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, 2000

                                       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 May 11, 2000:

     Energen Corporation,     $0.01 par value   30,077,293 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, 2000

                                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


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME
ENERGEN CORPORATION
(Unaudited)

                           Three months ended   Six months ended
                               March 31,           March 31,
 (in thousands,             2000       1999     2000       1999
  except share data)

Operating Revenues
Natural gas distribution   $158,548  $144,692   $243,974  $216,249
Oil and gas operations       48,908    43,698     92,491    86,109

   Total operating revenues 207,456   188,390    336,465   302,358

Operating Expenses
Cost of gas                  71,270    59,915    107,918    86,578
Operations and maintenance   42,506    42,611     83,864    85,458
Depreciation, depletion      21,693    22,443     42,737    45,647
 and amortization
Taxes, other than            15,623    12,642     26,188    20,935
 income taxes

   Total operating expenses 151,092   137,611    260,707   238,618

Operating Income             56,364    50,779     75,758    63,740

Other Income (Expense)
Interest expense             (9,247)   (9,330)   (18,685)  (19,205)
Other, net                      321        36        773       514

   Total other expense       (8,926)   (9,294)   (17,912)  (18,691)


Income Before Income Taxes   47,438    41,485     57,846    45,049
Income tax (benefit) expense  6,272      (884)     7,544    (1,162)

Net Income                 $ 41,166   $42,369    $50,302   $46,211
Basic Earnings Per Avg.
 Common Share              $   1.37   $  1.43    $  1.67   $  1.57
Diluted Earnings Per Avg.
 Common Share              $   1.36   $  1.42    $  1.66   $  1.55

Dividends Per Common Share $  0.165   $  0.16    $  0.33   $  0.32

Basic Avg. Common Shares
 Outstanding                 30,129    29,589     30,081    29,511

Diluted Avg. Common Shares
 Outstanding                 30,364    29,870     30,334    29,810

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

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

                                   March 31, 2000 September 30, 1999
(in thousands)                       (Unaudited)


ASSETS
Current Assets
Cash and cash equivalents             $  5,419          $145,390
Accounts receivable, net of
 allowance for doubtful accounts
 of $5,839 at March 31, 2000, and
 $5,598 at September 30, 1999           79,161            74,505
Inventories, at average cost
 Storage gas inventory                  22,745            24,722
 Materials and supplies                  9,171             8,287
 Liquified natural gas in storage        3,212             3,318
Deferred gas costs                       5,005             2,305
Deferred income taxes                   17,338            14,691
Prepayments and other                   29,889            22,529

   Total current assets                171,940           295,747

Property, Plant and Equipment
Oil and gas properties,                691,814           669,985
 successful efforts method
Less accumulated depreciation,
 depletion and amortization            154,048           129,839

 Oil and gas properties, net           537,766           540,146

Utility plant                          668,679           645,596
Less accumulated depreciation          341,536           328,775

 Utility plant, net                    327,143           316,821

Other property, net                      4,536             4,140
   Total property, plant and
    equipment, net                    869,445            861,107

Other Assets
Deferred income taxes                  27,253             21,055
Deferred charges and other              7,710              6,986

   Total other assets                  34,963             28,041

TOTAL ASSETS                       $1,076,348         $1,184,895


The accompanying Notes are an integral part of these financial statements.
<PAGE>   4

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION


                                   March 31, 2000 September 30, 1999
(in thousands, except share data)   (Unaudited)


CAPITAL AND LIABILITIES
Current Liabilities
Long-term debt due within one year    $  6,648         $  1,955
Notes payable to banks                 123,000          268,000
Accounts payable                        58,281           61,418
Accrued taxes                           31,126           22,247
Customers' deposits                     17,140           16,301
Amounts due customers                   10,448           18,576
Accrued wages and benefits              17,525           19,404
Other                                   34,990           37,381

   Total current liabilities           299,158          445,282

Deferred Credits and Other Liabilities
Other                                    5,723            6,285

   Total deferred credits and
    other liabilities                    5,723            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, 30,226,073 shares
   outstanding at March 31, 2000, and
   29,903,964 shares outstanding at
   September 30, 1999                      302              299
 Premium on capital stock              211,838          205,831
 Capital surplus                         2,802            2,802
 Retained earnings                     192,944          152,572
Deferred compensation plan               2,422            2,054
Treasury stock, at cost (289,275 shares
 at March 31, 2000, and 101,431
 shares at September 30, 1999)          (4,941)          (2,054)

   Total common shareholders' equity   405,367          361,504
Long-term debt                         366,100          371,824

   Total capitalization                771,467          733,328

TOTAL CAPITAL AND LIABILITIES       $1,076,348       $1,184,895

The accompanying Notes are an integral part of these financial statements.
<PAGE>   5

CONSOLIDATED STATEMENTS OF CASH FLOWS
ENERGEN CORPORATION
(Unaudited)



Six months ended March 31, (in thousands)    2000        1999


Operating Activities
Net income                                 $50,302     $46,211
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation, depletion and amortization   42,737      45,647
 Deferred income taxes, net                 (9,007)    (11,450)
 Deferred investment tax credits, net         (224)       (224)
 Gain on sale of assets                       (874)         --
 Net change in:
   Accounts receivable                      (4,656)    (22,948)
   Inventories                               1,199       6,668
   Deferred gas cost                        (2,700)     (3,159)
   Accounts payable                        (11,968)     (2,473)
   Other current assets and liabilities     (1,209)     14,141
 Other, net                                   (855)       (388)
   Net cash provided by
    operating activities                    62,745      72,025
Investing Activities
Additions to property,
 plant and equipment                       (51,208)    (54,563)
Acquisition, net of cash acquired               --    (123,816)
Proceeds from sale of assets                 1,408      27,000
Other, net                                    (444)         14

   Net cash used in investing activities   (50,244)   (151,365)

Financing Activities
Payment of dividends on common stock        (9,929)     (9,442)
Issuance of common stock                     6,009       6,021
Purchase of treasury stock                  (2,519)       (288)
Reduction of long-term debt                 (1,033)     (6,219)
Payment of note payable issued
 to purchase U.S. Treasury securities     (140,917)    (100,571)
Net change in short-term debt               (4,083)      97,571

   Net cash used in financing activities  (152,472)     (12,928)

Net change in cash and cash equivalents   (139,971)     (92,268)
Cash and cash equivalents
 at beginning of period                    145,390      103,231
Cash and Cash Equivalents
 at End of Period                          $ 5,419      $10,963


The accompanying Notes are an integral part of these financial statements.
<PAGE>   6

STATEMENTS OF INCOME
ALABAMA GAS CORPORATION
(Unaudited)


                           Three months ended   Six months ended
                               March 31,           March 31,
 (in thousands)              2000     1999       2000     1999


Operating Revenues        $158,548 $144,692    $243,974 $216,249


Operating Expenses
Cost of gas                 71,613   60,412     108,751   87,558
Operations and maintenance  25,602   24,808      50,895   49,803
Depreciation                 7,120    6,605      14,137   13,193
Income taxes
 Current                    17,851   17,371      20,739   18,393
 Deferred, net              (2,810)  (2,564)     (3,126)  (1,971)
 Deferred investment
  tax credits, net            (112)    (112)       (224)    (224)
Taxes, other than
 income taxes               11,001   10,014      17,629   15,760

  Total operating expenses 130,265  116,534     208,801  182,512

Operating Income            28,283   28,158      35,173  33,737

Other Income (Expense)
Allowance for funds used
 during construction          192       102         316     168
Other, net                     32      (386)        103    (483)
  Total other
   income (expense)           224      (284)        419    (315)

Interest Charges
Interest on long-term debt  2,136     2,143       4,271   4,342
Other interest expense        316       533         646   1,027

  Total interest charges    2,452     2,676       4,917   5,369


Net Income                $26,055   $25,198     $30,675 $28,053


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

<PAGE>   7

BALANCE SHEETS
ALABAMA GAS CORPORATION


                                   March 31, 2000 September 30, 1999
(in thousands)                      (Unaudited)

ASSETS
Property, Plant and Equipment
Utility plant                         $668,679          $645,596
Less accumulated depreciation          341,536           328,775

 Utility plant, net                    327,143           316,821


Other property, net                        253               298


Current Assets
Cash and cash equivalents                2,725               533
Accounts receivable
 Gas                                    54,074            37,157
 Merchandise                             2,406             2,283
 Affiliated companies                   20,646            20,654
 Other                                   1,392             1,966
 Allowance for doubtful accounts        (4,532)           (4,532)
Inventories, at average cost
 Storage gas inventory                  22,745            24,722
 Materials and supplies                  5,214             5,024
Liquified natural gas in storage         3,212             3,318
Deferred gas costs                       5,005             2,305
Deferred income taxes                   14,165            11,621
Prepayments and other                    3,213             4,652

   Total current assets                130,265           109,703

Deferred Charges and Other Assets        4,486             3,833

TOTAL ASSETS                          $462,147          $430,655

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

<PAGE>   8

BALANCE SHEETS
ALABAMA GAS CORPORATION



                                   March 31, 2000 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
   March 31, 2000, and
   September 30, 1999                $     20        $      20
 Premium on capital stock              31,682           31,682
 Capital surplus                        2,802            2,802
 Retained earnings                    174,176          143,502

   Total common shareholder's equity  208,680          178,006
Preferred stock, cumulative $0.01 par
 value, 120,000 shares authorized,
 issuable in series-$4.70 Series           --               --
Long-term debt                        115,000          119,650

   Total capitalization               323,680          297,656

Current Liabilities
Long-term debt due within one year      4,650               --
Accounts payable                       34,323           36,985
Accrued taxes                          30,276           18,799
Customers' deposits                    17,140           16,301
Other amounts due customers            10,448           18,576
Accrued wages and benefits             10,048            9,663
Other                                  10,626           10,847

   Total current liabilities          117,511          111,171

Deferred Credits and Other Liabilities
Deferred income taxes                  16,367           16,689
Accumulated deferred investment
 tax credits                            1,989            2,213
Regulatory liability                    1,696            2,112
Customer advances for construction
 and other                                904              814

   Total deferred credits and
    other liabilities                  20,956           21,828

Commitments and Contingencies              --               --

TOTAL CAPITAL AND LIABILITIES        $462,147         $430,655

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

<PAGE>   9

STATEMENTS OF CASH FLOWS
ALABAMA GAS CORPORATION
(Unaudited)

Six months ended March 31, (in thousands)     2000       1999


Operating Activities
Net income                                 $ 30,675     $28,053
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation and amortization               14,137      13,193
 Deferred income taxes, net                  (3,126)     (1,971)
 Deferred investment tax credits               (224)       (224)
 Net change in:
   Accounts receivable                      (16,466)    (15,989)
   Inventories                                1,893       5,857
   Deferred gas costs                        (2,700)     (3,159)
   Accounts payable                          (2,662)      1,427
   Other current assets and liabilities       5,196      11,158
 Other, net                                    (441)       (104)

   Net cash provided by
    operating activities                     26,282      38,241

Investing Activities
Additions to property, plant and equipment  (24,434)    (19,632)
Net advances from (to) affiliates                 8     (20,664)
Proceeds from sale of assets                     --      27,000
Other, net                                      336         122

   Net cash used in investing activities    (24,090)    (13,174)

Financing Activities
Net change in short-term debt                    --     (20,350)

   Net cash used in financing activities         --     (20,350)


Net change in cash and cash equivalents       2,192       4,717
Cash and cash equivalents at
 beginning of period                            533       1,222

Cash and Cash Equivalents at End of Period $  2,725     $ 5,939

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  established
the  Rate Stabilization and Equalization (RSE) rate-setting process in 1983. 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 year-end 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. In fiscal 1999, the increase
in  O&M  expense per customer was below the index range; as a result the utility
benefited  by  $0.7 million. 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.

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  $1.4
million  are being returned to ratepayers over approximately 11 years. At  March
31, 2000, and September 30, 1999, a regulatory liability related to income taxes
of $1.7 million and $2.1 million, respectively, 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 March 31, 2000, and September 30, 1999,  a  regulatory
asset  of  $1.8  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
$25.3  million and $16.5 million on the balance sheet as of March 31, 2000,  and
September 30, 1999, respectively.

As of March 31, 2000, Energen Resources had entered into contracts and swaps for
19.9  Bcf  of  its  remaining fiscal 2000 gas production at an average  contract
price  of $2.44 per Mcf and for 963 MBbl of its remaining oil production  at  an
average contract price of $19.47 per barrel. In addition, the Company had hedged
the  basis difference on 6.0 Bcf of its remaining fiscal 2000 San Juan Basin gas
production.

As  of  March 31, 2000, fiscal year 2001 contracts and swaps were in  place  for
26.6 Bcf of gas production at an average contract price of $2.67 per Mcf and for
660  MBbl  of oil production at an average contract price of $23.48 per  barrel.
The  Company also had hedged 150 MBbl of oil production with a collar  price  of
$20.00  to  $25.24  per  barrel.  In addition,  the  Company  hedged  the  basis
difference  on  9.6  Bcf  of  its fiscal 2001 San  Juan  Basin  gas  production.
Subsequent  to  March  31,  2000,  Energen  Resources  entered  into  additional
contracts  and swaps for fiscal year 2001, resulting in a total of 37.0  Bcf  of
gas production hedged at an average contract price of $2.76 per Mcf and 750 MBbl
of  oil  production at an average contract price of $23.39 per barrel for fiscal
year 2001. The oil collar and the basis hedges remain unchanged.

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  principally  is 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   Six months ended
                               March 31,           March 31,
 (in thousands)               2000     1999      2000     1999

Operating revenues
 Natural gas distribution    $158,548   $144,692   $243,974    $216,249
 Oil and gas operations        48,908     43,698     92,491      86,109

   Total                     $207,456   $188,390   $336,465    $302,358

Operating income (loss)
 Natural gas distribution     $43,212    $42,853    $52,562     $49,935
 Oil and gas operations        13,478      7,875     23,810      14,071
 Eliminations and corporate
  expenses                       (326)        51       (614)       (266)

   Total                      $56,364    $50,779    $75,758     $63,740

Identifiable assets
   Natural gas distribution  $441,501   $426,449   $441,501    $426,449
 Oil and gas operations       647,731    642,466    647,731     642,466
 Eliminations and other       (12,884)   (26,089)   (12,884)    (26,089)

   Total                   $1,076,348 $1,042,826 $1,076,348  $1,042,826

6.  RECONCILIATION OF EARNINGS PER SHARE
                            Three months ended          Three months ended
(in thousands, except
 per share amounts)           March 31, 2000              March 31, 1999
                                       Per Share                    Per Share
                         Income  Shares  Amount    Income   Shares    Amount

Basic  EPS              $41,166  30,129  $ 1.37   $42,369   29,589    $ 1.43
Effect of Dilutive Securities
 Long-range performance shares      137                        150
 Non-qualified stock options         98                        131

Diluted  EPS            $41,166  30,364  $ 1.36   $42,369   29,870    $ 1.42

                            Six months ended            Six months ended
(in thousands, except
 per share amounts)          March 31, 2000              March 31, 1999

                                         Per Share                   Per Share
                        Income    Shares  Amount  Income     Shares    Amount

Basic  EPS              $50,302   30,081  $ 1.67  $46,211    29,511    $ 1.57
Effect of Dilutive Securities
 Long-range performance shares       144                        155
 Non-qualified stock options         109                        144


Diluted  EPS            $50,302   30,334  $ 1.66  $46,211    29,810    $ 1.55
<PAGE>   13

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

Energen's  net  income totaled $41.2 million ($1.36 per diluted share)  for  the
three  months  ended  March 31, 2000, compared to net income  of  $42.4  million
($1.42  per  diluted  share)  recorded in the same  period  last  year.  Energen
Resources Corporation, Energen's oil and gas subsidiary, realized net income  of
$15.2  million in the current fiscal quarter as compared with $16.9  million  in
the  same period last year. Significantly higher realized sales prices for  oil,
natural gas and natural gas liquids more than compensated for reduced production
levels  primarily resulting from the June 1999 sale of certain offshore Gulf  of
Mexico  properties;  however, the nonconventional  fuels  tax  credit  was  $5.3
million  less than in the prior year primarily due to the timing of  recognition
on  an  interim  basis  and  a lower-than-expected  per-unit  tax  credit  rate.
Energen?s natural gas utility, Alagasco, reported net income of $26.1 million in
the  second quarter; this $0.9 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.

For  the  2000  fiscal year-to-date, Energen's net income totaled $50.3  million
($1.66  per diluted share) compared with $46.2 million ($1.55 per diluted share)
for  the  same period in the prior year.  Energen Resources' net income  totaled
$19.8  million and compared favorably with $17.9 million of net income  for  the
first  six months of fiscal 1999. Higher realized sales prices more than  offset
lower  production levels and lower nonconventional fuels tax credits. Alagasco's
earnings increased $2.6 million in the current year-to-date to $30.7 million  as
the  utility continued to earn its allowed range of return on an increased level
of equity.

Natural Gas Distribution
Natural  gas  distribution revenues increased $13.9 million for the quarter  and
$27.7  million  on  a  year-to-date basis primarily due to an  increase  in  the
commodity cost of gas, which is recovered from customers through the Gas  Supply
Adjustment (GSA) rider, and to increased weather-related sales volumes. For  the
quarter,  weather  that was 5.1 percent colder than the same  period  last  year
contributed  to a 2.3 percent increase in residential sales volumes  and  a  3.4
percent increase in small commercial and industrial customer sales volumes.  The
addition  of  a  cogeneration  facility largely contributed  to  a  7.9  percent
increase in transportation volumes. For the year-to-date, weather that was  15.4
percent  colder  than the same period last year contributed to  an  8.6  percent
increase in residential sales volumes. For the same reasons that influenced  the
quarter,  small  commercial and industrial customers  and  large  transportation
customers  had  a  7.3  percent  and  an 11.7 percent  increase  in  throughput,
respectively.  Higher  commodity  gas prices  contributed  to  an  18.5  percent
increase  in  the  cost of gas for the quarter, while higher prices  along  with
increased  gas  purchase volumes contributed to a 24.2 percent increase  in  the
cost  of  gas for the year-to-date. Alagasco calculates a temperature adjustment
to  certain  customers' bills on a real-time basis to substantially  remove  the
effect  of  departures  from  normal temperatures on  Alagasco's  earnings.  The
customers  to whom the temperature adjustment applies primarily are 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 both the  current
quarter and year-to-date periods primarily due to increased labor related  costs
and  marketing costs partially offset by decreased bad debt and reduced  general
liability insurance expense.

A  slight  increase in depreciation expense in the current quarter and  year-to-
date  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 generally
are based on gross receipts and fluctuate accordingly.

Oil and Gas Operations
Revenues from oil and gas operations rose 11.9 percent to $48.9 million for  the
three months ended March 31,2000, and 7.4 percent to $92.5 million for the year-
to-date  largely as a result of the significantly higher commodity  prices  more
than  offsetting  the reduced production. For the quarter, realized  gas  prices
increased  4  percent to $2.41 per Mcf, while realized oil prices  increased  63
percent  to $17.04 per barrel. Natural gas liquids prices increased 115  percent
to  an  average price of $16.19 per barrel. For the year-to-date,  realized  gas
prices  increased  5.8 percent to $2.37 per Mcf, realized oil  prices  increased
47.3  percent to $16.39 per barrel and natural gas liquids prices increased  104
percent to an average price of $14.97 per barrel.

Natural gas production in the second fiscal quarter decreased 10 percent to 12.8
Bcf and oil volumes declined 27.1 percent to 622 MBbl  primarily due to the sale
of  certain offshore Gulf of Mexico properties in the latter half of  the  prior
fiscal year. Production of natural gas liquids more than doubled to 353 MBbl  as
a  result  of  higher liquids prices which led to substantially all natural  gas
liquids  being removed from the gas stream during processing. For  the  year-to-
date,  natural  gas production decreased 12.6 percent to 25.1 Bcf,  oil  volumes
decreased  26.4  percent  to  1,203 MBbl, and  natural  gas  liquids  production
increased  141 percent to 694 MBbl primarily for the same reasons  as  indicated
above.  Natural  gas  comprised approximately 70 percent of  Energen  Resources'
production for the current quarter and the year-to-date.

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  March  31,  2000,
Energen  Resources  had entered into contracts and swaps for  19.9  Bcf  of  its
remaining  fiscal 2000 gas production at an average contract price of $2.44  per
Mcf  and  for  963  MBbl of its remaining oil production at an average  contract
price  of  $19.47  per  barrel. In addition, the Company had  hedged  the  basis
difference  on  6.0  Bcf  of  its  remaining fiscal  2000  San  Juan  Basin  gas
production. Fiscal year 2001 contracts and swaps were in place for 26.6  Bcf  of
gas production at an average contract price of $2.67 per Mcf and for 660 MBbl of
oil  production at an average contract price of $23.48 per barrel.  The  Company
also  had  hedged 150 MBbl of oil production with a collar price  of  $20.00  to
$25.24  per barrel. In addition, the Company had hedged the basis difference  on
9.6  Bcf  of its fiscal 2001 San Juan Basin gas production. Subsequent to  March
31,  2000,  Energen Resources entered into additional contracts  and  swaps  for
fiscal  year 2001, resulting in a total of 37.0 Bcf of gas production hedged  at
an  average contract price of $2.76 per Mcf and 750 MBbl of oil production at an
average contract price of $23.39 per barrel for fiscal year 2001. The oil collar
and the basis hedges remain unchanged.

Energen  Resources, in the ordinary course of business, may be involved  in  the
sale  of developed and undeveloped non-strategic properties. Gains or losses  on
the  sale  of  such  properties  are included  in  operating  revenues.  Energen
Resources recorded a pre-tax gain of $730,000 for the current quarter and  year-
to-date  on  the  sale of various properties. There were no  material  sales  of
property reported in the prior second fiscal quarter or year-to-date.

O&M expense  decreased $1.3 million  for the quarter  and $3.0  million for  the
year-to-date. Lease operating expenses decreased by $1.4 million for the quarter
and $3.6  million for the year-to-date primarily due to the sale of the offshore
properties. Exploration expense was higher by $0.4 million and $0.5 million  for
the  quarter  and  year-to-date, respectively, primarily due to  the  timing  of
exploratory efforts.

Energen  Resources' lower production volumes resulted in a $1.3 million decrease
in  depreciation, depletion and amortization (DD&A) for the quarter and  a  $3.9
million  decrease year-to-date. The average depletion rate for  the  quarter  of
$0.77  remained stable as compared to $0.78 for the same period last  year.  For
the  year-to-date, the average depletion rate was $0.77 as compared to $0.79  in
the prior fiscal period.

Energen Resources' expense for taxes other than income taxes primarily reflected
production-related taxes which were $2.0 million higher this  quarter  and  $3.4
million  higher for the year-to-date 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 and year-
to-date  comparisons.  The  Company's average borrowings  under  its  short-term
credit facilities decreased 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 quarter and year-to-date comparisons as a result
of higher consolidated pretax income and lower nonconventional fuels tax credits
of   $5.3   million  this  quarter  and  $4.1  million  year-to-date.  Decreased
nonconventional  fuels  tax  credits largely were  due  to  the  timing  of  the
recognition on an interim basis and a lower-than-anticipated per-unit tax credit
rate for calendar years 1999 and 2000. On April 4, 2000, the tax credit rate for
nonconventional  fuels  was lowered due to a change in the  U.S.  Department  of
Commerce  methodology  for computing the Gross National Product  price  deflator
resulting in a $1.0 million negative adjustment to Energen's tax credits, all of
which were recognized in the current-year second quarter.

FINANCIAL POSITION AND LIQUIDITY

Cash  flow  from  operations  for  the current year-to-date  was  $62.7  million
compared  to  $72.0  million in the same period in the prior  year.  Changes  in
working  capital items, which are highly influenced by throughput, oil  and  gas
production  volumes  and timing of payments, offset each other  in  the  current
period.

The  Company had a net investment of $50.2 million through the six months  ended
March  31,  2000,  primarily in the addition of property, plant  and  equipment.
Energen  Resources  invested $26.5 million in capital expenditures  year-to-date
primarily related to the development of oil and gas properties. Utility  capital
expenditures   totaled  $24.6  million  year-to-date  and   represented   system
distribution expansion and support facilities.

The  Company used $152.5 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.  Borrowings  under
Energen's short-term credit facilities decreased slightly.

FUTURE CAPITAL RESOURCES AND LIQUIDITY

The Company plans to continue to implement its diversified growth strategy. This
strategy focuses on expanding Energen Resources' oil and gas operations  through
the  acquisition  and  exploitation of producing properties  with  developmental
potential  while  building on the strength of the Company's utility  foundation.
The  primary  objective of this strategy, adopted in fiscal year  1996,  was  to
realize  an average compound diluted EPS growth rate of 10 percent a  year  over
each  rolling five-year period. This strategy has helped generate a diluted  EPS
growth rate of approximately 12 percent over the last four years.

The  Company's  management  recently has reevaluated its  capital  spending  and
financing  plans  in response to Energen's current stock price and  the  overall
state  of the broad market conditions. Energen has delayed its earlier  plan  to
issue new equity in the first half of fiscal year 2000 to retire short-term debt
related to its prior-year acquisition of TOTAL Minatome Corporation. At the same
time,  Energen  has reduced its planned investment in property  acquisitions  at
Energen Resources from $100 million to approximately $50 million in fiscal  year
2000. The Company plans to spend $55 million in fiscal year 2000 for development
drilling  and  other  exploitation activities and approximately  $5  million  in
exploration  and development in and around its existing properties. The  Company
believes  that at a reduced spending level it can utilize available  cash  flows
and,  if needed, available short-term credit facilities to remain active in  the
acquisition  market  while  continuing to meet its EPS  growth  objectives.  The
Company presently plans to issue equity before the end of fiscal year 2002. Over
the  five-year  period ending in fiscal year 2004, Energen  Resources  plans  to
invest   between  $850  million  and  $1  billion  for  property   acquisitions,
exploitation  activities  and limited exploration and  related  development.  To
finance  Energen  Resources' investment program, the Company  will  continue  to
utilize  its  short-term  credit facilities as needed 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.
Acquisitions  planned  for  fiscal year 2000 can be  funded  predominantly  with
operating cash flows.

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  completed  its  Year  2000  remediation  with  a  total  cost   of
approximately  $3.1 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.




SELECTED BUSINESS SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)


                           Three months ended   Six months ended
(in thousands, except            March 31,           March 31,
 sales price data)           2000       1999     2000       1999


Natural Gas Distribution
Operating revenues
 Residential              $108,132    $99,217   $162,856  $144,564
 Commercial and
  industrial - small        37,868     34,184     58,069    50,837
 Transportation             10,783     10,533     20,058    19,086
 Other                       1,765        758      2,991     1,762

   Total                  $158,548   $144,692   $243,974  $216,249

Gas delivery volumes (MMcf)
 Residential                13,838     13,526     19,767    18,204
 Commercial and
  industrial - small         5,496      5,317      8,299     7,733
 Transportation             17,129     15,879     34,348    30,759

   Total                    36,463     34,722     62,414    56,696

Other data
 Depreciation and
  amortization            $  7,120   $  6,605   $ 14,137  $ 13,193
 Capital expenditures     $ 14,999   $  9,325   $ 24,616  $ 19,632
 Operating income         $ 43,212   $ 42,853   $ 52,562  $ 49,935

Oil and Gas Operations
Operating revenues
 Natural gas              $ 30,880   $ 33,050   $ 59,568  $ 64,427
 Oil                        10,603      8,889     19,717    18,195
 Natural gas liquids         5,712        980     10,394     2,116
 Other                       1,713        779      2,812     1,371

   Total                  $ 48,908   $ 43,698   $ 92,491  $ 86,109

Sales volume
 Natural gas (MMcf)         12,810     14,220     25,108    28,713
 Oil (MBbl)                    622        853      1,203     1,634
 Natural gas liquids (MBbl)    353        130        694       288
Average sales price
 Natural gas (Mcf)        $   2.41   $   2.32   $   2.37  $   2.24
 Oil (barrel)             $  17.04   $  10.43   $  16.39  $  11.13
 Natural gas
  liquids (barrel)        $  16.19   $   7.54   $  14.97  $   7.34
Other data
 Depreciation, depletion
  and amortization        $ 14,573   $ 15,838   $ 28,600  $ 32,454
 Capital expenditures     $ 14,893   $ 10,757   $ 26,487  $158,747
 Exploration expenditures $  1,151   $    713   $  2,554  $  2,089
 Operating income         $ 13,478   $  7,875   $ 23,810  $ 14,071



ITEM 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 $25.3 million and $16.5 million on the balance sheet  as  of
March 31, 2000, and September 30, 1999, respectively.

 <PAGE>   19


PART II.  OTHER INFORMATION

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

Information with respect to the annual meeting of shareholders held  on  January
26, 2000, is reported in Item 4 of Energen Corporation 10-Q for the three months
ended December 31, 1999.

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 March 31, 2000.


<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


         May 12, 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


         May 12, 2000                    By   /s/ G. C. Ketcham
                                         G. C. Ketcham
                                         Executive Vice President, Chief
                                         Financial Officer and Treasurer of
                                         Energen and Alabama Gas Corporation



         May 12, 2000                    By   /s/ Grace B. Carr
                                         Grace B. Carr
                                         Controller of Energen



         May 12, 2000                    By   /s/ Paula H. Rushing
                                         Paula H. Rushing
                                         Vice President-Finance of Alabama Gas
                                         Corporation

<PAGE>   21