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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Line Items]  
Schedule of components of Income taxes
The components of Energen’s income taxes consisted of the following:

Years ended December 31, (in thousands)
2013
2012
2011
Taxes estimated to be payable currently:
 
 
 
Federal
$
23,342

$
16,295

$
11,595

State
2,516

3,125

5,065

Total current
25,858

19,420

16,660

Taxes deferred:
 
 
 
Federal
85,950

119,053

125,622

State
(2,300
)
5,346

3,419

Total deferred
83,650

124,399

129,041

Total income tax expense
$
109,508

$
143,819

$
145,701

Schedule of Components of Income Tax Expense (Benefit), Continuing and Discontinued Operations
The components of Energen’s income taxes consisted of the following:

Years ended December 31, (in thousands)
2013
2012
2011
Income tax expense from continuing operations
$
105,282

$
144,534

$
126,322

Income tax expense (benefit) from discontinued operations
2,215

(715
)
19,379

Income tax expense from gain on disposal of discontinued operations
2,011



Total income tax expense
$
109,508

$
143,819

$
145,701

Schedule of deferred tax assets and liabilities
Temporary differences and carryforwards which gave rise to Energen’s deferred tax assets and liabilities were as follows:

(in thousands)
December 31, 2013
December 31, 2012
 
Current
Noncurrent
Current
Noncurrent
Deferred tax assets:
 
 
 
 
Unbilled and deferred revenue
$
12,547

$

$
10,137

$

Allowance for doubtful accounts
2,066


2,408


Insurance and other accruals
4,851


3,821


Compensation accruals
15,405


13,116


Inventories
1,260


1,664


Other comprehensive income

15,350


19,158

Gas supply adjustment related accruals
698


969


Derivative instruments
10,769




State net operating losses and other carryforwards

4,577


3,577

Other
1,219

1

1,340

25

Total deferred tax assets
48,815

19,928

33,455

22,760

Valuation allowance
(299
)
(2,674
)
(268
)
(2,793
)
Total deferred tax assets
48,516

17,254

33,187

19,967

Deferred tax liabilities:
 
 
 
 
Depreciation and basis differences

1,008,026


898,625

Pension and other costs

15,379


20,143

Derivative instruments

2,048

4,272

3,162

Other comprehensive income
5,540


18,133


Other
1,677

5,046

2,262

3,638

Total deferred tax liabilities
7,217

1,030,499

24,667

925,568

Net deferred tax assets (liabilities)
$
41,299

$
(1,013,245
)
$
8,520

$
(905,601
)
Schedule of effective income tax rate reconciliation
Total income tax expense from continuing operations for the Company differed from the amount which would have been provided by applying the statutory federal income tax rate of 35 percent to earnings before taxes as illustrated below:

Years ended December 31, (in thousands)
2013
2012
2011
Income tax expense at statutory federal income tax rate
$
104,450

$
139,914

$
122,719

Increase (decrease) resulting from:
 
 
 
State income taxes, net of federal income tax benefit
3,799

4,755

8,341

Impact of state law changes
(1,966
)

(2,059
)
Qualified Section 199 production activities deduction

(61
)
(495
)
401(k) stock dividend deduction
(449
)
(514
)
(532
)
Other, net
(552
)
440

(1,652
)
Total income tax expense
$
105,282

$
144,534

$
126,322

Effective income tax rate (%)
35.28

36.16

36.03

Schedule of reconciliation of unrecognized tax benefits
A reconciliation of Energen’s beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)
 
Balance as of December 31, 2010
$
24,590

Additions based on tax positions related to the current year
3,644

Additions for tax positions of prior years
2,324

Reductions for tax positions of prior years
(39
)
Lapse of statute of limitations
(1,482
)
Settlements
(18,444
)
Balance as of December 31, 2011
10,593

Additions based on tax positions related to the current year
3,731

Additions for tax positions of prior years
269

Reductions for tax positions of prior years
(446
)
Lapse of statute of limitations
(1,592
)
Balance as of December 31, 2012
12,555

Additions based on tax positions related to the current year
4,546

Additions for tax positions of prior years
366

Reductions for tax positions of prior years
(46
)
Lapse of statute of limitations
(1,435
)
Balance as of December 31, 2013
$
15,986

Alabama Gas Corporation
 
Income Tax Disclosure [Line Items]  
Schedule of components of Income taxes
The components of Alagasco’s income taxes consisted of the following:

Years ended December 31, (in thousands)
2013
2012
2011
Taxes estimated to be payable currently:
 
 
 
Federal
$
17,495

$
18,227

$
(1,280
)
State
2,192

739

(108
)
Total current
19,687

18,966

(1,388
)
Taxes deferred:
 
 
 
Federal
13,252

9,066

24,938

State
1,748

2,212

3,120

Total deferred
15,000

11,278

28,058

Total income tax expense
$
34,687

$
30,244

$
26,670

Schedule of deferred tax assets and liabilities
Temporary differences and carryforwards which gave rise to Alagasco’s deferred tax assets and liabilities were as follows:

(in thousands)
December 31, 2013
December 31, 2012
 
Current
Noncurrent
Current
Noncurrent
Deferred tax assets:
 
 
 
 
Unbilled and deferred revenue
$
12,547

$

$
10,137

$

Allowance for doubtful accounts
1,815


2,155


Insurance accruals
1,769


1,856


Compensation accruals
2,480


2,645


Inventories
1,260


1,664


Gas supply adjustment related accruals
698


969


Other
984

1

774

2

Total deferred tax assets
21,553

1

20,200

2

Deferred tax liabilities:
 
 
 
 
Depreciation and basis differences

186,601


167,329

Pension and other costs

19,031


22,054

Other
1,504


1,401


Total deferred tax liabilities
1,504

205,632

1,401

189,383

Net deferred tax assets (liabilities)
$
20,049

$
(205,631
)
$
18,799

$
(189,381
)
Schedule of effective income tax rate reconciliation
Total income tax expense for Alagasco differed from the amount which would have been provided by applying the statutory federal income tax rate of 35 percent to earnings before taxes as illustrated below:

Years ended December 31, (in thousands)
2013
2012
2011
Income tax expense at statutory federal income tax rate
$
32,230

$
27,876

$
25,645

Increase (decrease) resulting from:
 
 
 
State income taxes, net of federal income tax benefit
2,588

2,238

2,059

Reversal of tax reserves from audit settlements, net


(1,365
)
Other, net
(131
)
130

331

Total income tax expense
$
34,687

$
30,244

$
26,670

Effective income tax rate (%)
37.67

37.97

36.40

Schedule of reconciliation of unrecognized tax benefits
A reconciliation of Alagasco’s beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)
 
Balance as of December 31, 2010
$
18,941

Additions based on tax positions related to the current year
13

Additions for tax positions of prior years
1

Reductions for tax positions of prior years (lapse of statute of limitations)
(409
)
Settlements
(18,444
)
Balance as of December 31, 2011
102

Additions based on tax positions related to the current year
62

Additions for tax positions of prior years
201

Reductions for tax positions of prior years (lapse of statute of limitations)
(58
)
Balance as of December 31, 2012
307

Reductions for tax positions of prior years (lapse of statute of limitations)
(31
)
Balance as of December 31, 2013
$
276