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Energen Corporation is an oil and gas exploration and production company headquartered in Birmingham, Alabama. The company focuses on the exploration, production and development of natural gas, oil and natural gas liquids in the Permian Basin of west Texas. Energen started as the Alabama Gas Corporation, a company that was created from Southern Natural Gas in 1953. In 1985, the company was renamed Energen Corporation, and Alabama Gas Corporation (Alagasco) became its natural gas utility company.
As a result of a recent trend in financial markets to invest in pure-play companies, Energen has changed its corporate strategy. The company’s new strategy is to transition to a pure-play operator in the Permian Basin. In order to facilitate this transition, Energen sold its natural gas utility, Alagasco, to The Laclede Group Inc. [NYSE: LG], a pure-play natural gas utility, for approximately $1.6 billion in 2014. The proceeds from the sale of Alagasco were used to decrease their short-term debt and strengthen their financial standing in order to accelerate their operations in the Permian Basin. In another step towards this transition, Energen recently sold off assets in the San Juan Basin in New Mexico, as well as its non-core assets in the Delaware Basin. The total gross proceeds of this sale are estimated to be $551.7 million. These proceeds will further strengthen Energen’s finances and make additional capital investment available to increase drilling, development and acquisitions in the Permian Basin.
The main asset of Energen is its oil and gas exploration division, Energen Resources Corporation (formally Taurus Exploration). In 1998, Energen changed the name of Taurus Exploration to Energen Resources in order to solidify the link between the two companies in the minds of their investors. An essential part of Energen Resources Corporation’s strategy in the Permian Basin is to use new technology to re-explore older fields. For example, the North Westbrook Unit previously produced 900 barrels a day. After Energen Resources Corporation began using waterflood operations, the North Westbrook Unit jumped to producing about 5,000 barrels per day.
Energen operates under a core set of principles, which guide them to conduct their business in an ethical manner, while also earning a profit. One of the ways they accomplish this is by respecting the environment. Although Energen already complies with the methane regulations put in place by the U.S. Environmental Protection Agency (EPA), Energen voluntarily goes above and beyond to reduce their methane emissions. One way they do this is by reducing their environmental footprint, most recently seen through the sale of their natural gas utility Alagasco, as well as the sale of a majority of their assets in New Mexico. Additionally, Energen has been an active participant in the EPA’s Natural Gas STAR Program since 2003. The EPA’s Natural Gas STAR Program is a program in which oil and natural gas companies voluntarily commit to reduce their methane emissions through the use of technologies and practices to improve efficiency. As a result of their commitment to this program, Energen reduced its methane emissions by more than 6.6 billion cubic feet between 2003 and 2014. They have accomplished this by installing vapor reduction units at production tank batteries, installing electric motors on pumping units (natural gas fueled compressors were used previously) and flaring instead of venting gas that is unable to be captured in the pipeline system. In order to reduce fresh water use, Energen began a water recycling program to recycle their produced and flowback water. The company has also implemented multiple infrastructure projects to help them use water more efficiently, therefore reducing their fresh water use and waste.
In addition to respecting the environment, Energen is also committed to the safety and environment of their employees. Through the creation of safety committees at all locations and the safety training of their employees, Energen has been consistently below the industry average for the Occupational Safety and Health Administration’s DART (Days Away, Restrictions and Transfers) rate. To further ensure compliance, the company has routine safety audits and inspections. Energen’s concern for their employees is also evident through their generous benefits package, which includes tuition and fitness center reimbursement and a flexible spending program, in addition to their healthcare and a 401(k) program. Energen also invests in the communities in which they operate. In addition to the money donated by the company, Energen employees frequently donate their own money and time to multiple charitable organizations within the community. Energen is also a leading contributor to the United Way.
605 Richard Arrington, Jr. Blvd. North
Birmingham, Alabama 35203-2707