LONG-TERM DEBT AND NOTES PAYABLE

Long-term debt consisted of the following:



(in thousands)	March 31, 2015		December 31, 2014
Credit facility	$	685,000	$	485,000
7.40% Medium-term Notes, Series A, due July 24, 2017	2,000		2,000
7.36% Medium-term Notes, Series A, due July 24, 2017	15,000		15,000
7.23% Medium-term Notes, Series A, due July 28, 2017	2,000		2,000
7.32% Medium-term Notes, Series A, due July 28, 2022	20,000		20,000
7.60% Medium-term Notes, Series A, due July 26, 2027	5,000		5,000
7.35% Medium-term Notes, Series A, due July 28, 2027	10,000		10,000
7.125% Medium-term Notes, Series B, due February 15, 2028	100,000		100,000
4.625% Notes, due September 1, 2021	400,000		400,000
	1,239,000		1,039,000
Less unamortized debt discount	431		437
Total Energen	$	1,238,569	$	1,038,563

The aggregate maturities of Energen’s long-term debt outstanding at March 31, 2015 are as follows:



(in thousands)
Remaining 2015	2016	2017	2018	2019	2020 and thereafter
$—	$—	$19,000	$—	$685,000	$535,000

The debt agreements of Energen contain financial and nonfinancial covenants including routine matters such as timely payment of principal and interest, maintenance of corporate existence and restrictions on liens. Although none of the agreements have events of default based on credit ratings, the interest rates applicable to the syndicated credit facility discussed below may adjust based on credit rating changes during certain periods.

Under Energen’s Indenture dated September 1, 1996 with The Bank of New York as Trustee, a cross default provision provides that any debt default of more than $10 million by Energen or Energen Resources will constitute an event of default by Energen. The Indenture does not include a restriction on the payment of dividends.

Credit Facility: On September 2, 2014, Energen entered into a five-year syndicated secured credit facility with domestic and foreign lenders. Originally, the credit facility had an initial borrowing base of $2.1 billion and aggregate commitments of $1.5 billion. On November 17, 2014, the credit facility was amended to provide for $2.0 billion in aggregate commitments. On April 16, 2015, the borrowing base and aggregate commitments were reduced to $1.6 billion in association with the semi-annual redetermination required under the agreement. Energen’s obligations under the $1.6 billion syndicated credit facility are unconditionally guaranteed by Energen Resources. Subject to release of collateral in certain periods upon the achievement of certain investment grade ratings from designated ratings agencies, the credit facility is collateralized by certain assets of Energen, including a pledge of equity interests in subsidiaries of Energen other than Energen Resources, and by mortgages on substantially all of Energen Resources’ oil and natural gas properties. The current credit facility qualifies for classification as long-term debt on the consolidated balance sheets. The financial covenants of the credit facility require Energen to maintain a ratio of total debt to consolidated income before interest expense, income taxes, depreciation, depletion, amortization, exploration expense and other non-cash income and expenses (EBITDAX) less than or equal to 4.0 to 1.0; to maintain a ratio of consolidated current assets (adjusted to include amounts available for borrowings and exclude non-cash derivative instruments) to consolidated current liabilities (adjusted to exclude maturities under the credit facility and non-cash derivative instruments) greater than or equal to 1.0 to 1.0; and, during certain periods, to maintain a ratio of the net present value of proved reserves of our oil and natural gas properties to consolidated total debt greater than or equal to 1.50 to 1.0. We are also bound by covenants which limit our ability to incur additional indebtedness, make certain distributions or alter our corporate structure. Energen may not pay dividends during an event of default, if the payment would result in an event of default or if availability is less than 10 percent of the loan limit under the credit facility. Our credit facility also limits our ability to enter into commodity hedges based on projected production volumes. In addition, the terms of our credit facility limit the amount we can borrow to a borrowing base amount which is determined by our lenders in their sole discretion based on their valuation of our proved reserves and their internal criteria including commodity price outlook. The borrowing base amount is subject to redetermination semi-annually and for event-driven unscheduled redeterminations. Our next scheduled redetermination is October 1, 2015.

Under the credit facility, a cross default provision provides that any debt default of more than $75 million by Energen or Energen Resources will constitute an event of default by Energen.

Upon an uncured event of default under the credit facility, all amounts owing under the credit facility, if any, depending on the nature of the event of default will automatically, or may upon notice by the administrative agent or the requisite lenders thereunder, become immediately due and payable and the lenders may terminate their commitments under the defaulted facility. Energen was in compliance with the terms of its credit facility as of March 31, 2015.

The following is a summary of information relating to Energen’s credit facilities:



(in thousands)	April 16, 2015		December 31, 2014
Credit facility outstanding	$	685,000	$	485,000
Available for borrowings*	915,000		1,515,000
Total borrowing commitments*	$	1,600,000	$	2,000,000

*Available for borrowings reflect the decrease in borrowing commitments to $1.6 billion effective April 16, 2015. Borrowing commitments available at March 31, 2015 were $2.0 billion.



(in thousands)	March 31, 2015			December 31, 2014
Maximum amount outstanding at any month-end	$	685,000		$	750,000
Average daily amount outstanding	$	569,589		$	482,166
Weighted average interest rates based on:
Average daily amount outstanding	1.60		%	1.46		%
Amount outstanding at period-end	1.68		%	1.67		%

Energen’s interest expense was $11.8 million and $7.9 million for the three months ended March 31, 2015 and 2014, respectively. Energen’s total interest expense for the three months ended March 31, 2015 included capitalized interest expense of $32,000. Energen had no capitalized interest for the three months ended March 31, 2014. At March 31, 2015, Energen paid commitment fees on the unused portion of the available credit facilities at a current annual rate of 30 basis points. See Note 1, Organization and Basis of Presentation, for further information regarding interest on debt required to be extinguished, associated with the sale of Alagasco, which was classified to discontinued operations.