-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, X2tjtC9ko57oa8VKHROy8XXoUJG9EXdx8S0i3Vx7l0rrA6xRorTrdaRDLcrHoKVD 51t9Z/gEwGnKk8U+2JBLfw== 0000277595-94-000005.txt : 19940216 0000277595-94-000005.hdr.sgml : 19940216 ACCESSION NUMBER: 0000277595-94-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENERGEN CORP CENTRAL INDEX KEY: 0000277595 STANDARD INDUSTRIAL CLASSIFICATION: 4924 IRS NUMBER: 630757759 STATE OF INCORPORATION: AL FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 34 SEC FILE NUMBER: 001-07810 FILM NUMBER: 94507829 BUSINESS ADDRESS: STREET 1: 2101 SIXTH AVE N CITY: BIRMINGHAM STATE: AL ZIP: 35203 BUSINESS PHONE: 2053262700 FORMER COMPANY: FORMER CONFORMED NAME: ALAGASCO INC DATE OF NAME CHANGE: 19851002 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA GAS CORP CENTRAL INDEX KEY: 0000003146 STANDARD INDUSTRIAL CLASSIFICATION: 4924 IRS NUMBER: 63022000 STATE OF INCORPORATION: AL FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 34 SEC FILE NUMBER: 002-38960 FILM NUMBER: 94508036 BUSINESS ADDRESS: STREET 1: 2101 SIXTH AVE NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35203 BUSINESS PHONE: 2053268100 10-Q 1 10-Q 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 DECEMBER 31, 1993 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 2101 Sixth Avenue North Birmingham, Alabama 35203 Telephone Number 205/326-2700 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 February 7, 1994: Energen Corporation, $0.01 par value 10,916,871 shares Alabama Gas Corporation, $0.01 par value 1,972,052 shares Energen Corporation and Alabama Gas Corporation Form 10-Q for the Quarter Ended December 31, 1993 INDEX Page No. PART I. Financial Information (Unaudited) Item 1. Financial Statements (a) Consolidated Statements of Income of Energen Corporation 4 (b) Consolidated Balance Sheets of Energen Corporation 5-6 (c) Consolidated Statements of Cash Flows of Energen Corporation 7 (d) Statements of Income of Alabama Gas Corporation 8 (e) Balance Sheets of Alabama Gas Corporation 9-10 (f) Statements of Cash Flows of Alabama Gas Corporation 11 (g) Notes to Unaudited Financial Statements 12-13 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14-16 Selected Business Segment Data of Energen Corporation 17 PART II. Other Information Item 6. Exhibits and Reports on Form 8-K 18 SIGNATURES 20 (This page intentionally left blank.) PART I. FINANCIAL INFORMATION Item 1. Financial Statements CONSOLIDATED STATEMENTS OF INCOME Energen Corporation and Subsidiaries (Unaudited)
Three Months Ended December 31, 1993 1992 (in thousands, except per share data) Operating Revenues Natural gas distribution $ 78,993 $ 76,866 Oil and gas production activities 6,201 4,905 Other 5,248 4,266 Intercompany eliminations (2,523) (1,929) Total operating revenues 87,919 84,108 Operating Expenses Cost of gas 43,374 43,906 Operations 23,143 20,281 Maintenance 2,251 2,167 Depreciation, depletion and amortization 6,711 5,971 Taxes, other than income taxes 6,727 6,417 Total operating expenses 82,206 78,742 Operating Income 5,713 5,366 Other Income (Expense) Interest expense, net of amounts capitalized (2,922) (2,592) Dividends on preferred stock of subsidiary - (21) Other, net 196 406 Total other income (expense) (2,726) (2,207) Income Before Income Taxes 2,987 3,159 Income taxes 687 489 Net Income $ 2,300 $ 2,670 Earnings Per Average Common Share $ 0.22 $ 0.26 Dividends Per Common Share $ 0.27 $ 0.26 Average Common Shares Outstanding 10,587 10,184 The accompanying Notes are an integral part of these statements.
CONSOLIDATED BALANCE SHEETS Energen Corporation and Subsidiaries
December 31, September 30, 1993 1993 (Unaudited) (In thousands) ASSETS Property, Plant and Equipment Utility plant $ 434,148 $ 429,115 Less accumulated depreciation 220,047 215,892 Utility plant, net 214,101 213,223 Oil and gas properties, successful efforts method 87,743 86,077 Less accumulated depreciation, depletion and amortization 36,829 35,150 Oil and gas properties, net 50,914 50,927 Other property, net 8,658 8,947 Total property, plant and equipment, net 273,673 273,097 Current Assets Cash and cash equivalents 4,984 15,008 Accounts receivable, net of allowance for doubtful accounts of $1,939 at December 31, 1993 and $1,927 at September 30, 1993 51,771 36,181 Inventories, at average cost Storage gas 22,313 - Materials and supplies 8,652 8,957 Liquified natural gas in storage 3,829 3,636 Deferred gas costs 15,677 2,966 Deferred income taxes 4,134 4,090 Prepayments and other 2,343 4,034 Total current assets 113,703 74,872 Other Assets Notes receivable 5,924 6,798 Deferred charges and other 12,085 15,918 Total other assets 18,009 22,716 TOTAL ASSETS $ 405,385 $ 370,685 The accompanying Notes are an integral part of these statements.
CONSOLIDATED BALANCE SHEETS Energen Corporation and Subsidiaries
December 31, September 30, 1993 1993 (Unaudited) (In thousands) CAPITAL AND LIABILITIES Capitalization Preferred stock, cumulative, $0.01 par value, 5,000,000 shares authorized $ - $ - Common shareholders' equity Common stock, $0.01 par value; 30,000,000 shares authorized, 10,916,412 shares outstanding at December 31, 1993 and 10,320,317 shares outstanding at September 30, 1993 109 103 Premium on capital stock 81,082 66,368 Capital surplus 2,802 2,802 Retained earnings 70,546 71,040 Total common shareholders' equity 154,539 140,313 Long-term debt 104,173 85,852 Total capitalization 258,712 226,165 Current Liabilities Long-term debt due within one year 4,673 5,043 Notes payable to banks 28,000 40,000 Accounts payable 38,524 27,609 Accrued taxes 12,006 9,656 Customers' deposits 17,131 16,719 Amounts due customers 6,248 5,105 Accrued wages and benefits 7,773 8,054 Other 13,775 13,232 Total current liabilities 128,130 125,418 Deferred Credits and Other Liabilities Deferred income taxes 864 480 Accumulated deferred investment tax credits 4,956 5,077 Other 12,723 13,545 Total deferred credits and other liabilities 18,543 19,102 Commitments and Contingencies - - TOTAL CAPITAL AND LIABILITIES $ 405,385 $ 370,685 The accompanying Notes are an integral part of these statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS Energen Corporation and Subsidiaries (Unaudited)
Three Months Ended December 31, 1993 1992 (In thousands) Operating Activities Net income $ 2,300 $ 2,670 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 6,711 5,971 Deferred income taxes, net 212 68 Deferred investment tax credits, net (121) (132) Gain on sale of equity securities (1,375) - Net change in: Accounts receivable (15,590) (16,435) Inventories (22,201) 1,057 Accounts payable 10,915 25,036 Other current assets and liabilities (6,853) (9,378) Other, net (98) 365 Net cash provided by (used in) operating activities (26,100) 9,222 Investing Activities Additions to property, plant and equipment (7,193) (16,310) Proceeds from sale of equity securities 3,305 - Payments on notes receivable 693 419 Other, net 1,569 140 Net cash used in investing activities (1,626) (15,751) Financing Activities Payment of dividends on common stock (2,795) (2,648) Issuance of common stock 14,721 85 Reduction of long-term debt and preferred stock of subsidiary (8,899) (1,242) Proceeds from issuance of medium-term notes 26,675 - Net change in short-term debt (12,000) 7,000 Net cash provided by financing activities 17,702 3,195 Net change in cash and cash equivalents (10,024) (3,334) Cash and cash equivalents at beginning of period 15,008 10,303 Cash and cash equivalents at end of period $ 4,984 $ 6,969 The accompanying Notes are an integral part of these statements.
STATEMENTS OF INCOME Alabama Gas Corporation (Unaudited)
Three Months Ended December 31, 1993 1992 (In thousands, except per share data) Operating Revenues $ 78,993 $ 76,866 Operating Expenses Cost of gas 44,610 45,289 Operations 18,248 16,259 Maintenance 2,153 2,052 Depreciation 4,427 4,262 Income taxes Current 361 360 Deferred, net (32) 48 Deferred investment tax credits, net (122) (132) Taxes, other than income taxes 6,403 6,175 Total operating expenses 76,048 74,313 Operating Income 2,945 2,553 Other Income Allowance for funds used during construction 76 17 Other, net (208) 183 Total other income (132) 200 Interest Charges Interest on long-term debt 1,419 1,523 Other interest expense 698 345 Total interest charges 2,117 1,868 Net Income 696 885 Less cash dividends on cumulative preferred stock - 21 Net Income Available for Common $ 696 $ 864 The accompanying Notes are an integral part of these statements.
BALANCE SHEETS Alabama Gas Corporation
December 31, September 30, 1993 1993 (Unaudited) (In thousands) ASSETS Property, Plant and Equipment Utility plant $ 434,148 $ 429,115 Less accumulated depreciation 220,047 215,892 Utility plant, net 214,101 213,223 Other property, net 82 83 Current Assets Cash 1,921 480 Accounts receivable Gas 38,252 23,563 Merchandise 1,354 1,256 Other 1,006 1,011 Allowance for doubtful accounts (1,800) (1,800) Inventories, at average cost Storage gas 22,313 - Materials and supplies 5,767 5,851 Liquified natural gas in storage 3,829 3,636 Deferred gas costs 15,677 2,966 Deferred income taxes 2,587 2,587 Prepayments and other 2,149 2,520 Total current assets 93,055 42,070 Deferred Charges and Other Assets 8,804 9,172 TOTAL ASSETS $ 316,042 $ 264,548 The accompanying Notes are an integral part of these statements.
BALANCE SHEETS Alabama Gas Corporation
December 31, September 30, 1993 1993 (Unaudited) (In thousands) CAPITAL AND LIABILITIES Capitalization Common shareholder's equity Common stock, $0.01 par value; 3,000,000 shares authorized, 1,972,052 shares outstanding in 1993 and 1992 $ 20 $ 20 Premium on capital stock 31,682 21,682 Capital surplus 2,802 2,802 Retained earnings 72,787 74,886 Total common shareholder's equity 107,291 99,390 Cumulative preferred stock, $0.01 par value, 120,000 shares authorized, issuable in series - $4.70 Series - - Long-term debt 62,833 43,912 Total capitalization 170,124 143,302 Current Liabilities Long-term debt due within one year 2,823 3,193 Notes payable to banks 28,000 29,000 Accounts payable Other 35,366 18,772 Affiliated companies 6,925 1,252 Accrued taxes 10,869 8,960 Customers' deposits 17,129 16,717 Supplier refunds due customers 792 740 Other amounts due customers 5,456 4,365 Accrued wages and benefits 4,758 5,261 Other 5,802 4,821 Total current liabilities 117,920 93,081 Deferred Credits and Other Liabilities Deferred income taxes 12,512 12,416 Accumulated deferred investment tax credits 4,956 5,077 Regulatory liability 7,543 7,717 Customer advances for construction and other 2,987 2,955 Total deferred credits and other liabilities 27,998 28,165 Commitments and Contingencies - - TOTAL CAPITAL AND LIABILITIES $ 316,042 $ 264,548 The accompanying Notes are an integral part of these statements.
STATEMENTS OF CASH FLOWS Alabama Gas Corporation (Unaudited)
Three Months Ended December 31, 1993 1992 (in thousands) Operating Activities Net income $ 696 $ 885 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,427 4,262 Deferred income taxes, net (32) 48 Deferred investment tax credits (122) (132) Net change in: Accounts receivable (14,869) (15,725) Inventories (22,422) (118) Accounts payable 15,342 23,472 Other current assets and liabilities (8,398) (10,382) Other, net 461 161 Net cash provided by (used in) operating activities (24,917) 2,471 Investing Activities Additions to property, plant and equipment (5,214) (3,426) Net advances from holding company 87 - Other, net (21) (37) Net cash used in investing activities (5,148) (3,463) Financing Activities Payment of dividends on common stock (2,795) (2,650) Payment of dividends on preferred stock - (21) Reduction of long-term debt and preferred stock (8,299) (442) Proceeds from issuance of medium-term notes 26,675 - Proceeds from equity infusion from parent 10,000 - Net advances from (to) affiliates 6,925 (2,476) Net change in short-term debt (1,000) 7,000 Net cash provided by financing activities 31,506 1,411 Net change in cash 1,441 419 Cash at beginning of period 480 2,394 Cash at end of period $ 1,921 $ 2,813 The accompanying Notes are an integral part of these statements.
Energen Corporation and Alabama Corporation Notes to Unaudited Financial Statements 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 only of normal recurring items. The consolidated financial statements and notes thereto should be read in conjunction with the financial statements and notes for the years ended September 30, 1993, 1992, and 1991 included in the 1993 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 primary 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. Change in Accounting Method The Company adopted SFAS No. 106, Employers' Accounting for Postretirement Benefits Other than Pensions, with respect to the accrual of such costs for all employees under labor union agreements effective for the year beginning October 1, 1993. The Company adopted SFAS No. 106 with respect to salaried employees in a prior year. There is no cumulative effect on the income statement resulting from the adoption of SFAS No. 106 as the Company has elected to amortize transition costs over a twenty year period. The Company funds its accrued postretirement benefit liability on a quarterly basis in the month following each quarter end. The expense for the plan covering employees under labor union agreements for the year ended September 30, 1994 is expected to be $3,709,000. The "projected unit credit" actuarial method was used to determine the normal cost and actuarial liability. A reconciliation of the estimated status of the obligation is as follows (in thousands): Three Months Ended December 31, 1993 Accumulated postretirement benefit $ (26,007) Plan assets 10 Unamortized amounts 25,372 Accrued post-employment benefit liability $ (625) Net periodic postretirement benefit cost for the quarter ended December 31, 1993 includes the following (in thousands): Three Months Ended December 31, 1993 Service cost $ 126 Interest cost on accumulated postretirement benefit obligation 480 Amortization of transition obligation 321 Amortization of actuarial gains and losses - Expected return on plan assets - Net periodic postretirement benefit expense $ 927 The weighted average health care cost trend rate used in determining the accumulated postretirement benefit obligation was 8.0 percent. That assumption has a significant effect on the amounts reported. To illustrate, increasing the weighted average health care cost trend rate by 1.0 percent would increase the accumulated postretirement benefit obligation by 8.7 percent and the net periodic benefit cost by 8.5 percent. The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 7.5 percent. On December 6, 1993, the Alabama Public Service Commission adopted Order 4-3454, which allows the Company to recover all costs accrued under SFAS No. 106 through rates. 3. Regulatory As a public utility in the state of Alabama, Alagasco is subject to regulation by the Alabama Public Service Commission (APSC), which has adopted several innovative approaches to rate regulation, including Alabama's Rate Stabilization and Equalization (RSE) rate- setting process. Implemented in 1983 and modified in 1985, 1987, and 1990, RSE replaces the traditional utility rate case with APSC- monitored periodic rate adjustments presently designed to give Alagasco the opportunity to earn an average return on equity (ROE) at its fiscal year-end within a specified range. Under Alagasco's current RSE order, which became effective December 1990, Alagasco's allowed ROE range is 13.15 percent to 13.65 percent. The APSC conducts quarterly reviews to determine, based on Alagasco's budget and fiscal year-to-date performance, whether Alagasco's projected ROE for the fiscal year will be within the allowed range. Reductions in rates can be made quarterly to bring the projected ROE within the allowed range. Increases, however, are permitted only once each fiscal year effective on December 1, and cannot exceed 4 percent of prior-year revenues. RSE limits Alagasco's equity upon which a return is permitted to 60 percent of total capitalization and provides for a cost control measure designed to monitor Alagasco's operations and maintenance (O & M) expense. If increases in O & M expense per customer fall within 1.25 percent above or below the Consumer Price Index for all Urban Customers (index range), no adjustment is required. If, however, increases in O & M expense per customer exceed the index range, three-fourths of the difference is returned to customers. To the extent increases in O & M expense per customer are less than the index range, Alagasco will benefit by one-half of the difference through future rate adjustments. Effective December 15, 1990, the APSC approved a temperature adjustment to customers' monthly bills to mitigate the effect of departures from normal temperature on Alagasco's earnings. The calculation is performed monthly and adjusted on customer's bills in the actual month the weather variation occurs. Under RSE as extended, a $.5 million annual decrease in revenue became effective October 1, 1993, and a $7.2 million annual increase in revenue became effective December 1, 1993. 4. Supplemental Cash Flow Information Energen Corporation Three months ended December 31, (in thousands) 1993 1992 Interest paid, net of amounts capitalized $ 3,753 $ 4,065 Income taxes paid $ 158 $ 793 Noncash investing activities (capitalized depreciation and allowance for funds used during construction) $ 122 $ 62 Noncash financing activities (debt issuance costs) $ 175 $ - Alabama Gas Corporation Three months ended December 31, (in thousands) 1993 1992 Interest paid $ 3,361 $ 3,489 Income taxes paid $ (185) $ 243 Noncash investing activities (capitalized depreciation and allowance for funds used during construction) $ 122 $ 62 Noncash financing activities (debt issuance costs) $ 175 $ - Item 2. Managements's Discussion and Analysis of Financial Condition and Results of Operations Consolidated net income for the first quarter was $2,300,000 ($0.22 per share) compared to $2,670,000 ($0.26 per share) in the prior year. The slight decline in the current quarter is due primarily to a decreased contribution from the Company's exploration and production subsidiary, Taurus Exploration, Inc., (Taurus). Taurus's, $.4 million decrease in earnings in the current quarter was primarily attributable to the absence of coalbed methane drilling fees due to the expiration of the tax credit qualifying deadline on December 31, 1992; to decreased consulting fees; and to decreased recognition of tax credits on an interim basis. The contribution from Alabama Gas Corporation (Alagasco), the Company's natural gas utility, remained virtually the same as that of the prior year. Net income from the Company's other activities increased slightly due primarily to increased propane margins and merchandising sales. Natural gas revenues increased three percent in the current quarter primarily due to the pass through of increased gas cost partially offset by decreased sales to core customers. Oil and gas revenues increased 26 percent for the quarter primarily due to a 54 percent increase in oil and gas production volumes partially offset by reduced consulting fees following the conclusion of a major consulting contract. The average sales price of gas this quarter was $2.02 per Mcf compared with $1.92 per Mcf in the prior year. The average sales price of oil this quarter was $14.94 per barrel compared with $18.40 per barrel in the prior year. Taurus's sales contracts are largely tied to the spot market and are sensitive to price fluctuations inherent therein. To hedge its exposure to such price fluctuations on oil and gas production, Taurus periodically enters into futures contracts. Under this program, Taurus has entered into futures contracts for the sale of 5.3 Bcf of its gas production with an average contract price of $1.95, and for the sale of 36,000 barrels of its oil production at an average contract price of $20.30 over the remainder of this fiscal year. Taurus plans to extend its hedging program into fiscal 1995. Other revenues for the quarter were higher by $1 million due to increased merchandise sales. The cost of gas remained virtually unchanged. Increases due to purchased volumes were offset by an overall decrease in the unit cost of purchased gas. Operations and maintenance expense increased 13 percent in the first quarter primarily due to increased labor and related expenses at Alagasco and decreased drilling fees and overhead reimbursements at Taurus. Depreciation expense increased 12 percent in the current quarter due primarily to increased oil and gas production at Taurus and normal plant growth at Alagasco. The Company's expense for taxes other than income taxes primarily reflects various state and local business taxes paid by Alagasco as well as various payroll-related taxes. The state and local business taxes are generally based on gross receipts of Alagasco and fluctuate accordingly. Alagasco's higher average short-term debt outstanding (associated with the current year purchase of storage gas inventory) together with the effect of the $15.0 million unsecured notes issued in the third quarter of the prior fiscal year combined to create a 13 percent increase in interest expense in the current quarter. Other income decreased in the current quarter primarily due to redemption fees incurred related to the current year refinancing. Income tax expense for the quarter increased over the prior year due to decreased recognition of nonconventional fuel tax credits on an interim basis. The Company anticipates effective tax rates to remain lower than statutory rates through the year 2002 as it expects to recognize all tax credits generated for financial statement purposes. As previously discussed, the Company's business is seasonal in character and influenced by weather conditions. Results of operations for the interim periods are not necessarily indicative of the results that may be expected for the fiscal year. Liquidity and Capital Resources Net cash provided by operating activities decreased $35.3 million in the current year and is due largely to the purchase of storage gas by Alagasco during the current year in connection with the implementation of Order 636. Fluctuations in accounts receivable and payable are generally the result of timing of payments. Net cash provided by investing activities increased $14.1 million over the prior year. The most significant factor contributing to the increase was the current year reduction in capital expenditures. Capital expenditures for the prior year included the Company's investment of approximately $13.0 million in conventional producing properties following the 1992 sale of nonconventional properties. Also contributing to the increase were proceeds of $3.3 million resulting from the sale of equity securities. The increase in net cash provided by financing activities of $14.5 million is attributable to several occurrences in the first quarter of the current year. The issuance of 550,000 shares of Energen common stock in November of 1993 resulted in proceeds of approximately $13.5 million which were used primarily to help fund the purchase of storage gas. Alagasco also issued $26.8 million of medium-term notes which offered investors a combination of interest rates and investment periods ranging from 5.6 percent to 7.2 percent for notes redeemable December 1, 1998, to December 15, 2023. Alagasco used proceeds from these notes to fund the balance of the storage investment, redeem its 8.75 percent debentures, reduce its short-term debt outstanding and to fund additional capital needs. Subsequent to December 31, 1993, Alagasco has issued an additional $23.2 million in medium-term notes with interest rates ranging from 5.4 percent to 7.2 percent and maturities of January 15, 1999 to January 13, 2014. Net proceeds will be used primarily to repay short-term debt. Energen has short-term credit facilities totaling $110 million available for working capital needs, with $28 million and $27 million outstanding at December 31,1993 and 1992, respectively. CAPITAL EXPENDITURES: Capital and exploration expenditures could approximate $52 million in 1994, excluding municipal gas system acquisitions, and primarily will be used to fund normal distribution system expansion and the development of a new customer information system at Alagasco, and oil and gas development activities. The Company anticipates funding these capital expenditures through internally generated capital and the utilization of short-term credit facilities. In addition to the capital expenditures, the Company will maintain an investment in storage working gas which is anticipated to average $26.0 million. Energen Corporation Selected Business Segment Data
Three Months Ended December 31, 1993 1992 Natural Gas Distribution Operating revenues (in thousands) Residential $ 51,598 $ 50,437 Commercial and industrial - small 19,112 19,303 Commercial and industrial - large 23 276 Transportation 7,808 7,278 Other 452 (428) Total $ 78,993 $ 76,866 Volumes sold and transported (thousands of Mcf) Residential 6,932 7,271 Commercial and industrial - small 3,073 3,309 Commercial and industrial - large 5 78 Transportation 13,168 12,986 Total 23,178 23,644 Other data (in thousands) Depreciation and amortization $ 4,427 $ 4,262 Capital expenditures $ 5,336 $ 3,487 Operating income $ 3,152 $ 2,829 Oil and Gas Exploration and Production Operating revenues (in thousands) Natural gas $ 4,019 $ 2,377 Oil 812 791 Other 1,370 1,737 Total $ 6,201 $ 4,905 Sales volume - natural gas (thousands of Mcf) 1,991 1,241 Sales volume - oil (thousands of barrels) 54 43 Average sales price - natural gas (per Mcf) $ 2.02 $ 1.92 Average sales price - oil (per barrel) $ 14.94 $ 18.40 Other data (in thousands) Depreciation, depletion and amortization $ 1,955 $ 1,428 Capital expenditures $ 1,833 $ 12,803 Exploration expenditures $ 55 $ 96 Operating income (loss) $ 2,098 $ 2,308 Other Businesses (in thousands) Operating revenues $ 5,248 $ 4,266 Depreciation and amortization $ 329 $ 281 Capital expenditures $ 146 $ 82 Operating income $ 774 $ 542 Eliminations and Corporate Expenses (in thousands) Operating loss $ (311) $ (313)
PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits * 4 Indenture dated as of November 1, 1993, between Alabama Gas Corporation and Nations Bank of Georgia, National Association, Trustee, which was filed as Exhibit 4(k) to Alabama Gas' Amendment #1 to Registration Statement on Form S-3 (Registration No. 33-70466). * Incorporated by Reference (b) Reports on Form 8-K No reports on Form 8-K were filed for the three months ended December 31, 1993. 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 February 14, 1994 By /s/ Rex J. Lysinger Date Rex J. Lysinger Chairman of the Board and Chief Executive Officer February 14, 1994 By /s/ G. C. Ketcham Date G. C. Ketcham Executive Vice President, Chief Financial Officer and Treasurer February 14, 1994 By /s/ J. T. McManus Date J. T. McManus Vice President-Finance and Corporate Development of Energen and Vice President-Finance and Planning of Alagasco -----END PRIVACY-ENHANCED MESSAGE-----