EXHIBIT 99.1 SEVERANCE COMPENSATION AGREEMENT

EXHIBIT 99.1

SEVERANCE COMPENSATION AGREEMENT

THIS AGREEMENT (“Agreement”) is made and entered into as of the date set forth below, by and between ENERGEN CORPORATION, an Alabama corporation (“Energen”), and the Executive identified below (“the Executive”).

Base Period [ 12, 18, 24, 36] months commencing on the date of a Change in Control (See Section 1(a))

WITNESSETH :

WHEREAS, Executive is an effective and valuable employee of Energen and/or one or more of its subsidiaries;

WHEREAS, Executive desires certain assurances with respect to any change in control of Energen;

WHEREAS, Energen recognizes that the uncertainties involved in a potential or actual change in control of Energen could result in the distraction or departure of management personnel such as Executive to the detriment of Energen and its shareholders; and

WHEREAS, Energen desires to lessen the personal and economic pressure which a potential or actual change in control may impose on Executive and thereby facilitate Executive’s ability to bargain successfully for the best interests of Energen’s shareholders in the event of such a change in control;

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, Energen and Executive hereby agree as follows:

Section 1. Definitions . As used in this Agreement the following words and terms shall have the following meanings:

(a) “ Applicable Period ” means the period commencing with the first to occur of (i) the earliest date that a Change in Control occurs or (ii) Energen shareholder approval of a transaction which upon consummation will constitute a Change in Control, and ending on the first to occur of (iii) the last day of the “Base Period” specified at the beginning of this Agreement or (iv) a determination by the Energen Board of Directors that such Change in Control will not be consummated. Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs, and if the Date of Termination with respect to Executive’s employment with Energen occurs prior to the date on which the Change in Control occurs, and if it is reasonably demonstrated by Executive that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect the Change in Control or (ii) otherwise arose in connection with or in anticipation of the Change in Control, then for all purposes of this Agreement the “Applicable Period” shall be deemed to have commenced on the date immediately preceding the Date of Termination.

(b) “ Cause ” Termination of employment by Employer for “Cause” shall mean termination based on any of the following:

(1) The willful and continued failure by the Executive to substantially perform Executive’s duties with Employer (other than any such failure resulting from Executive’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to Executive specifically identifying the manner in which Executive has not substantially performed Executive’s duties;

(2) The engaging by Executive in willful misconduct which is demonstrably injurious to Employer monetarily or otherwise; or

(3) The conviction of Executive of a felony.

(c) “ Change in Control ” means the occurrence of any one or more of the following:

(1) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13(d)-3 promulgated under the Exchange Act) of 25% or more of either (i) the then outstanding shares of common stock of Energen (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of Energen entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); provided, however, that for purposes of this subsection (1) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by Energen or any corporation controlled by Energen shall not constitute a Change in Control;

(2) Individuals who, as of January 1, 2007, constitute the Board of Directors of Energen (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of Energen (the “Board of Directors”); provided, however that any individual becoming a director subsequent to such date whose election, or nomination for election by Energen’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors;

(3) Consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of the assets, of Energen (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns Energen or all or substantially all of Energen’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of Energen or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 25% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; and

(4) Any transaction or series of transactions which is expressly designated by resolution of the Board of Directors to constitute a Change in Control for purposes of this Agreement.

(5) In addition to the above described Changes in Control, a Subsidiary Transaction (defined below) will constitute a Change in Control to the extent specified below. A “Subsidiary Transaction” is a transaction that results in securities representing 80% or more of the voting interests in a Subsidiary or substantially all of a Subsidiary’s assets being transferred to an entity not controlled by or under common control with Energen.

(i) A Subsidiary Transaction involving a disposition of Energen’s largest Subsidiary or the assets of Energen’s largest Subsidiary will constitute a Change in Control if immediately prior to such transaction the Executive was an officer or employee of Energen or Energen’s largest Subsidiary. The largest Subsidiary is determined by net book value of property, plant and equipment.

(ii) A Subsidiary Transaction involving a disposition of Energen Resources Corporation or its assets will constitute a Change in Control if immediately prior to the transaction the Executive was an officer or employee of Energen Resources Corporation.

(iii) A Subsidiary Transaction involving a disposition of Alabama Gas Corporation or its assets will constitute a Change in Control if immediately prior to the transaction the Executive was an officer or employee of Alabama Gas Corporation.

(d) “ Code ” means the Internal Revenue Code of 1986, as the same may be from time to time amended.

(e) “ Compensation ” means an amount equal to the sum of (A) plus (B), where (A) is the Executive’s annualized base salary in effect immediately prior to the Measurement Event, and (B) is the highest annual bonus awarded Executive by Employer pursuant to the Energen Annual Incentive Compensation Plan (or any successor annual cash incentive plan) with respect to the three (3) fiscal years immediately preceding the fiscal year in which the Measurement Event occurs. Compensation shall be calculated without reduction for any amounts deferred by the Executive pursuant to the Energen Corporation 1997 Deferred Compensation Plan.

(f) “ Date of Termination ” means the first date on which Executive is no longer employed by any Employer.

(g) [ Reserved ]

(h) “ Employer” means, severally and collectively as applicable, any one or more of the following entities: (i) Energen, (ii) Energen’s Subsidiaries, (iii) any party to a Change in Control and (iv) any entity controlled by or under common control with a party to a Change in Control.

(i) “ Exchange Act ” means the Securities Exchange Act of 1934, as amended.

(j) “ Good Reason ” means the occurrence during an Applicable Period of any of the following events without Executive’s prior written consent:

(1) The assignment to Executive by Employer of duties inconsistent with Executive’s position, authority, duties, responsibilities and status with Energen and its Subsidiaries immediately prior to the Measurement Event, or a change in Executive’s titles or offices as in effect immediately prior to the Measurement Event, or any removal of Executive from or any failure to reelect or elect Executive to any of such positions, or comparable positions with Employer, if such assignment, change, or removal results in a material reduction in Executive’s position, authority, duties, responsibilities or status with Employer as compared to Executive’s position with Energen and its Subsidiaries prior to the Measurement Event or any other action by Employer that results in a material reduction in Executive’s position, authority, duties, responsibilities or status,

(2) A reduction in Executive’s aggregate rate of monthly base pay from that in effect prior to the Measurement Event;

(3) A failure by Employer to provide short and long-term incentive opportunities comparable to opportunities available to Executive prior to the Measurement Event.

(4) A failure by Employer to use its best efforts to provide Executive with either the same fringe benefits (including retirement benefits and paid vacations) as were provided to Executive prior to the Measurement Event or a package of fringe benefits that, though one or more of such benefits may vary from those in effect immediately prior to the Measurement Event, is substantially comparable in all material respects to the fringe benefits (taken as a whole) in effect prior to the Measurement Event;

(5) Executive’s relocation by Employer to any place more than 50 miles from the location at which Executive performed the substantial portion of Executive’s duties prior to the Measurement Event, except for required travel by Executive on Employer’s business to an extent substantially consistent with Executive’s business travel obligations immediately prior to such Measurement Event;

(6) Any material breach by Energen of any provision of this Agreement or any other agreement between Energen and Executive which breach continues for a period of thirty days following delivery by Executive to Energen of written notice of such breach.

(k) “ Independent Auditor ” means the firm of certified public accountants that at the time of the Change in Control had been most recently engaged by Energen to render an opinion on Energen’s consolidated financial statements, or any other firm of certified public accountants mutually agreeable to Energen and Executive.

(l) “ Measurement Event” means (i) the Change in Control if the Date of Termination is on or after the date of the Change in Control or (ii) commencement of the Applicable Period if the Date of Termination is prior to the date of the Change in Control.

(m) “ Notice of Termination ” has the meaning set forth in Section 2(a) of this Agreement.

(n) “ Qualified Termination ” means the occurrence during an Applicable Period of

(i) a termination by all Employers of Executive’s employment other than for Cause,

(ii) a termination of Executive’s employment with one or more Employers which Executive and Energen agree in writing will constitute a Qualified Termination for purposes of this Agreement, or

(iii) a voluntary termination of Executive’s employment by Executive for Good Reason.

(o) “ Subsidiary ” means any corporation, the majority of the outstanding voting stock of which is owned directly or indirectly, by Energen.

Section 2. Notice of Termination . During any Applicable Period:

(a) Any termination for Cause or Good Reason shall be communicated to the other party by written notice (“Notice of Termination”) referencing this Agreement and, indicating in reasonable detail the facts and circumstances prov