<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED
FROM THE FINANCIAL STATEMENTS OF ALABAMA GAS CORPORATION
FOR THE THREEMONTHS ENDED DECEMBER 31, 1998, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000003146
<NAME> ALABAMA GAS CORPORATION
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          SEP-30-1999
<PERIOD-START>                             OCT-01-1998
<PERIOD-END>                               DEC-31-1998
<BOOK-VALUE>                                  PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                      328,478
<OTHER-PROPERTY-AND-INVEST>                        315
<TOTAL-CURRENT-ASSETS>                         108,183
<TOTAL-DEFERRED-CHARGES>                         4,682
<OTHER-ASSETS>                                       0
<TOTAL-ASSETS>                                 441,658
<COMMON>                                            20
<CAPITAL-SURPLUS-PAID-IN>                       34,484
<RETAINED-EARNINGS>                            123,059
<TOTAL-COMMON-STOCKHOLDERS-EQ>                 157,563
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<LONG-TERM-DEBT-NET>                           119,650
<SHORT-TERM-NOTES>                              35,000
<LONG-TERM-NOTES-PAYABLE>                            0
<COMMERCIAL-PAPER-OBLIGATIONS>                       0
<LONG-TERM-DEBT-CURRENT-PORT>                    3,150
<PREFERRED-STOCK-CURRENT>                            0
<CAPITAL-LEASE-OBLIGATIONS>                          0
<LEASES-CURRENT>                                     0
<OTHER-ITEMS-CAPITAL-AND-LIAB>                 126,295
<TOT-CAPITALIZATION-AND-LIAB>                  441,658
<GROSS-OPERATING-REVENUE>                       71,557
<INCOME-TAX-EXPENSE>                             1,503
<OTHER-OPERATING-EXPENSES>                      64,475
<TOTAL-OPERATING-EXPENSES>                      65,978
<OPERATING-INCOME-LOSS>                          5,579
<OTHER-INCOME-NET>                                (31)
<INCOME-BEFORE-INTEREST-EXPEN>                   5,548
<TOTAL-INTEREST-EXPENSE>                         2,693
<NET-INCOME>                                     2,855
<PREFERRED-STOCK-DIVIDENDS>                          0
<EARNINGS-AVAILABLE-FOR-COMM>                    2,855
<COMMON-STOCK-DIVIDENDS>                             0
<TOTAL-INTEREST-ON-BONDS>                        2,199
<CASH-FLOW-OPERATIONS>                         (7,513)
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                        0
<FN>
<F1>ALABAMA GAS CORPORATION (ALAGASCO) IS A SUBSIDIARY OF                    
ENERGEN CORPORATION. EARNINGS PER SHARE IS NOT CALCULATED
FOR ALAGASCO AS AMOUNT WOULD NOT BE MEANINGFUL.
</FN>