Organization and Basis of Presentation Organization and Basis of presentation (Policies) (Alabama Gas Corporation)

6 Months Ended

Jun. 30, 2014

Alabama Gas Corporation

Basis of Accounting, Policy

The accompanying unaudited financial statements and notes should be read in conjunction with the financial statements and notes thereto for the years ended December 31, 2013, 2012 and 2011, included in the 2013 Annual Report of Energen Corporation (Energen) and Alabama Gas Corporation on Form 10-K and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the disclosures required for complete financial statements. Alagasco’s natural gas distribution business is seasonal in character and influenced by weather conditions, and therefore, the results of operations for interim periods are not necessarily indicative of the results that may be expected for the year. All adjustments to the unaudited financial statements that are, in the opinion of management, necessary for a fair statement of the results for the interim periods have been recorded. Such adjustments consist of normal recurring items.