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 DECEMBER 31, 1999

                                       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


                   605 Richard Arrington, Jr. Boulevard North
                         Birmingham, Alabama 35203-2707
                          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 February 11, 2000:


     Energen Corporation,     $0.01 par value   30,133,967 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 DECEMBER 31, 1999

                                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

          (f)  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                                     14

          Selected Segment Data of Energen Corporation                    18

Item 3.   Quantitative and Qualitative Disclosures about Market Risk      19


                           PART II: OTHER INFORMATION


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

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


SIGNATURES                                                                 21

<PAGE>    2

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME
ENERGEN CORPORATION
(Unaudited)

Three months ended December 31,               1999       1998
(in thousands, except share data)



Operating Revenues
Natural gas distribution                   $ 85,426    $ 71,557
Oil and gas operations                       43,583      42,411


   Total operating revenues                 129,009     113,968

Operating Expenses
Cost of gas                                  36,648      26,663
Operations and maintenance                   41,358      42,847
Depreciation, depletion and amortization     21,044      23,204
Taxes, other than income taxes               10,565       8,293

   Total operating expenses                109,615      101,007

Operating Income                             19,394      12,961

Other Income (Expense)
Interest expense                             (9,438)     (9,875)
Other, net                                      452         478


   Total other expense                       (8,986)     (9,397)

Income Before Income Taxes                   10,408       3,564
Income tax (benefit) expense                  1,272        (278)

Net Income                                  $ 9,136      $3,842


Basic Earnings Per Average Common Share     $  0.30      $ 0.13


Diluted Earnings Per Average Common Share   $  0.30      $ 0.13


Dividends Per Common Share                  $ 0.165      $ 0.16

Basic Average Common Shares
 Outstanding                             30,033,295  29,435,038

Diluted Average Common Shares
 Outstanding                             30,292,427  29,720,441


The accompanying Notes are an integral part of these financial statements.
<PAGE>    3

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

                                 December 31, 1999 September 30, 1999
(in thousands)                       (unaudited)


ASSETS
Current Assets
Cash and cash equivalents             $ 3,362         $145,390
Accounts receivable, net of allowance for doubtful
 accounts of $5,576 at December 31, 1999, and
 $5,598 at September 30, 1999          77,940           74,505
Inventories, at average cost
 Storage gas inventory                 22,337           24,722
 Materials and supplies                 8,772            8,287
 Liquified natural gas in storage       3,525            3,318
Deferred gas costs                     11,496            2,305
Deferred income taxes                  14,260           14,691
Prepayments and other                  11,525           22,529


   Total current assets               153,217          295,747

Property, Plant and Equipment
Oil and gas properties, successful
  efforts method                      681,005          669,985
Less accumulated depreciation,
  depletion and amortization          143,132          129,839

 Oil and gas properties, net          537,873          540,146

Utility plant                         654,749          645,596
Less accumulated depreciation         335,198          328,775

 Utility plant, net                   319,551          316,821

Other property, net                     4,435            4,140

   Total property, plant and
    equipment, net                    861,859          861,107

Other Assets
Deferred income taxes                  20,192           21,055
Deferred charges and other              7,787            6,986

   Total other assets                  27,979           28,041

TOTAL ASSETS                       $1,043,055       $1,184,895

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

<PAGE>    4

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

                                 December 31, 1999 September 30, 1999
(in thousands, except share data)   (unaudited)

CAPITAL AND LIABILITIES
Current Liabilities
Long-term debt due within one year    $  6,605         $  1,955
Notes payable to banks                 147,018          268,000
Accounts payable                        42,288           61,418
Accrued taxes                           20,554           22,247
Customers' deposits                     17,120           16,301
Amounts due customers                   17,589           18,576
Accrued wages and benefits              15,081           19,404
Other                                   33,346           37,381

   Total current liabilities           299,601          445,282

Deferred Credits and Other Liabilities
Other                                    6,351            6,285

   Total deferred credits and
    other liabilities                    6,351            6,285
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, 30,138,038 shares
  outstanding at December 31, 1999, and
  29,903,964 shares outstanding at
  September 30, 1999                      301              299
 Premium on capital stock             210,124          205,831
 Capital surplus                        2,802            2,802
 Retained earnings                    156,750          152,572
Deferred compensation plan              2,611            2,054
Treasury stock, at cost
 (147,469 shares at December 31, 1999,
   and 101,431 shares at
   September 30, 1999)                 (2,660)          (2,054)

   Total common shareholders' equity  369,928          361,504
Long-term debt                        367,175          371,824

   Total capitalization               737,103          733,328

TOTAL CAPITAL AND LIABILITIES      $1,043,055       $1,184,895


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

<PAGE>    5


CONSOLIDATED STATEMENTS OF CASH FLOWS
ENERGEN CORPORATION
(Unaudited)

Three months ended December 31,
 (in thousands)                               1999       1998


Operating Activities
Net income                                  $ 9,136     $ 3,842
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation, depletion and amortization    21,044      23,204
 Deferred income taxes, net                   1,204         618
 Deferred investment tax credits, net          (112)       (112)
 Net change in:
   Accounts receivable                       (3,435)     (8,614)
   Inventories                                1,693      (4,543)
   Deferred gas costs                        (9,191)     (8,656)
   Accounts payable                          (7,221)     13,367
   Other current assets and liabilities     (11,124)      5,609
 Other, net                                    (913)      4,198

   Net cash provided by operating             1,081      28,913
    activities

Investing Activities
Additions to property, plant and            (21,138)    (34,481)
  equipment
Acquisition, net of cash acquired                --    (123,816)
Other, net                                     (277)         15

   Net cash used in investing activities    (21,415)   (158,282)

Financing Activities
Payment of dividends on common stock         (4,959)     (4,711)
Issuance of common stock                      4,296       3,423
Purchase of treasury stock                      (49)         --
Payment of note payable issued to
 purchase U.S. Treasury securities         (140,917)   (100,571)
Net change in short-term debt                19,935     135,346

   Net cash provided by (used in)
    financing activities                   (121,694)     33,487

Net change in cash and cash equivalents    (142,028)    (95,882)
Cash and cash equivalents at
 beginning of period                        145,390     103,231

Cash and Cash Equivalents at
 End of Period                            $   3,362   $   7,349


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

<PAGE>    6


STATEMENTS OF INCOME
ALABAMA GAS CORPORATION
(Unaudited)


Three months ended December 31,
 (in thousands)                               1999        1998

Operating Revenues                          $85,426     $71,557

Operating Expenses
Cost of gas                                  37,138      27,146
Operations and maintenance                   25,293      24,995
Depreciation                                  7,017       6,588
Income taxes
 Current                                      2,888       1,022
 Deferred, net                                 (316)        593
 Deferred investment tax credits, net          (112)       (112)
Taxes, other than income taxes                6,628       5,746

   Total operating expenses                  78,536      65,978


Operating Income                              6,890       5,579

Other Income (Expense)
Allowance for funds used during construction    124          66
Other, net                                       71         (97)


   Total other income (expense)                 195         (31)


Interest Charges
Interest on long-term debt                    2,135       2,199
Other interest expense                          330         494


   Total interest charges                     2,465       2,693


Net Income                                  $ 4,620     $ 2,855


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

<PAGE>    7


BALANCE SHEETS
ALABAMA GAS CORPORATION


                                 December 31, 1999 September 30, 1999
(in thousands)                      (unaudited)


ASSETS
Property, Plant and Equipment
Utility plant                         $654,749          $645,596
Less accumulated depreciation          335,198           328,775

 Utility plant, net                    319,551           316,821

Other property, net                        293               298

Current Assets
Cash and cash equivalents                1,535               533
Accounts receivable
 Gas                                    49,884            37,157
 Merchandise                             2,571             2,283
 Affiliated companies                      692            20,654
 Other                                   1,387             1,966
 Allowance for doubtful accounts        (4,532)           (4,532)
Inventories, at average cost
 Storage gas inventory                  22,337            24,722
 Materials and supplies                  5,477             5,024
 Liquified natural gas in storage        3,525             3,318
Deferred gas costs                      11,496             2,305
Deferred income taxes                   11,572            11,621
Prepayments and other                    5,555             4,652

   Total current assets                111,499           109,703

Deferred Charges and Other Assets        4,387             3,833

TOTAL ASSETS                          $435,730          $430,655


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

<PAGE>    8


BALANCE SHEETS
ALABAMA GAS CORPORATION

                                 December 31, 1999 September 30, 1999
(in thousands, 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
   December 31, 1999, and
   September 30, 1999                $     20          $    20
 Premium on capital stock              31,682           31,682
 Capital surplus                        2,802            2,802
 Retained earnings                    148,121          143,502


   Total common shareholder's equity  182,625          178,006
Cumulative preferred stock,
  $0.01 par value, 120,000 shares
  authorized, issuable in
  series -$4.70 Series                     --               --
 Long-term debt                       115,000          119,650


   Total capitalization               297,625          297,656


Current Liabilities
Long-term debt due within one year      4,650               --
Notes payable to banks                  5,018               --
Accounts payable                       33,463           36,985
Accrued taxes                          21,334           18,799
Customers' deposits                    17,120           16,301
Other amounts due customers            17,589           18,576
Accrued wages and benefits              9,286            9,663
Other                                   8,318           10,847

   Total current liabilities          116,778          111,171

Deferred Credits and Other Liabilities
Deferred income taxes                  16,234           16,689
Accumulated deferred investment
 tax credits                            2,101            2,213
egulatory liability                     2,124            2,112
Customer advances for
 construction and other                   868              814

   Total deferred credits and other    21,327           21,828
     liabilities

Commitments and Contingencies              --               --

TOTAL CAPITAL AND LIABILITIES        $435,730         $430,655


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

<PAGE>      9


STATEMENTS OF CASH FLOWS
ALABAMA GAS CORPORATION
(Unaudited)

Three months ended December 31,
 (in thousands)                               1999       1998

Operating Activities
Net income                                 $  4,620     $ 2,855
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation and amortization                7,017       6,588
 Deferred income taxes, net                    (316)        593
 Deferred investment tax credits               (112)       (112)
 Net change in:
   Accounts receivable                      (12,436)    (10,750)
   Inventories                                1,725      (5,432)
   Deferred gas costs                        (9,191)     (8,656)
   Accounts payable                          (3,522)      7,742
   Other current assets and liabilities      (1,967)        (62)
 Other, net                                    (178)       (279)

   Net cash used in operating activities    (14,360)     (7,513)

Investing Activities
Additions to property, plant and equipment   (9,526)    (10,307)
Net advances to affiliates                   19,962       1,819
Other, net                                      (92)        (13)


   Net cash provided by (used in)            10,344      (8,501)
    investing activities

Financing Activities
Net change in short-term debt                 5,018      17,800


   Net cash provided by financing             5,018      17,800
    activities

Net change in cash and cash equivalents       1,002       1,786
Cash and cash equivalents at                    533       1,222
  Beginning of Period

Cash and Cash Equivalents at               $  1,535     $ 3,008
  End of Period


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


<PAGE>    10


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.  The consolidated financial statements and notes should be read
in  conjunction with the financial statements and notes thereto  for  the  years
ended September 30, 1999, 1998, and 1997, included in the 1999 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 average 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 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, a $4.5
million  and a $6.6 million annual increase in revenue became effective December
1, 1999 and 1998, respectively. A $2.5 million annual decrease in revenue became
effective July 1, 1998.

Alagasco  calculates a temperature adjustment to customers' bills to remove  the
effect  of departures from normal temperatures on earnings.  The calculation  is
performed monthly, and the adjustments to customers' bills are made in the  same
billing  cycle  in  which the weather variation occurs.  Substantially  all  the
customers  to  whom  the temperature adjustment applies are  residential,  small
commercial  and  small industrial.  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.

The  APSC  approved an Enhanced Stability Reserve (ESR), beginning  fiscal  year
1998,  to  which  Alagasco may charge the full amount of: (1) extraordinary  O&M
expenses resulting from force majeure events such as storms, severe weather, and
outages,  when  one  or a combination of two such events results  in  more  than
$200,000  of  additional O&M expense during a fiscal year;  and  (2)  individual
industrial  and  commercial customer revenue losses that exceed $250,000  during
the  fiscal year, if such losses cause Alagasco's return on equity to fall below
13.15  percent.  The APSC approved the ESR reserve on October 6,  1998,  in  the
amount  of  $3.9  million; the maximum approved funding  level  is  $4  million.
Following  a  year in which a charge against the ESR is made, the APSC  provides
for  accretions  to  the ESR of no more than $40,000 monthly until  the  maximum
funding  level is achieved. The APSC will re-evaluate the operation of  the  ESR
following the conclusion of Alagasco's fiscal year 2000.

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  $1.6
million  are being returned to ratepayers over approximately 11 years.  At  both
December  31,  1999, and September 30, 1999, a regulatory liability  related  to
income  taxes  of  $2.1  million  was included  in  the  consolidated  financial
statements.

As of November 1, 1998, Alagasco offered a Voluntary Early Retirement Program to
certain eligible employees. The APSC allowed these costs to be amortized over  a
three-year period. As of December 31, 1999, and September 30, 1999, a regulatory
asset  of  $2.1  million and $2.4 million, respectively,  was  included  in  the
consolidated  financial  statements  for  costs  associated  with   this   early
retirement program.

3.  DERIVATIVE COMMODITY INSTRUMENTS

Energen  Resources  Corporation, Energen's oil and gas subsidiary,  periodically
enters  into  derivative commodity instruments to hedge its  exposure  to  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 with a  corresponding  deferred
gain/loss.   Realized  gains and losses are deferred as current  liabilities  or
assets until the revenues from the related hedged volumes are recognized in  the
income  statement.   Cash flows from derivative instruments  are  recognized  as
incurred through changes in working capital. The Company had deferred losses  of
$4.6 million and $16.5 million on the balance sheet as of December 31, 1999, and
September 30, 1999, respectively.

As  of December 31, 1999, Energen Resources had entered into contracts and swaps
for 30.5 Bcf of its remaining estimated fiscal 2000 flowing gas production at an
average  contract  price of $2.46 per Mcf and for 1,216 MBbl  of  its  remaining
estimated  flowing  oil production at an average contract price  of  $17.65  per
barrel. In addition, the Company had hedged the basis difference on 9.0  Bcf  of
its  remaining  fiscal 2000 San Juan Basin production.  Fiscal year  2001  swaps
were  in  place  for 14.6 Bcf of flowing gas production at an  average  contract
price  of  $2.55  per  Mcf. Subsequent to December 31, 1999,  Energen  Resources
entered into additional contracts for fiscal years 2000 and 2001, resulting in a
total  of  1,451 MBbl of estimated flowing oil production hedged at  an  average
contract price of $18.82 per barrel for fiscal year 2000 and 180 MBbl of flowing
oil production at an average contract price of $22.89 per barrel for fiscal year
2001.  In  addition, the Company hedged the basis difference on 9.6 Bcf  of  its
fiscal 2001 San Juan Basin production.

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.

4.  RECENT PRONOUNCEMENTS OF THE FASB

In  June  1998,  the  FASB  issued  SFAS  No.  133,  Accounting  for  Derivative
Instruments  and Hedging Activities, which establishes accounting and  reporting
standards  for  derivative instruments.  The Company is required to  adopt  this
statement in fiscal year 2001.  The impact of this pronouncement on the  Company
currently is being evaluated.

5.  SEGMENT INFORMATION

The  Company  is  principally engaged in two business  segments:  the  purchase,
distribution  and sale of natural gas in central and north Alabama (natural  gas
distribution)  and the acquisition, development, exploration and  production  of
oil and gas in the continental United States (oil and gas operations).


Three months ended December 31,              1999       1998
(in thousands)

Operating revenues
 Natural gas distribution                  $85,426     $71,557
 Oil and gas operations                     43,583      42,411

   Total                                  $129,009    $113,968

Operating income (loss)
 Natural gas distribution                  $ 9,350     $ 7,082
 Oil and gas operations                     10,332       6,196
 Eliminations and corporate expenses          (288)       (317)

   Total                                   $19,394     $12,961

Identifiable assets
 Natural gas distribution                 $435,038    $441,658
 Oil and gas operations                    622,802     648,451
 Eliminations and other                    (14,785)    (13,304)

   Total                                $1,043,055  $1,076,805

6.  RECONCILIATION OF EARNINGS PER SHARE


                            Three months ended          Three months ended
(in    thousands,            December 31, 1999           December 31, 1998
 except per share amounts)

                                        Per Share                   Per Share
                         Income  Shares   Amount   Income   Shares    Amount
Basic EPS                $9,136  30,033   $ 0.30   $3,842   29,435   $ 0.13
Effect of Dilutive Securities
 Long-range performance shares      121                        115
 Non-qualified stock options        138                        170

Diluted EPS              $9,136  30,292   $ 0.30   $3,842   29,720   $ 0.13


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

Energen's  net  income totaled $9.1 million ($0.30 per diluted  share)  for  the
three  months ended December 31, 1999, and compared favorably to net  income  of
$3.8  million ($0.13 per diluted share) recorded in the same period  last  year.
Energen  Resources Corporation, Energen's oil and gas subsidiary,  realized  net
income  of  $4.6  million in the current fiscal quarter as  compared  with  $1.0
million  in the same period last year primarily due to increased realized  sales
prices  for  oil,  natural gas and natural gas liquids and to increased  interim
recognition of nonconventional fuels tax credits. Energen's natural gas utility,
Alagasco,  reported net income of $4.6 million in the first quarter;  this  $1.8
million  increase  from  the  same  period last  year  primarily  reflected  the
utility's  ability to earn within its allowed range of return  on  an  increased
level of equity representing investment in utility plant and the timing of  rate
recovery.

Natural Gas Distribution
Natural  gas  distribution  revenues increased $13.9  million  for  the  quarter
primarily due to increased weather-related sales volumes as well as an  increase
in  charges  recovered through the Gas Supply Adjustment (GSA) rider. Alagasco's
rate  schedules contain a GSA rider which permits the pass-through of gas  price
fluctuations  to customers. Weather that was 57.4 percent colder than  the  same
period  last  year  contributed to a 26.7 percent increase in residential  sales
volumes  and a 16 percent increase in small commercial and industrial  customers
sales volumes. The addition of a co-generation facility largely contributed to a
15.7  percent increase in transportation volumes. Increased gas purchase volumes
and  higher commodity gas prices contributed to a 36.8 percent increase in  cost
of  gas for the quarter. Alagasco calculates a temperature adjustment to certain
customers'  bills  on a real-time basis to substantially remove  the  effect  of
departures from normal temperature on Alagasco's earnings. The customers to whom
the  temperature adjustment applies are primarily residential, small  commercial
and small industrial.

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.

Operations  and  maintenance (O&M) expense increased  slightly  in  the  current
quarter  primarily due to higher advertising and Year 2000-related costs largely
offset by decreased bad debt and reduced insurance expense.

A  slight increase in depreciation expense for the quarter primarily was due  to
normal  growth  of  the utility's distribution system. Taxes other  than  income
primarily  reflected 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.

Oil and Gas Operations
Revenues from oil and gas operations rose 2.8 percent to $43.6 million  for  the
three  months ended December 31, 1999. In the first fiscal quarter, natural  gas
production  decreased  15.2 percent to 12.3 Bcf and oil  volumes  declined  25.7
percent  to  581  MBbl  primarily due to the June 1999 sale of certain  offshore
Gulf  of  Mexico properties. Production of natural gas liquids in the  San  Juan
Basin  more  than  doubled to 342 MBbl. Natural gas comprised  approximately  70
percent of Energen Resources' production for the current quarter.

The  impact of lower production was more than offset by higher realized  natural
gas, oil and natural gas liquids prices than in the same period last year.   For
the  quarter, realized gas prices increased 7.9 percent to $2.33 per Mcf,  while
realized  oil  prices increased 31.8 percent to $15.70 per barrel.  Natural  gas
liquids  prices increased 91.2 percent to an average price of $13.71 per  barrel
for the quarter.

Energen  Resources  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 December  31,  1999,
Energen  Resources  had entered into contracts and swaps for  30.5  Bcf  of  its
remaining  estimated fiscal 2000 flowing gas production at an  average  contract
price of $2.46 per Mcf and for 1,216 MBbl of its remaining estimated flowing oil
production at an average contract price of $17.65 per barrel.  In addition,  the
Company has hedged the basis difference on 9.0 Bcf of its remaining fiscal  2000
San Juan Basin production. Fiscal year 2001 swaps were in place for 14.6 Bcf  of
flowing gas production at an average contract price of $2.55 per Mcf. Subsequent
to  December  31, 1999, Energen Resources entered into additional contracts  for
fiscal  years  2000  and 2001, resulting in a total of 1,451 MBbl  of  estimated
flowing oil production hedged at an average contract price of $18.82 per  barrel
for  fiscal  year  2000  and 180 MBbl of flowing oil production  at  an  average
contract  price  of  $22.89 per barrel for fiscal year 2001.  In  addition,  the
Company hedged the basis difference on 9.6 Bcf of its fiscal 2001 San Juan Basin
production.

Energen  Resources, in the ordinary course of business, may be involved  in  the
sale of both developed and undeveloped non-strategic properties. Gains or losses
on the sale of such properties are included in operating revenues. There were no
material  sales  of  property  reported in the current  or  prior  first  fiscal
quarter.

O&M  expense  decreased $1.8 million for the quarter. Lease  operating  expenses
decreased  by  $2.2 million for the quarter primarily due to  the  sale  of  the
offshore properties. Exploration expense remained relatively stable in quarterly
comparisons.

Energen  Resources' lower production volumes resulted in a $2.6 million decrease
in  depreciation, depletion and amortization (DD&A) for the quarter. The average
depletion rate for the quarter decreased to $0.77 as compared to $0.81  for  the
same  period last year primarily due to the sale of certain offshore  properties
with higher depletion rates in the third quarter of fiscal 1999.

Energen Resources' expense for taxes other than income taxes primarily reflected
production-related taxes which were $1.5 million higher this quarter as a result
of  the  increase  in  the market prices of natural gas,  oil  and  natural  gas
liquids.

Non-Operating Items
Interest  expense  for  the  Company  remained  relatively  stable  in   quarter
comparisons.  The  Company's  average borrowings  under  its  short-term  credit
facilities increased slightly.

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.  Nonconventional fuels tax  credits  are
generated  annually on qualified production through December  31,  2002.   These
credits  are  expected to be recognized fully in the financial  statements,  and
effective  tax  rates  are expected to continue to remain lower  than  statutory
federal  rates  through fiscal year 2003.  Income tax expense increased  in  the
current  quarter  as  a  result of higher consolidated pretax  income  partially
offset  by  increased recognition of nonconventional fuels  tax  credits  on  an
interim basis.

FINANCIAL POSITION AND LIQUIDITY

Cash flow from operations for the current year-to-date was $1.1 million compared
to  $28.9  million  in the same period in the prior year.  Net income  increased
during  the  period  but was more than offset by decreases  in  working  capital
items, which are highly influenced by throughput, oil and gas production volumes
and timing of payments.

The Company had a net investment of $21.4 million through the three months ended
December  31, 1999, primarily in the addition of property, plant and  equipment.
Energen  Resources  invested $11.6 million in capital expenditures  year-to-date
primarily related to the development of oil and gas properties. Utility  capital
expenditures totaled $9.6 million year-to-date and represented primarily  normal
system distribution expansion and support facilities.

The  Company used $121.7 million year-to-date for financing activities.  For tax
planning  purposes,  the Company borrowed $140.9 million in  September  1999  to
invest  in  short-term  federal obligations.  The Treasuries  matured  in  early
October 1999 and the proceeds were used to repay the debt.  Increased borrowings
under  Energen's  short-term  credit facilities were  used  to  finance  Energen
Resources' acquisition strategy.

FUTURE CAPITAL RESOURCES AND LIQUIDITY

The Company plans to continue to implement its diversified growth strategy. This
strategy,  implemented in fiscal year 1996, focuses on the growth  potential  of
Energen Resources through the acquisition and exploitation of producing oil  and
gas  properties  while  building  on  the  strength  of  the  Company's  utility
foundation.  The  primary objective of this strategy is to  realize  an  average
compound  diluted earnings per share growth rate of 10 percent  a  year  over  a
rolling five-year period.

The  Company's  management  is  currently reviewing  its  capital  spending  and
financing  plans.  Energen  previously had announced fiscal  year  2000  capital
investment  targets  for  Energen Resources of  approximately  $100  million  in
property acquisitions and $50 million for exploitation and development.  At  the
same  time,  Energen also had planned to issue equity to retire short-term  debt
incurred  to  finance  property acquisitions. The  Company  is  now  considering
reducing  its fiscal 2000 property acquisition target by up to $50  million  and
delaying the issuance of equity in response to Energen's current stock price and
the overall state of the broad market. The Company believes that either scenario
provides the Company with the opportunity to meet its earnings objectives.  Over
the  five-year period ending with fiscal year 2004, Energen Resources  plans  to
spend  in  the  range  of $800 million to $1.1 billion in  the  acquisition  and
development of producing properties and in exploration and related development.

To  finance Energen Resources' 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.  During
fiscal  year 1999, Energen increased its available short-term credit  facilities
to  $249  million  to help accommodate its growth plans. At a  reduced  spending
level  in  fiscal  year  2000, as discussed above, acquisitions  can  be  funded
predominantly with cash flow.

Energen Resources' continued ability to invest in property acquisitions  may  be
influenced by industry trends, including the historically cyclical nature of the
producing property acquisition market. From time to time, Energen Resources also
may be engaged in negotiations to sell, trade or otherwise dispose of previously
acquired property.

During  fiscal year 2000, Alagasco plans to invest approximately $65 million  in
capital  expenditures for normal distribution and support systems and to replace
liquifaction  equipment  at  one of its two liquified  natural  gas  facilities.
Alagasco  also  maintains  an investment in storage gas  which  is  expected  to
average  approximately  $22  million in 2000. The  utility  anticipates  funding
capital requirements through internally generated capital and the utilization of
short-term credit facilities.

Year 2000 Disclosures
The Company's goal was to have Year 2000 issues addressed on a schedule and in a
manner  that  would  prevent such issues from having a material  effect  on  the
Company's  results of operations, liquidity or financial condition. The  Company
completed  its Year 2000 remediation by the end of calendar year  1999  with  an
estimated total cost of $2.4 million and is not aware of any material Year  2000
related issues.

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 the Company's control and  that  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  Energen  Resources  is  unable to invest  its  planned  acquisition,
development and exploratory expenditures, future operating revenues,  production
and  proved  reserves could be negatively affected.  The drilling of development
and  exploratory  wells can involve significant risk including that  related  to
timing,  success rates and cost overruns.  These risks can be affected by  lease
and  rig  availability,  complex geology and other  factors.   Although  Energen
Resources  makes  use  of futures, swaps and fixed price contracts  to  mitigate
risk,  fluctuations  in  future oil and gas prices could materially  affect  the
Company's  financial position and results of operations and,  furthermore,  such
risk  mitigation  activities  may  cause the Company's  financial  position  and
results  of operations to be materially different from results which would  have
been obtained had such risk mitigation activities not occurred.

OTHER

Recent Pronouncements of the FASB
In  June  1998,  the  FASB  issued  SFAS  No.  133,  Accounting  for  Derivative
Instruments  and Hedging Activities, which establishes accounting and  reporting
standards  for  derivative instruments.  The Company is required to  adopt  this
statement in fiscal year 2001.  The impact of this pronouncement on the  Company
currently is being evaluated.

<PAGE>    17

SELECTED SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)

Three months ended December 31,              1999       1998
(dollars in thousands,
 except sales price data)

Natural Gas Distribution
Operating revenues
 Residential                               $54,724     $45,347
 Commercial and industrial - small          20,200      16,653
 Transportation                              9,275       8,553
 Other                                       1,227       1,004

   Total                                   $85,426     $71,557

Gas delivery volumes (MMcf)
 Residential                                 5,930       4,679
 Commercial and industrial - small           2,803       2,416
 Transportation                             17,219      14,880

   Total                                    25,952      21,975

Other data
 Depreciation and amortization             $ 7,017     $ 6,588
 Capital expenditures                      $ 9,617     $10,307
 Operating income                          $ 9,350     $ 7,082

Oil and Gas Operations
Operating revenues
 Natural gas                               $28,688     $31,377
 Oil                                         9,114       9,306
 Natural gas liquids                         4,682       1,136
 Other                                       1,099         592

   Total                                   $43,583     $42,411

Sales volume
 Natural gas (MMcf)                         12,297      14,493
 Oil (MBbl)                                    581         782
 Natural gas liquids (MBbl)                    342         158
Average sales price
 Natural gas (MMcf)                        $  2.33     $  2.16
 Oil (barrel)                              $ 15.70     $ 11.91
 Natural gas liquids (barrel)              $ 13.71     $  7.17
Other data
 Depreciation, depletion and amortization  $14,027     $16,616
 Capital expenditures                      $11,595    $147,990
 Exploration expenditures                  $ 1,403     $ 1,376
 Operating income                          $10,332     $ 6,196


<PAGE>    18


TEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Energen  Resources' major market risk exposure is in the pricing  applicable  to
its  oil  and  gas  production. Historically, prices received for  oil  and  gas
production  have been volatile because of seasonal weather patterns,  world  and
national  supply-and-demand factors and general economic conditions.  Crude  oil
prices  also  are  affected  by quality differentials,  by  worldwide  political
developments  and  by  actions  of  the  Organization  of  Petroleum   Exporting
Countries.   Basis differentials, like the underlying commodity prices,  can  be
volatile  because  of  regional supply-and-demand  factors,  including  seasonal
factors and the availability and price of transportation to consuming areas.

Energen  Resources  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.  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 with  a
corresponding  deferred gain/loss.  Realized gains and losses  are  deferred  as
current liabilities or assets until the revenues from the related hedged volumes
are  recognized in the income statement.  Cash flows from derivative instruments
are  recognized as incurred through changes in working capital. The Company  had
deferred  losses of $4.6 million and $16.5 million on the balance  sheet  as  of
December 31, 1999, and September 30, 1999, respectively.

<PAGE>    19


PART II.  OTHER INFORMATION

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

a. At  the  annual meeting of shareholders held on January 26, 2000,  Energen
   shareholders  elected the following Directors to serve for three  year  terms
   expiring in 2003:

            Director             Votes cast for        Votes withheld
          Rex J. Lysinger          24,887,996               215,460
          Judy M. Merritt          24,879,657               223,799
          Drayton Nabers, Jr.      24,899,358               204,098

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)
b. Reports on Form 8-K

No reports on Form 8-K were filed for the three months ended December 31, 1999.

<PAGE>    20

                                   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


        February 11, 2000                By  /s/ Wm. Michael Warren, Jr.
                                         Wm. Michael Warren, Jr.
                                         Chairman, President and Chief Executive
                                         Officer of Energen, Chairman and Chief
                                         Executive Officer of Alabama Gas
                                         Corporation


        February 11, 2000                By   /s/ G. C. Ketcham
                                         G. C. Ketcham
                                         Executive Vice President, Chief
                                         Financial Officer and Treasurer of
                                         Energen and Alabama Gas Corporation


        February 11, 2000                By   /s/ Grace B. Carr
                                         Grace B. Carr
                                         Controller of Energen


        February 11, 2000                By   /s/ Paula H. Rushing
                                         Paula H. Rushing
                                         Vice President-Finance of Alabama Gas
                                         Corporation

<PAGE>       21