so that  temperature
variances from normal do not affect Alagasco's  operating margins.

Operations  and maintenance expenses in the current quarter and in the  year-to-
date  comparisons remained relatively stable due to low inflation  and  customer
growth during the period.

A  slight  increase  in  depreciation expense for the quarter  and  year-to-date
comparisons  was  due  to  normal growth of the utility's  distribution  system.
Taxes  other  than  income primarily reflect various state  and  local  business
taxes  as  well  as payroll-related taxes.  State and local business  taxes  are
generally based on gross receipts and fluctuate accordingly.

As  discussed  more  fully in Note 2, Alagasco is subject to regulation  by  the
APSC.   On  October  7,1996, the APSC issued an order  extending  the  Company's
current  rate-setting mechanism through January 1, 2002.   Under  the  terms  of
that  extension, RSE will continue after January 1, 2002, unless,  after  notice
to  the  Company  and  a  hearing, the Commission  votes  to  either  modify  or
discontinue its operation.

Oil and Gas Exploration and Production:
Revenues  from  oil  and gas production activities rose 58.9  percent  to  $36.2
million  for  the three months ended March 31, 1998, and 81.9 percent  to  $66.4
million  for the year-to-date, primarily reflecting Taurus's current and  prior-
year   property  acquisitions.   Natural  gas  production,  for   the   quarter,
increased  59.6  percent to 11 Bcf and oil volumes increased   97.4  percent  to
361  MBbl.  For the year-to-date, natural gas production increased 86.5  percent
to  21.3  Bcf and oil volumes increased 82.3 percent to 620 MBbl.   During  1997
Taurus  acquired  high BTU-content natural gas reserves in the  San  Juan  Basin
which  yielded  194 MBbl in natural gas liquids in the current quarter  and  370
MBbl for the year-to-date.

  The impact of higher production was slightly offset by lower realized gas  and
oil  prices. For the quarter, gas sales prices decreased 4 percent to $2.43  per
Mcf.  Oil  prices decreased 15.4 percent to $16.41 per barrel. For the  year-to-
date  gas  sales  prices decreased slightly to $2.32 while oil prices  decreased
10.2  percent  to $16.72 per barrel.  Natural gas liquids sold  for  an  average
price  of  $10.06 per barrel for the quarter and $9.74 per barrel for the  year-
to-date.

Taurus  enters  into derivative commodity instruments to hedge its  exposure  to
the  impact  of price fluctuations on oil and gas production.  Such  instruments
include  regulated  natural gas and crude oil futures contracts  traded  on  the
New  York  Mercantile Exchange and over-the-counter swaps and basis hedges  with
major  energy  derivative  product  specialists.   All  hedge  transactions  are
subject  to  the  Company's risk management policy, approved  by  the  Board  of
Directors,  which  does not permit speculative positions.  At  March  31,  1998,
Taurus  had  entered  into contracts and swaps for 16.8  Bcf  of  its  remaining
estimated  1998  flowing gas production at an average contract  price  of  $2.11
per  Mcf  and for 405 MBbl of its remaining estimated flowing oil production  at
an  average contract price of $18.47 per barrel.  The program has been  extended
into  fiscal  year  1999  with contracts and swaps in  place  for  25.8  Bcf  of
flowing  gas  production  at  an  average  contract  price  of  $2.32  per  Mcf.
Realized  prices  are anticipated to be lower than hedged prices  due  to  basis
differences and other factors.

O&M  expense  increased $3.5 million for the quarter and  $7.3  million  in  the
current  year-to-date  primarily due to significant  growth  in  production  and
acquisition  activity at Taurus.  Lease operating expenses rose by $3.8  million
and  $8.5  million  for the quarter and year-to-date, respectively.  Exploration
expense  increased slightly for the quarter but was lower by  $0.5  million  for
the year-to-date primarily due to less-than-anticipated drilling activity.

Taurus's significantly higher production volumes generated the majority  of  the
$11.3  million increase in depreciation, depletion and amortization  (DD&A)  for
the  quarter  and the $18.3 million increase for the year-to-date.   Also  under
SFAS  No.  121, Taurus recorded additional DD&A expense of $4.7 million (pretax)
to  writedown certain oil and gas properties. The average depletion rate in  the
current  quarter was $0.91, excluding the effect of the writedown,  compared  to
$0.83  for the same period last year and was $0.89 in the year-to-date  compared
to $0.83 in the prior-year period.

Taurus's  expense  for  taxes other than income primarily  reflects  production-
related   taxes which were $1.5 million higher this quarter and $3.6 higher  for
the year-to-date due to increased production.

Non-Operating Items:
Interest  expense  for the Company increased  $1.8 million in  the  quarter  and
$4.1  in  the year-to-date.  To help fund growth at Taurus, Energen  issued  $85
million  of  medium-term notes (MTNs) in July 1997 and $100 million of  MTNs  in
February  1998.  The  Company also increased its average  borrowings  under  its
short-term credit facilities for the same purpose.

The  Company's  effective tax rates are lower than statutory federal  tax  rates
primarily  due to the recognition of nonconventional fuels tax credits  and  the
amortization of investment tax credits.  The Company's effective tax  rates  are
expected  to  remain  lower than statutory federal rates  through  December  31,
2002,  as  tax  credits generated each year are expected to be fully  recognized
in  the  financial  statements.  Income tax expense  decreased  in  the  current
quarter  and  in  the  year-to-date as the impact of higher consolidated  pretax
income   was   more  than  offset  by  significantly  greater   recognition   of
nonconventional fuels tax credits on an interim basis in the current year.

FINANCIAL POSITION AND LIQUIDITY


Current  year  operating cash flow was $75.8 million compared to $8  million  in
the  prior  year.   The  Company benefited from increased net  income  resulting
from  significantly  higher  oil  and  gas production.   Other  working  capital
items,  which  are  highly  influenced by throughput  and  timing  of  payments,
combined  to  create the remaining increase.  Negatively affecting  cashflow  in
the  prior  year was the payout of $17 million of supplier refunds to  customers
in January 1997.

The  Company  invested $108.4 million in the current year-to-date  primarily  in
the  addition  of property, plant and equipment. Taurus added $87.5  million  in
capital  expenditures for the year-to-date to acquire and develop  oil  and  gas
properties.    Utility   capital  expenditures   totaled   $23.1   million   and
represented    primarily  normal  system  distribution  expansion  and   support
facilities.

The  Company  used  $64.6 million for financing activities in the  year-to-date.
The  Company  issued  $100  million of long-term debt  redeemable  February  15,
2028.   The  7.125  percent MTNs were priced at 99.416 percent  to  yield  7.173
percent.  The  $98.5  million in proceeds were used to  repay  borrowings  under
Energen's  short-term  credit facilities incurred  to  finance  Taurus's  growth
activity.   For  Alabama  shares  tax planning purposes,  the  Company  borrowed
$98.6  million  in  September 1997 to invest in short-term federal  obligations.
The  Treasuries  matured in early October and the proceeds were  used  to  repay
the debt.

FUTURE CAPITAL RESOURCES AND LIQUIDITY

The  Company  plans  to continue to implement its diversified  growth  strategy.
Over  the  five-year period ending September 30, 2002, Taurus  plans  to  invest
approximately  $750  million to $800 million to acquire  and  develop  producing
properties  and  to  participate  in exploration  and  related  development.  In
fiscal  1998,  Taurus plans to spend in excess of $120 million, including  $64.5
million  spent on property acquisitions year-to-date.  It should be  noted  that
Taurus's  continued  ability  to  invest  in  property  acquisitions   will   be
significantly   influenced  by  industry  trends  as  the   producing   property
acquisition  market historically has been cyclical. From time  to  time,  Taurus
also  may  be  engaged  in negotiations to sell, trade or otherwise  dispose  of
previously acquired property.

During  the  first  quarter of 1998, Taurus acquired approximately  79  Bcfe  of
proved  oil  and  natural gas reserves in the Permian Basin of west  Texas  from
B.C.  Oil  and  Gas  Ltd. and certain affiliated companies  for  $43.3  million.
More  than  half  of  the proved reserves are behind-pipe and  undeveloped,  and
Taurus  plans  to  spend an additional $17 million over the next  two  to  three
years  to  fully  develop the behind-pipe, water flood and  undeveloped  reserve
potential.   Oil accounts for 70 percent of the estimated proved reserves.   The
properties  include  approximately 350 producing wells,  of  which  Taurus  will
operate  248.   Taurus  also purchased an estimated 4.5  Bcfe  of  predominantly
natural  gas  reserves   in southwest Mississippi from Oxy  USA  Inc.  for  $7.1
million.   In  the  second quarter, Taurus closed on a $17 million  purchase  of
Gulf  of  Mexico properties from Chateau Oil and Gas Inc. In April 1998,  Taurus
subsequently  sold approximately 20 percent of its share to a  third  party  who
will  serve  as  the  operating  partner .  Taurus's  retained  portion  of  the
acquisition  includes an estimated 9.8 Bcf of natural gas reserves in  the  Gulf
of  Mexico.   Approximately 45 percent of the proved reserves are developed  and
producing,  and  Taurus  plans  to spend another  $0.7  million  over  the  next
several years to bring on-line the 55 percent of behind-pipe reserves.

To  finance  Taurus's investment program, the Company will continue  to  utilize
its  short-term  credit  facilities   to supplement  internally  generated  cash
flow,  with  long-term  debt  and  equity  providing  permanent  financing.   In
December  1997,  Energen filed a $400 million shelf registration  for  debt  and
common  stock.   Under that registration, in February 1998 Energen  issued  $100
million  of  Series B MTNs, the proceeds from which were used  to  repay  short-
term  debt.  During  the first quarter, Energen increased its  available  short-
term credit facilities to $228 million to accommodate its growth plans.

Utility  capital  expenditures  for  normal  distribution  system  renewal   and
expansion  plus  support  facilities could approximate  $60  million  in  fiscal
1998.  Alagasco  also will maintain an investment in storage working  gas  which
is  expected  to approximate $24 million at the end of fiscal 1998. The  utility
anticipates  funding  these  capital requirements through  internally  generated
capital and the utilization of short-term credit facilities.

Forward-Looking  Statements  and  Risks:  Certain  statements  in  this  report,
including  statements of future plans, objectives, and expected  performance  of
the  Company  and  its  subsidiaries, are forward-looking  statements  that  are
dependent  on certain events, risks and uncertainties that may be outside  their
control  which  could  cause  actual results to  differ  materially  from  those
anticipated.  Some  of  these  include, but are not  limited  to,  economic  and
competitive  conditions,  inflation rates, legislative and  regulatory  changes,
financial   market   conditions,   future   business   decisions,   and    other
uncertainties,  all  of  which  are difficult to  predict.  There  are  numerous
uncertainties inherent in estimating quantities of proved oil and  gas  reserves
and  in  projecting  future  rates  of  production  and  timing  of  development
expenditures.  The total amount or timing of actual future production  may  vary
significantly  from reserves and production estimates. In the  event  Taurus  is
unable  to  invest fully its planned acquisition expenditures, future  operating
revenues  and  proved  reserves could be negatively affected.  The  drilling  of
exploratory  wells  can  involve significant  risk  including  that  related  to
timing,  success rates and cost overruns. These risks can be impacted  by  lease
and  rig  availability, complex geology and other factors. Results of operations
and  cash  flows  also could be affected by future oil and gas prices.  Although
Taurus  makes  use  of  futures, swaps and  fixed price  contracts  to  mitigate
risk,  fluctuations  in  oil and gas prices may affect the  Company's  financial
position and results of operations.

Energen  is  evaluating  its computer software to assess   modifications  needed
for  the  year  2000.   The Company also is communicating with  its  significant
suppliers,  customers,  and  other constituencies to  determine  the  extent  to
which  the  Company's  operations  may be vulnerable  to  those  third  parties'
failure  to  prepare for the year 2000 change.  Costs associated with evaluation
and  testing are being expensed as incurred. The Company has not yet  determined
fully  the  total cost of the project but does not anticipate a material  impact
on the consolidated financial statements.

OTHER


Recent Pronouncements of the FASB

During  the  first  quarter,  the Company adopted SFAS  No.  128,  Earnings  Per
Share,  which  specifies computation, presentation, and disclosure  requirements
for  EPS.  SFAS No. 128 requires dual presentation of basic and diluted  EPS  on
the  face  of  the  income  statement  and  requires  a  reconciliation  of  the
numerator  and denominator of the basic EPS computation to that of  the  diluted
computation (see Note 8).

The  Company  also  is  required to adopt during  fiscal  1998,  SFAS  No.  129,
Disclosures  of Information about Capital Structure.  It contains no  change  in
disclosure  requirements  for public entities that were  previously  subject  to
the  requirements of Accounting Principles Board No. 10 and No. 15 and SFAS  No.
47.   As  a  result,  SFAS  No.  129  will  have  no  impact  on  the  Company's
consolidated financial statements.

In  June  1997,  the  FASB issued SFAS No. 130, Reporting Comprehensive  Income,
which  requires  the  reporting  and  display of comprehensive  income  and  its
components  in an entity's financial statements, and  SFAS No. 131,  Disclosures
about  Segments  of  an  Enterprise  and Related  Information,  which  specifies
revised  guidelines for determining an entity's operating segments and the  type
and  level of financial information to be required. In February 1998,  the  FASB
issued   SFAS  No.  132,  Employers'  Disclosures  about  Pensions   and   Other
Postretirement  Benefits,  which revises employers'  disclosures  about  pension
and  other  postretirement  benefit plans.  The Company  is  required  to  adopt
these  statements   in fiscal year 1999.  The impact of these pronouncements  on
the Company currently is being evaluated and is not expected to be material.
<PAGE>





SELECTED BUSINESS SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)

                      Three months ended  Six months ended
(in thousands, except    March 31,            March 31,
sales price data)     1998      1997       1998      1997

Natural Gas Distribution
Operating revenues
 Residential       $113,197 $112,372 $175,575  $167,895
 Commercial and industrial
  - small                   39,713    40,180    63,207  59,633
 Transportation             10,495     9,290    19,852  17,843
 Other                      (1,658)  (1,691)   (1,132)  (1,915)

   Total                    $161,747 $160,151  $257,502 $243,456


Gas delivery volumes (MMcf)
 Residential                16,023    14,369    23,856  21,551
 Commercial and industrial
 - small                     6,219     5,718     9,675   8,753
 Transportation             16,143    15,194    32,518  31,530

   Total                    38,385    35,281    66,049  61,834


Other data
 Depreciation and
  amortization              $6,232   $ 5,798   $12,429  $11,557
 Capital expenditures       $15,066  $ 9,709   $23,380  $16,159
 Operating income           $40,330  $34,552   $46,231  $39,473


Oil and Gas Exploration and Production
Operating revenues
 Natural gas                $26,652  $17,424   $49,441  $26,810
 Oil                         5,922     3,546    10,367   6,331
 Natural gas liquids         1,953        --     3,602      --
 Other                       1,699     1,821     2,949   3,347

   Total                    $36,226  $22,791   $66,359  $36,488


Sales volume
 Natural gas (MMcf)         10,973     6,875    21,277  11,409
 Oil (MBbl)                    361       183       620     340
 Natural gas liquids (MBbl)    194        --       370      --
Average sales price
 Natural gas (MMcf)         $ 2.43   $  2.53   $  2.32  $ 2.35
 Oil (barrel)               $16.41   $ 19.39   $ 16.72  $18.61
 Natural gas liquids
  (barrel)                  $10.06        --   $  9.74      --
Other data
 Depreciation, depletion
  and amortization          $18,084  $ 6,827   $29,723  $11,465
 Capital expenditures       $27,135  $95,142   $87,494  $103,531
 Exploration expenditures   $1,367   $ 1,301   $ 1,490  $1,946
 Operating income           $4,343   $ 7,282   $11,884  $11,106

<PAGE>



PART II. OTHER INFORMATION
           
ITEM 2.  CHANGES IN SECURITIES

Effective  January  30,  1998,  the  Restated Certificate  of  Incorporation  of
Energen  Corporation was amended to increase Energen's authorized common  stock,
par value $0.01 per share, from 30,000,000 shares to 75,000,000.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Information  with  respect  to the annual meeting of Shareholders  held  January
28,  1998, is reported in Item 4 of Energen Corporation Form 10-Q for the  three
months ended December 31, 1997.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

a. Exhibits

   27.1    Financial  data  schedule of Energen Corporation  (for  SEC  purposes
only)

   27.2     Financial  data  schedule  of  Alabama  Gas  Corporation  (for   SEC
purposes only)

   27.3    Restated  financial  data schedule of Energen  Corporation  (for  SEC
purposes only)
 
b. Reports on Form 8-K

   No reports on Form 8-K were filed for the three months ended March 31,1998.
                                  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 11, 1998        By/s/ Wm. Michael Warren, Jr.
                               Wm. Michael Warren, Jr.
                               Chairman, President and
                               Chief Executive Officer of
                               Energen, Chairman and
                               Chief Executive Officer of
                               Alagasco


     May 11, 1998        By/s/ G. C. Ketcham
                               G. C. Ketcham
                               Executive Vice President,
                               Chief Financial Officer and
                               Treasurer of Energen  and Alagasco



     May 11, 1998        By/s/ Grace B. Carr
                               Grace B. Carr
                               Controller of Energen



     May 11, 1998        By/s/ Paula H. Rushing
                               Paula H. Rushing
                               Vice President-Finance
                                       of Alagasco