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 JUNE 30, 1999

                                       OR

     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___ TO ___




Commission                                              IRS Employer
  File                                 State of        Identification
 Number           Registrant         Incorporation         Number


1-7810         Energen Corporation       Alabama           63-0757759
2-38960        Alabama Gas Corporation   Alabama           63-0022000



                              605 21st Street North
                            Birmingham, Alabama 35203
                          Telephone Number 205/326-2700
                             http://www.energen.com

Alabama Gas Corporation, a wholly owned subsidiary of Energen Corporation, meets
the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and
is therefore filing this Form with reduced disclosure format pursuant to General
Instruction H(2).

Indicate  by  a  check mark whether the registrants (1) have filed  all  reports
required  to be filed by Section 13 or 15(d) of the Securities and Exchange  Act
of  1934  during  the preceding 12 months (or for such shorter period  that  the
registrants  were required to file such reports), and (2) have been  subject  to
such filing requirements for the past 90 days. YES  X  NO ____


Indicate  the  number of shares outstanding of each of the issuers'  classes  of
common stock, as of August 12, 1999:


     Energen Corporation, $0.01 par value          29,822,627 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 JUNE 30, 1999

                                TABLE OF CONTENTS

                                                                          Page

                    PART I: FINANCIAL INFORMATION (Unaudited)


Item 1.   Financial Statements

          (a)  Consolidated Statements of Income of Energen Corporation     3

          (b)  Consolidated Balance Sheets of Energen Corporation           4

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

          (d)  Statements of Income of Alabama Gas Corporation              7

          (e)  Balance Sheets of Alabama Gas Corporation                    8

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

          (g)  Notes to Unaudited Financial Statements                     11

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

          Selected Segment Data of Energen Corporation                     20

Item 3.   Quantitative and Qualitative Disclosures about Market Risk       21


                           PART II: OTHER INFORMATION


Item 6.   Exhibits and Reports on Form 8-K                                 22


SIGNATURES                                                                 23

<PAGE>  2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME
ENERGEN CORPORATION
(Unaudited)

                           Three months ended  Nine months ended
                                June 30,            June 30,
(in thousands,               1999      1998       1999     1998
except share data)

Operating Revenues
Natural gas distribution    $63,296  $66,327    $279,545 $323,829
Oil and gas operations       45,224   34,385     131,333  100,744

   Total operating revenues 108,520  100,712     410,878  424,573

Operating Expenses
Cost of gas                  22,475   28,066     109,053  159,112
Operations and maintenance   42,133   38,067     127,591  108,114
Depreciation, depletion and
   amortization              22,156   19,401      67,803   61,553
Taxes, other than
   income taxes               8,354    8,372      29,289   31,420

   Total operating expenses  95,118   93,906     333,736  360,199

Operating Income             13,402    6,806      77,142   64,374

Other Income (Expense)
Interest expense             (8,930)  (7,490)    (28,135) (22,391)
Other, net                      476      427         990    1,752


   Total other expense       (8,454)  (7,063)    (27,145) (20,639)


Income (Loss) Before
    Income Taxes              4,948     (257)     49,997   43,735
Income tax (benefit) expense  1,435     (172)        273   (2,599)


Net Income (Loss)           $ 3,513  $   (85)  $  49,724  $46,334


Basic Earnings Per
    Avg. Common Share       $  0.12   $ 0.00     $  1.68   $ 1.60


Diluted Earnings Per
    Avg. Common Share       $  0.12   $ 0.00     $  1.66   $ 1.58


Dividends Per Common Share  $  0.16  $ 0.155     $  0.48  $ 0.465


Basic Avg. Common
    Shares Outstanding       29,720   29,160      29,581   29,024


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

<PAGE>  3

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

                                   June 30, 1999  September 30, 1998
(in thousands)                       (unaudited)

ASSETS
Current Assets
Cash and cash equivalents             $  4,445         $103,231
Accounts receivable, net of
 allowance for doubtful
 accounts of $4,027 at
 June 30, 1999, and
 $3,547 at September 30, 1998           60,275           64,173
Inventories, at average cost
 Storage gas                            22,672           21,237
 Materials and supplies                  8,058            8,670
 Liquified natural gas in storage        3,458            3,381
Deferred gas cost                        1,885            1,774
Deferred income taxes                   15,482           12,569
Prepayments and other                   13,941            3,418


   Total current assets                130,216          218,453


Property, Plant and Equipment
Oil and gas properties,
   successful efforts method           665,302          516,040
Less accumulated depreciation,
   depletion and amortization          125,577           88,306

 Oil and gas properties, net           539,725          427,734

Utility plant                          632,469          632,165
Less accumulated depreciation          322,857          307,488

 Utility plant, net                    309,612          324,677

Other property, net                      4,099            3,933


   Total property, plant
      and equipment, net               853,436          756,344


Other Assets
Deferred income taxes                   19,253           10,942
Deferred charges and other               7,294            7,716


   Total other assets                   26,547           18,658


TOTAL ASSETS                        $1,010,199         $993,455



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

<PAGE>  4

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

                                   June 30, 1999  September 30, 1998
(in thousands, except share data)   (unaudited)

CAPITAL AND LIABILITIES
Current Liabilities
Long-term debt due within one year    $  1,955          $ 7,209
Notes payable to banks                 115,000          153,000
Accounts payable                        33,359           33,533
Accrued taxes                           21,982           21,255
Customers' deposits                     16,534           16,344
Amounts due customers                   14,066           12,070
Accrued wages and benefits              19,449           15,299
Other                                   36,161           25,531


   Total current liabilities           258,506          284,241


Deferred Credits and Other Liabilities
Other                                    7,316            7,183


   Total deferred credits and
      other liabilities                  7,316            7,183


Commitments and Contingencies               --               --


Capitalization
Preferred stock, cumulative $0.01
 par value, 5,000,000
 shares authorized                          --               --
Common shareholders' equity
 Common stock, $0.01 par value;
   75,000,000 shares authorized,
   29,806,947 shares outstanding
   at June 30, 1999, and
   29,326,597 shares outstanding
   at September 30, 1998                   298              293
 Premium on capital stock              204,092          195,874
 Capital surplus                         2,802            2,802
 Retained earnings                     165,806          130,280
Deferred compensation plan               1,889              873
Treasury stock, at cost
(131,330 shares at June 30, 1999,
and 49,096 shares at
September 30, 1998)                     (2,331)            (873)

   Total common shareholders' equity   372,556           329,249
Long-term debt                         371,821           372,782

   Total capitalization                744,377           702,031


TOTAL CAPITAL AND LIABILITIES       $1,010,199          $993,455


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

<PAGE>  5

CONSOLIDATED STATEMENTS OF CASH FLOWS
ENERGEN CORPORATION
(Unaudited)

Nine months ended June 30, (in thousands)    1999       1998

Operating Activities
Net income                                 $49,724     $46,334
Adjustments to reconcile net
income to net cash provided
by (used in) operating activities:
 Depreciation, depletion and
   amortization                             67,803      61,553
 Deferred income taxes, net                (11,644)    (17,189)
 Deferred investment tax credits, net         (336)       (351)
 Gain on sale of assets                     (2,900)     (1,193)
 Net change in:
   Accounts receivable                       3,298         935
   Inventories                                (900)      5,606
   Deferred gas cost                          (111)        444
   Accounts payable - gas purchases          8,556      (3,947)
   Accounts payable - trade                (17,223)     (2,666)
   Other current assets and liabilities     16,263      16,246
 Other, net                                    819       1,449

   Net cash provided by
     operating activities                  113,349     107,221

Investing Activities
Additions to property,
  plant and equipment                      (85,339)   (134,338)
Acquisition, net of cash acquired         (123,816)         --
Proceeds from sale of assets                48,331       1,868
Other, net                                    (675)        385

   Net cash used in
     investing activities                 (161,499)   (132,085)

Financing Activities
Payment of dividends on common stock       (14,197)    (13,500)
Issuance of common stock                     8,222       7,711
Purchase of treasury stock                    (442)         --
Reduction of long-term debt                 (6,219)       (870)
Proceeds from issuance of
  long-term debt                                --      98,541
Payment of note payable issued
  to purchase U.S. Treasury securities    (100,571)    (98,636)
Net change in short-term debt               62,571     (70,364)

   Net cash used in financing activities   (50,636)    (77,118)

Net change in cash and cash equivalents    (98,786)   (101,982)
Cash and cash equivalents
  at beginning of period                    103,231    105,402

Cash and Cash Equivalents at End of Period  $ 4,445    $ 3,420


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

<PAGE>  6

STATEMENTS OF INCOME
ALABAMA GAS CORPORATION
(Unaudited)

                           Three months ended  Nine months ended
                                June 30,            June 30,
 (in thousands)              1999     1998       1999     1998

Operating Revenues          $63,296  $66,327    $279,545 $323,829

Operating Expenses
Cost of gas                  22,868   28,496     110,426  160,674
Operations and maintenance   25,597   24,737      75,400   73,230
Depreciation                  6,693    6,318      19,886   18,747
Income taxes
 Current                      2,045      108      20,438   21,130
 Deferred, net               (1,700)    (514)     (3,671)  (6,261)
 Deferred investment
   tax credits, net            (112)    (117)       (336)    (351)
Taxes, other
  than income taxes           5,292    5,668      21,052   23,838

  Total operating expenses   60,683   64,696     243,195  291,007

Operating Income              2,613    1,631      36,350   32,822

Other Income (Expense)
Allowance for funds
  used during construction      159      127         327      311
Other, net                      195       25        (288)     271

  Total other income            354      152          39      582


Interest Charges
Interest on long-term debt    2,135    2,210       6,477    6,632
Other interest expense          325      159       1,352    1,230

  Total interest charges      2,460    2,369       7,829    7,862

Net Income (Loss)           $   507   $ (586)    $28,560  $25,542


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

<PAGE>  7

BALANCE SHEETS
ALABAMA GAS CORPORATION

                                   June 30, 1999  September 30, 1998
(in thousands)                      (unaudited)

ASSETS
Property, Plant and Equipment
Utility plant                         $632,469          $632,165
Less accumulated depreciation          322,857           307,488

 Utility plant, net                    309,612           324,677


Other property, net                        306               318


Current Assets
Cash and cash equivalents                4,316             1,222
Accounts receivable
 Gas                                    33,466            32,191
 Merchandise                             2,190             2,362
 Affiliated companies                   29,387                --
 Other                                   1,284             1,621
 Allowance for doubtful accounts        (3,944)           (3,482)
Inventories, at average cost
 Storage gas                            22,672            21,237
 Materials and supplies                  5,464             5,533
 Liquified natural gas in storage        3,458             3,381
Deferred gas cost                        1,885             1,774
Deferred income taxes                   12,349            10,470
Prepayments and other                    3,789             2,112


   Total current assets                116,316            78,421

Deferred Charges and
  Other Assets                           4,010             4,733


TOTAL ASSETS                          $430,244          $408,149



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

<PAGE>  8

BALANCE SHEETS
ALABAMA GAS CORPORATION

                                   June 30, 1999  September 30, 1998
(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
   June 30, 1999, and
   September 30, 1998                $     20          $    20
 Premium on capital stock              31,682           31,682
 Capital surplus                        2,802            2,802
 Retained earnings                    148,764          120,205


   Total common
     shareholder's equity             183,268          154,709
Cumulative preferred stock,
 $0.01 par value, 120,000 shares
 authorized, issuable in
 series-$4.70 Series                       --               --
Long-term debt                        119,650          119,650


   Total capitalization               302,918          274,359


Current Liabilities
Long-term debt due within one year         --            5,350
Notes payable to banks                     --           15,000
Accounts payable
 Trade                                 28,392           23,217
 Affiliated companies                      --            2,738
Accrued taxes                          27,833           19,428
Customers' deposits                    16,534           16,344
Other amounts due customers            14,066           12,070
Accrued wages and benefits              9,554            4,217
Other                                   9,780           11,915

   Total current liabilities          106,159          110,279

Deferred Credits and Other Liabilities
Deferred income taxes                  15,764           17,136
Accumulated deferred
  investment tax credits                2,325            2,661
Regulatory liability                    2,295            2,910
Customer advances for
  construction and other                  783              804

   Total deferred credits
     and other liabilities             21,167           23,511

Commitments and Contingencies              --               --


TOTAL CAPITAL AND LIABILITIES        $430,244         $408,149


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


<PAGE>  9

STATEMENTS OF CASH FLOWS
ALABAMA GAS CORPORATION
(Unaudited)

Nine months ended June 30, (in thousands)     1999       1998

Operating Activities
Net income                                 $ 28,560     $25,542
Adjustments to reconcile
net income to net cash
provided by (used in)
operating activities:
 Depreciation and amortization               19,886      18,747
 Deferred income taxes, net                  (3,671)     (6,261)
 Deferred investment tax credits               (336)       (351)
 Net change in:
   Accounts receivable                         (304)     (2,696)
   Inventories                               (1,443)      5,848
   Deferred gas cost                           (111)        444
   Accounts payable - gas purchases           8,556      (3,947)
   Accounts payable - trade                  (3,381)     (2,363)
   Other current assets and liabilities      12,233      19,590
 Other, net                                      62       1,176


   Net cash provided
     by operating activities                 60,051      55,729


Investing Activities
Additions to property, plant and equipment  (31,961)    (37,130)
Net advances to affiliates                  (32,125)     (2,488)
Proceeds from sale of assets                 27,000          --
Other, net                                      479         486


   Net cash used in investing activities    (36,607)    (39,132)


Financing Activities
Payment of dividends on common stock             --      (7,276)
Net change in short-term debt               (20,350)     (9,000)


   Net cash used in financing activities    (20,350)    (16,276)


Net change in cash and cash equivalents       3,094         321
Cash and cash equivalents at
  beginning of period                         1,222       2,580


Cash and Cash Equivalents at End of Period $  4,316     $ 2,901



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
and   immaterial   adjustments.    The   consolidated   financial
statements  and notes thereto should be read in conjunction  with
the  financial statements and notes for the years ended September
30,  1998, 1997, and 1996, included in the 1998 Annual Report  of
Energen   Corporation  (the  Company)  on  Form  10-K.    Certain
reclassifications  were  made to conform prior  years'  financial
statements  to  the current quarter presentation.  The  Company's
natural  gas  distribution business is seasonal in character  and
influenced by weather conditions.  Results of operations for  the
interim  periods are not necessarily indicative  of  the  results
which may be expected for the fiscal year.

2.  REGULATORY

As  an  Alabama  utility, Alabama Gas Corporation  (Alagasco)  is
subject   to  regulation by the Alabama Public Service Commission
(APSC)  which,  in  1983, established the Rate Stabilization  and
Equalization  (RSE) rate-setting process. RSE was  extended  with
modifications in 1985, 1987 and 1990.  On October  7,  1996,  RSE
was  extended,  without  change, for a five-year  period  through
January  1,  2002.  Under the terms of that extension,  RSE  will
continue  after  January 1, 2002, unless,  after  notice  to  the
Company  and a hearing, the Commission votes to either modify  or
discontinue its operation.

Under  RSE  as extended, the APSC conducts quarterly  reviews  to
determine,  based on Alagasco's projections and  fiscal  year-to-
date performance, whether Alagasco's return on average equity for
the fiscal year will be within the allowed range of 13.15 percent
to  13.65 percent.  Reductions in rates can be made quarterly  to
bring  the  projected return within the allowed  range;  however,
increases  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, as measured  as  of  the
fiscal  year end, and provides for certain cost control  measures
designed  to monitor Alagasco's operations and maintenance  (O&M)
expense.  If the change in O&M expense per customer falls  within
1.25  percentage points above or below the Consumer  Price  Index
For All Urban Customers (index range), no adjustment is required.
If,  however, the change in O&M expense per customer exceeds  the
index  range,  three-quarters of the difference  is  returned  to
customers.   To  the  extent the change is less  than  the  index
range, the utility benefits by one-half of the difference through
future  rate  adjustments. Under RSE as extended, a $6.6  million
annual increase in revenue became effective December 1, 1998,  an
$11.8   million  annual  increase  in  revenue  became  effective
December  1, 1997, and a $2.5 million annual decrease in  revenue
became effective July 1, 1998.

Alagasco calculates a temperature adjustment to customers'  bills
to  remove  the effect of departures from normal temperatures  on
earnings.   The  calculation  is  performed  monthly,   and   the
adjustments  to  customers' bills are made in  the  same  billing
cycle  in which the weather variation occurs.  Substantially  all
the  customers  to  whom the temperature adjustment  applies  are
residential,  small commercial and small industrial.   Alagasco's
rate schedules for natural gas distribution charges contain a Gas
Supply Adjustment (GSA) rider, established in 1993, which permits
the  pass-through  to customers of changes in  the  cost  of  gas
supply.

The  APSC approved an Enhanced Stability Reserve (ESR), beginning
fiscal  year  1998, to which Alagasco may charge the full  amount
of:  (1)  extraordinary O&M expenses resulting from force majeure
events such as storms, severe weather, and outages, when one or a
combination  of two such events results in more than $200,000  of
additional  O&M  expense during a fiscal year 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  reserve  on October 6, 1998, in the amount of $3.9  million;
the maximum
approved  funding  level of the ESR 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 $1.7  million
are being returned to ratepayers over approximately 12 years.  At
June  30,  1999,  and September 30, 1998, a regulatory  liability
related  to  income  taxes  of $2.3  million  and  $2.9  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.  At  June  30,
1999,  a  regulatory asset of $2.7 million for  costs  associated
with   this   early  retirement  program  is  included   in   the
consolidated  financial statements. The APSC  has  allowed  these
costs to be amortized over a three-year period.

3.  DERIVATIVE COMMODITY INSTRUMENTS

Energen  Resources 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  and  a  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  $8.5
million  and deferred gains of $0.6 million on the balance  sheet
at June 30, 1999, and September 30, 1998, respectively.

At  June  30, 1999, Energen Resources had entered into  contracts
and  swaps  for 11.6 Bcf of its remaining estimated  fiscal  1999
flowing gas production at an average contract price of $2.18  per
Mcf  and  for  670  MBbl of its remaining estimated  flowing  oil
production at an average contract price of $14.55 per barrel.  In
addition, the Company has hedged the basis difference on 2.7  Bcf
of  its  remaining fiscal 1999 San Juan Basin production.  Fiscal
year  2000  contracts and swaps were in place  for  34.0  Bcf  of
flowing gas production at an average contract price of $2.38  per
Mcf  and  for 1,490 MBbl of flowing oil production at an  average
contract price of $17.20 per barrel.  Fiscal year 2001 swaps were
in  place  for  0.8 Bcf of flowing gas production at  an  average
contract  price of $2.22 per Mcf.  Subsequent to June  30,  1999,
Energen  Resources entered into additional contracts  for  fiscal
year  2000,  resulting in a total of 1,625 MBbl  of  flowing  oil
production  hedged  at an average contract price  of  $17.28  per
barrel.   Additional  fiscal year 2001 swaps  were  entered  into
subsequent  to June 30,1999, resulting in a total of 4.4  Bcf  of
flowing gas production at an average contract price of $2.47  per
Mcf.

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.  ACCOUNTING FOR LONG-LIVED ASSETS

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

5.  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.

6.  ACQUISITION OF TOTAL MINATOME CORPORATION

On October 15, 1998, Energen Resources purchased the stock of the
TOTAL Minatome Corporation (TOTAL), a Houston-based unit of TOTAL
American  Holding Inc.  Immediately upon closing the transaction,
Energen Resources sold a 31 percent undivided interest in TOTAL's
net  assets  to  Westport  Oil  and  Gas  Company  Inc.   Energen
Resources' net adjusted price totaled approximately $134 million,
including   the   assumption  of  certain  legal  and   financial
obligations.   Energen  Resources gained  an  estimated  200  Bcf
equivalent of proved domestic oil and natural gas reserves.   The
acquisition was accounted for as a purchase, and the  results  of
operations  since  the  acquisition  date  are  included  in  the
consolidated  financial  statements.  A  summary  of  net  assets
acquired is as follows:
                                        (in thousands)
      Oil and gas properties              $  134,110
      Less liabilities assumed                (9,865)
      Less cash acquired                        (429)
       Acquisition cost,
         net of cash acquired             $  123,816

Summarized  below are the consolidated results of operations  for
the nine months ended June 30, 1999 and 1998, on an unaudited pro
forma basis, as if the TOTAL acquisition had been made on October
1,  1997.  The  pro forma financial information is based  on  the
Company's consolidated results of operations for the nine  months
ended June 30, 1999 and 1998, and on data provided by TOTAL after
giving  effect to certain pro forma adjustments.  The  pro  forma
financial  information  does  not purport  to  be  indicative  of
results   of  operations  that  would  have  occurred   had   the
transactions  occurred on the basis assumed above  nor  are  they
indicative  of results of the future operations of  the  combined
enterprises.


Nine  months  ended June 30,                  1999        1998
(in thousands) (unaudited)

Operating revenues                          $410,878    $479,603
Net income                                  $ 49,724    $ 46,542
Basic Earnings Per Average Common Share     $   1.68    $   1.60
Diluted Earnings Per Average Common Share   $   1.66    $   1.58


7.  RECONCILIATION OF EARNINGS PER SHARE


(in thousands,             Three months ended    Three months ended
except per share amounts)     June 30, 1999         June 30, 1998

                                     Per Share             Per Share
                         Income Shares Amount  Income Shares Amount

Basic EPS                $3,513 29,720 $ 0.12 $ (85) 29,160    $0.00
Effect of Dilutive Securities
 Long-range performance
   shares                          148                  155
 Non-qualified stock
   options                         147                  236

Diluted  EPS            $ 3,513 30,015 $ 0.12 $ (85) 29,551    $0.00


(in thousands,             Nine months ended      Nine months ended
except per share amounts)    June 30, 1999          June 30, 1998

                                     Per Share               Per Share
                         Income Shares Amount    Income Shares Amount

Basic  EPS             $49,724  29,581 $ 1.68   $46,334  29,024 $1.60
Effect of Dilutive Securities
 Long-range performance
   shares                          148                      148
 Non-qualified stock
   options                         148                      203

Diluted  EPS            $49,724 29,877 $ 1.66   $46,334  29,375 $1.58


8.  SEGMENT INFORMATION

Effective September 30, 1998, the Company adopted SFAS  No.  131,
Disclosures   about  Segments  of  an  Enterprise   and   Related
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  Nine months ended
                                June 30,            June 30,
 (in thousands)               1999     1998      1999     1998

Operating revenues
 Natural gas distribution    $63,296  $66,327   $279,545 $323,829
 Oil and gas operations       45,224   34,385    131,333  100,744

   Total                    $108,520 $100,712   $410,878 $424,573

Operating income (loss)
 Natural gas distribution     $2,846  $ 1,108    $52,781  $47,340
 Oil and gas operations       11,070    5,922     25,141   17,806
 Eliminations and
   corporate expenses           (514)    (224)      (780)    (772)

   Total                     $13,402  $ 6,806    $77,142  $64,374

Identifiable assets
 Natural gas distribution   $430,244 $405,913   $430,244 $405,913
 Oil and gas operations      627,231  495,563    627,231  495,563
 Eliminations and other      (47,276) (10,496)   (47,276) (10,496)

   Total                  $1,010,199 $890,980 $1,010,199 $890,980


<PAGE>  14

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

Energen's  net  income totaled $3.5 million  ($0.12  per  diluted
share)  for  the three months ended June 30, 1999,  and  compared
favorably  to  a  net loss of $85,000 ($0.00 per  diluted  share)
recorded   in  the  same  period  last  year.  Energen  Resources
Corporation,  Energen's  oil  and gas  subsidiary,  realized  net
income  of $3.1 million in the current fiscal quarter as compared
with  $440,000  in  the same period last year  primarily  due  to
increased  production-related income and a $1.9 million after-tax
gain  on  the  sale of offshore properties, partially  offset  by
slightly  lower  realized  sales prices  and  increased  interest
expense.   Alagasco, Energen's natural gas utility, reported  net
income  of  $507,000  in the third quarter;   this  $1.1  million
increase  from the same period last year primarily  reflects  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  1999 fiscal year-to-date, Energen's net income  totaled
$49.7  million  ($1.66  per diluted share)  compared  with  $46.3
million  ($1.58  per diluted share) for the same  period  in  the
prior  year.  Energen Resources' net income totaled $21.0 million
and  compared favorably with $20.6 million of net income for  the
first  nine  months of fiscal 1998.  Increased production-related
income  and  the  gain  from the sale of properties  were  offset
largely  by  increased  interest expense  as  well  as  increased
administrative expense associated with the acquisition  of  TOTAL
Minatome Corporation (TOTAL).  In the prior-year period,  Energen
Resources recorded a $3.0 million after-tax writedown on  certain
oil and gas properties.  Alagasco's current year-to-date earnings
increased $3.0 million to $28.6 as the utility continued to  earn
its  allowed  range  of return on an increased  level  of  equity
representing investment in utility plant.

Natural Gas Distribution
Natural  gas  distribution revenues decreased $3.0 million  in  a
quarter-to-quarter comparison and $44.3 million on a year-to-date
basis.  This primarily was due to decreased sales volumes as well
as  decreased gas prices. For the quarter, weather that was  17.9
percent  warmer than the same period last year contributed  to  a
13.7  percent  decrease  in  residential  sales  volumes.   Small
commercial  and  industrial  customers,  sensitive  to   weather,
experienced  a 7.4 percent volume decrease.  Throughput  for  the
quarter for large transportation customers was 14.5 percent lower
than  the  prior  period primarily due to variances  in  electric
peaking  demand.   For the year-to-date, weather  that  was  27.3
percent  warmer than the same period last year contributed  to  a
21.9  percent decrease in residential sales volumes. For the same
reasons  that  influenced  the  quarter,  small  commercial   and
industrial  customers and large transportation  customers  had  a
17.5  percent  and  a  8.6  percent decrease  in  sales  volumes,
respectively.  Decreased gas purchase volumes and lower commodity
gas  prices contributed to a 19.8 percent decrease in cost of gas
for  the  quarter  and  a  31.3  percent  decrease  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  temperature  on  Alagasco's
earnings.  The  customers  to  whom  the  temperature  adjustment
applies  are  primarily 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.

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.  For  the
quarter,  the  increase was primarily due  to  higher  bad  debt,
advertising  and  Year 2000-related costs. In addition  to  those
items which influenced the quarter, the year-to-date variance was
impacted   by  increased  labor  related  costs  resulting   from
increased  qualified benefit plan expenses, partially  offset  by
decreased  insurance  expense.   The  labor  savings   from   the
Voluntary  Early Retirement Program effective November  1,  1998,
were primarily offset by the amortization of the costs associated
with this program.

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

Oil and Gas Operations
Revenues  from oil and gas operations rose 31.5 percent to  $45.2
million  for  the  three months ended June  30,  1999,  and  30.4
percent  to  $131.3 million for the year-to-date,  largely  as  a
result  of  Energen  Resources' current- and prior-year  property
acquisitions. Natural gas comprised approximately 70  percent  of
Energen  Resources' production for both the current  quarter  and
the  year-to-date.   In  the third fiscal  quarter,  natural  gas
production  increased 12.2 percent to 13.4 Bcf, oil volumes  more
than doubled to 777 MBbl and natural gas liquids volumes rose 6.3
percent   to  254  MBbl.   For  the  year-to-date,  natural   gas
production  increased  26.8 percent  to  42.1  Bcf,  oil  volumes
increased  145.9  percent to 2,412 MBbl and natural  gas  liquids
volumes decreased 10.8 percent to 543 MBbl.

The  impact  of higher production was partially offset  by  lower
realized natural gas and oil prices than in the same periods last
year.  For the quarter, realized gas prices decreased slightly to
$2.16  per  Mcf.  Realized oil prices decreased 13.6  percent  to
$12.71  per  barrel.  For the year-to-date, realized  gas  prices
decreased 2.6 percent to $2.22 per Mcf, while realized oil prices
decreased 27.2 percent to $11.64 per barrel.  Natural gas liquids
prices  decreased 9.8 percent to an average price  of  $9.39  per
barrel  for the quarter and 10.5 percent to an average  price  of
$8.30 per barrel for 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 June 30, 1999, Energen Resources had entered  into
contracts  and  swaps  for  11.6 Bcf of its  remaining  estimated
fiscal  1999 flowing gas production at an average contract  price
of  $2.18  per  Mcf  and for 670 MBbl of its remaining  estimated
flowing oil production at an average contract price of $14.55 per
barrel.  In addition, the Company has hedged the basis difference
on   2.7  Bcf  of  its  remaining  fiscal  1999  San  Juan  Basin
production.  Fiscal year 2000 contracts and swaps were  in  place
for  34.0  Bcf  of flowing gas production at an average  contract
price  of  $2.38  per  Mcf  and for 1,490  MBbl  of  flowing  oil
production  at  an average contract price of $17.20  per  barrel.
Fiscal  year 2001 swaps were in place for 0.8 Bcf of flowing  gas
production  at  an  average contract  price  of  $2.22  per  Mcf.
Subsequent  to  June  30,  1999, Energen Resources  entered  into
additional contracts for fiscal year 2000, resulting in  a  total
of  1,625  MBbl  of flowing oil production hedged at  an  average
contract price of $17.28 per barrel. Additional fiscal year  2001
swaps were entered into subsequent to June 30, 1999, resulting in
a  total  of  4.4  Bcf of flowing gas production  at  an  average
contract price of $2.47 per Mcf.

Energen  Resources, in the ordinary course of  business,  may  be
involved  in  the  sale  of  both  non-strategic  developed   and
undeveloped  properties.  Energen Resources  recorded  a  pre-tax
gain  of  $3.1  million  in the current quarter  as  compared  to
$23,000  in  the prior fiscal quarter and a gain of $3.1  million
year-to-date as compared to $1.1 million in the same period  last
year  on  the sale of various properties.  Gains on the  sale  of
such  properties are included in operating revenues.  The largest
of  several  property sales occurred in June  1999  when  Energen
Resources  recorded a $3.0 million pre-tax gain on  the  sell  of
offshore Gulf of Mexico properties.

O&M  expense  increased $2.9 million for the  quarter  and  $17.3
million  in the current year-to-date primarily due to significant
production  growth and acquisition activity at Energen Resources.
Lease operating expenses rose by $2.8 million for the quarter and
$13.7   million  for  the  year-to-date  primarily  due  to   the
acquisition of oil and gas properties.  The year-to-date variance
was  also impacted by increased administrative expense associated
with  the  first quarter TOTAL acquisition.  Exploration  expense
changed  slightly  in  both the quarter and  year-to-date  period
comparisons  primarily due to the timing of  exploratory  efforts
and drilling activity associated with certain properties.

Energen   Resources'  significantly  higher  production   volumes
generated   the  majority  of  the  $2.4  million   increase   in
depreciation, depletion and amortization (DD&A) for  the  quarter
and  the  $5.1 million increase for the year-to-date.   Partially
offsetting  the increase in the year-to-date was a SFAS  No.  121
pre-tax  writedown  of  $4.7  million  on  certain  oil  and  gas
properties in the second quarter of the prior-year.  The  average
depletion rate for the quarter decreased to $0.78 as compared  to
$0.82  for the same period last year.  For the year-to-date,  the
average  depletion rate was $0.79 as compared to $0.87, excluding
the  effect  of  the  writedown,  in  the  prior  fiscal  period,
primarily  due  to  trading certain offshore  properties  in  the
fourth  quarter of fiscal 1998 for onshore properties  which  had
lower depletion rates.

Energen  Resources'  expense for taxes other  than  income  taxes
primarily  reflects  production-related  taxes  which  were  $1.0
million higher this quarter and $2.6 million higher for the year-
to-date as a result of increased production.

Non-Operating Items
Interest expense for the Company increased  $1.4 million  in  the
quarter  and $5.7 million year-to-date.  Influencing the increase
in  interest expense for the current year-to-date is $100 million
of medium-term notes (MTNs) issued in February 1998 in connection
with   the  growth  at  Energen  Resources.   The  Company   also
significantly increased its average borrowings under  its  short-
term credit facilities for the same purpose.

The  Company's  effective  tax rates  are  lower  than  statutory
federal   tax   rates  primarily  due  to  the   recognition   of
nonconventional  fuels  tax  credits  and  the  amortization   of
investment  tax credits.  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  and  year-to-date  as a result  of  higher  consolidated
pretax  income.  Recognition of nonconventional fuels tax credits
on  an  interim basis was comparable for the quarter and year-to-
date.

FINANCIAL POSITION AND LIQUIDITY


Cash flow from operations for the current year-to-date was $113.3
million  and  remained  relatively stable compared  to  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 $161.5 million through  the
nine  months  ended June 30, 1999, primarily in the  addition  of
property,  plant and equipment partially offset by  the  proceeds
from the sale and leaseback of the headquarters building and from
the  sale  of  offshore properties.  Energen  Resources  invested
$177.2  million in capital expenditures year-to-date  related  to
the  acquisition  and  development of  oil  and  gas  properties,
including the stock purchase of TOTAL.  In October 1998,  Energen
Resources  acquired  the stock of  TOTAL  and,  immediately  upon
closing,  sold  a 31 percent interest in TOTAL's  net  assets  to
Westport Oil and Gas Company Inc. Energen Resources' net adjusted
purchase price totaled approximately $134 million, including  the
assumption  of certain legal and financial obligations.   Utility
capital  expenditures  totaled  $32.0  million  year-to-date  and
represented  primarily normal system distribution  expansion  and
support facilities.

The  Company used $50.6 million for financing activities  in  the
current  year-to-date.   For tax planning purposes,  the  Company
borrowed $100.6 million in September 1998 to invest in short-term
federal  obligations.  The Treasuries matured  in  early  October
1998  and  the  proceeds were used to repay the debt.   Increased
borrowings under Energen's short-term credit facilities were used
to finance Energen Resources' acquisition strategy.

FUTURE CAPITAL RESOURCES AND LIQUIDITY

The Company plans to continue to implement its diversified growth
strategy   which   calls   for  Energen   Resources   to   invest
approximately  $1 billion in the acquisition and  development  of
producing  properties and in exploration and related  development
over  the five-year period ending September 30, 2003.  In  fiscal
year  1999,  Energen Resources plans to spend approximately  $195
million,  including  an  approximate $134  million  net  adjusted
purchase price for the TOTAL property acquisition and $61 million
for development of current- and prior-year property acquisitions.
Energen  Resources'  continued  ability  to  invest  in  property
acquisitions will be influenced significantly by industry  trends
as  the  producing  property acquisition market has  historically
been cyclical.  From time to time, Energen Resources also may  be
engaged  in  negotiations to sell, trade or otherwise dispose  of
previously acquired property.
For  the  current year, Energen Resources may divest  of  certain
other non-strategic properties.

To  finance  Energen Resources' investment program,  the  Company
will  continue  to  utilize its short-term credit  facilities  to
supplement  internally generated cash flow, with  long-term  debt
and  equity  providing permanent financing.   In  December  1997,
Energen  filed  a $400 million shelf registration  for  debt  and
common  stock.   Under  that registration,  Energen  issued  $100
million  of  Series  B MTNs in February 1998, the  proceeds  from
which  were  used  to repay short-term debt.  During  the  second
fiscal quarter, Energen increased its available short-term credit
facilities  to  $249  million to accommodate  its  growth  plans.
Energen  plans  to  issue common equity in fiscal  year  2000  to
assist in financing investing activity.

Utility  capital  expenditures  for  normal  distribution  system
renewals  and expansion plus support facilities could approximate
$47   million  in  fiscal  1999.   Alagasco  also  maintains   an
investment  in storage working gas which is expected  to  average
approximately  $21  million in 1999.  The Company  completed  the
sale  and  leaseback of its new headquarters building in  January
1999;  the  proceeds approximated the investment in the facility.
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  its
liquified natural gas facility.  The utility anticipates  funding
capital requirements through internally generated capital and the
utilization of short-term credit facilities.

Year 2000 Readiness Disclosures
Year  2000 issues result from computer applications that use only
two-digit  representations to refer to  a  year.   Many  computer
applications could fail or create erroneous results if Year  2000
issues  are  not properly addressed.  Energen has  evaluated  and
continues  to  evaluate  its computer software  and  hardware  to
assess  the  need for modifications for the Year 2000.  Over  the
past  three  years, the Company has made a substantial investment
in  software  and  computer  infrastructure  and  non-information
technology systems that either comply with Year 2000 requirements
or can be upgraded.  A full-time senior management-level position
was established and a primary contractor was selected in 1996  to
address  the  Year  2000  issue. The  plan  of  work  established
involves  the  following phases: inventory, assessment,  testing,
certification  and change control. A number of inventory  reviews
have  been  completed  and will continue to  be  updated  in  the
future.  Tools  to  test,  age  and evaluate  data  software  and
hardware have been purchased and installed and are being utilized
for  Year  2000  compliance. Test plans for items  identified  as
critical   systems  either  are  being  deployed   or   currently
developed.   Testing  and remediating high priority  systems  and
devices are scheduled for completion by September 30, 1999.

A  third-party assessment of Year 2000 readiness was conducted by
an  outside  entity  for  both information  technology  and  non-
information  technology  systems as  of  December  1,  1998,  and
indicated that mission-critical functions including the  flow  of
gas  into  homes  and commercial accounts are not  likely  to  be
impacted  by  the  Year  2000 changeover.   In  response  to  the
independent  assessment,  several  program  changes   have   been
implemented.  A  steering  committee of the  Company's  executive
management has and will continue to review the millennium project
progress  on  a  regular basis.  With respect to material  third-
party  relationships, the Company, in addition to  responding  to
questions   concerning  Year  2000  issues  from  customers   and
regulators,  is requesting information from certain  vendors  and
partners   designed  to  determine  their  ability  to   continue
uninterrupted  supply of materials or services  to  the  Company.
This process is scheduled for completion by September 30, 1999.

As  of June 30, 1999, the Company has incurred approximately $1.5
million  of  Year  2000 related costs to date,  which  are  being
expensed  as  incurred. The Company's Year  2000  remediation  is
expected to be completed by the end of calendar year 1999 with an
estimated total cost of $2.3 million.

The  Company  is developing and implementing Year 2000  readiness
procedures  to  minimize the risks identified to date,  including
what  it  believes  are  worst  case  scenarios  of  reduced  gas
deliverability into the Alagasco distribution system,  production
failures   on  Energen  Resources  properties,  or  failures   of
gathering  and  pipeline  systems  to  accept  Energen  Resources
production.   Specific Year 2000 contingency plans are  scheduled
to  be  incorporated  into  the  previously  established  Energen
Business  Resumption Plan during fiscal year 1999. The  Company's
contingency  plan  identifies alternate  recovery  locations  and
contact lists, as well as special resource requirements.

The Company's goal is that Year 2000 issues will be addressed  on
a  schedule  and in a manner that will prevent such  issues  from
having  a material effect on the Company's results of operations,
liquidity or financial condition. While the Company has and  will
be  pursuing Year 2000 compliance, there can be no assurance that
the Company and its vendors will be successful in identifying and
addressing all material Year 2000 issues.

This document contains Year 2000 Readiness Disclosures as defined
in  the  Year  2000  Information and  Readiness  Disclosure  Act,
P.L.105-271 (October 19, 1998).  Accordingly, this disclosure, in
whole  or  in  part, is not, to the extent provided in  the  act,
admissible  in  any state or federal civil action  to  prove  the
accuracy or truth of any Year 2000 statements contained herein.

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 which could cause actual results to
differ materially from those anticipated.  Some of these include,
but  are  not  limited  to, economic and competitive  conditions,
inflation  rates,  legislative and regulatory changes,  financial
market  conditions, future business decisions, Year 2000  issues,
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
fully   its  planned  acquisition,  development  and  exploratory
expenditures,  future operating revenues, production  and  proved
reserves   could  be  negatively  affected.   The   drilling   of
development  and  exploratory wells can involve significant  risk
including  that  related  to  timing,  success  rates  and   cost
overruns.   These  risks  can  be  affected  by  lease  and   rig
availability,  complex  geology  and  other  factors.    Although
Energen  Resources makes use of futures, swaps  and  fixed  price
contracts  to mitigate risk, fluctuations in future oil  and  gas
prices  could materially affect the Company's financial  position
and  results of operations and, furthermore, such risk mitigation
activities may cause the Company's financial position and results
of operations to be materially different from results which would
have  been  obtained  had  such risk  mitigation  activities  not
occurred.

OTHER


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

<PAGE>  19


SELECTED SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)
                           Three months ended  Nine months ended
                                June 30,            June 30,
 (in thousands,
  except sales price data)    1999     1998      1999     1998

Natural Gas Distribution
Operating revenues
 Residential                $39,406   $43,683  $183,970 $219,257
 Commercial and
   industrial - small        14,915    16,214    65,752   79,414
 Transportation               7,814     7,894    26,901   27,746
 Other                        1,161    (1,464)    2,922   (2,588)

   Total                    $63,296   $66,327  $279,545 $323,829


Gas delivery volumes (MMcf)
 Residential                  4,414     5,113    22,619   28,969
 Commercial and
   industrial - small         2,311     2,496    10,043   12,172
 Transportation              15,312    17,906    46,071   50,424

   Total                     22,037    25,515    78,733   91,565


Other data
 Depreciation
   and amortization          $6,693   $ 6,318   $19,886  $18,747
 Capital expenditures       $12,327   $13,607   $31,961  $36,987
 Operating income            $2,846   $ 1,108   $52,781  $47,340


Oil and Gas Operations
Operating revenues
 Natural gas                $28,896   $26,323   $93,323  $75,764
 Oil                          9,879     5,314    28,074   15,681
 Natural gas liquids          2,388     2,041     4,504    5,643
 Other                        4,061       707     5,432    3,656

   Total                    $45,224   $34,385  $131,333 $100,744


Sales volume
 Natural gas (MMcf)          13,404    11,948    42,117   33,225
 Oil (MBbl)                     777       361     2,412      981
 Natural gas liquids (MBbl)     254       239       543      609
Average sales price
 Natural gas (Mcf)           $ 2.16   $  2.20   $  2.22   $ 2.28
 Oil (barrel)                $12.71   $ 14.71   $ 11.64   $15.98
 Natural  gas liquids (barrel)$9.39   $  8.55   $  8.30   $ 9.27
Other data
 Depreciation, depletion
   and amortization         $15,463   $13,083   $47,917  $42,806
 Capital expenditures       $18,432   $10,300  $177,179  $97,794
 Exploration expense         $1,055   $ 1,367   $ 3,144   $2,857
 Operating income           $11,070   $ 5,922   $25,141  $17,806


<PAGE>   20

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  and  a  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   $8.5
million  and deferred gains of $0.6 million on the balance  sheet
at June 30, 1999, and September 30, 1998, respectively.

<PAGE>  21


PART II.  OTHER INFORMATION

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 June
30, 1999.


<PAGE>  22


                           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


        August 12, 1999                  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


        August 12, 1999                  By   /s/ G. C. Ketcham
                                         G. C. Ketcham
                                         Executive Vice President,
                                         Chief Financial Officer and
                                         Treasurer of Energen and
                                         Alabama Gas Corporation



        August 12, 1999                  By   /s/ Grace B. Carr
                                         Grace B. Carr
                                         Controller of Energen



        August 12, 1999                  By   /s/ Paula H. Rushing
                                         Paula H. Rushing
                                         Vice President-Finance
                                         of Alabama Gas
                                         Corporation

<PAGE>  23