Energen
| Company type | Public |
|---|---|
| Industry | Hydrocarbon exploration |
| Predecessor | Alabama Gas Corporation |
| Founded | 1979 |
| Defunct | 2018 |
| Fate | Acquired by Diamondback Energy |
| Headquarters | Birmingham, Alabama , United States |
| Products | Crude oil, natural gas, natural gas liquids |
Energen Corporation was a company engaged in hydrocarbon exploration that was purchased by Diamondback Energy in 2018.
By December 31, 2017, Energen's proved reserves amounted to 444 million BOE, consisting of 58% crude oil, 22% natural gas, and 20% natural gas liquids, all situated within the Permian Basin.
History
The firm was initially known as Alabama Gas Corporation and was separated from Southern Natural Gas (which later became Sonat Inc.) in 1953 as a result of an antitrust settlement. It adopted the name Energen Corporation in 1985. Its principal subsidiaries included the natural gas utility Alagasco (which was sold in 2014) and the oil and gas exploration branch, originally Taurus Exploration and later renamed Energen Resources.
Significant acquisitions by the company included properties in the Permian Basin acquired in 2002 for $190 million through a combination of cash and stock, reserves in the San Juan Basin purchased in 2003 for $39 million, and coalbed methane assets in the San Juan Basin obtained in 2004 for $273 million. In 2009, Energen expanded its holdings by acquiring additional Permian Basin assets from Range Resources for $182 million.
In 2014, the company divested Alagasco to Laclede Group for $1.35 billion plus the assumption of $250 million in debt, signaling a strategic emphasis on oil and gas exploration. The following year, most of its San Juan Basin assets were sold for $395 million.
Energen’s concentrated asset base and reserve portfolio within the Permian Basin ultimately led to its acquisition by Diamondback Energy in 2018.