8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report
January 25, 2006

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
(Address of principal executive offices)	(Zip Code)

(205) 326-2700

(Registrant's telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02          Results of Operations and Financial Condition

On January 25, 2006, Energen Corporation and Alabama Gas Corporation issued a press release announcing the fourth quarter and 2005 year-end financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2 to this form 8-K and are furnished to, but not filed with, the Commission.

ITEM 9.01          Financial Statements and Exhibits

(c) Exhibits.

The following exhibits are furnished as part of this Current Report on Form 8-K.

Exhibit

Number:

99.1 Press Release dated January 25, 2006

99.2 Supplemental Financial Information dated January 25, 2006

SIGNATURES

Pursuant to the requirements of the Securities 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
January 25, 2006	By /s/ G. C. Ketcham
	G. C. Ketcham Executive Vice President, Chief Financial Officer and Treasurer of Energen Corporation and Alabama Gas Corporation

EXHIBIT INDEX

EXHIBIT NUMBER		DESCRIPTION
99.1	*	Press Release dated January 25, 2006
99.2	*	Supplemental Financial Information dated January 25, 2006

* This exhibit is furnished to, but not filed with, the Commission by inclusion herein.

EX-99.1

EXHIBIT 99.1

For Immediate Release:

Wednesday, January 25, 2006

For More Information:

Julie S. Ryland, (205) 326-8421

OIL & GAS UNIT DRIVES 35% INCREASE IN ENERGEN'S 2005 EPS

Management Reaffirms 2006 Earnings Guidance

BIRMINGHAM, Alabama - Energen Corporation (NYSE: EGN) today announced that its oil and gas acquisition and development subsidiary, Energen Resources Corporation, was the dominant driver of the diversified energy company's 35 percent increase in earnings per diluted share (EPS) for 2005.

Energen's 2005 net income of $173 million, or $2.35 per diluted share, compared favorably with 2004 net income of $127.5 million, or $1.74 per diluted share.

Representing 78 percent of Energen's 2005 consolidated earnings, Energen Resources benefited from higher commodity prices and record production of 91 billion cubic feet equivalent (Bcfe). Energen Resources' net income for the year totaled $135.3 million as compared with $94.1 million in 2004.

Energen's utility subsidiary, Alabama Gas Corporation (Alagsaco), also contributed to the holding company's higher earnings in 2005, generating net income of $37 million as compared with $33.8 million in 2004.

"Our two lines of business continue to perform very well," said Energen's Chairman and Chief Executive Officer Mike Warren. "Not only did each business improve their earnings in 2005, but the acquisition of largely proved undeveloped oil reserves in the Permian Basin late in the year helped set the stage for growth into the future," he added.

"Energen Resources' proved reserves at year-end topped 1.7 trillion cubic feet equivalent - a new record," Warren noted. "And, perhaps, of even greater significance is that 2005 reserve additions from development activities basically replaced our annual production.

"Over the last five years, Energen's earnings have increased at an annual compound growth rate of just under 20 percent a year. At the same time, Energen common stock has generated a five-year, annualized total return to shareholders of 20 percent, including a 24.6 percent return in 2005," Warren added.

"As we begin 2006, Energen expects to benefit from solid base-business operations, a hedge position that helps protect earnings from falling commodity prices while leaving room for upside potential in today's price environment, and a solid strategic plan with a proven track record," Warren said. "With those attributes in mind, we are pleased to reaffirm our 2006 earnings guidance of $3.25-$3.60 per diluted share."

"We look forward in 2006 to the start of development drilling associated with our most recent property acquisition; we also are excited about a new coalbed methane drilling program in the Black Warrior Basin, and work continues on more fully developing our extensive San Juan Basin holdings in New Mexico and Colorado," Warren added. "In addition, we continue to rely on Alagasco to contribute modest earnings growth and provide the majority of dividend income for our shareholders."

2005 RESULTS

For the 12 months ended December 31, 2005, Energen Resources' 2005 income from continuing operations totaled $135.2 million, up 44 percent from $93.9 million in 2004. Discontinued operations totaled $126,000 and $158,000 in 2005 and 2004, respectively.

The Company's revenues for its natural gas production in 2005 increased 24 percent to $5.99 per thousand cubic feet (Mcf) as compared with the same period a year ago; oil production revenues rose 23 percent to $35.18 per barrel; and revenues for natural gas liquids (NGL) production increased 22 percent to 55 cents per gallon.

Energen Resources' production from continuing operations in 2005 increased 4 percent over 2004 to 91 Bcfe. Natural gas production increased 7 percent to 61 Bcf, largely due to the Company's August 2004 acquisition of San Juan Basin properties, development drilling in the San Juan Basin and increased drilling activity in the North Louisiana/East Texas area; the Company's oil production declined 3 percent to 3.3 million barrels, while NGL production increased 3 percent to 70.5 million gallons.

Energen Resources' per-unit LOE in 2005 increased 29 percent to $1.72 per Mcf equivalent (Mcfe) due to a 33 percent increase in commodity price-driven, per-unit production taxes and to higher costs associated with work-overs, marketing and transportation, compression, ad valorem and other price increases.

Per-unit DD&A expense from oil and gas activities totaled 96 cents per Mcfe in 2005, up 7 percent from the same period a year ago primarily due to a 2004 property acquisition and to a production mix that currently reflects a higher percentage of the Company's shorter-lived North Louisiana/East Texas production.

Alabama Gas Corporation

Alagasco's net income in 2005 totaled $37 million, up $3.2 million from the prior year, and largely reflects the utility's ability to earn within its allowed range of return on a higher level of equity representing investment in utility plant.

FOURTH QUARTER RESULTS

For the three months ended December 31, 2005, Energen reported net income of $57.3 million, or 78 cents per diluted share. This represents an increase of more than 80 percent over Energen's net income of $31.3 million, or 43 cents per diluted share, in the same period last year. This significant increase largely was due to a 44 percent increase in Energen Resources' production revenue from its natural gas, oil and NGL production.

Energen Resources Corporation

Energen Resources' fourth quarter 2005 income from continuing operations increased 87 percent to total $51.3 million as compared with prior-year results of $27.3 million. Income from discontinued operations totaled $8,000 and $16,000 in the current- and prior-year fourth quarters, respectively.

Relative to the same period a year ago, the Company's natural gas production revenues increased 55 percent to $7.81 per Mcf; oil production revenues rose 23 percent to $39.43 per barrel; and NGL production revenues increased 12 percent to 55 cents per gallon.

Energen Resources' fourth quarter 2005 production from continuing operations of 22.8 Bcf was virtually unchanged from the same period last year (22.9 Bcf); current-period natural gas production also was little changed at 15.2 Bcf as compared with 15.1 Bcf in the same period a year ago; current-period oil production was down 5 percent to 836,000 barrels; and NGL production increased 1 percent to 18.1 million gallons.

Energen Resources' per-unit LOE in the fourth quarter of 2005 increased 44 percent to $2 per Mcfe due to a 52 percent increase in commodity price-driven per-unit production taxes and to increased expenses associated with work-overs, marketing and transportation, compression, ad valorem and other price increases.

Per-unit DD&A expenses from oil and gas activities totaled 96 cents per Mcfe in the current-year fourth quarter, up 2 percent from the same period a year ago largely due the Company's current production mix that reflects an increased portion of shorter-lived North Louisiana/East Texas production.

Alabama Gas Corporation

Alagasco's natural gas distribution operations earned net income of $5.7 million in the fourth quarter of 2005 as compared with net income of $4.7 million in the same period last year. This increase primarily relates to the timing of rate relief under Alagasco's rate-setting mechanism.

2006 EARNINGS OUTLOOK

A key factor behind Energen's 2006 earnings guidance of $3.25-$3.60 per diluted share is its substantial hedge position. Energen Resources utilizes derivative hedge instruments to help mitigate the earnings impact of commodity price volatility. Energen currently has hedges in place for 65 percent of its estimated 2006 production of 92 Bcfe.

Energen Resources' 2006 hedge position by commodity is as:

Commodity	Hedge Vols.	Estimated 2006 Production	% Hedged	NYMEX-equiv. price
Natural Gas	38.2 Bcf	59.9 Bcf	64%	$7.96 per Mcf
Oil	2.8 MMBbl	3.7 MMBbl	77%	$53.02 per barrel
NGL	30.2 Mmgal	68.5 MMgal	44%	$0.56 per gallon

Energen Resources' 2006 natural gas hedge position by hedge type is as follows:

Hedge Type	Volumes (Bcf)	Assumed Basis Difference	Price/Mcf (NYMEX equiv)
NYMEX Hedges	16.3	-	$8.08
San Juan Basin-specific	21.0	$1.40	$7.79
Permian Basin-specific	0.5	$1.00	$9.53
Houston Ship Channel	0.4	$0.53	$9.50

Energen Resources' 2006 oil hedge position by hedge type is as follows:

Hedge Type	Volumes (MBbl)	Assumed Sour Oil Difference	Price/Barrel (NYMEX equiv)
NYMEX Hedges	929	-	$51.74
Sour Oil (WTS)	1,915	$5.22	$53.65

Realized prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price, regardless of basis differentials. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed basis differentials. Realized NGL prices will be net of transportation and fractionation fees.

Earnings Sensitivities to Commodity Price Changes

While there are many factors that affect Energen Resources' financial results, the largest influences typically are the commodity prices applicable to the company's unhedged production.

The Company's guidance for 2006 earnings assumes that NYMEX prices applicable to Energen Resources' unhedged production in 2006 will average $10 per Mcf for gas and $58 per barrel for oil and that NGL prices will average 90 cents per gallon.

Given Energen Resources' current hedge position for 2006 and assuming prices as outlined above for its unhedged production, the sensitivities to pricing changes applicable to Energen's earnings guidance for 2006 are as follows:

Every 10-cent change in the average NYMEX price of gas from $10 per Mcf represents an estimated net income impact of approximately $1 million (1.4 cents per diluted share).

Every $1 change in the average NYMEX price of oil from $58 per barrel represents an estimated net income impact of approximately $400,000 (0.5 cents per diluted share).

Every 1-cent change in average price of NGL from $0.90 per gallon represents an estimated net income impact of approximately $175,000 (0.2 cents per diluted share).

Price-related events such as substantial basis differential changes could cause earnings sensitivities to be materially different from those outlined above.

CAPITAL SPENDING PLANS

Energen Resources is planning to invest in 2006 approximately $146 million in development capital related to its existing properties.

Approximately $54 million is slated for development activities in the Permian Basin, including the drilling of 108 water injection and producing wells and 5 pay adds.

Approximately $50 million is estimated for development activities in the San Juan Basin, including the drilling of 66 wells, 30 compression projects, and 21 pay adds.

Approximately $32 million is slated for drilling 87 wells in the Black Warrior.

Approximately $10 million is expected to be employed in North Louisiana/East Texas to drill 22 wells and perform numerous recompletions.

Energen Resources' exploration spending in 2006 is estimated to total approximately $7 million.

Capital spending at Alagasco is estimated to be approximately $60-$65 million.

Other key assumptions that support Energen's guidance include:

Average diluted shares outstanding of 74 million,

Alagasco's earning a return on average equity of approximately 13 percent on average equity of approximately $285 million, and

A DD&A rate at Energen Resources of approximately $1.00-$1.05 per Mcf equivalent and LOE including production taxes of approximately $2.05 per Mcf equivalent.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are the acquisition and development of natural gas, oil and natural gas liquids onshore in North America and natural gas distribution in central and north Alabama. Additional information on Energen is available at www.energen.com.

FORWARD-LOOKING STATEMENTS

This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties, which could affect future results of Energen and its subsidiaries, is included in the Company's periodic reports filed with the Securities and Exchange Commission.

EX-99.2

EXHIBIT 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending December 31, 2005 and 2004

	4th Quarter
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	164,127	$	114,579	$	49,548
Natural gas distribution		170,954		116,632		54,322
Total operating revenues		335,081		231,211		103,870
Operating Expenses
Cost of gas		100,957		54,315		46,642
Operations & maintenance		73,600		64,024		9,576
DD&A		32,950		32,359		591
Taxes, other than income taxes		28,116		19,286		8,830
Accretion expense		682		630		52
Total operating expenses		236,305		170,614		65,691
Operating Income		98,776		60,597		38,179
Other Income (Expense)
Interest expense		(12,006)		(11,216)		(790)
Other income		469		748		(279)
Other expense		(72)		(295)		223
Total other expense		(11,609)		(10,763)		(846)
Income Before Income Taxes		87,167		49,834		37,333
Income tax expense		29,872		18,582		11,290
Income from Continuing Operations		57,295		31,252		26,043
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		(4)		16		(20)
Gain on disposal		12		-		12
Income from Discontinued Operations		8		16		(8)
Net Income	$	57,303	$	31,268	$	26,035
Diluted Earnings Per Share*
Continuing operations	$	0.77	$	0.43	$	0.34
Discontinued operations		0.01		-		0.01
Net Income	$	0.78	$	0.43	$	0.35
Basic Earnings Per Share*
Continuing operations	$	0.78	$	0.43	$	0.35
Discontinued operations		-		-		-
Net Income	$	0.78	$	0.43	$	0.35
Diluted Avg. Common Shares Outstanding*		73,938		73,448		490
Basic Avg. Common Shares Outstanding*		73,166		72,756		410
Dividends Per Share*	$	0.10	$	0.09625	$	0.00375
* Shares and per share data have been restated to reflect a 2-for-1 stock split payable June 1, 2005

Consolidated Statements of Income (Unaudited)
For the 12 months ending December 31, 2005 and 2004

	Year-to-date
(in thousands, except per share data)		2005		2004		Change
Operating Revenues
Oil and gas operations	$	527,694	$	410,117	$	117,577
Natural gas distribution		600,700		526,740		73,960
Total operating revenues		1,128,394		936,857		191,537
Operating Expenses
Cost of gas		315,622		259,889		55,733
Operations & maintenance		268,727		234,150		34,577
DD&A		131,691		120,777		10,914
Taxes, other than income taxes		93,983		74,933		19,050
Accretion expense		2,647		2,265		382
Total operating expenses		812,670		692,014		120,656
Operating Income		315,724		244,843		70,881
Other Income (Expense)
Interest expense		(46,800)		(42,743)		(4,057)
Other income		2,163		2,945		(782)
Other expense		(710)		(2,215)		1,505
Total other expense		(45,347)		(42,013)		(3,334)
Income Before Income Taxes		270,377		202,830		67,547
Income tax expense		97,491		75,525		21,966
Income from Continuing Operations		172,886		127,305		45,581
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		(6)		163		(169)
Gain (loss) on disposal		132		(5)		137
Income (Loss) from Discontinued Operations		126		158		(32)
Net Income	$	173,012	$	127,463	$	45,549
Diluted Earnings Per Share*
Continuing operations	$	2.35	$	1.74	$	0.61
Discontinued operations		-		-		-
Net Income	$	2.35	$	1.74	$	0.61
Basic Earnings Per Share*
Continuing operations	$	2.37	$	1.75	$	0.62
Discontinued operations		-		0.01		(0.01)
Net Income	$	2.37	$	1.76	$	0.61
Diluted Avg. Common Shares Outstanding*		73,715		73,117		598
Basic Avg. Common Shares Outstanding*		73,052		72,547		505
Dividends Per Share*	$	0.40	$	0.3775	$	0.0225
* Shares and per share data have been restated to reflect a 2-for-1 stock split payable June 1, 2005

Selected Business Segment Data (Unaudited) For the 3 months ending December 31, 2005 and 2004
	4th Quarter
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	118,548	$	76,119	$	42,429
Oil		32,968		28,147		4,821
Natural gas liquids		9,936		8,682		1,254
Other		2,675		1,631		1,044
Total	$	164,127	$	114,579	$	49,548
Production volumes from continuing operations
Natural gas (MMcf)		15,177		15,101		76
Oil (MBbl)		836		876		(40)
Natural gas liquids (MMgal)		18.1		17.9		0.2
Production volumes from continuing ops. (MMcfe)		22,773		22,914		(141)
Total production volumes (MMcfe)		22,796		22,922		(126)
Revenue per unit of production from continuing operations
Natural gas (Mcf)	$	7.81	$	5.04	$	2.77
Oil (barrel)	$	39.43	$	32.12	$	7.31
Natural gas liquids (gallon)	$	0.55	$	0.49	$	0.06
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	28,730	$	20,893	$	7,837
Production taxes		16,721		11,030		5,691
Total	$	45,451	$	31,923	$	13,528
Depreciation, depletion and amortization	$	22,323	$	21,931	$	392
Capital expenditures	$	220,741	$	43,943	$	176,798
Exploration expense	$	108	$	193	$	(85)
Operating income	$	87,163	$	52,058	$	35,105
Natural Gas Distribution
Operating revenues
Residential	$	108,025	$	73,065	$	34,960
Commercial and industrial - small		50,345		30,994		19,351
Transportation		10,639		10,905		(266)
Other		1,945		1,668		277
Total	$	170,954	$	116,632	$	54,322
Gas delivery volumes (MMcf)
Residential		5,608		4,639		969
Commercial and industrial - small		3,001		2,477		524
Transportation		12,216		13,813		(1,597)
Total		20,825		20,929		(104)
Other data
Depreciation and amortization	$	10,627	$	10,428	$	199
Capital expenditures	$	19,714	$	16,118	$	3,596
Operating income	$	11,914	$	9,742	$	2,172
Selected Business Segment Data (Unaudited) For the 12 months ending December 31, 2005 and 2004

	Year-to-date
(in thousands, except sales price data)		2005		2004		Change
Oil and Gas Operations
Operating revenues from continuing operations
Natural gas	$	365,635	$	276,482	$	89,153
Oil		116,651		98,409		18,242
Natural gas liquids		38,455		30,902		7,553
Other		6,953		4,324		2,629
Total	$	527,694	$	410,117	$	117,577
Production volume from continuing operations
Natural gas (MMcf)		61,048		57,164		3,884
Oil (MBbl)		3,316		3,434		(118)
Natural gas liquids (MMgal)		70.5		68.2		2.3
Production volumes from continuing ops. (MMcfe)		91,020		87,513		3,507
Total production volumes (MMcfe)		91,099		87,606		3,493
Revenue per unit of production from continuing operations
Natural gas (Mcf)	$	5.99	$	4.84	$	1.15
Oil (barrel)	$	35.18	$	28.66	$	6.52
Natural gas liquids (gallon)	$	0.55	$	0.45	$	0.10
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	104,241	$	79,191	$	25,050
Production taxes		52,271		37,285		14,986
Total	$	156,512	$	116,476	$	40,036
Depreciation, depletion and amortization	$	89,340	$	80,896	$	8,444
Capital expenditures	$	353,712	$	403,936	$	(50,224)
Exploration expense	$	676	$	2,100	$	(1,424)
Operating income	$	243,876	$	180,379	$	63,497
Natural Gas Distribution
Operating revenues
Residential	$	384,753	$	340,229	$	44,524
Commercial and industrial - small		166,957		138,686		28,271
Transportation		43,291		40,221		3,070
Other		5,699		7,604		(1,905)
Total	$	600,700	$	526,740	$	73,960
Gas delivery volumes (MMcf)
Residential		24,601		25,383		(782)
Commercial and industrial - small		12,498		12,323		175
Transportation		49,850		54,385		(4,535)
Total		86,949		92,091		(5,142)
Other data
Depreciation and amortization	$	42,351	$	39,881	$	2,470
Capital expenditures	$	73,276	$	58,208	$	15,068
Operating income	$	72,920	$	66,199	$	6,721