Stock Compensation

6 Months Ended

Jun. 30, 2012

Share-based Compensation [Abstract]

Stock Compensation

STOCK COMPENSATION

Stock Incentive Plan

The Stock Incentive Plan provides for the grant of incentive stock options, non-qualified stock options, or a combination thereof to officers and key employees. Options granted under the Stock Incentive Plan provide for the purchase of Company common stock at not less than the fair market value on the date the option is granted. The sale or transfer of the shares is limited during certain periods. All outstanding options vest within three years from date of grant and expire 10 years from the grant date. The Company granted 371,040 non-qualified option shares during the first quarter of 2012 with a grant-date fair value of $18.79.

Petrotech Incentive Plan

The Energen Resources’ Petrotech Incentive Plan provides for the grant of stock equivalent units. These awards are liability awards which settle in cash and are re-measured each reporting period until settlement. During the six months ended June 30, 2012, Energen Resources awarded 96,480, 3,768 and 40,822 Petrotech units with a three-year, two-year and 18 month vesting period, respectively. These awards have a fair value of $43.76, $44.30 and $44.58 per unit, respectively, as of June 30, 2012. In July 2012, Energen Resources awarded 5,869 Petrotech units with a three-year vesting period.

1997 Deferred Compensation Plan

During the three months and six months ended June 30, 2012, the Company had noncash purchases of approximately $35,000 and $118,000, respectively, of Company common stock in conjunction with tax withholdings on its non-qualified deferred compensation plan and other stock compensation. The Company utilized internally generated cash flows in payment of the related tax withholdings.