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, 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 February 11, 2001:


     Energen Corporation,     $0.01 par value   30,715,508 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, 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                                        16

          Selected Segment Data of Energen Corporation                     21

Item 3.   Quantitative and Qualitative Disclosures about Market Risk       22


                           PART II: OTHER INFORMATION


Item 4.   Submission of Matters to a Vote of Security Holders              24

Item 6.   Exhibits and Reports on Form 8-K                                 24


SIGNATURES                                                                 25

<PAGE>      2


PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME
ENERGEN CORPORATION
(Unaudited)


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

Operating Revenues
Natural gas distribution                   $119,126   $ 85,426
Oil and gas operations                       56,771     43,583


   Total operating revenues                 175,897    129,009


Operating Expenses
Cost of gas                                  67,183     36,648
Operations and maintenance                   45,450     41,358
Depreciation, depletion and amortization     19,939     21,044
Taxes, other than income taxes               15,609     10,565


   Total operating expenses                148,181     109,615


Operating Income                             27,716     19,394


Other Income (Expense)
Interest expense                            (10,240)    (9,438)
Other, net                                      663        452


   Total other expense                       (9,577)    (8,986)


Income Before Income Taxes                   18,139     10,408
Income tax expense                            4,420      1,272


Net Income                                  $13,719     $9,136


Diluted Earnings Per Average Common Share  $  0.44     $ 0.30


Basic Earnings Per Average Common Share    $  0.45     $ 0.30


Dividends Per Common Share                 $  0.17     $0.165

Diluted Average Common Shares
 Outstanding                            30,869,202 30,292,427

Basic Average Common Shares
 Outstanding                           30,535,348  30,033,295


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

<PAGE>      3
CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION



                                 December 31, 2000  September 30, 2000
(in thousands)                       (Unaudited)


ASSETS
Current Assets
Cash and cash equivalents             $ 11,594          $ 3,823
Accounts receivable, net
 of allowance for doubtful
 accounts of $6,677 at
 December 31, 2000, and
 $6,681 at September 30, 2000          140,940           93,362
Inventories, at average cost
 Storage gas inventory                  21,788           36,437
 Materials and supplies                  8,462            8,535
 Liquified natural gas in storage        3,247            3,267
Deferred gas costs                      38,618            3,556
Deferred income taxes                   61,687           17,830
Prepayments and other                    4,192           88,626


   Total current assets                290,528          255,436

Property, Plant and Equipment
Oil and gas properties,
 successful efforts method             714,929          713,766
Less accumulated depreciation,
 depletion and amortization            173,966          165,447

 Oil and gas properties, net           540,963          548,319

Utility plant                          718,234          709,004
Less accumulated depreciation          360,660          353,997

 Utility plant, net                    357,574          355,007

Other property, net                      4,646            4,503

   Total property, plant
    and equipment, net                 903,183          907,829


Other Assets
Deferred income taxes                   20,605           22,782
Deferred charges and other              11,858           16,994

   Total other assets                   32,463           39,776

TOTAL ASSETS                        $1,226,174       $1,203,041



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

<PAGE>      4
CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION



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


CAPITAL AND LIABILITIES
Current Liabilities
Long-term debt due within one year    $ 13,998          $18,648
Notes payable to banks                  22,000          168,000
Accounts payable                       216,889          133,005
Accrued taxes                           26,753           25,312
Customers' deposits                     16,569           15,512
Amounts due customers                   14,064           14,914
Accrued wages and benefits              18,870           24,256
Other                                   39,275           37,702


   Total current liabilities           368,418          437,349


Deferred Credits and Other Liabilities
Other                                    9,149           10,900

   Total deferred credits and
    other liabilities                    9,149           10,900


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,
   30,657,515 shares outstanding
   at December 31, 2000, and
   30,350,802 shares outstanding
   at September 30, 2000                      307              304

 Premium on capital stock                 221,299          213,582
 Capital surplus                            2,802            2,802
 Retained earnings                        194,080          185,561
 Accumulated other comprehensive loss     (70,917)              --
Deferred compensation on restricted stock  (1,662)              --

Deferred compensation plan                  5,372            4,965
Treasury stock, at cost
(166,892 shares at December 31, 2000,
and 239,306 shares at September 30, 2000)  (5,372)          (6,354)


   Total common shareholders' equity      345,909         400,860
Long-term debt                            502,698         353,932

   Total capitalization                   848,607         754,792


TOTAL CAPITAL AND LIABILITIES          $1,226,174      $1,203,041



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,                2000        1999
(in thousands)

Operating Activities
Net income                                    $13,719    $ 9,136
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation, depletion and amortization     19,939      21,044
 Deferred income taxes                         3,545       1,204
 Deferred investment tax credits                (112)       (112)
 Change in derivative fair value               2,269          --
 Gain on sale of assets                         (823)         --
 Net change in:
   Accounts receivable                       (47,578)     (3,435)
   Inventories                                14,742       1,693

   Deferred gas costs                        (35,062)     (9,191)
   Accounts payable                           48,892      (7,221)
   Other current assets and liabilities       (1,266)    (11,124)
 Other, net                                    2,427        (913)


   Net cash provided by operating activities  20,692       1,081


Investing Activities
Additions to property, plant and equipment   (19,626)    (21,138)
Proceeds from sale of assets                   5,979          --
Other, net                                      (323)       (277)


   Net cash used in investing activities     (13,970)    (21,415)


Financing Activities
Payment of dividends on common stock          (5,200)     (4,959)
Issuance of common stock                       9,109       4,296
Purchase of treasury stock                        --         (49)
Reduction of long-term debt                   (4,684)         --
Proceeds from issuance of long-term debt     147,824          --
Payment of note payable issued to purchase
  U.S. Treasury securities                        --    (140,917)
Net change in short-term debt               (146,000)     19,935

   Net cash provided by (used in)
   financing activities                        1,049    (121,694)



Net change in cash and cash equivalents        7,771    (142,028)
Cash and cash equivalents at
at beginning of period                         3,823     145,390


Cash and Cash Equivalents at End of Period   $11,594     $ 3,362



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,               2000       1999
(in thousands)

Operating Revenues                          $119,126    $85,426


Operating Expenses
Cost of gas                                  67,679      37,138
Operations and maintenance                   26,837      25,293
Depreciation                                  7,554       7,017
Income taxes
 Current                                      2,888       2,888
 Deferred, net                                 (682)       (316)
 Deferred investment tax credits, net          (112)       (112)
Taxes, other than income taxes                8,464       6,628


   Total operating expenses                 112,628      78,536


Operating Income                              6,498       6,890


Other Income (Expense)
Allowance for funds used during construction    534         124

Other, net                                      (42)         71


   Total other income                           492         195


Interest Charges
Interest on long-term debt                    2,123       2,135
Other interest expense                          827         330

   Total interest charges                     2,950       2,465


Net Income                                  $ 4,040     $ 4,620



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

<PAGE>      7

BALANCE SHEETS
ALABAMA GAS CORPORATION


                                 December 31, 2000  September 30, 2000
(in thousands)                      (Unaudited)


ASSETS
Property, Plant and Equipment
Utility plant                         $718,234          $709,004
Less accumulated depreciation          360,660           353,997


 Utility plant, net                    357,574          355,007


Other property, net                        235              241


Current Assets
Cash and cash equivalents                9,113              866
Accounts receivable
 Gas                                    85,509           48,300
 Merchandise                             2,452            2,192
 Other                                     752            1,472
 Allowance for doubtful accounts        (5,800)          (5,800)
Inventories, at average cost
 Storage gas inventory                  21,788           36,437
 Materials and supplies                  5,220            5,400
Liquified natural gas in storage         3,247            3,267
Deferred gas costs                      38,618            3,556
Deferred income taxes                   12,659           12,360
Prepayments and other                    2,593            3,438


   Total current assets                176,151          111,488

Deferred Charges and Other Assets        4,589            4,546


TOTAL ASSETS                          $538,549         $471,282



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


<PAGE>      8
BALANCE SHEETS
ALABAMA GAS CORPORATION

                                         December 31, 2000    September 30, 2000
(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, 2000, and September 30, 2000    $      20       $       20

 Premium on capital stock                          31,682           31,682
 Capital surplus                                    2,802            2,802
 Retained earnings                                168,807          164,767


   Total common shareholder's equity              203,311          199,271
Cumulative preferred stock,
 $0.01 par value, 120,000 shares
 authorized, issuable in series-$4.70 Series           --               --

Long-term debt                                    115,000          115,000

   Total capitalization                           318,311          314,271

Current Liabilities
Long-term debt due within one year                     --            4,650
Notes payable to banks                             22,000           20,500
Accounts payable                                  106,477           40,532
Accrued taxes                                      24,743           21,621
Customers' deposits                                16,569           15,512
Amounts due customers                              14,064           14,914
Accrued wages and benefits                          9,156            9,221
Other                                               8,012           10,230

   Total current liabilities                      201,021          137,180


Deferred Credits and Other Liabilities
Deferred income taxes                              15,671           15,938
Accumulated deferred investment tax credits         1,653            1,765

Regulatory liability                                1,171            1,352
Customer advances for construction and other          722              776


   Total deferred credits and other liabilities    19,217           19,831


Commitments and Contingencies                          --               --


TOTAL CAPITAL AND LIABILITIES                    $538,549         $471,282



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,               2000         1999
(in thousands)

Operating Activities
Net income                                 $  4,040     $  4,620
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation and amortization                7,554        7,017
 Deferred income taxes, net                    (682)       (316)
 Deferred investment tax credits               (112)       (112)
 Net change in:
   Accounts receivable                      (36,749)     (12,436)
   Inventories                                14,849       1,725
   Deferred gas costs                        (35,062)     (9,191)
   Accounts payable                           46,918      (3,522)
   Other current assets and liabilities        1,913      (1,967)
 Other, net                                     (719)       (178)

   Net cash provided by (used in)
    operating activities                       1,950     (14,360)



Investing Activities
Additions to property, plant and equipment   (9,506)      (9,526)
Other, net                                      (74)         (92)

   Net cash provided by investing activities (9,580)      (9,618)


Financing Activities
Reduction of long-term debt                  (4,650)          --
Net advances from affiliates                 19,027       19,962
Net change in short-term debt                 1,500        5,018

   Net cash provided by (used in)
    financing activities                     15,877       24,980

Net change in cash and cash equivalents       8,247        1,002
Cash and cash equivalents
 at beginning of period                         866          533

Cash and Cash Equivalents
 at End of Period                          $  9,113      $ 1,535



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  unaudited financial statements and notes should be  read  in
conjunction  with the financial statements and notes thereto  for
the  years ended September 30, 2000, 1999, and 1998, included  in
the  2000  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 1990, 1987 and 1985.  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. 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 $9.1  million
and  a  $4.5 million annual increase in revenue became  effective
December 1, 2000 and 1999, respectively.

Alagasco calculates a temperature adjustment to customers'  bills
to  remove  the effect of departures from normal temperatures  on
Alagasco's  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 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; or (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.

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  are  being
returned  to ratepayers over approximately 10 years. At  December
31,  2000, and September 30, 2000, a regulatory liability related
to  income  taxes of $1.2 million and $1.4 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  December 31, 2000, and September 30, 2000, a regulatory asset
of $1 million and $1.2 million, respectively, was included in the
consolidated financial statements for costs associated with  this
early retirement program.

3.  DERIVATIVE COMMODITY INSTRUMENTS

The  Company  adopted Statement of Financial Accounting  Standard
(SFAS)  No. 133 (subsequently amended by SFAS Nos. 137 and  138),
Accounting for Derivative Instruments and Hedging Activities,  on
October 1, 2000.  This statement requires all derivatives  to  be
recognized on the balance sheet and measured at fair value.  If a
derivative  is  designated as a cash flow hedge, the  Company  is
required to measure the effectiveness of the hedge, or the degree
that  the gain (loss) for the hedging instrument offsets the loss
(gain)  on  the  hedged  item,  at  each  reporting  period.  The
effective   portion  of  the  gain  or  loss  on  the  derivative
instrument  is  recognized  in other comprehensive  income  as  a
component  of equity and subsequently reclassified into  earnings
when the forecasted transaction affects earnings. The ineffective
portion of a derivative's change in fair value is required to  be
recognized  in  earnings  immediately. Derivatives  that  do  not
qualify  for hedge treatment under SFAS No. 133 must be  recorded
at  fair value with gains or losses recognized in earnings in the
period of change.

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 (NYMEX) and over-the-counter swaps and basis hedges with
major  energy  derivative product specialists.  The  Company  has
identified certain oil and gas derivatives which qualify as  cash
flow hedges under SFAS No. 133.

Effective  October  1,  2000, the Company  reclassified  deferred
hedging  losses  of $55.4 million, net of tax,  included  in  the
consolidated balance sheet at September 30, 2000, as a cumulative-
effect-type   transition   adjustment   to   accumulated    other
comprehensive income as a component of equity in accordance  with
SFAS  No.  133.  During the twelve-month period ending  September
30,  2001,  the  Company  expects  to  reclassify  into  earnings
contract  settlements  of $51.4 million, net  of  tax,  with  the
remaining   transition  adjustment  reclassified  into   earnings
through September 2002.

As  of  December 31, 2000, $68.2 million, net of tax, of deferred
net  losses  on  derivative instruments recorded  in  accumulated
other  comprehensive earnings are expected to be reclassified  to
earnings during the next twelve-month period. Gains and losses on
derivative  instruments  that are  not  accounted  for  as  hedge
transactions, as well as the ineffective portion of the change in
fair value of derivatives accounted for as cash flow hedges,  are
included  in  operating  revenues in the  consolidated  financial
statements.  The  Company  recorded an  after-tax  loss  of  $1.2
million  for  the three-months ended December 31, 2000,  for  the
ineffective  portion of the change in fair value  of  derivatives
accounted  for  as cash flow hedges. Also, Energen Resources  had
1.3  Bcf of gas hedges at an average NYMEX price of $7.71 per Mcf
and 120 MBbl of oil swaps at an average NYMEX price of $27.82 per
barrel as of December 31, 2000, which did not meet the definition
of  cash  flow  hedges under SFAS No. 133; accordingly,  the  net
unrealized losses for the associated contracts have been recorded
as an after-tax loss of $1.2 million for the quarter. The Company
expects  to have physical sales to offset these gains  or  losses
during  the  2001  fiscal year.  These   derivative   instruments
are  considered  by  management  to  be  solid  economic  hedges
with  any  related  volatility  of  interim  financial   results
due  to  technical compliance with SFAS 133. As of  December  31,
2000,  the Company had $45.3 million included in deferred  income
taxes   on  the  consolidated  balance  sheet  related  to  other
comprehensive income.

As  of  December  31, 2000, Energen Resources  had  entered  into
contracts  and  swaps for 28.5 Bcf of its fiscal  year  2001  gas
production at an average NYMEX price of $3.00 per Mcf,  678  MBbl
of  its  oil  production at an average NYMEX price of $25.75  per
barrel  and  150  MBbl of oil production with a collar  price  of
$20.00  to  $25.24 per barrel. Energen Resources also had  basin-
specific  hedges  in  place for 150 MBbl of  oil  at  an  average
contract price of $23.53 per barrel. In addition, the Company had
hedged  the basis difference on 1.6 Bcf of its fiscal  year  2001
gas  production. Realized prices are anticipated to be lower than
NYMEX prices due to basis difference and other factors.

For fiscal 2002, Energen Resources had entered into contracts and
swaps for 9.3 Bcf of its gas production at an average NYMEX price
of  $3.84 per Mcf and had basin-specific hedges in place for  3.6
Bcf  of gas production at an average contract price of $4.30  per
Mcf. The Company had also hedged the basis difference on 6 Bcf of
its   fiscal  2002  gas  production.  For  fiscal  2003,  Energen
Resources entered into basin-specific contracts and swaps for 1.9
Bcf  of its gas production at an average contract price of  $3.77
per Mcf. For fiscal 2004 and 2005, Energen Resources entered into
contracts and swaps for 1.8 Bcf and 1.6 Bcf of its gas production
at  an  average NYMEX price of $3.77 per Mcf and $3.75  per  Mcf,
respectively.

All   hedge  transactions  are  subject  to  the  Company's  risk
management policy, approved by the Board of Directors, which does
not  permit speculative positions. The Company formally documents
all  relationships between hedging instruments and hedged  items,
as  well  as  its  risk  management objective  and  strategy  for
undertaking   the   hedge.   This   process   includes   specific
identification   of  the  hedging  instrument   and   the   hedge
transaction,  the  nature of the risk being hedged  and  how  the
hedging instrument's effectiveness in hedging the exposure to the
hedged  transaction's variability in cash flows  attributable  to
the  hedged risk will be assessed.  Both at the inception of  the
hedge  and on an ongoing basis, the Company assesses whether  the
derivatives  that  are  used in hedging transactions  are  highly
effective  in  offsetting changes in cash flows of hedged  items.
The  Company discontinues hedge accounting if a derivative is not
determined to be highly effective as a hedge or it has ceased  to
be a highly effective hedge.  The maximum term over which Energen
Resources  is hedging exposures to the variability of cash  flows
is through September 30, 2005.

On  December 4, 2000, the APSC authorized Alagasco to  engage  in
energy risk management activities to manage the utility's cost of
gas  supply. As required by SFAS No. 133, the Company  recognizes
all  derivatives as either assets or liabilites  on  the  balance
sheet.  Under  order of the APSC, any gains or losses,  including
gains  or  losses  resulting from the fair value  measurement  of
derivative  instruments  associated with Alagasco's  energy  risk
management activities, are passed through to customers using  the
mechanisms  of  the GSA rider. As of December 31, 2000,  Alagasco
had no outstanding derivative instruments.

4.  RECENT PRONOUNCEMENTS OF THE FASB

On October 1, 2000, the Company adopted SFAS No. 133, as amended,
which  established  new  accounting and reporting  standards  for
derivative instruments (see Note 3).

5.  ACCOUNTING FOR LONG-LIVED ASSETS

SFAS  No. 121, Accounting for the Impairment of Long-Lived Assets
and  for  Long-Lived Assets to be Disposed Of, requires  that  an
impairment  loss  be recognized when the carrying  amount  of  an
asset  exceeds the sum of the undiscounted estimated future  cash
flow  of  the asset. The Statement also provides that  all  long-
lived  assets to be disposed of be reported at the lower  of  the
carrying  amount  or fair value. Accordingly,  during  the  third
fiscal  quarter  of  2000, Energen Resources recorded  a  pre-tax
writedown  of $3.5 million as additional depreciation,  depletion
and amortization expense caused by a downward reserve revision in
a  small oil and gas field, adjusting the carrying amount of  the
properties  to  their  fair  value  based  upon  expected  future
discounted cash flows.


<PAGE>      13

6.  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,       2000             1999
(in  thousands)


Operating revenues
 Natural gas distribution              $119,126        $85,426
 Oil and gas operations                  56,771         43,583

   Total                               $175,897       $129,009

Operating income (loss)
 Natural gas distribution               $ 8,592        $ 9,350
 Oil and gas operations                  19,572         10,332
 Eliminations and corporate expenses       (448)          (288)

   Total                                $27,716        $19,394



(in thousands)                   December 31, 2000  September 30, 2000


Identifiable assets
 Natural gas distribution              $538,549        $471,282
 Oil and gas operations                 699,185         738,424
 Eliminations and other                 (11,560)         (6,665)

   Total                             $1,226,174      $1,203,041


7.  RECONCILIATION OF EARNINGS PER SHARE


(in thousands,                  Three months ended         Three months ended
 except per share amounts)      December  31,  2000         December 31, 1999

                                             Per Share                 Per Share
                             Income   Shares   Amount    Income  Shares  Amount

Basic EPS                   $13,719   30,535  $ 0.45    $ 9,136  30,033  $ 0.30

Effect of Dilutive Securities
 Long-range performance shares            94                        121
 Stock options                           240                        138


Diluted EPS                $ 13,719   30,869  $ 0.44    $ 9,136  30,292  $ 0.30


<PAGE>      14


8.  COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) consisted of the following:

                                               Three months ended
(in thousands)                                 December 31, 2000


Net income                                         $ 13,719
Other comprehensive loss
 Unrealized loss on cash flow hedges, net of tax    (70,917)

Comprehensive Loss                                 $(57,198)


Accumulated  other comprehensive income (loss) consisted  of  the
following:

                                               Accumulated Other
(in thousands)                            Comprehensive Income (Loss)

Balance, September 30, 2000                         $    --
Transition adjustment on cash flow
 hedging activities, net of tax                     (55,416)
Current  period  change in fair value
 of derivative  instruments, net of tax             (33,303)
Reclassification adjustment, net of tax              17,802

Balance, December 31, 2000                         $(70,917)


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

Energen's  net  income totaled $13.7 million ($0.44  per  diluted
share) for the three months ended December 31, 2000, and compared
favorably to net income of $9.1 million ($0.30 per diluted share)
recorded  in  the  same  period last year. Excluding  a  non-cash
charge  of  $1.2  million after-tax, or $0.04 cents  per  diluted
share,  under Statement of Financial Accounting Standards  (SFAS)
No. 133, Energen's earnings increased 63.4 percent to total $14.9
million ($0.48 per diluted share). Energen Resources Corporation,
Energen's  oil and gas subsidiary, realized net income  of  $11.1
million in the current fiscal quarter, excluding the SFAS No. 133
charge,  as  compared with $4.6 million in the same  period  last
year  largely  as  a  result of significantly increased  realized
sales  prices  for  oil,  natural gas and  natural  gas  liquids.
Energen's  natural gas utility, Alagasco, reported net income  of
$4.0  million  in  the first quarter; this $0.6 million  decrease
from the same period last year was due primarily to the timing of
operations and maintenance expense (O&M).

As  discussed more fully in Note 3, the Company adopted SFAS  No.
133  effective  October 1, 2000. Hedge and swap contracts  for  a
small  portion of Energen's fiscal year 2001 natural gas and  oil
production did not meet the definition of cash flow hedges  under
SFAS  No.  133.  As a result, the net unrealized losses  for  the
associated  contracts were recorded as a non-cash after-tax  loss
of  $1.2  million for the quarter. Compliance with this facet  of
SFAS  No. 133 is not expected to affect the Company's fiscal year
earnings as the Company anticipates physical sales to offset  the
gain or loss on the derivative instrument during the year.

Natural Gas Distribution
Natural gas distribution revenues increased $33.7 million for the
quarter  primarily  due to an increase in the commodity  cost  of
gas,  which  is recovered from customers through the  Gas  Supply
Adjustment  (GSA)  rider, as well as to an increase  in  weather-
related  sales volumes. Alagasco's rate schedules contain  a  GSA
rider which permits the pass-through of gas price fluctuations to
customers.  Weather that was 30.2 percent colder  than  the  same
period  last  year  contributed to a  21.9  percent  increase  in
residential  sales volumes and a 19.1 percent increase  in  small
commercial  and industrial customer sales volumes. Transportation
volumes decreased 19.6 percent primarily due to the closing of  a
steel  manufacturing  plant  and  curtailments  of  interruptible
customers.  Significantly higher commodity gas prices along  with
increased  gas  purchase volumes contributed to an  82.2  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.

O&M   expense  increased  6.1  percent  in  the  current  quarter
primarily  due  to  increases  in distribution  system  operating
costs,  liquified  natural  gas  maintenance  expense  and  labor
related costs. 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 generally  are  based  on
gross receipts and fluctuate accordingly.

Oil and Gas Operations
Revenues  from oil and gas operations rose 30.3 percent to  $56.8
million for the three months ended December 31, 2000, largely  as
a  result of significantly higher commodity prices. In the  first
fiscal quarter, realized gas prices increased 27 percent to $2.96
per  Mcf,  while  realized oil prices increased 44.5  percent  to
$22.69  per  barrel.  Natural gas liquids prices  increased  50.8
percent to an average price of $20.68 per barrel for the quarter.

For the quarter, natural gas production decreased 2.9 percent  to
11.9 Bcf and oil volumes decreased 3.6 percent to 560 MBbl, while
production of natural gas liquids increased 16.4 percent  to  398
MBbl.  Natural gas comprised approximately 70 percent of  Energen
Resources' production for the current 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 (NYMEX) 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. As of December 31, 2000, Energen Resources
had  entered into contracts and swaps for 28.5 Bcf of its  fiscal
year  2001 gas production at an average NYMEX price of $3.00  per
Mcf, 678 MBbl of its oil production at an average NYMEX price  of
$25.75  per barrel and 150 MBbl of oil production with  a  collar
price of $20.00 to $25.24 per barrel. Energen Resources also  had
basin-specific hedges in place for 150 MBbl of oil at an  average
contract price of $23.53 per barrel. In addition, the Company had
hedged  the basis difference on 1.6 Bcf of its fiscal  year  2001
gas  production. Realized prices are anticipated to be lower than
NYMEX prices due to basis difference and other factors.

For fiscal 2002, Energen Resources had entered into contracts and
swaps for 9.3 Bcf of its gas production at an average NYMEX price
of  $3.84 per Mcf and had basin-specific hedges in place for  3.6
Bcf  of gas production at an average contract price of $4.30  per
Mcf. The Company had also hedged the basis difference on 6 Bcf of
its   fiscal  2002  gas  production.  For  fiscal  2003,  Energen
Resources entered into basin-specific contracts and swaps for 1.9
Bcf  of its gas production at an average contract price of  $3.77
per Mcf. For fiscal 2004 and 2005, Energen Resources entered into
contracts and swaps for 1.8 Bcf and 1.6 Bcf of its gas production
at  an  average NYMEX price of $3.77 per Mcf and $3.75  per  Mcf,
respectively.

In  addition to the derivatives described above, the Company  has
three-way   pricing,  physical  sales  contracts  in  place   for
approximately  23  percent  of its estimated  gas  production  in
fiscal  year 2002. These contracts provide for Energen  Resources
to  receive a basin-specific weighted average price between $2.82
and  $3.94  per Mcf. If the market price falls between $2.40  and
$2.82  per Mcf, Energen Resources will receive $2.82 per Mcf.  If
the  market  price  falls below $2.40 per Mcf, Energen  Resources
will  receive  the  market price plus a premium  of  $0.33-$0.45,
depending on the contracts. In fiscal year 2003, the Company  has
three-way   pricing,  physical  sales  contracts  in  place   for
approximately  17 percent of its estimated gas production.  These
contracts  provide  for Energen Resources  to  receive  a  basin-
specific weighted average price between $2.72 and $3.94 per  Mcf.
If  the  market  price falls between $2.40  and  $2.72  per  Mcf,
Energen Resources will receive $2.72 per Mcf. If the market price
falls  below  $2.40 per Mcf, Energen Resources will  receive  the
market  price  plus a premium of $0.23-$0.35,  depending  on  the
contracts.

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. Energen  Resources
recorded  pre-tax gains of $0.8 million on the  sale  of  various
properties for the current quarter. There were no material  sales
of property reported in the prior first fiscal quarter.

O&M  expense  increased  $2.4  million  for  the  quarter.  Lease
operating  expenses  increased by $2.7 million  for  the  quarter
primarily  due  to  higher operational costs and  increased  well
count.  Exploration expense was lower by $0.3  million  primarily
due to the timing of exploratory efforts.

Energen  Resources had a $1.6 million decrease  in  depreciation,
depletion  and amortization (DD&A) for the quarter.  The  average
depletion rate for the quarter decreased to $0.68 as compared  to
$0.77  for the same period last year primarily due to an increase
in  the reserve base driven by higher commodity prices as well as
properties  with  lower  average  depletion  rates  having   more
production as compared to the prior period.

Energen  Resources'  expense for taxes other  than  income  taxes
primarily  reflected  production-related taxes  which  were  $3.3
million  higher this quarter largely as a result of the increased
market prices of natural gas, oil and natural gas liquids.

Non-Operating Items
Interest  expense for the Company increased $0.8 million  in  the
current  quarter  primarily due to $150  million  of  medium-term
notes  (MTNs)  issued in December 2000 partially  offset  by  the
repayment  of the majority of the debt issued under the Company's
short-term credit facilities.

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  primarily  as  a  result of higher  consolidated  pretax
income.  The  estimated effective tax rate utilized in  computing
year-to-date  income tax expense reflects an  expected  financial
recognition of $13.4 million of nonconventional fuels tax credits
for fiscal year 2001.

FINANCIAL POSITION AND LIQUIDITY

Cash  flow from operations for the current year-to-date was $20.7
million compared to $1.1 million in the same period in the  prior
year.  Operating cash flow in the current quarter benefited  from
significantly  higher realized oil, gas and natural  gas  liquids
prices  at  Energen Resources. Working capital needs at  Alagasco
were  affected  by colder-than-normal weather and  increased  gas
costs  resulting in higher accounts receivables, accounts payable
and  deferred  gas  costs.  Other working  capital  items,  which
primarily  are the result of changes in throughput and timing  of
payments, combined to create the remaining changes.

The  Company  had a net investment of $14.0 million  through  the
three  months ended December 31, 2000, primarily in the  addition
of  property,  plant  and equipment.  Energen Resources  invested
$10.1  million  in  capital expenditures  year-to-date  primarily
related  to  the  development of oil and gas properties.  Utility
capital  expenditures  totaled  $10.1  million  year-to-date  and
primarily  represented normal system distribution  expansion  and
support facilities. The Company had cash proceeds of $6.0 million
resulting from the sale of certain properties during the quarter.

The  net  cash  provided  by financing  activities  totaled  $1.0
million  year-to-date. The Company issued $150 million  of  long-
term  debt  redeemable December 15, 2010. The 7.625 percent  MTNs
were  priced at 99.199 percent to yield 7.742 percent. The $147.8
million in proceeds were used to repay borrowings under Energen's
short-term   credit  facilities  incurred  to   finance   Energen
Resources' acquisition strategy.

FUTURE CAPITAL RESOURCES AND LIQUIDITY

The Company plans to continue to implement its diversified growth
strategy that focuses on expanding Energen Resources' oil and gas
operations through the acquisition and exploitation of  producing
properties  with  development potential  while  building  on  the
strength  of  the  Company's  utility  foundation.  The   primary
objective  of this strategy, adopted in fiscal year 1996,  is  to
realize  average compound EPS growth of 10 percent  a  year  over
each  rolling  five-year period. In the first five  fiscal  years
under  this  strategy, Energen's EPS grew at an average  compound
rate of 14.7 percent a year.

Energen's  management believes the United States is in the  early
stages of a multi-year period of sustained  average  natural  gas
prices  in excess of $3 per  year.  Such  sustained  natural  gas
prices  will  have  a dramatic  impact on Energen's  earnings and
cash   flows  from  operations.  Energen's  management  plans  to
utilize  commodity  price-driven  increases  in  cash   flows  to
help  finance  Energen  Resources'  acquisition  and exploitation
strategy    and    to   help   reduce   Energen's   debt-to-total
capitalization ratio to 50 percent over the next five  years.  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
providing  permanent  financing. In December  2000,  the  Company
issued  $150  million of Series B MTNs, the proceeds  from  which
where  used  to repay short-term debt. During fiscal  year  1999,
Energen  increased its available short-term credit facilities  to
$249 million to help accommodate its growth plans.

In   fiscal   year  2001,  Energen  Resources  plans  to   invest
approximately  $125  million, including $50 million  in  property
acquisitions and $60 million in exploitation activities.  Energen
Resources' exploratory exposure in fiscal 2001 is estimated to be
$6  million,  along with an additional $7 million  in  associated
development.  Capital investment at Energen Resources  in  fiscal
year   2002   is  expected  to  approximate  $175   million   for
acquisitions,  $42 million for exploitation and $13  million  for
exploration  and related development. Energen Resources'  capital
investment  for oil and gas activities over the five-year  period
ending  September  30,  2005, is estimated  to  range  from  $950
million to $1 billion. During this period, the Company expects to
issue approximately $100 million in additional long-term debt  to
replace  short-term  obligations and provide permanent  financing
for   its  acquisition  strategy.  Energen  Resources'  continued
ability  to  invest in property acquisitions will  be  influenced
significantly  by  industry  trends, as  the  producing  property
acquisition market historically has been cyclical. From  time  to
time,  Energen  Resources also may be engaged in negotiations  to
sell, trade or otherwise dispose of properties.

During  fiscal  year 2001, Alagasco plans to invest approximately
$57   million   in  utility  capital  expenditures   for   normal
distribution  and  support  systems including  approximately  $20
million  for  revenue-producing facilities  and  $3  million  for
remaining   replacement  costs  of  its  liquifaction  equipment.
Alagasco  also maintains an investment in storage  gas  which  is
expected  to average approximately $36 million in 2001.  Alagasco
plans  to  invest  approximately $55 million in  utility  capital
expenditures  during  fiscal year 2002. The  utility  anticipates
funding  these capital requirements through internally  generated
capital and the utilization of short-term credit facilities. Over
the  Company's  five-year planning period  ending  September  30,
2005,  Alagasco anticipates capital investments of  approximately
$275  million  and  may issue $50 million in  long-term  debt  to
replace  short-term financing and supplement internally generated
cash flow.

Energen is expected to generate EPS growth of 25 to 30 percent in
fiscal  year  2001. Energen's earnings estimates for fiscal  year
2001  are  based  on planning assumptions that its  unhedged  gas
production will receive an average NYMEX price of $3 per Mcf  and
that  its  unhedged oil production will receive an average  NYMEX
price  of  $25 per barrel. The price for natural gas  liquids  is
assumed  to  average  approximately $16.80 per  barrel.  For  the
remainder of fiscal year 2001, Energen Resources estimates that a
$1  per  barrel  change in oil prices from  the  $25  per  barrel
assumption, together with a corresponding change in the price  of
natural gas liquids, will have an approximate $0.5 million effect
on  net income. Similarly, a 10-cent per Mcf change in gas prices
from  the  $3  per Mcf assumption is estimated  to  have  a  $0.2
million effect on net income.

In  fiscal year 2002, Energen is expected to generate earnings of
$2.50  to  $2.60 per diluted share. Energen's earnings  estimates
for  fiscal year 2002 are based on planning assumptions that  its
unhedged  gas production will receive an average NYMEX  price  of
$3.10  per Mcf and that its unhedged oil production will  receive
an  average NYMEX price of $24 per barrel. The price for  natural
gas  liquids  is  assumed  to average  approximately  $16.20  per
barrel. In fiscal year 2002, Energen Resources estimates  that  a
$1  per  barrel  change in oil prices from  the  $24  per  barrel
assumption, together with a corresponding change in the price  of
natural  gas  liquids,  will  have an approximate  $1.75  million
effect on net income. Similarly, a 10-cent per Mcf change in  gas
prices from the $3.10 per Mcf assumption, up to $3.94 per Mcf, is
estimated to have a $2.0 million effect on net income. Every  10-
cents  per  Mcf  change  in gas prices above  $3.94  per  Mcf  is
estimated to have a $1.4 million effect on net income.

Forward-Looking Statements and Risks
Certain statements in this report, express expectations of future
plans,  objectives  and  performance  of  the  Company  and   its
subsidiaries,  and  constitute  forward-looking  statements  made
pursuant  to the Safe Harbor provision of the Private  Securities
Litigation Reform Act of 1995. Except as otherwise disclosed, the
Company's forward-looking statements do not reflect the impact of
possible or pending acquisitions, divestitures or restructurings.
We  undertake  no  obligation to correct or update  any  forward-
looking  statements,  whether as a  result  of  new  information,
future  events  or  otherwise. All  statements  based  on  future
expectations  rather than on historical facts are forward-looking
statements  that  are  dependent on  certain  events,  risks  and
uncertainties   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
or  timing  of  actual  future production may vary  significantly
from reserves and  production  estimates. In  the  event  Energen
Resources, the Company's oil  and gas  subsidiary, is  unable  to
fully 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  risks,  including
those related to  timing, success  rates and  cost  overruns  and
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  affect
materially  the  Company's  financial  position  and  results  of
operation; furthermore, such risk mitigation activities may cause
the Company's financial position  and  results  of operations  to
be  materially  different  from  results  that  would  have  been
obtained had such risk  mitigation  activities  not  occurred. In
addition, the Company cannot  guarantee  the  absence  of  errors
in input data, calculations and formulas used in  its  estimates,
assumptions and forecasts.

OTHER

Recent Pronouncements of the FASB
On October 1, 2000, the Company adopted SFAS No. 133, as amended,
which established new accounting and reporting standards for
derivative instruments (see Note 3).


<PAGE>      20

SELECTED SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)

Three months ended December 31,
(dollars in thousands,                       2000       1999
 except sales price data)
Natural Gas Distribution
Operating revenues
 Residential                               $77,475     $54,724
 Commercial and industrial - small          31,036      20,200
 Transportation                              9,516       9,275
 Other                                       1,099       1,227

   Total                                   $119,126    $85,426

Gas delivery volumes (MMcf)
 Residential                                 7,230       5,930
 Commercial and industrial - small           3,337       2,803
 Transportation                             13,851      17,219

   Total                                    24,418      25,952

Other data
 Depreciation and amortization             $ 7,554     $ 7,017
 Capital expenditures                      $10,126     $ 9,617
 Operating income                          $ 8,592     $ 9,350

Oil and Gas Operations
Operating revenues
 Natural gas                               $35,317     $28,688
 Oil                                        12,708       9,114
 Natural gas liquids                         8,235       4,682
 Other                                         511       1,099

   Total                                   $56,771     $43,583

Sales volumes
 Natural gas (MMcf)                         11,947      12,297
 Oil (MBbl)                                    560         581
 Natural gas liquids (MBbl)                    398         342
Average sales price
 Natural gas (Mcf)                         $  2.96     $  2.33
 Oil (barrel)                              $ 22.69     $ 15.70
 Natural gas liquids (barrel)              $ 20.68     $ 13.71
Other data
 Depreciation, depletion and amortization  $12,385     $14,027
 Capital expenditures                      $10,087     $11,595
 Exploration expenditures                  $ 1,085     $ 1,403
 Operating income                          $19,572     $10,332

<PAGE>      21


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.

The  Company  adopted Statement of Financial Accounting  Standard
(SFAS)  No. 133 (subsequently amended by SFAS Nos. 137 and  138),
Accounting for Derivative Instruments and Hedging Activities,  on
October 1, 2000.  This statement requires all derivatives  to  be
recognized on the balance sheet and measured at fair value.  If a
derivative  is  designated as a cash flow hedge, the  Company  is
required to measure the effectiveness of the hedge, or the degree
that  the gain (loss) for the hedging instrument offsets the loss
(gain)  on  the  hedged  item,  at  each  reporting  period.  The
effective   portion  of  the  gain  or  loss  on  the  derivative
instrument  is  recognized  in other comprehensive  income  as  a
component  of equity and subsequently reclassified into  earnings
when the forecasted transaction affects earnings. The ineffective
portion of a derivative's change in fair value is required to  be
recognized  in  earnings  immediately. Derivatives  that  do  not
qualify  for hedge treatment under SFAS No. 133 must be  recorded
at  fair value with gains or losses recognized in earnings in the
period of change.

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 (NYMEX) and over-the-counter swaps and basis hedges with
major  energy  derivative product specialists.  The  Company  has
identified certain oil and gas derivatives which qualify as  cash
flow hedges under SFAS No. 133.

Effective  October  1,  2000, the Company  reclassified  deferred
hedging  losses  of $55.4 million, net of tax,  included  in  the
consolidated balance sheet at September 30, 2000, as a cumulative-
effect-type   transition   adjustment   to   accumulated    other
comprehensive income as a component of equity in accordance  with
SFAS  No.  133.  During the twelve-month period ending  September
30,  2001,  the  Company  expects  to  reclassify  into  earnings
contract  settlements  of $51.4 million, net  of  tax,  with  the
remaining   transition  adjustment  reclassified  into   earnings
through September 2002.

As  of  December 31, 2000, $68.2 million, net of tax, of deferred
net  losses  on  derivative instruments recorded  in  accumulated
other  comprehensive earnings are expected to be reclassified  to
earnings during the next twelve-month period. Gains and losses on
derivative  instruments  that are  not  accounted  for  as  hedge
transactions, as well as the ineffective portion of the change in
fair value of derivatives accounted for as cash flow hedges,  are
included  in  operating  revenues in the  consolidated  financial
statements.  The  Company  recorded an  after-tax  loss  of  $1.2
million  for  the three-months ended December 31, 2000,  for  the
ineffective  portion of the change in fair value  of  derivatives
accounted  for  as cash flow hedges. Also, Energen Resources  had
1.3  Bcf of gas hedges at an average NYMEX price of $7.71 per Mcf
and 120 MBbl of oil swaps at an average NYMEX price of $27.82 per
barrel as of December 31, 2000, which did not meet the definition
of  cash  flow  hedges under SFAS No. 133; accordingly,  the  net
unrealized losses for the associated contracts have been recorded
as an after-tax loss of $1.2 million for the quarter. The Company
expects  to have physical sales to offset these gains  or  losses
during  the  2001  fiscal year. These derivative instruments  are
considered  by  management to be solid economic hedges  with  any
related  volatility of interim financial results due to technical
compliance with SFAS 133.

<PAGE>      23

All   hedge  transactions  are  subject  to  the  Company's  risk
management policy, approved by the Board of Directors, which does
not  permit speculative positions. The Company formally documents
all  relationships between hedging instruments and hedged  items,
as  well  as  its  risk  management objective  and  strategy  for
undertaking   the   hedge.   This   process   includes   specific
identification   of  the  hedging  instrument   and   the   hedge
transaction,  the  nature of the risk being hedged  and  how  the
hedging instrument's effectiveness in hedging the exposure to the
hedged  transaction's variability in cash flows  attributable  to
the  hedged risk will be assessed.  Both at the inception of  the
hedge  and on an ongoing basis, the Company assesses whether  the
derivatives  that  are  used in hedging transactions  are  highly
effective  in  offsetting changes in cash flows of hedged  items.
The  Company discontinues hedge accounting if a derivative is not
determined to be highly effective as a hedge or it has ceased  to
be a highly effective hedge.  The maximum term over which Energen
Resources  is hedging exposures to the variability of cash  flows
is through September 30, 2005.

On  December 4, 2000, the APSC authorized Alagasco to  engage  in
energy risk management activities to manage the utility's cost of
gas  supply. As required by SFAS No. 133, the Company  recognizes
all  derivatives as either assets or liabilites  on  the  balance
sheet.  Under  order of the APSC, any gains or losses,  including
gains  or  losses  resulting from the fair value  measurement  of
derivative  instruments  associated with Alagasco's  energy  risk
management activities, are passed through to customers using  the
mechanisms  of  the GSA rider. As of December 31, 2000,  Alagasco
had no outstanding derivative instruments.


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 24,
    2001, Energen  shareholders  elected   the   following
    Directors to serve for three year terms expiring in 2004:

          Director          Votes cast for      Votes withheld
     Stephen D. Ban           25,137,519            138,405
     Julian W. Banton         25,131,519            144,405
     T. Michael Goodrich      25,131,491            144,433
     Wm. Michael Warren, Jr.  25,136,231            139,693


b. At the annual meeting of shareholders held on January 24
   2001, Energen shareholders elected the following Director
   to serve for a two year term expiring in 2003:

         Director           Votes cast for      Votes withheld
     Stephen A. Snider        25,131,519            144,405


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

a. Exhibits

   None

b. Reports on Form 8-K

   Form   8-K   dated  December  13,  2000,  reporting  Energen's
   Consolidated  Ratios  of Earnings to  Fixed  Charges  for  the
   years ended September 30, 2000, 1999, 1998, 1997 and 1996.


<PAGE>      24

                           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 13, 2001           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 13, 2001           By   /s/ G. C. Ketcham
                                    G. C. Ketcham
                                    Executive Vice President, Chief
                                    Financial Officer and Treasurer of
                                    Energen and Alabama Gas Corporation



        February 13, 2001           By   /s/ Grace B. Carr
                                    Grace B. Carr
                                    Controller of Energen



        February 13, 2001           By   /s/ Paula H. Rushing
                                    Paula H. Rushing
                                    Vice President-Finance of
                                    Alabama Gas Corporation









<PAGE>      25