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                                                                   Exhibit 10(e)

                               ENERGEN CORPORATION
                             1988 STOCK OPTION PLAN
                         (AS AMENDED NOVEMBER 25, 1997)

         The purpose of this Plan is to provide a means whereby Energen
Corporation may, through the grant of stock options, stock appreciation rights,
and dividend equivalents to key employees, attract and retain persons of ability
as employees and motivate such employees to exert their best efforts on behalf
of Energen Corporation and its subsidiaries.

         1. DEFINITIONS. Unless otherwise indicated, as used herein the
following terms shall have the respective meanings set forth below:

         "Board" means the Board of Directors of Energen Corporation.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

         "Committee" means the Officer Review Committee of the Board consisting
of not less than three members appointed by the Board and serving at the Board's
pleasure.

         "Company" means Energen Corporation and any successor corporation by
merger or other reorganization.

         "Expiration Date" means the last day on which an option issued under
the Plan may be exercised, as such date may be extended pursuant to Section
5(a).

         "Fair Market Value" means, (i) with respect to a share of Stock, the
closing price of the Stock on the New York Stock Exchange (or such other
exchange or system on which the Stock then trades or is quoted) on the most
recent trading date preceding the date of payment, cancellation or withholding
for which such valuation is made, and (ii) with respect to other consideration
means fair market value as may be reasonably determined by the Committee.

         "Incentive Stock Options" means options granted under the Plan to
purchase Stock which at the time of grant qualify as "incentive stock options"
within the meaning of Section 422A of the Code.

         "Key Employees" means those employees (including officers and inside
directors) of the Company or any Subsidiary who, in the judgment of the
Committee are of special importance to the success or prospects of the Company.

         "Nonqualified Stock Options" means options granted under the Plan to
purchase Stock which are not Incentive Stock Options.

         "Plan" means this Energen Corporation 1988 Stock Option Plan.

         "Stock" means the common stock, par value $.01 per share of the
Company.


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         "Subsidiary" means any corporation which at the time an option is
granted under the Plan qualifies as a subsidiary of the Company under the
definition of "subsidiary corporation" contained in Section 425(f) of the Code,
or any similar provision hereinafter enacted, except that such term shall not
include any corporation which is classified as a foreign corporation pursuant to
Section 7701 of the Code.

         "Ten Percent Stockholder" means an individual who, at the time of
grant, owns stock possessing more than 10 percent of the total combined voting
power of all classes of stock of the Company.

         2. SHARES SUBJECT TO THE PLAN. Options may be granted by the Company
from time to time to Key Employees to purchase an aggregate of 180,000 shares of
Stock, and such amounts of shares shall be reserved for options granted under
the Plan (subject to adjustment as provided in Section 5(h)). The shares issued
upon exercise of options granted under the Plan may be authorized and unissued
shares or shares held by the Company in its treasury. If any option granted
under the Plan shall terminate or expire, other than pursuant to Section 5(j),
as to any shares, new options may thereafter be granted covering such shares. If
any option granted under the Plan shall be cancelled as to any shares pursuant
to Section 5(j) (stock appreciation rights), then new options may not thereafter
be granted covering such shares.

         3. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Committee. Each member of the Committee shall be both a member of the Board who
is not eligible to receive any option under the Plan and a "disinterested
person" within the meaning of Rule 16b-3 under the Securities Exchange Act of
1934 or any successor rule or regulation. Any vacancy occurring in the
membership of the Committee shall be filled by appointment by the Board.

         The Committee may interpret the Plan, prescribe, amend, and rescind any
rules and regulations necessary or appropriate for the administration of the
Plan, or for the continued qualification of any Incentive Stock Options granted
thereunder and make such other determinations and take such other actions as it
deems necessary or advisable, except as otherwise expressly reserved to the
Board in the Plan. Without limiting the generality of the foregoing sentence,
the Committee may, in its discretion, treat all or any portion of any period
during which an optionee is on military or on an approved leave of absence from
the Company or a Subsidiary as a period of employment of such optionee by the
Company or such Subsidiary as the case may be, for purposes of accrual of his
rights under the Plan. Any interpretation, determination or other action made or
taken by the Committee shall be final, binding and conclusive.

         4. GRANT OF OPTIONS. Subject to the provisions of the Plan, the
Committee shall (a) determine and designate from time to time those Key
Employees to whom options are to be granted and the number of shares of Stock to
be optioned to each employee; (b) authorize the granting of Incentive Stock
Options, Nonqualified Stock Options, or combination of Incentive Stock Options
and Nonqualified Stock Option; (c) determine the number of shares subject to
each option; (d) determine the time or times when and the manner in which each
option shall contain a stock appreciation right and/or dividend equivalents;
provided, however, that (i) no Incentive Stock Option shall be granted after the
expiration of ten years from the effective date of the Plan specified in Section
8, below and (ii) the aggregate fair market value (determined as of the date the
option is granted) of the Stock with respect to which Incentive Stock Options
are exercisable for the first time 


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by any employee during any calendar year (under all plans of the Company and its
Subsidiaries) shall not exceed $100,000.

         5. TERMS AND CONDITIONS OF OPTIONS. Each option granted under the Plan
shall be evidenced by an agreement, in a form approved by the Committee. Such
agreement shall be subject to the following express terms and conditions and to
such other terms and conditions as the Committee may deem appropriate:

                  (a) Option Period. Each option agreement shall specify the
         period for which the option thereunder is granted and shall provide
         that the option shall expire at the end of such period. The Committee
         may extend such period provided that, in the case of an Incentive Stock
         Option, such extensions shall not in any way disqualify the option as
         an Incentive Stock Option. In no case shall such period for an
         Incentive Stock Option, including any such extensions, exceed ten years
         from the date of grant, provided, however that, in the case of an
         Incentive Stock Option granted to a Ten Percent Stockholder, such
         period, including extensions, shall not exceed five years from the date
         of grant.

                  (b) Option Price. The option price per share shall be
         determined by the Committee at the time any option is granted, and
         shall be not less than (i) the fair market value, or (ii) in the case
         of an Incentive Stock Option granted to a Ten Percent Stockholder, 110
         percent of the fair market value (but in no event less than the par
         value) of one share of Stock on the date the option is granted, as
         determined by the Committee.

                  (c) Exercise of Option. No part of any option may be exercised
         until the optionee shall have remained in the employ of the Company or
         of a Subsidiary for such period, if any, as the Committee may specify
         in the option agreement, and the option agreement may provide for
         exercisability in installments. The Committee shall have full authority
         to accelerate for any reason it deems appropriate the vesting schedule
         of all or any part of any option issued under the Plan.

                  (d) Payment of Purchase Price upon Exercise. Each option shall
         provide that the purchase price of the shares as to which an option
         shall be exercised shall be paid to the Company at the time of exercise
         either in cash, in Stock already owned by the optionee having a total
         Fair Market Value, equal to the purchase price, or a combination of
         cash and Stock having a total Fair Market Value, equal to the purchase
         price. In addition the Committee in its discretion may accept such
         other consideration or combination of other consideration, cash and/or
         Stock as the Committee shall deem to be appropriate and to have a total
         Fair Market Value equal to the purchase price.

                  (e) Exercise in the Event of Death or Termination of
         Employment. If an optionee's employment by the Company or a Subsidiary
         shall terminate because of the optionee's (i) death, (ii) disability,
         or (iii) retirement in accordance with the terms of the Company's
         tax-qualified retirement plans, the optionee's options may be exercised
         on or prior to the applicable Expiration Dates, but only to the extent
         that such options were exercisable on the date of such termination.
         Except as may be otherwise determined by the Committee, if an
         optionee's employment by the Company or a subsidiary shall terminate
         for any reason other than those set forth in the preceding sentence,
         then all unexercised options under the 


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         Plan held by the optionee (vested or unvested) shall terminate as of
         the date of termination of employment. Without limiting the generality
         of Section 5(c), the Committee shall have full authority to accelerate
         (including retroactively) the vesting schedule of all or any part of
         any option issued under the Plan and held by an employee who has
         terminated or plans to terminate his or her employment, such that a
         terminated employee, his heirs or personal representatives may exercise
         (at such time or times on or prior to the applicable Expiration Dates
         as may be specified by the Committee) any part or all of any unvested
         option under the Plan held by such employee at the date of his or her
         termination of employment.

                  (f) Nontransferability. Except as may otherwise be provided in
         this Section 5(f), no option granted under the Plan shall be
         transferable other than by will or by the laws of descent and
         distribution and, during the lifetime of the optionee, an option shall
         be exercisable only by the optionee. The foregoing notwithstanding, the
         optionee may transfer Nonqualified Stock Options to (i) the optionee's
         spouse or natural, adopted or step-children or grandchildren (including
         the optionee, "Immediate Family Members"), (ii) a trust for the benefit
         of one or more of the Immediate Family Members, (iii) a family
         charitable trust established by one or more of the Immediate Family
         Members, or (iv) a partnership in which the only partners are one or
         more of the Immediate Family Members. Any options so transferred shall
         not be further transferable except in accordance with the terms of this
         Plan, shall remain subject to all terms and conditions of the Plan and
         the applicable option agreement, and may be exercised by the transferee
         only to the extent that the optionee would have been entitled to
         exercise the option had the option not been transferred.

                  (g) Investment Representation. Each option agreement may
         provide that, to the extent reasonably necessary to assure compliance
         with all applicable securities laws, upon demand by the Committee for
         such a representation, the optionee (or any person acting under
         paragraph 5(e)) shall deliver to the Committee at the time of any
         exercise of an option or portion thereof or settlement of stock
         appreciation rights or dividend equivalents a written representation
         that the shares to be acquired upon such exercise are to be acquired
         for investment and not for resale or with a view to the distribution
         thereof. Upon such demand, delivery of such representation prior to the
         delivery of any shares issued upon exercise of an option and prior to
         the expiration of the option period shall be a condition precedent to
         the right of the optionee or such other person to purchase any shares.

                  (h) Adjustments in Event of Change in Common Stock. In the
         event of any change in the Stock of the Company by reason of any stock
         dividend, recapitalization, reorganization, merger, consolidation,
         split-up, combination, or exchange of shares, or rights offering to
         purchase Stock at a price substantially below fair market value, or of
         any similar change affecting the Stock, the number and kind of shares
         which thereafter may be optioned and sold under the Plan and the number
         and kind of shares subject to option in outstanding option agreements
         and the purchase price per share thereof shall be appropriately
         adjusted consistent with such change in such manner as the Committee
         may deem equitable to prevent substantial dilution or enlargement of
         the rights granted to, or available for, participants in the Plan.

                  (i) Incentive Stock Options. Each option agreement which
         provides for the grant of an Incentive Stock Option to a participant
         shall contain such terms and provisions as the 


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         Committee may determine to be necessary or desirable in order to
         qualify such option as an "incentive stock option" within the meaning
         of Section 422A of the Internal Revenue Code of 1954, or any amendment
         thereof or substitute therefor.

                  (j) Stock Appreciation Right. Each option agreement may
         provide that the optionee may from time to time elect to cancel all or
         any portion of the option then subject to exercise, in which event the
         Company's obligation in respect of such option may be discharged by
         payment to the optionee of an amount in cash equal to the excess, if
         any, of the Fair Market Value at the time of cancellation of the shares
         subject to the option or the portion thereof so cancelled over the
         aggregate purchase price for such shares as set forth in the option
         agreement, or, if mutually agreed by the Committee and the optionee (i)
         the issuance or transfer to the optionee of shares of Stock with a Fair
         Market Value equal to any such excess, or (ii) a combination of cash
         and shares of Stock with a combined value equal to any such excess. Any
         such right to elect such cancellation shall be transferrable only by
         will or by the laws of descent and distribution. During the lifetime of
         the optionee, such right shall be exercisable only by the optionee.

                  (k) Dividend Equivalents. Each option agreement may provide
         that upon (i) exercise of all or part of a Nonqualified Stock Option,
         (ii) cancellation of all or part of such option pursuant to paragraph
         5(j), or (iii) the occurrence of an Expiration Date, for no additional
         consideration, the optionee shall be paid an additional amount equal to
         the aggregate amount of cash dividends which would have been paid on
         the shares of Stock purchased upon such exercise or with respect to
         which such cancellation or expiration occurs, if such shares had been
         issued and outstanding during the period commencing with the option
         grant date and ending on the date of option exercise, cancellation or
         expiration, plus an amount equal to the interest that such dividends
         would have earned from the respective dividend payment dates if
         deposited in an account bearing interest, compounded quarterly on each
         April 1, July 1, October 1 and January 1, at a rate calculated as
         follows. For purposes of the preceding sentence, the assumed interest
         rate in effect for a calendar quarter shall be the announced prime rate
         of AmSouth Bank, N.A. (or such comparable rate of a comparable
         institution as the Committee may from time to time determine) in effect
         on the first day of such calendar quarter. Such additional amount shall
         be paid by cash, or if mutually agreed by the Committee and the
         optionee, (i) by the issuance of Stock having a Fair Market Value equal
         to any such excess or (ii) a combination of cash and shares of Stock
         having a combined Fair Market Value equal to any such excess.

                  (l) Withholding. The Company shall not be required to issue or
         deliver any certificates for shares of Stock or make any other payment
         or settlement with respect to the exercise of an option or settlement
         of stock appreciation rights or dividend equivalents unless
         arrangements reasonably satisfactory to the Company have been made for
         all resulting withholding and other tax obligations which are or may
         become applicable to the Company. Subject to compliance with all
         applicable securities and tax laws and regulations and provided that
         such transaction does not fall within the scope of Section 16(b) of the
         Securities and Exchange Act of 1934, an optionee may satisfy all or any
         part of the tax withholding obligation arising from the exercise of
         stock options or the settlement of stock appreciation rights or
         dividend equivalents under the Plan, by electing to have the Company
         withhold (from the Stock to be delivered to the optionee upon such
         exercise or settlement) 


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         shares of Stock having a Fair Market Value equal to the amount required
         to be withheld under applicable tax laws. Any election under this
         Section 5(l) must be made in writing delivered to the Company prior to
         the date that the amount of tax to be withheld is to be determined and
         will be irrevocable.

                  (m) No Rights as Shareholder. No optionee shall have any
         rights as a shareholder with respect to any shares subject to the
         optionee's option prior to the date of issuance to the optionee of a
         certificate or certificates for such shares.

                  (n) No Rights to Continued Employment. The Plan and any option
         granted under the Plan shall not confer upon any optionee any right
         with respect to continuance of employment by the Company or any
         Subsidiary or any right to further grants under the Plan, nor shall
         they interfere in any way with the right of the Company or any
         Subsidiary by which an optionee is employed to terminate the optionee's
         employment at any time.

         6. COMPLIANCE WITH OTHER LAWS AND REGULATIONS. The Plan, the grant and
exercise of options thereunder, and the obligations of the Company to sell and
deliver shares under such options, shall be subject to all applicable federal
and state laws, rules, and regulations and to such approvals by any government
or regulatory agency as may be required. The Company shall not be required to
issue or deliver any certificates for shares of Stock prior to (a) the listing
of such shares on any stock exchange on which the Stock may then be listed and
(b) the completion of any registration or qualification of such shares under any
federal or state law, or any ruling or regulation of any government body which
the Company shall, in its sole discretion, determine to be necessary or
advisable.

         7. AMENDMENT AND DISCONTINUANCE. The Board of Directors of the Company
may from time to time amend, suspend or discontinue the Plan; provided, however,
that, subject to the provisions of paragraph 5(h) no action of the Board of
Directors or of the Committee may (i) increase the number of shares reserved for
options pursuant to Section 2, (ii) permit the granting of any option at the
option price less than that determined in accordance with paragraph 5(b), or
(iii) permit the granting of options which expire beyond the period provided for
in paragraph 5(a). Without the written consent of an optionee, no amendment or
suspension of the Plan shall alter or impair any option previously granted to
the optionee under the Plan.

         8. EFFECTIVE DATE OF THE PLAN. The effective date of the Plan shall be
November 23, 1988, the date of its adoption by the Board, subject to approval by
shareholders of the Company holding not less than a majority of the shares
present and voting at its January 1989 Annual Meeting. Options may be granted
under the Plan by the Committee as provided herein prior but subject to such
subsequent shareholder approval of the Plan.

         9. NAME. The Plan shall be known as the "Energen Corporation 1988 Stock
Option Plan."

         10. DEFERRAL UNDER 1997 DEFERRED COMPENSATION PLAN. If and to the
extent permitted under the Energen Corporation 1997 Deferred Compensation Plan
(the "Deferred Compensation Plan), an optionee may elect pursuant to the
Deferred Compensation Plan to defer receipt of part or all of shares of Stock
and other consideration deliverable to the optionee under this Plan and upon
such deferral shall have no further right with respect to such deferred shares
or other consideration other than as provided under the Deferred Compensation
Plan. In the event of such a deferral election, certificates for such shares of
Stock as would have otherwise been issued under the Plan but for the deferral
election may at the discretion of the Company be delivered to the Trustee under


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the Deferred Compensation Plan and registered in the name of the Trustee or such
other person as the Trustee may direct. Regardless of whether such deferred
shares are issued to the Trustee, they shall constitute "issued" shares for
purposes of the Plan's maximum number of shares limitation set forth in Section
2.

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         As adopted November 23, 1988 by the Board of Directors, approved
January 25, 1989 by the Shareholders, and subsequently amended September 24,
1997 and November 25, 1997 by the Board of Directors.



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