UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549
                                        
                                        
                                    FORM 10-Q
                                        


X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 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 May 12, 1999:


     Energen Corporation,     $0.01 par value     29,714,856 shares
     Alabama Gas Corporation, $0.01 par value      1,972,052 shares


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

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

          (g)  Notes to Unaudited Financial Statements        11
     
Item 2.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations            15

          Selected Business Segment Data of
               Energen Corporation                            20

Item 3.   Quantitative and Qualitative Disclosures
               about Market Risk                              21


                           PART II: OTHER INFORMATION

Item 4.   Submission of Matters to a Vote of
               Security Holders                               22

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   Six months ended
(in thousands,                 March 31,           March 31,
 except share data)          1999     1998       1999     1998


Operating Revenues
Natural gas distribution  $144,692 $161,747    $216,249 $257,502
Oil and gas production
 activities                 43,698   36,226      86,109   66,359

   Total operating
    revenues               188,390  197,973     302,358  323,861

Operating Expenses
Cost of gas                 59,915   80,299      86,578  131,046
Operations and
 maintenance                42,611   35,765      85,458   70,047
Depreciation, depletion
 and amortization           22,443   24,316      45,647   42,152
Taxes, other than
 income taxes               12,642   13,167      20,935   23,048

   Total operating
    expenses               137,611  153,547     238,618  266,293

Operating Income            50,779   44,426      63,740   57,568

Other Income (Expense)
Interest expense            (9,330)  (7,666)    (19,205) (14,901)
Other, net                      36      507         514    1,325

   Total other expense      (9,294)  (7,159)    (18,691) (13,576)

Income Before Income
 Taxes                      41,485   37,267      45,049   43,992
Income tax benefit            (884)  (3,025)     (1,162)  (2,427)

Net Income                 $42,369  $40,292     $46,211  $46,419

Basic Earnings Per Avg.
 Common Share               $ 1.43   $ 1.39     $  1.57  $  1.60
 
Diluted Earnings Per Avg.
 Common Share               $ 1.42   $ 1.37     $  1.55  $  1.59


Dividends Per Common Share  $ 0.16   $0.155     $  0.32   $ 0.31

Basic Avg. Common Shares
 Outstanding                29,589   29,027      29,511   28,956


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

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

                                   March 31, 1999 September 30, 1998
(in thousands)                       (unaudited)

ASSETS
Current Assets
Cash and cash equivalents            $ 10,963         $103,231
Accounts receivable,
 net of allowance for doubtful
 accounts of $3,546 at
 March 31, 1999, and
 $3,547 at September 30, 1998          89,452           64,173
Inventories, at average cost
 Storage gas                           15,701           21,237
 Materials and supplies                 7,802            8,670
 Liquified natural gas
  in storage                            3,117            3,381
Deferred gas cost                       4,933            1,774
Deferred income taxes                  14,004           12,569
Prepayments and other                   6,295            3,418

   Total current assets               152,267          218,453

Property, Plant and Equipment
Oil and gas properties,
  successful efforts method           680,560          516,040
Less accumulated depreciation,
  depletion and amortization          125,853           88,306

 Oil and gas properties, net          554,707          427,734

Utility plant                         625,150          632,165
Less accumulated depreciation         320,980          307,488

 Utility plant, net                   304,170          324,677

Other property, net                     3,546            3,933

   Total property, plant
    and equipment, net                862,423          756,344

Other Assets
Deferred income taxes                  20,693           10,942
Deferred charges and other              7,443            7,716


   Total other assets                  28,136           18,658

TOTAL ASSETS                       $1,042,826         $993,455


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

<PAGE>        4

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION


(in thousands,                     March 31, 1999 September 30, 1998
 except share data)                 (unaudited)

CAPITAL AND LIABILITIES
Current Liabilities
Long-term debt due
 within one year                      $  1,955          $ 7,209
Notes payable to banks                 150,000          153,000
Accounts payable                        31,060           33,533
Accrued taxes                           23,825           21,255
Customers' deposits                     17,582           16,344
Amounts due customers                   10,143           12,070
Accrued wages and benefits              17,328           15,299
Other                                   39,043           25,531

   Total current liabilities           290,936          284,241

Deferred Credits and
 other Liabilities
Other                                    8,319            7,183

   Total deferred credits
    and other liabilities                8,319            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,
   29,682,387 shares outstanding
   at March 31, 1999, and
   29,326,597 shares outstanding
   at September 30, 1998                  297               293
 Premium on capital stock             201,892           195,874
 Capital surplus                        2,802             2,802
 Retained earnings                    167,048           130,280
Deferred compensation plan                743               873
Treasury stock, at cost
 (69,270 shares at March 31, 1999,
 and 49,096 shares at
 September 30, 1998)                   (1,031)             (873)
 
   Total common shareholders' equity  371,751           329,249
Long-term debt                        371,820           372,782

   Total capitalization               743,571           702,031

TOTAL CAPITAL AND LIABILITIES      $1,042,826         $ 993,455

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

CONSOLIDATED STATEMENTS OF CASH FLOWS
ENERGEN CORPORATION
(Unaudited)

Six months ended March 31,
 (in thousands)                          1999             1998

Operating Activities
Net income                                 $46,211      $46,419
Adjustments to reconcile net
   income to net cash
   provided by (used in)
   operating activities:
 Depreciation, depletion
  and amortization                          45,647       42,152
 Deferred income taxes, net                (11,450)     (15,231)
 Deferred investment tax
  credits, net                                (224)        (234)
 Net change in:
   Accounts receivable                     (22,948)     (13,392)
   Inventories                               6,668        8,269
   Deferred gas cost                        (3,159)      (5,719)
   Accounts payable - gas purchases          4,907        4,380
   Accounts payable - trade                 (7,380)      (4,467)
   Other current assets
    and liabilities                         14,141       10,792
 Other, net                                   (388)          62

   Net cash provided by
    operating activities                    72,025       73,031

Investing Activities
Additions to property,
 plant and equipment                        (54,563)   (110,612)
Acquisition, net of
 cash acquired                             (123,816)         --
Proceeds from sale of assets                 27,000          --
Other, net                                       14       2,207

   Net cash used in
    investing activities                   (151,365)   (108,405)


Financing Activities
Payment of dividends
 on common stock                             (9,442)     (8,980)
Issuance of common stock                      6,021       5,481
Purchase of treasury stock                     (288)         --
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                97,571     (57,364)
Net cash used in
    financing activities                    (12,928)    (61,828)

Net change in cash and
 cash equivalents                           (92,268)    (97,202)
Cash and cash equivalents
 at beginning of period                     103,231     105,402

Cash and Cash Equivalents
 at End of Period                           $10,963     $ 8,200


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


<PAGE>      6


STATEMENTS OF INCOME
ALABAMA GAS CORPORATION
(Unaudited)


                           Three months ended   Six months ended
                               March 31,           March 31,
(in thousands)                1999     1998      1999     1998


Operating Revenues          $144,692 $161,747   $216,249 $257,502


Operating Expenses
Cost of gas                   60,412   80,774     87,558  132,178
Operations and
 maintenance                  24,808   23,493     49,803   48,494
Depreciation                   6,605    6,232     13,193   12,429
Income taxes
 Current                      17,371   18,874     18,393   21,022
 Deferred, net                (2,564)  (4,820)    (1,971)  (5,747)
 Deferred investment
  tax credits, net              (112)    (117)      (224)    (234)
Taxes, other than
 income taxes                 10,014   10,918     15,760   18,170


  Total operating
   expenses                  116,534  135,354    182,512  226,312


Operating Income              28,158   26,393     33,737   31,190


Other Income (Expense)
Allowance for funds
 used during construction        102       99        168      184
Other, net                      (386)     168       (483)     247

  Total other income
   (expense)                    (284)     267       (315)     431


Interest Charges
Interest on
 long-term debt                2,143    2,211      4,342    4,422
Other interest expense           533      503      1,027    1,071


  Total interest
   charges                     2,676    2,714      5,369    5,493

Net Income                   $25,198  $23,946    $28,053  $26,128


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

<PAGE>       7


BALANCE SHEETS
ALABAMA GAS CORPORATION


                                   March 31, 1999 September 30, 1998
(in thousands)                      (unaudited)


ASSETS
Property, Plant and Equipment
Utility plant                         $625,150         $632,165
Less accumulated depreciation          320,980          307,488
 
 Utility plant, net                    304,170          324,677

Other property, net                        309              318
 
Current Assets
Cash and cash equivalents                5,939            1,222
Accounts receivable
 Gas                                    48,642           32,191
 Merchandise                             1,967            2,362
 Other                                  19,480            1,621
 Allowance for doubtful accounts        (3,482)          (3,482)
Inventories, at average cost
 Storage gas                            15,701           21,237
 Materials and supplies                  5,476            5,533
 Liquified natural
  gas in storage                         3,117            3,381
Deferred gas cost                        4,933            1,774
Deferred income taxes                   11,354           10,470
Prepayments and other                    4,568            2,112

   Total current assets                117,695           78,421
   
Deferred Charges and
 Other Assets                            4,275            4,733

TOTAL ASSETS                          $426,449         $408,149



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

<PAGE>       8


BALANCE SHEETS
ALABAMA GAS CORPORATION


(in thousands,                     March 31, 1999 September 30, 1998
 except share data)                 (unaudited)

CAPITAL AND LIABILITIES
Capitalization
Common shareholder's equity
 Common stock, $0.01 par value;
   3,000,000 shares
   authorized, 1,972,052
   shares outstanding at
   March 31, 1999, and
   September 30, 1998                $     20          $    20
 Premium on capital stock              31,682           31,682
 Capital surplus                        2,802            2,802
 Retained earnings                    148,257          120,205

   Total common shareholder's
    equity                            182,761          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               302,411          274,359

Current Liabilities
Long-term debt due
 within one year                            --           5,350
Notes payable to banks                      --          15,000
Accounts payable
 Trade                                  24,644          23,217
 Affiliated companies                       --           2,738
Accrued taxes                           28,737          19,428
Customers' deposits                     17,582          16,344
Other amounts due customers             10,143          12,070
Accrued wages and benefits               8,600           4,217
Other                                   12,278          11,915

   Total current liabilities           101,984         110,279

Deferred Credits and
 Other Liabilities
Deferred income taxes                   16,313          17,136
Accumulated deferred
 investment tax credits                  2,437           2,661
Regulatory liability                     2,516           2,910
Customer advances for
 construction and other                    788             804

   Total deferred credits
    and other liabilities               22,054          23,511

Commitments and Contingencies               --              --

TOTAL CAPITAL AND
 LIABILITIES                          $426,449        $408,149


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

<PAGE>       9


STATEMENTS OF CASH FLOWS
ALABAMA GAS CORPORATION
(Unaudited)

Six months ended March 31,
 (in thousands)                             1999         1998

Operating Activities
Net income                                $ 28,053      $26,128
Adjustments to reconcile
   net income to net cash
   provided by (used in)
   operating activities:
 Depreciation and amortization              13,193       12,429
 Deferred income taxes, net                 (1,971)      (5,747)
 Deferred investment tax credits              (224)        (234)
 Net change in:
   Accounts receivable                     (15,989)     (17,567)
   Inventories                               5,857        8,244
   Deferred gas cost                        (3,159)      (5,719)
   Accounts payable -
    gas purchases                            4,907        4,380
   Accounts payable -
    other trade                             (3,480)        (815)
   Other current assets
    and liabilities                         11,158       15,407
 Other, net                                   (104)         930

   Net cash provided by
    operating activities                    38,241       37,436

Investing Activities
Additions to property,
 plant and equipment                       (19,632)     (23,455)
Net advances to affiliates                 (20,664)      (6,776)
Proceeds from sale of assets                27,000           --
Other, net                                     122          330

   Net cash used in
    investing activities                   (13,174)     (29,901)

Financing Activities
Payment of dividends
 on common stock                                --       (3,680)
Net change in short-term debt              (20,350)       1,000

   Net cash used in
    financing activities                   (20,350)      (2,680)

Net change in cash and
 cash equivalents                            4,717        4,855
Cash and cash equivalents
 at beginning of period                      1,222        2,580

Cash and Cash Equivalents
 at End of Period                         $  5,939      $ 7,435


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.
The APSC provides for accretions to the ESR in an amount of no more than $40,000
monthly  following a year in which a charge against the ESR is  made  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  $1.8
million  are being returned to ratepayers over approximately 12 years. At  March
31, 1999, and September 30, 1998, a regulatory liability related to income taxes
of $2.5 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 March 31, 1999,  a  regulatory  asset  of  $3.0
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  gains of $3.0 million and $0.6 million on the balance sheet  at  March
31, 1999, and September 30, 1998, respectively.

At  March  31, 1999, Energen Resources had entered into contracts and swaps  for
23.5  Bcf  of its remaining estimated 1999 flowing gas production at an  average
contract  price  of $2.18 per Mcf and for 1,180 MBbl of its remaining  estimated
flowing  oil  production  at an average contract price  of  $14.66  per  barrel.
Fiscal  year  2000 contracts and swaps were in place for 4.5 Bcf of flowing  gas
production  at an average contract price of $2.22 per Mcf and for  180  MBbl  of
flowing  oil  production  at an average contract price  of  $17.31  per  barrel.
Realized  prices  are anticipated to be lower than hedged prices  due  to  basis
differences  and other factors. To help mitigate this variance, the Company  has
hedged  the  basis difference on 5.4 Bcf of its remaining 1999  San  Juan  Basin
production.   Subsequent  to  March 31, 1999,  Energen  Resources  entered  into
additional contracts and swaps for fiscal year 2000 resulting in a total  of  34
Bcf  of flowing gas production hedged at an average contract price of $2.38  per
Mcf  and  860  MBbl  of flowing oil production at an average contract  price  of
$16.74 per barrel.

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

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 declined crude oil prices.

5.  RECENT PRONOUNCEMENTS OF THE FASB

The  FASB  issued SFAS No. 130, Reporting Comprehensive Income,  in  June  1997,
which  requires  the  reporting  and display of  comprehensive  income  and  its
components  in  an  entity's  financial  statements.   There  currently  are  no
differences  between  the  Company's net income and  comprehensive  income.   In
February  1998,  the  FASB  issued SFAS No. 132,  Employers'  Disclosures  about
Pensions and Other Postretirement Benefits, which revises employers' disclosures
about  pension  and  other postretirement benefit plans.  As this  pronouncement
relates  solely to disclosure provisions, there will be no effect on the results
of  operations or financial position of the Company.  The Company is required to
adopt these statements in fiscal year 1999.

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 2000.  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 six  months
ended  March 31, 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
six  months  ended March 31, 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.


Six months ended March 31,
 (in thousands) (unaudited)                   1999       1998


Operating revenues                          $302,358    $365,229
Net income                                  $ 46,211    $ 48,053
Basic Earnings Per
 Average Common Share                       $   1.57     $  1.66
Diluted Earnings Per
 Average Common Share                       $   1.55     $  1.64


7.  RECONCILIATION OF EARNINGS PER SHARE

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


                                          Per Share                 Per Share
                         Income   Shares    Amount  Income  Shares   Amount

Basic EPS               $42,369   29,589   $1.43    $40,292  29,027   $1.39
Effect of Dilutive
 Securities
 Long-range performance
  shares                             150                        121
 Non-qualified stock
  options                            131                        212

Diluted EPS             $42,369   29,870   $1.42    $40,292  29,360  $1.37

(in thousands,              Six months ended            Six months ended
 except per share amounts)  March 31, 1999                March 31, 1998

                                        Per Share                    Per Share
                         Income  Shares  Amount       Income  Shares   Amount

Basic EPS                $46,211  29,511  $1.57       $46,419  28,956   $1.60
Effect of Dilutive
 Securities
 Long-range performance
  shares                             155                          115
 Non-qualified
  stock options                      144                          191

Diluted  EPS             $46,211  29,810  $1.55       $46,419  29,262   $1.59

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 activities).


                           Three months ended   Six months ended
                               March 31,           March 31,
 (in thousands)               1999     1998      1999       1998

Operating revenues
 Natural gas distribution   $144,692 $161,747   $216,249   $257,502
 Oil and gas activities       43,698   36,226     86,109     66,359

   Total                    $188,390 $197,973   $302,358   $323,861

Operating income (loss)
 Natural gas distribution   $ 42,853 $ 40,330   $ 49,935   $ 46,231
 Oil and gas activities        7,875    4,343     14,071     11,884
 Eliminations
  and corporate expenses          51     (247)      (266)      (547)

   Total                    $ 50,779 $ 44,426   $ 63,740   $ 57,568

Identifiable assets
 Natural gas distribution    $426,449 $426,946  $426,449   $426,946
 Oil and gas activities       642,466  501,480   642,466    501,480
 Eliminations and other       (26,089) (13,861)  (26,089)   (13,861)
 
   Total                   $1,042,826 $914,565 $1,042,826  $914,565

<PAGE>       14


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

Energen's  net  income for the three months ended March 31, 1999, totaled  $42.4
million ($1.42 per diluted share) and compared favorably to net income of  $40.3
million ($1.37 per diluted share) recorded in the same period last year. Energen
Resources Corporation, Energen's oil and gas subsidiary, realized net income  of
$16.9 million in the second fiscal quarter as compared with $16.4 million in the
same period last year. Increased production-related income largely was offset by
significantly  lower realized oil and natural gas liquids prices and  moderately
lower  realized gas prices.  Adversely affecting income were increased  interest
expense  as well as increased administrative expense associated with  the  first
quarter  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, Energen's natural gas utility, reported  net
income  of  $25.2  million in the current quarter;  this $1.25 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 $46.2  million
($1.55  per diluted share) compared with $46.4 million ($1.59 per diluted share)
for  the  same period in the prior year.  Energen Resources' net income  totaled
$17.9  million as compared with $20.2 million for the first six months of fiscal
1998.   Alagasco's  earnings increased $1.9 million  to  $28.1  million.   Major
factors contributing to Energen Resources' and Alagasco's financial results were
the same as those for the second fiscal quarter.

Natural Gas Distribution
Natural  gas  distribution  revenues decreased $17.1 million  in  a  quarter-to-
quarter  comparison and $41.3 million on a year-to-date basis.   This  primarily
was   due   to  decreased  sales  volumes  resulting  from  weather  which   was
significantly warmer than in the prior periods as well as decreased gas  prices.
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.  For the quarter, weather  that
was  16.5  percent warmer than the same period last year contributed to  a  15.6
percent  decrease  in  residential sales volumes and a 5.2 percent  decrease  in
commercial and industrial sales volumes. For the year-to-date, weather that  was
28.7 percent warmer than the same period last year contributed to a 23.7 percent
decrease  in residential sales volumes and an 8.8 percent decrease in commercial
and  industrial sales volumes.  Decreased gas purchase volumes and  prices  also
contributed to a 25.2 percent decrease in cost of gas for the quarter and a 33.8
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.

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  expense increased slightly  in  both  the  current
quarter  and  year-to-date  periods.  Increases  in  labor  and  related  costs,
primarily due to a one-time, prior-year change in the salaried employee vacation
policy,  and increases due to Year 2000 related costs were substantially  offset
by  decreased  general  liability insurance expense. The labor  savings  in  the
quarter and year-to-date comparisons from the Voluntary Early Retirement Program
effective  November  1, 1998, primarily were 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 Activities
Revenues  from  oil  and gas production activities rose 20.6  percent  to  $43.7
million  for  the three months ended March 31, 1999, and 29.8 percent  to  $86.1
million  for the year-to-date, primarily reflecting Energen Resources'  current-
and  prior-year  property acquisitions.  Natural gas comprised approximately  71
percent  of Energen Resources' production for both the current quarter  and  the
year-to-date.   In  the second fiscal quarter, natural gas production  increased
29.6 percent to 14.2 Bcf and oil volumes more than doubled to 853 MBbl.  For the
year-to-date, natural gas production increased 34.9 percent to 28.7 Bcf and  oil
volumes  increased 163.5 percent to 1,634 MBbl.  In addition, Energen Resources'
high BTU-content natural gas reserves in the San Juan Basin yielded 130 MBbl and
288  MBbl in natural gas liquids in the current quarter and in the year-to-date,
respectively.

The  impact  of higher production largely was offset by slightly lower  realized
natural gas prices and significantly lower realized oil prices than in the  same
periods  last year.  For the quarter, realized gas prices decreased 4.5  percent
to  $2.32  per  Mcf.  Realized oil prices decreased 36.4 percent to  $10.43  per
barrel. For the year-to-date, realized gas prices decreased 3.4 percent to $2.24
per  Mcf, while realized oil prices decreased 33.4 percent to $11.13 per barrel.
Natural gas liquids prices decreased 25 percent to an average price of $7.54 per
barrel  for the quarter and 24.6 percent to an average price of $7.34 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  March  31,  1999,
Energen  Resources  had entered into contracts and swaps for  23.5  Bcf  of  its
remaining estimated 1999 flowing gas production at an average contract price  of
$2.18  per  Mcf  and  for  1,180  MBbl of its remaining  estimated  flowing  oil
production at an average contract price of $14.66 per barrel.  Fiscal year  2000
contracts  and swaps were in place for 4.5 Bcf of flowing gas production  at  an
average  contract  price  of  $2.22 per Mcf and for  180  MBbl  of  flowing  oil
production  at an average contract price of $17.31 per barrel.  Realized  prices
are  anticipated  to  be lower than hedged prices due to basis  differences  and
other factors.  To help mitigate this variance, the Company has hedged the basis
difference  on  5.4  Bcf  of  its  remaining 1999  San  Juan  Basin  production.
Subsequent  to  March  31,  1999,  Energen  Resources  entered  into  additional
contracts  and  swaps for fiscal year 2000 resulting in a total  of  34  Bcf  of
flowing gas production hedged at an average contract price of $2.38 per Mcf  and
860  MBbl  of flowing oil production at an average contract price of $16.74  per
barrel.

O&M  expense  increased $5.8 million for the quarter and $14.4  million  in  the
current  year-to-date  primarily  due  to  significant  production  growth   and
acquisition  activity at Energen Resources.  Lease operating  expenses  rose  by
$5.3  million for the quarter and $10.9 million for the year-to-date due to  the
acquisition  of  oil  and  gas properties.  Exploration expense  decreased  $0.7
million  for  the  quarter but was higher by $0.6 million for  the  year-to-date
primarily  due  to  the  timing  of exploratory efforts  and  drilling  activity
associated with certain properties.

A  $2.1 million decrease in depreciation, depletion and amortization (DD&A)  for
the  quarter  resulted primarily from 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,  partially  offset by increases due to higher production  volumes  in  the
current quarter.  For the year-to-date, Energen Resources' significantly  higher
production  volumes  more  than offset the effect of  the  prior-year  writedown
resulting in a $2.9 million increase in DD&A. The average depletion rate for the
quarter  decreased to $0.78 as compared to $0.91, excluding the  effect  of  the
writedown,  for  the  same period last year, due primarily  to  trading  certain
offshore  properties in the fourth quarter of fiscal 1998 for onshore properties
which  had  lower depletion rates.  For the year-to-date, the average  depletion
rate was $0.79 as compared to $0.89 in the prior fiscal period.

Energen  Resources' expense for taxes other than income taxes primarily reflects
production-related taxes which were $0.5 million higher this  quarter  and  $1.6
million for the year-to-date as a result of increased production.

Non-Operating Items
Interest expense for the Company increased  $1.7 million in the quarter and $4.3
million  year-to-date.   Influencing the increase in interest  expense  for  the
current  period 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  and slightly decreased recognition of nonconventional fuels tax  credits
on an interim basis.

FINANCIAL POSITION AND LIQUIDITY

Cash  flow  from  operations for the current year-to-date was  $72  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 $151.4 million through the six months ended
March  31,  1999,  primarily in the addition of property,  plant  and  equipment
slightly  offset by the proceeds from the sale and leaseback of the headquarters
building. Energen Resources invested $158.7 million in capital expenditures
year-to-date  related to the  acquisition and development of oil and gas 
properties.  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 $19.6 
million and  represented primarily  normal  system  distribution expansion and
support facilities.

The  Company  used $12.9 million for financing activities in the first  half  of
fiscal 1999.  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 $197  million,
including an approximate $134 million net adjusted purchase price for the  TOTAL
property  acquisition and $63 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 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  this  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  will  maintain an investment in storage  working  gas  which  is
expected  to average approximately $21 million in 1999.  The utility anticipates
funding these capital requirements through internally generated capital and  the
utilization of short-term credit facilities.  The Company completed the sale and
leaseback  of  its  new  headquarters building in  January  1999;  the  proceeds
approximated the investment in the facility.

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 during the third fiscal quarter of 1999.

As of March 31, 1999, the Company has incurred approximately $1.1million 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
The  FASB  issued SFAS No. 130, Reporting Comprehensive Income,  in  June  1997,
which  requires  the  reporting  and display of  comprehensive  income  and  its
components  in  an  entity's  financial  statements.   There  currently  are  no
differences  between  the  Company's net income and  comprehensive  income.   In
February  1998,  the  FASB  issued SFAS No. 132,  Employers'  Disclosures  about
Pensions and Other Postretirement Benefits, which revises employers' disclosures
about  pension  and  other postretirement benefit plans.  As this  pronouncement
relates  solely to disclosure provisions, there will be no effect on the results
of  operations or financial position of the Company. The Company is required  to
adopt these statements in fiscal year 1999.

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 2000.  The impact of this pronouncement on the  Company
currently is being evaluated.


<PAGE>       19


SELECTED BUSINESS SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)


                           Three months ended   Six months ended
(in thousands,                  March 31,          March 31,
 except sales price data)     1999      1998     1999      1998


Natural Gas Distribution
Operating revenues
 Residential                $99,217  $113,197  $144,564 $175,575
 Commercial and
  industrial - small         34,184    39,713    50,837   63,207
 Transportation              10,533    10,495    19,086   19,852
 Other                          758    (1,658)    1,762   (1,132)

   Total                   $144,692  $161,747  $216,249 $257,502

Gas delivery volumes (MMcf)
 Residential                13,526    16,023     18,204   23,856
 Commercial and
  industrial - small         5,317     6,219      7,733    9,675
 Transportation             15,879    16,143     30,759   32,518

   Total                    34,722    38,385     56,696   66,049

Other data
 Depreciation
  and amortization          $6,605   $ 6,232  $ 13,193  $ 12,429
 Capital expenditures       $9,325   $15,066  $ 19,632  $ 23,380
 Operating income           $42,853  $40,330  $ 49,935  $ 46,231

Oil and Gas Activities
Operating revenues
 Natural gas                $33,050  $26,652   $64,427   $49,441
 Oil                          8,889    5,922    18,195    10,367
 Natural gas liquids            980    1,953     2,116     3,602
 Other                          779    1,699     1,371     2,949

   Total                    $43,698  $36,226   $86,109   $66,359

Sales volume
 Natural gas (MMcf)          14,220   10,973    28,713    21,277
 Oil (MBbl)                     853      361     1,634       620
 Natural gas liquids (MBbl)     130      194       288       370
Average sales price
 Natural gas (Mcf)            $2.32    $2.43     $2.24    $ 2.32
 Oil (barrel)                $10.43   $16.41    $11.13    $16.72
 Natural gas liquids
  (barrel)                   $ 7.54    10.06    $ 7.34      9.74
Other data
 Depreciation, depletion
  and amortization          $15,838  $18,084   $ 32,454  $29,723
 Capital expenditures       $10,757  $27,135   $158,747  $87,494
 Exploration expenditures   $   713  $ 1,367   $  2,089  $ 1,490
 Operating income           $ 7,875  $ 4,343   $ 14,071  $11,884



<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  gains of $3.0 million and $0.6 million on the balance sheet  at  March
31, 1999, and September 30, 1998, respectively.


<PAGE>       21


PART II.  OTHER INFORMATION

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

Information with respect to the annual meeting of Shareholders held January  27,
1999,  is  reported in Item 4 of Energen Corporation 10-Q for the  three  months
ended December 31, 1998.
           
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

a. Exhibits

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

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

b. Reports on Form 8-K

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


        May 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


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


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


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


<PAGE>       23