Energen Board Increases Cash Dividend 4.5 Percent.

BIRMINGHAM, Ala. -- The Board of Directors of Energen Corporation (NYSE: EGN) today increased the quarterly cash dividend 4.5 percent to 11.5 cents per share. This marks the 25th consecutive year that Energen's cash dividend has been increased. On an annualized basis, the Company's new dividend rate is 46 cents per share. The dividend is payable March 1, 2007, to shareholders of record on February 15, 2007.

"This increase reflects a projected payout of net income from our natural gas utility, Alabama Gas Corporation (Alagasco), that is in line with traditional gas utility payouts of 65%-75%," said Mike Warren, Energen's chairman and chief executive officer. "In addition, our oil and gas acquisition and development subsidiary, Energen Resources Corporation, contributes a small portion of its net income to the dividend; however, 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, AL. Its two lines of business are the acquisition and development of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.7 trillion cubic feet equivalent of proved reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. More information is available at www.energen.com.