LONG-TERM DEBT AND NOTES PAYABLE

Long-term debt consisted of the following:



(in thousands)	December 31, 2013		December 31, 2012

Energen Corporation:
Medium-term Notes, Series A and B, interest ranging from 7.125% to 7.6%, for notes due July 24, 2017 to February 15, 2028	$	154,000	$	154,000
5% Notes	—		50,000
4.625% Notes, due September 1, 2021	400,000		400,000
Senior Term Loans, (floating rate interest LIBOR plus 1.625%; 1.792% at December 31, 2013), due March 31, 2014 to December 17, 2017	600,000		—
Senior Term Loans, (floating rate interest LIBOR plus 1.375%)	—		300,000
Alabama Gas Corporation:
5.20% Notes, due January 15, 2020	40,000		40,000
5.70% Notes, due January 15, 2035	34,923		35,028
5.368% Notes, due December 1, 2015	80,000		80,000
5.90% Notes, due January 15, 2037	45,000		45,000
3.86% Notes, due December 21, 2021	50,000		50,000
Total	1,403,923		1,154,028
Less amounts due within one year	60,000		50,000
Less unamortized debt discount	459		500
Total	$	1,343,464	$	1,103,528

The aggregate maturities of Energen’s long-term debt for the next five years are as follows:



Years ending December 31, (in thousands)
2014	2015	2016	2017	2018
$60,000	$140,000	$60,000	$439,000	—

The aggregate maturities of Alagasco’s long-term debt for the next five years are as follows:



Years ending December 31, (in thousands)
2014	2015	2016	2017	2018
—	$80,000	—	—	—

In December 2013, the Company issued $600 million in Senior Term Loans (Senior Term Loans) with a floating interest rate due March 31, 2014 through December 17, 2017. The Company used the long-term debt proceeds to repay the Senior Term Loans of $300 million issued in November 2011 and to repay short-term obligations under its syndicated credit facility.

At December 31, 2013, the Company had interest rate swap agreements with a notional of $200 million. The interest rate swaps exchange a variable interest rate for a fixed interest rate of 2.6675 percent. The fair value of the Company’s interest rate swap was a $1.8 million and a $3.3 million liability at December 31, 2013 and 2012, respectively, and is classified as a Level 2 fair value liability. The fair value of the Company’s interest rate swap is recognized on a gross basis on the consolidated balance sheet.

The long-term debt and short-term debt agreements of Energen and Alagasco 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 covenants or events of default based on credit ratings, the interest rates applicable to the Senior Term Loans and the Energen and Alagasco syndicated credit facilities discussed below may adjust based on credit rating changes. All of the Company’s debt is unsecured.

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, Alagasco or Energen Resources will constitute an event of default by Energen. Under Alagasco’s Indenture dated November 1, 1993 with The Bank of New York as Trustee, a cross default provision provides that any debt default by Alagasco of more than $10 million will constitute an event of default by Alagasco. Neither Indenture includes a restriction on the payment of dividends.

Energen and Alagasco Credit Facilities: On October 30, 2012, Energen and Alagasco entered into $1.25 billion and $100 million, respectively, five-year syndicated unsecured credit facilities (syndicated credit facilities) with domestic and foreign lenders. Borrowings under these credit facilities are subject to the execution of individual note agreements each with maturity dates of less than one year. Accordingly, outstanding amounts due under these credit facilities are classified as short term obligations in the accompanying consolidated financial statements. Alagasco has been authorized by the APSC to borrow up to $200 million at any one time under the short-term credit facilities.

Energen’s obligations under the $1.25 billion syndicated credit facility are unconditionally guaranteed by Energen Resources. The financial covenants of the Energen credit facility limit Energen to a maximum consolidated debt to capitalization ratio of no more than 65 percent as of the end of any fiscal quarter. Energen may not pay dividends during an event of default or if the payment would result in an event of default.

Similarly, the financial covenants of the Alagasco credit facility limit Alagasco to a maximum consolidated debt to capitalization ratio of no more than 65 percent as of the end of any fiscal quarter. Alagasco may not pay dividends during an event of default or if the payment would result in an event of default.

Under the Energen credit facility, a cross default provision provides that any debt default of more than $50 million by Energen, Alagasco or Energen Resources will constitute an event of default by Energen. Under Alagasco’s credit facility, a cross default provision provides that any debt default by Alagasco of more than $50 million will constitute an event of default by Alagasco.

Upon an uncured event of default under either of the credit facilities, all amounts owing under the defaulted 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 and Alagasco were in compliance with the terms of their respective credit facilities as of December 31, 2013.

The following is a summary of information relating to the credit facilities:



(in thousands)	December 31, 2013			December 31, 2012
Energen outstanding	$	489,000		$	566,000
Alagasco outstanding	50,000			77,000
Notes payable to banks	539,000			643,000
Available for borrowings	811,000			707,000
Total	$	1,350,000		$	1,350,000
Energen maximum amount outstanding at any month-end	$	901,000		$	643,000
Energen average daily amount outstanding	$	804,895		$	331,068
Energen weighted average interest rates based on:
Average daily amount outstanding	1.38		%	1.82		%
Amount outstanding at year-end	1.32		%	1.35		%
Alagasco maximum amount outstanding at any month-end	$	75,000		$	77,000
Alagasco average daily amount outstanding	$	35,027		$	21,254
Alagasco weighted average interest rates based on:
Average daily amount outstanding	1.12		%	1.44		%
Amount outstanding at year-end	1.26		%	1.11		%

Energen’s total interest expense was $69.2 million, $65.5 million and $44.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. Energen’s total interest expense for the years ended December 31, 2013 and 2012 included capitalized interest expense of $0.2 million and $0.5 million. Total interest expense for Alagasco was $15.6 million, $16.3 million and $14.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013, Energen and Alagasco paid commitment fees on the unused portion of available credit facilities ranging from 15 to 25 basis points per annum.