Energen Board Increases Cash Dividend 10%.

BIRMINGHAM, Ala. -- The Board of Directors of Energen Corporation (NYSE:EGN) today increased the quarterly cash dividend 10 percent to 11 cents per share. This marks the 24th consecutive year that Energen's cash dividend has been increased. On an annualized basis, the Company's new dividend rate is 44 cents per share. The dividend is payable March 1, 2006, to shareholders of record on February 15, 2006.

"On the strength of Energen's record earnings in 2005 and the prospect for continued growth in 2006, we are pleased to raise Energen's cash dividend by 10 percent," said Mike Warren, Energen's chairman and chief executive officer.

"This increase reflects a payout of net income from our utility, Alabama Gas Corporation (Alagasco), that is in line with traditional gas utility payouts, as well as a smaller contribution from our oil and gas acquisition and development subsidiary, Energen Resources Corporation," Warren said. "The majority of Energen Resources' cash flows are reinvested in that business to help fund future growth."

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, Alabama. Its two lines of business are the acquisition and development of natural gas, oil and natural gas liquids onshore in North America and natural gas distribution in central and north Alabama. Additional information on Energen is available at www.energen.com.