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, 2000

                                       OR

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




Commission                                             IRS Employer
 File                                  State of       Identification
Number           Registrant          Incorporation         Number


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



                   605 Richard Arrington, Jr. Boulevard North
                         Birmingham, Alabama 35203-2707
                          Telephone Number 205/326-2700
                             http://www.energen.com

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

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


Indicate  the  number of shares outstanding of each of the issuers'  classes  of
common stock, as of August 11, 2000:


     Energen Corporation, $0.01 par value           30,170,424 shares
     Alabama Gas Corporation, $0.01 par value        1,972,052 shares

<PAGE>     1


                 ENERGEN CORPORATION AND ALABAMA GAS CORPORATION
                  FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2000

                                TABLE OF CONTENTS

                                                                         Page

                    PART I: FINANCIAL INFORMATION (Unaudited)


Item 1.   Financial Statements

          (a)  Consolidated Statements of Income of Energen Corporation     3

          (b) Consolidated Balance Sheets of Energen Corporation            4

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

          (d) Statements of Income of Alabama Gas Corporation               7

          (e) Balance Sheets of Alabama Gas Corporation                     8

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

          (g) Notes to Unaudited Financial Statements                      11

Item 2.   Management's Discussion and Analysis of Financial Condition
           and Results of Operations                                       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,              2000      1999      2000      1999
  except share data)

Operating Revenues
Natural gas distribution    $69,111  $63,296    $313,085 $279,545
Oil and gas operations       47,456   45,224     139,947  131,333

  Total operating revenues  116,567  108,520     453,032  410,878

Operating Expenses
Cost of gas                  26,042   22,475     133,960  109,053
Operations and maintenance   42,540   42,133     126,404  127,591
Depreciatin, depletion and
 amortization                24,210   22,156      66,947   67,803
Taxes, other than
 income taxes                10,617    8,354      36,805   29,289

  Total operating expenses  103,409   95,118     364,116  333,736

Operating Income             13,158   13,402      88,916   77,142

Other Income (Expense)
Interest expense             (9,368)  (8,930)    (28,053) (28,135)
Other, net                      365      476       1,138      990


   Total other expense       (9,003)  (8,454)    (26,915) (27,145)

Income Before Income Taxes    4,155    4,948      62,001   49,997
Income tax (benefit) expense   (303)   1,435       7,241      273

Net Income                $   4,458  $ 3,513   $  54,760  $49,724

Basic Earnings Per Avg.
 Common Share             $    0.15  $  0.12   $    1.82  $  1.68

Diluted Earnings Per Avg.
 Common Share             $    0.15  $  0.12   $    1.81  $  1.66

Dividends Per
 Common Share             $   0.165  $  0.16   $   0.495  $  0.48

Basic Avg. Commmon
 Shares Outstanding          30,081   29,720      30,081   29,581
Diluted Avg. Common
 Shares Outstanding          30,346   30,015      30,315   29,877

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

<PAGE>     3

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION



                                   June 30, 2000  September 30, 1999
(in thousands)                       (Unaudited)


ASSETS
Current Assets
Cash and cash equivalents             $ 10,716          $145,390
Accounts receivable, net of
 allowance for doubtful
 accounts of $6,303 at June 30, 2000,
 and $5,598 at September 30, 1999       94,374            74,505
Inventories, at average cost
 Storage gas inventory                  30,575            24,722
 Materials and supplies                  9,083             8,287
 Liquified natural gas in storage        3,236             3,318
Deferred gas costs                       3,468             2,305
Deferred income taxes                   18,292            14,691
Prepayments and other                   78,743            22,529

   Total current assets                248,487           295,747

Property, Plant and Equipment
Oil and gas properties,
 successful efforts method             704,202           669,985
Less accumulated depreciation,
 depletion and amortization            168,955           129,839
 Oil and gas properties, net           535,247           540,146

Utility plant                          683,591           645,596
Less accumulated depreciation          347,421           328,775

 Utility plant, net                    336,170           316,821

Other property, net                      4,669             4,140
   Total property, plant and
    equipment, net                     876,086           861,107
Other Assets
Deferred income taxes                   26,196            21,055
Deferred charges and other              11,304             6,986

   Total other assets                   37,500            28,041

TOTAL ASSETS                        $1,162,073        $1,184,895



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

<PAGE>     4

CONSOLIDATED BALANCE SHEETS
ENERGEN CORPORATION

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

CAPITAL AND LIABILITIES
Current Liabilities
Long-term debt due within one year    $  6,648          $ 1,955
Notes payable to banks                 147,000          268,000
Accounts payable                       118,840           61,418
Accrued taxes                           30,935           22,247
Customers' deposits                     16,403           16,301
Amounts due customers                   11,239           18,576
Accrued wages and benefits              20,708           19,404
Other                                   34,355           37,381

   Total current liabilities           386,128          445,282

Deferred Credits and Other Liabilities
Other                                    5,156            6,285

   Total deferred credits and
    other liabilities                    5,156            6,285

Commitments and Contingencies               --               --


Capitalization
Preferred stock, cumulative $0.01 par
 value, 5,000,000 shares authorized         --               --
Common shareholders' equity
 Common stock, $0.01 par value;
   75,000,000 shares authorized,
   30,272,570 shares outstanding
   at June 30, 2000, and
   29,903,964 shares outstanding
   at September 30, 1999                  303              299
 Premium on capital stock             212,134          205,831
 Capital surplus                        2,802            2,802
 Retained earnings                    192,435          152,572
Deferred compensation plan              3,606            2,054
Treasury stock, at cost (329,578
 shares at June 30, 2000,
 and 101,431 shares at
 September 30, 1999)                   (6,479)          (2,054)

   Total common shareholders' equity  404,801          361,504
Long-term debt                        365,988          371,824

   Total capitalization               770,789          733,328

TOTAL CAPITAL AND LIABILITIES      $1,162,073       $1,184,895



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)     2000       1999

Operating Activities
Net income                                  $54,760     $49,724
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation, depletion and amortization   66,947      67,803
 Deferred income taxes, net                 (9,173)    (11,644)
 Deferred investment tax credits, net         (336)       (336)
 Gain on sale of assets                     (1,472)     (2,900)
 Net change in:
   Accounts receivable                     (19,869)      3,298
   Inventories                              (6,567)       (900)
   Deferred gas cost                        (1,163)       (111)
   Accounts payable                         (1,169)     (8,667)
   Other current assets and liabilities      2,108      16,263
 Other, net                                 (5,309)        819

   Net cash provided by operating
    activities                              78,757     113,349

Investing Activities
Additions to property, plant
 and equipment                             (81,614)    (85,339)
Acquisition, net of cash acquired               --    (123,816)
Proceeds from sale of assets                 2,600      48,331
Other, net                                    (807)       (675)

   Net cash used in investing activities   (79,821)   (161,499)

Financing Activities
Payment of dividends on common stock       (14,896)    (14,197)
Issuance of common stock                     6,664       8,222
Purchase of treasury stock                  (3,231)       (442)
Reduction of long-term debt                 (1,147)     (6,219)
Payment of note payable issued
 to purchase U.S. Treasury securities     (140,917)   (100,571)
Net change in short-term debt               19,917      62,571

   Net cash used in financing activities  (133,610)    (50,636)

Net change in cash and cash equivalents   (134,674)    (98,786)
Cash and cash equivalents at
 beginning of period                       145,390     103,231

Cash and Cash Equivalents at
 End of Period                             $10,716     $ 4,445

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)              2000     1999       2000     1999


Operating Revenues          $69,111  $63,296   $313,085 $279,545


Operating Expenses
Cost of gas                  26,439   22,868    135,190  110,426
Operations and maintenance   26,236   25,597     77,131   75,400
Depreciation                  7,243    6,693     21,380   19,886
Income taxes
 Current                      1,207    2,045     21,946   20,438
 Deferred, net                 (743)  (1,700)    (3,869)  (3,671)
 Deferred investment tax
  credits, net                 (112)    (112)      (336)    (336)
Taxes, other than
 income taxes                 5,906    5,292     23,535   21,052

  Total operating expenses   66,176   60,683    274,977  243,195

Operating Income              2,935    2,613     38,108   36,350

Other Income (Expense)
Allowance for funds used
 during construction            365     159         681      327
Other, net                      262     195         365     (288)

  Total other income           627      354       1,046       39

Interest Charges
Interest on long-term debt   2,135    2,135       6,406    6,477
Other interest expense         311      325         957    1,352

  Total interest charges     2,446    2,460       7,363    7,829


Net Income                  $1,116   $  507     $31,791  $28,560




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

<PAGE>     7

BALANCE SHEETS
ALABAMA GAS CORPORATION


                                   June 30, 2000  September 30, 1999
(in thousands)                      (Unaudited)


ASSETS
Property, Plant and Equipment
Utility plant                         $683,591          $645,596
Less accumulated depreciation          347,421           328,775

 Utility plant, net                    336,170           316,821

Other property, net                        250               298

Current Assets
Cash and cash equivalents                3,863               533
Accounts receivable
 Gas                                    56,841            37,157
 Merchandise                             2,119             2,283
 Affiliated companies                   12,392            20,654
 Other                                   1,859             1,966
 Allowance for doubtful accounts        (5,032)           (4,532)
Inventories, at average cost
 Storage gas inventory                  30,575            24,722
 Materials and supplies                  5,461             5,024
 Liquified natural gas in storage        3,236             3,318
Deferred gas costs                       3,468             2,305
Deferred income taxes                   14,596            11,621
Prepayments and other                    2,383             4,652

   Total current assets                131,761           109,703

Deferred Charges and Other Assets        4,775             3,833


TOTAL ASSETS                          $472,956          $430,655


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

<PAGE>     8

BALANCE SHEETS
ALABAMA GAS CORPORATION


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

CAPITAL AND LIABILITIES
Capitalization
Common shareholder's equity
 Common stock, $0.01 par value;
   3,000,000 shares authorized,
   1,972,052 shares outstanding at
   June 30, 2000, and
   September 30, 1999               $      20        $      20
 Premium on capital stock              31,682           31,682
 Capital surplus                        2,802            2,802
 Retained earnings                    175,291          143,502

   Total common shareholder's equity  209,795          178,006
Preferred stock, cumulative $0.01
 par value, 120,000 shares authorized,
 issuable in series-$4.70 Series           --               --
Long-term debt                        115,000          119,650


   Total capitalization               324,795          297,656


Current Liabilities
Long-term debt due within one year      4,650               --
Accounts payable                       45,901           36,985
Accrued taxes                          29,180           18,799
Customers' deposits                    16,403           16,301
Other amounts due customers            11,239           18,576
Accrued wages and benefits             11,602            9,663
Other                                   8,833           10,847

   Total current liabilities          127,808          111,171

Deferred Credits and Other Liabilities
Deferred income taxes                  16,324           16,689
Accumulated deferred investment
 tax credits                            1,877            2,213
Regulatory liability                    1,349            2,112
Customer advances for construction
 and other                                803              814

   Total deferred credits and
    other liabilities                  20,353           21,828

Commitments and Contingencies              --               --

TOTAL CAPITAL AND LIABILITIES        $472,956         $430,655



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)     2000       1999


Operating Activities
Net income                                 $ 31,791     $28,560
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation and amortization               21,380      19,886
 Deferred income taxes, net                  (3,869)     (3,671)
 Deferred investment tax credits               (336)       (336)
 Net change in:
   Accounts receivable                      (18,913)       (304)
   Inventories                               (6,208)     (1,443)
   Deferred gas costs                        (1,163)       (111)
   Accounts payable                           8,916       5,175
   Other current assets and liabilities       4,547      12,233
 Other, net                                  (1,077)         62

   Net cash provided by operating activities 35,068      60,051


Investing Activities
Additions to property, plant and equipment  (40,018)    (31,961)
Net advances from (to) affiliates             8,262     (32,125)
Proceeds from sale of assets                     --      27,000
Other, net                                       18         479

   Net cash used in investing activities    (31,738)    (36,607)

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

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

Net change in cash and cash equivalents       3,330       3,094
Cash and cash equivalents at
 beginning of period                            533       1,222

Cash and Cash Equivalents at
 End of Period                             $  3,863     $ 4,316


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

<PAGE>     10


NOTES TO UNAUDITED FINANCIAL STATEMENTS
ENERGEN CORPORATION AND ALABAMA GAS CORPORATION


1.  BASIS OF PRESENTATION

All  adjustments to the unaudited financial statements which are, in the opinion
of  management, necessary for a fair statement of the results of operations  for
the  interim  periods have been recorded. Such adjustments consisted  of  normal
recurring items. The consolidated financial statements and notes should be  read
in  conjunction with the financial statements and notes thereto  for  the  years
ended September 30, 1999, 1998, and 1997, included in the 1999 Annual Report  of
Energen  Corporation (the Company) on Form 10-K. Certain reclassifications  were
made  to  conform  prior  years'  financial statements  to  the  current-quarter
presentation.  The Company?s natural gas distribution business  is  seasonal  in
character and influenced by weather conditions.  Results of operations  for  the
interim  periods  are  not necessarily indicative of the results  which  may  be
expected for the fiscal year.

2.  REGULATORY

As  an  Alabama  utility,  Alabama  Gas Corporation  (Alagasco)  is  subject  to
regulation  by  the Alabama Public Service Commission (APSC), which  established
the  Rate Stabilization and Equalization (RSE) rate-setting process in 1983. RSE
was extended with modifications in 1985, 1987 and 1990.  On October 7, 1996, RSE
was  extended, without change, for a five-year period through January  1,  2002.
Under  the  terms  of that extension, RSE will continue after January  1,  2002,
unless,  after  notice  to the Company and a hearing, the  Commission  votes  to
either  modify  or  discontinue its operation. Under RSE as extended,  the  APSC
conducts  quarterly  reviews to determine, based on Alagasco's  projections  and
fiscal year-to-date performance, whether Alagasco's return on average equity for
the  fiscal  year  will be within the allowed range of 13.15  percent  to  13.65
percent. Reductions in rates can be made quarterly to bring the projected return
within  the allowed range; increases, however, are allowed only once each fiscal
year,  effective December 1, and cannot exceed 4 percent of prior-year revenues.
RSE limits the utility's year-end equity upon which a return is permitted to  60
percent  of total capitalization and provides for certain cost control  measures
designed to monitor Alagasco's operations and maintenance (O&M) expense. If  the
change in O&M expense per customer falls within 1.25 percentage points above  or
below  the  Consumer  Price  Index For All Urban  Customers  (index  range),  no
adjustment  is required.  If the change in O&M expense per customer exceeds  the
index  range, three-quarters of the difference is returned to customers. To  the
extent the change is less than the index range, the utility benefits by one-half
of  the difference through future rate adjustments. In fiscal 1999, the increase
in  O&M  expense per customer was below the index range; as a result the utility
benefited  by  $0.7 million. Under RSE as extended, a $4.5 million  and  a  $6.6
million  annual increase in revenue became effective December 1, 1999 and  1998,
respectively.

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

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

In  accordance with APSC-directed regulatory accounting procedures, Alagasco  in
1989  began returning to customers excess utility deferred taxes which  resulted
from a reduction in the federal statutory tax rate from 46 percent to 34 percent
using the average rate assumption method. This method provides for the return to
ratepayers  of excess deferred taxes over the lives of the related  assets.   In
1993  those excess taxes were reduced as a result of a federal tax rate increase
from  34 percent to 35 percent. Remaining excess utility deferred taxes of  $1.3
million  are being returned to ratepayers over approximately 11 years.  At  June
30, 2000, and September 30, 1999, a regulatory liability related to income taxes
of $1.3 million and $2.1 million, respectively, was included in the consolidated
financial statements.

As of November 1, 1998, Alagasco offered a Voluntary Early Retirement Program to
certain eligible employees. The APSC allowed these costs to be amortized over  a
three-year  period.  As of June 30, 2000, and September 30, 1999,  a  regulatory
asset  of  $1.5  million and $2.4 million, respectively,  was  included  in  the
consolidated  financial  statements  for  costs  associated  with   this   early
retirement program.

3.  DERIVATIVE COMMODITY INSTRUMENTS

Energen  Resources  Corporation, Energen?s oil and gas subsidiary,  periodically
enters  into  derivative commodity instruments to hedge its  exposure  to  price
fluctuations  on  oil  and  gas production. Such instruments  include  regulated
natural  gas  and crude oil futures contracts traded on the New York  Mercantile
Exchange  and  over-the-counter  swaps  and  basis  hedges  with  major   energy
derivative product specialists.  These transactions are accounted for under  the
hedge  method of accounting. Under this method, any unrealized gains and  losses
are  recorded  as  a  current receivable/payable with a  corresponding  deferred
gain/loss.   Realized  gains and losses are deferred as current  liabilities  or
assets until the revenues from the related hedged volumes are recognized in  the
income  statement.   Cash flows from derivative instruments  are  recognized  as
incurred through changes in working capital. The Company had deferred losses  of
$75.1 million and $16.5 million included in prepayments and other on the balance
sheet as of June 30, 2000, and September 30, 1999, respectively.

Energen  Resources had entered into contracts and swaps as of June 30, 2000  for
9.9 Bcf of its remaining fiscal 2000 gas production at an average contract price
of  $2.44 per Mcf and for 480 MBbl of its remaining oil production at an average
contract  price  of $19.74 per barrel. In addition, the Company had  hedged  the
basis  difference  on 3.0 Bcf of its remaining fiscal 2000 San  Juan  Basin  gas
production.

As  of June 30, 2000, fiscal year 2001 contracts and swaps were in place for  37
Bcf  of gas production at an average contract price of $2.76 per Mcf and for 750
MBbl  of  oil production at an average contract price of $23.39 per barrel.  The
Company also had hedged 150 MBbl of oil production with a collar price of $20.00
to  $25.24  per barrel. In addition, the Company had hedged the basis difference
on  9.6  Bcf of its fiscal 2001 San Juan Basin gas production. Fiscal year  2002
contracts  and swaps were in place for 4.8 Bcf of gas production  hedged  at  an
average contract price of $2.98 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.  RECENT PRONOUNCEMENTS OF THE FASB

In June 1998, the FASB issued Statement of Financial Accounting Standards (SFAS)
No.  133  (subsequently  amended  by SFAS Nos.  137  and  138),  Accounting  for
Derivative  Instruments and Hedging Activities, which established new accounting
and reporting standards for derivative instruments.  The Company is required  to
adopt this statement in fiscal year 2001. This statement requires the Company to
recognize  all derivatives as either assets or liabilities on the balance  sheet
and  measure the effectiveness of the hedges, or the degree that the gain/(loss)
for  the hedging instrument offsets the loss/(gain) on the hedged item, at  fair
value  each  reporting  period. The effective portion of the  gain/loss  on  the
derivative instrument is recognized in other comprehensive income as a component
of  equity  until  the  hedged item is recognized in earnings.  The  ineffective
portion  of  the derivative's change in fair value is required to be immediately
recognized in earnings. The Company currently is evaluating the potential impact
to  earnings of derivatives not effective in achieving offsets in fair values of
the  hedged  items  due to changes in anticipated basis differentials  or  other
factors. The Company may enter into additional derivative contracts (e.g.  basis
swaps)  to  help  minimize  the earnings impact, however,  this  may  not  fully
eliminate potential earnings volatility to the Company.

5.  SEGMENT INFORMATION

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


                               Three months ended      Nine months ended
                                    June 30,               June 30,
 (in thousands)                 2000         1999       2000        1999

Operating revenues
 Natural gas distribution     $69,111      $63,296    $313,085    $279,545
 Oil and gas operations        47,456       45,224     139,947     131,333

   Total                     $116,567     $108,520    $453,032    $410,878

Operating income (loss)
 Natural gas distribution      $3,287      $ 2,846     $55,849     $52,781
 Oil and gas operations        10,469       11,070      34,279      25,141
 Eliminations and
  corporate expenses             (598)        (514)     (1,212)       (780)

   Total                      $13,158      $13,402     $88,916     $77,142

Identifiable assets
 Natural gas distribution    $460,564    $430,244     $460,564    $430,244
 Oil and gas operations       709,455     627,231      709,455     627,231
 Eliminations and other        (7,946)    (47,276)      (7,946)    (47,276)

   Total                   $1,162,073  $1,010,199   $1,162,073  $1,010,199

6.  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 third fiscal quarter of 2000, Energen Resources recorded  a  pre-tax
writedown of $3.5 million as additional depreciation, depletion and amortization
expense  caused  by a downward reserve revision in a small oil  and  gas  field,
adjusting  the carrying amount of the properties to their fair value based  upon
expected future discounted cash flows.

7.  RECONCILIATION OF EARNINGS PER SHARE

(in thousands, except        Three months ended          Three months ended
 per share amounts)            June 30, 2000                June 30, 1999
                                          Per Share                   Per Share
                           Income   Shares  Amount    Income   Shares   Amount

Basic  EPS                 $4,458    30,081  $ 0.15    $3,513   29,720   $0.12
Effect of Dilutive Securities
 Long-range performance shares          134                        148
 Non-qualified stock options            118                        147
 Restricted stock                        13                         --


Diluted  EPS               $4,458    30,346  $ 0.15    $3,513   30,015   $0.12


(in thousands, except        Nine months ended           Nine months ended
 per share amounts)            June 30, 2000                June 30, 1999
                                          Per Share                 Per Share
                          Income   Shares   Amount    Income  Shares   Amount

Basic  EPS               $54,760   30,081   $ 1.82   $49,724  29,581    $1.68
Effect of Dilutive Securities
 Long-range performance shares        129                        148
 Non-qualified stock options           92                        148
 Restricted stock                      13                         --

Diluted  EPS             $54,760   30,315   $ 1.81   $49,724  29,877    $1.66

<PAGE>     14


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

Energen's  net  income totaled $4.5 million ($0.15 per diluted  share)  for  the
three  months ended June 30, 2000, compared to net income of $3.5 million ($0.12
per  diluted  share)  recorded in the same period last year.  Energen  Resources
Corporation,  Energen's  oil and gas subsidiary, realized  net  income  of  $3.8
million in the current fiscal quarter as compared with $3.1 million in the  same
period last year. Energen Resources benefited from significantly higher realized
sales  prices for oil, natural gas and natural gas liquids, as well as increased
tax  credits  due  to  the  timing of recognition on an  interim  basis  and  to
adjustments to prior-year tax credit estimates. Negatively affecting net  income
were  reduced production levels primarily resulting from the June 1999  sale  of
certain offshore Gulf of Mexico properties and a $2.2 million ($0.07 per diluted
share)  after-tax  writedown under Statement of Financial  Accounting  Standards
(SFAS) No. 121. Prior-period earnings included a $1.9 million ($0.06 per diluted
share)  after-tax gain on the sale of the offshore properties. Energen's natural
gas  utility,  Alagasco, contributed net income of $1.1  million  in  the  third
quarter.  This compares with $0.5 million of net income in the same period  last
year  and  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  2000  fiscal year-to-date, Energen's net income totaled $54.8  million
($1.81  per diluted share) compared with $49.7 million ($1.66 per diluted share)
for  the  same period in the prior year.  Energen Resources' net income  totaled
$23.5  million  and compared favorably with $21 million of net  income  for  the
first  nine  months of fiscal 1999. Higher realized commodity prices  more  than
offset  lower production levels, lower tax credits largely due to the timing  of
recognition on an interim basis, and the SFAS No. 121 writedown in the  current-
year  third  quarter. Alagasco's earnings increased $3.2 million in the  current
year-to-date to $31.8 million as the utility continued to earn its allowed range
of return on an increased level of equity.

Natural Gas Distribution
Natural  gas  distribution revenues increased $5.8 million for the  quarter  and
$33.5  million  on  a  year-to-date basis primarily due to an  increase  in  the
commodity cost of gas, which is recovered from customers through the Gas  Supply
Adjustment  (GSA) rider. Increased sales volumes also affected the  year-to-date
increase in revenues. For the quarter, weather that was 2.5 percent warmer  than
the  same  period last year contributed to a 3.5 percent decrease in residential
sales  volumes  and  a 3.4 percent decrease in small commercial  and  industrial
customer  sales volumes. The addition of a cogeneration facility  and  increased
volumes  to  a power generation facility largely contributed to an 18.5  percent
increase in transportation volumes. For the year-to-date, weather that was  12.8
percent  colder  than the same period last year contributed  to  a  6.2  percent
increase  in  residential  sales volumes and a 4.9  percent  increase  in  small
commercial  and  industrial customers. For the same reason that  influenced  the
quarter,  transportation  customers had a 13.9 percent increase  in  throughput.
Higher  commodity gas prices contributed to a 15.6 percent increase in  cost  of
gas  for  the quarter, while higher gas prices along with increased gas purchase
volumes contributed to the 22.4 percent increase in cost of gas for the year-to-
date.  Alagasco calculates a temperature adjustment to certain customers'  bills
on  a  real-time  basis to substantially remove the effect  of  departures  from
normal   temperatures  on  Alagasco's  earnings.  The  customers  to  whom   the
temperature  adjustment applies primarily are residential, small commercial  and
small industrial.

As  discussed  more  fully in Note 2, Alagasco is subject to regulation  by  the
APSC.   On  October  7, 1996, the APSC issued an order extending  the  Company?s
current rate-setting mechanism through January 1, 2002.  Under the terms of that
extension, RSE will continue after January 1, 2002, unless, after notice to  the
Company and a hearing, the Commission votes to either modify or discontinue  its
operation.

Operations and maintenance (O&M) expense increased slightly in both the  current
quarter and year-to-date periods primarily due to increased labor related  costs
partially offset by reduced general liability insurance expense.

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

Oil and Gas Operations
Revenues from oil and gas operations rose 4.9 percent to $47.5 million  for  the
three  months  ended June 30, 2000, and  6.6 percent to  $139.9 million  for the
year-to-date  largely as a result of the significantly higher  commodity  prices
more than offsetting reduced production.  For the quarter, realized  gas  prices
increased 19.4 percent to $2.58 per Mcf, while realized oil prices increased  59
percent  to $20.21 per barrel. Natural gas liquids prices increased 68.7 percent
to  an  average price of $15.84 per barrel. For the year-to-date,  realized  gas
prices  increased  9.9 percent to $2.44 per Mcf, realized oil  prices  increased
50.8  percent to $17.55 per barrel and natural gas liquids prices increased 83.9
percent to an average price of $15.26 per barrel.

Natural gas production in the third fiscal quarter decreased 14 percent to  11.5
Bcf  and oil volumes declined 32.3 percent to 526 MBbl primarily due to property
sales  occurring during the latter half of the prior fiscal year. Production  of
natural  gas  liquids increased 34.6 percent to 342 MBbl as a result  of  higher
liquids prices, which led to substantially all natural gas liquids being removed
from  the  gas  stream  during  processing. For the  year-to-date,  natural  gas
production decreased 13 percent to 36.6 Bcf, oil volumes decreased 28.3  percent
to  1,729  MBbl,  and natural gas liquids production increased 90.8  percent  to
1,036  MBbl  primarily  for  the same reasons as indicated  above.  Natural  gas
comprised  approximately  69 percent of Energen Resources'  production  for  the
current quarter and the year-to-date.

Energen  Resources  enters into derivative commodity instruments  to  hedge  its
exposure  to  the  impact of price fluctuations on oil and gas production.  Such
instruments include regulated natural gas and crude oil futures contracts traded
on  the New York Mercantile Exchange and over-the-counter swaps and basis hedges
with  major  energy derivative product specialists. All hedge  transactions  are
subject  to  the  Company?s risk management policy, approved  by  the  Board  of
Directors,  which  does  not permit speculative positions.  At  June  30,  2000,
Energen  Resources  had entered into contracts and swaps  for  9.9  Bcf  of  its
remaining  fiscal 2000 gas production at an average contract price of $2.44  per
Mcf  and  for  480  MBbl of its remaining oil production at an average  contract
price  of  $19.74  per  barrel. In addition, the Company had  hedged  the  basis
difference  on  3.0  Bcf  of  its  remaining fiscal  2000  San  Juan  Basin  gas
production.

As  of June 30, 2000, fiscal year 2001 contracts and swaps were in place for  37
Bcf  of gas production at an average contract price of $2.76 per Mcf and for 750
MBbl  of  oil production at an average contract price of $23.39 per barrel.  The
Company also had hedged 150 MBbl of oil production with a collar price of $20.00
to  $25.24  per barrel. In addition, the Company had hedged the basis difference
on  9.6  Bcf of its fiscal 2001 San Juan Basin gas production. Fiscal year  2002
contracts  and swaps were in place for 4.8 Bcf of gas production  hedged  at  an
average contract price of $2.98 per Mcf.

In  addition  to  the  derivatives described above, the  Company  has  three-way
pricing, physical sales contracts in place for approximately 22 percent  of  its
estimated  gas  production  in  fiscal year 2002. These  contracts  provide  for
Energen  Resources  to receive a basin-specific weighted average  price  between
$2.82  and $3.94 per Mcf. If the market price falls between $2.40 and $2.82  per
Mcf,  Energen  Resources will receive $2.82 per Mcf. If the market  price  falls
below  $2.40  per Mcf, Energen Resources will receive the market  price  plus  a
premium  of  $0.25-$0.45, depending on the contracts. In fiscal year  2003,  the
Company   has  three-way  pricing,  physical  sales  contracts  in   place   for
approximately  16  percent  of  its estimated gas  production.  These  contracts
provide for Energen Resources to receive a basin-specific weighted average price
between  $2.72  and $3.94 per Mcf. If the market price falls between  $2.40  and
$2.72 per Mcf, Energen Resources will receive $2.72 per Mcf. If the market price
falls below $2.40 per Mcf, Energen Resources will receive the market price  plus
a premium of $0.25-$0.45, depending on the contracts.

Energen  Resources, in the ordinary course of business, may be involved  in  the
sale  of developed and undeveloped non-strategic properties. Gains or losses  on
the  sale  of  such  properties  are included  in  operating  revenues.  Energen
Resources  recorded  a  pre-tax gain of $743,000  for  the  current  quarter  as
compared to $3.1 million in the prior fiscal quarter and a gain of $1.5  million
year-to-date  as compared to $3.1 million in the same period last  year  on  the
sale  of  various properties. The largest of several property sales occurred  in
June  1999  when Energen Resources recorded a $3.0 million pre-tax gain  on  the
sale of offshore Gulf of Mexico properties.

O&M expense decreased $316,000 for the quarter and $3.4 million for the year-to-
date.  Lease  operating expenses decreased by $1.3 million for the  quarter  and
$4.9  million  for the year-to-date primarily due to the sale  of  the  offshore
properties.  Exploration expense remained stable for the quarter  and  was  $0.4
million   higher  in  the  year-to-date  primarily  due  to  slightly  increased
exploratory efforts over the prior-year.

The  SFAS No. 121 pretax writedown of $3.5 million, caused by a downward reserve
revision  on  a small oil and gas field, was recorded as increased depreciation,
depletion  and amortization (DD&A) expense in the current-year third quarter.  A
$1.5  million  increase  in DD&A for the quarter resulted  from  the  writedown,
partially  offset  by  lower  production volumes.  For  the  year-to-date,  DD&A
decreased  $2.4 million, as decreased production more than offset the  SFAS  No.
121  writedown.  The average depletion rate for the quarter of $0.79,  excluding
the  effect of the writedown, remained stable as compared to $0.78 for the  same
period last year. For the year-to-date, the average depletion rate was $0.78  as
compared to $0.79 in the prior fiscal period.

Energen Resources' expense for taxes other than income taxes primarily reflected
production-related taxes which were $1.5 million higher this  quarter  and  $5.1
million  higher for the year-to-date as a result of the increase in  the  market
prices of natural gas, oil and natural gas liquids.

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

The  Company's  effective tax rates are lower than statutory federal  tax  rates
primarily  due to the recognition of nonconventional fuels tax credits  and  the
amortization of investment tax credits.  Nonconventional fuels tax  credits  are
generated  annually  on qualified production through December  31,  2002.  These
credits  are  expected to be recognized fully in the financial  statements,  and
effective  tax  rates  are expected to continue to remain lower  than  statutory
federal rates through fiscal year 2003.

Income  tax  expense  decreased in quarter comparisons  as  a  result  of  lower
consolidated pretax income and higher nonconventional fuels tax credits of  $1.2
million  primarily due to timing of the recognition on an interim basis  and  to
adjustments  to  prior-year tax credit estimates.  In year-to-date  comparisons,
income  tax  expense increased as a result of higher consolidated pretax  income
and  lower nonconventional fuels tax credits of $3.0 million, largely due to the
timing of the recognition on an interim basis. The estimated effective tax  rate
utilized  in  computing  year-to-date income tax expense  reflects  an  expected
financial  recognition of $14 million of nonconventional fuels tax  credits  for
fiscal year 2000.

FINANCIAL POSITION AND LIQUIDITY

Cash  flows  from operations for the current year-to-date were $78.8 million  as
compared  to  $113.3 million in the same period in the prior  year.  Net  income
increased  during  the  period but was more than offset by  changes  in  working
capital items, which are highly influenced by throughput, oil and gas production
volumes and timing of payments.

The  Company had a net investment of $79.8 million through the nine months ended
June  30,  2000,  primarily in the addition of property,  plant  and  equipment.
Energen  Resources  invested $41.3 million in capital expenditures  year-to-date
primarily related to the development of oil and gas properties. Utility  capital
expenditures   totaled  $40.9  million  year-to-date  and   represented   system
distribution expansion and support facilities.

The  Company used $133.6 million year-to-date for financing activities.  For tax
planning  purposes,  the Company borrowed $140.9 million in  September  1999  to
invest  in  short-term  federal obligations.  The Treasuries  matured  in  early
October  1999  and  the proceeds were used to repay the debt.  Borrowings  under
Energen's short-term credit facilities increased slightly.

FUTURE CAPITAL RESOURCES AND LIQUIDITY

The Company plans to continue to implement its diversified growth strategy. This
strategy focuses on expanding Energen Resources' oil and gas operations  through
the  acquisition  and  exploitation of producing properties  with  developmental
potential  while  building on the strength of the Company's utility  foundation.
The  primary  objective of this strategy, adopted in fiscal  year  1996,  is  to
realize  average  compound  growth in earnings per diluted  share  (EPS)  of  10
percent  a  year over each rolling five-year period. For the five  fiscal  years
ending September 30, 2000, Energen expects to have generated compound EPS growth
of more than 13 percent a year.

The  Company's  management recently reevaluated Energen's capital  spending  and
financing plans in light of historically high commodity prices for natural  gas,
oil and natural gas liquids. Energen's management believes the United States  is
in  the  early  stages of a multi-year period of sustained average  natural  gas
prices  in excess of $3 per year. Such sustained natural gas prices will have  a
dramatic  impact  on  Energen's earnings and cash flows from  operations.  As  a
result,  Energen's management now plans to utilize these commodity  price-driven
increases  in  cash  flows  to help pay down debt incurred  to  finance  Energen
Resources'  acquisition  and exploitation strategy rather  than  seek  near-term
refinancing in the secondary equity market, as previously planned.

In addition, the Company is no longer actively pursuing its targeted $50 million
in  acquisitions  during fiscal year 2000. Energen Resources'  capital  spending
plans  during  fiscal  year  2001 are for $50 million  to  be  invested  in  the
acquisition  of producing properties with development potential and another  $50
million  to  be invested in exploitation activities and limited exploration  and
related  development.  Over the five-year period ending  in  fiscal  year  2005,
Energen  plans  to  invest  between $850 million and  $900  million  for  proved
property  acquisitions,  exploitation activities  and  limited  exploration  and
related  development. To finance Energen Resources' acquisition and exploitation
program,  the  Company  plans  to  continue to  utilize  its  short-term  credit
facilities  as  needed  to supplement internally generated  cash  flows.  During
fiscal  year 1999, Energen increased its available short-term credit  facilities
to $249 million.

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

During  fiscal year 2000, Alagasco plans to invest approximately $65 million  in
capital  expenditures for normal distribution and support systems and to replace
liquifaction  equipment  at  one of its two liquified  natural  gas  facilities.
Alagasco  also  maintains  an investment in storage gas  which  is  expected  to
average  approximately  $27  million in 2000. The  utility  anticipates  funding
capital requirements through internally generated capital and the utilization of
short-term credit facilities.

Forward-Looking Statements and Risks
Certain  statements  in  this  report, including statements  of   future  plans,
objectives  and  expected performance of the Company and its  subsidiaries,  are
forward-looking  statements  that are dependent on  certain  events,  risks  and
uncertainties  that may be outside the Company's control and  that  could  cause
actual  results  to  differ materially from those anticipated.   Some  of  these
include,  but are not limited to, economic and competitive conditions, inflation
rates,  legislative and regulatory changes, financial market conditions,  future
business  decisions,  and other uncertainties, all of  which  are  difficult  to
predict.  There are numerous uncertainties inherent in estimating quantities  of
proved  oil  and  gas reserves and in projecting future rates of production  and
timing  of development expenditures. The total amount or timing of actual future
production  may vary significantly from reserves and production  estimates.   In
the  event  Energen  Resources  is  unable to invest  its  planned  acquisition,
development and exploratory expenditures, future operating revenues,  production
and  proved  reserves could be negatively affected.  The drilling of development
and  exploratory  wells can involve significant risk including that  related  to
timing,  success rates and cost overruns. These risks can be affected  by  lease
and  rig  availability,  complex  geology and other  factors.  Although  Energen
Resources  makes  use  of futures, swaps and fixed price contracts  to  mitigate
risk,  fluctuations  in  future oil and gas prices could materially  affect  the
Company's  financial position and results of operations and,  furthermore,  such
risk  mitigation  activities  may  cause the Company's  financial  position  and
results  of operations to be materially different from results which would  have
been obtained had such risk mitigation activities not occurred.

OTHER

Recent Pronouncements of the FASB
In  June  1998, the FASB issued SFAS No. 133 (subsequently amended by SFAS  Nos.
137  and  138),  Accounting for Derivative Instruments and  Hedging  Activities,
which   established  new  accounting  and  reporting  standards  for  derivative
instruments.   The Company is required to adopt this statement  in  fiscal  year
2001. This statement requires the Company to recognize all derivatives as either
assets or liabilities on the balance sheet and measure the effectiveness of  the
hedges,  or  the degree that the gain/(loss) for the hedging instrument  offsets
the  loss/(gain)  on the hedged item, at fair value each reporting  period.  The
effective portion of the gain/loss on the derivative instrument is recognized in
other  comprehensive income as a component of equity until the  hedged  item  is
recognized  in earnings. The ineffective portion of the derivative's  change  in
fair  value  is required to be immediately recognized in earnings.  The  Company
currently  is  evaluating the potential impact to earnings  of  derivatives  not
effective in achieving offsets in fair values of the hedged items due to changes
in  anticipated basis differentials or other factors. The Company may enter into
additional derivative contracts (e.g. basis swaps) to help minimize the earnings
impact,  however, this may not fully eliminate potential earnings volatility  to
the Company.

<PAGE>     19


SELECTED BUSINESS SEGMENT DATA
ENERGEN CORPORATION
(Unaudited)

                           Three months ended    Nine months ended
(in thousands, except           June 30,              June 30,
 sales price data)           2000       1999      2000       1999


Natural Gas Distribution
Operating revenues
 Residential                $42,684   $39,406   $205,540   $183,970
 Commercial and
  industrial - small         16,560    14,915     74,629     65,752
 Transportation               8,245     7,814     28,302     26,901
 Other                        1,622     1,161      4,614      2,922

   Total                    $69,111   $63,296   $313,085   $279,545

Gas delivery volumes (MMcf)
 Residential                  4,261     4,414     24,028     22,619
 Commercial and
  industrial - small          2,232     2,311     10,531     10,043
 Transportation              18,145    15,312     52,493     46,071

   Total                     24,638    22,037     87,052     78,733

Other data
 Depreciation and
  amortization              $ 7,243  $  6,693   $ 21,380   $ 19,886
 Capital expenditures       $16,267  $ 12,327   $ 40,882   $ 31,961
 Operating income           $ 3,287  $  2,846   $ 55,849   $ 52,781

Oil and Gas Operations
Operating revenues
 Natural gas                $29,764  $28,896    $ 89,332   $ 93,323
 Oil                         10,639    9,879      30,356     28,074
 Natural gas liquids          5,414    2,388      15,808      4,504
 Other                        1,639    4,061       4,451      5,432

   Total                    $47,456  $45,224    $139,947   $131,333

Sales volume
 Natural gas (MMcf)          11,521   13,404      36,629      42,117
 Oil (MBbl)                     526      777       1,729       2,412
 Natural gas liquids (MBbl)     342      254       1,036         543
Average sales price
 Natural gas (Mcf)          $ 2.58   $  2.16     $  2.44      $ 2.22
 Oil (barrel)               $20.21   $ 12.71     $ 17.55      $11.64
 Natural gas
  liquids (barrel)          $15.84   $  9.39     $ 15.26      $ 8.30
Other data
 Depreciation, depletion
  and amortization         $16,967   $15,463     $45,567    $ 47,917
 Capital expenditures      $14,804   $18,432     $41,291    $177,179
 Exploration expenditures  $   969   $ 1,055     $ 3,523    $  3,144
 Operating income          $10,469   $11,070     $34,279    $ 25,141

<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 with  a
corresponding  deferred  gain/loss. Realized gains and losses  are  deferred  as
current liabilities or assets until the revenues from the related hedged volumes
are  recognized in the income statement.  Cash flows from derivative instruments
are  recognized as incurred through changes in working capital. The Company  had
deferred  losses of $75.1 million and $16.5 million included in prepayments  and
other  on  the  balance  sheet  as of June 30, 2000,  and  September  30,  1999,
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, 2000.


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



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



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



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