UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant
to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant x
Filed by a Party other than the Registrant ¨
Check the appropriate box:
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Preliminary Proxy Statement. |
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Confidential, for Use of the Commission only (as permitted by Rule 14a-6(e)(2)). |
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Definitive Proxy Statement. |
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Definitive Additional Materials. |
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Soliciting Material under § 240.14a-12. |
ENERGEN CORPORATION
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if
other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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(1) |
Title of each class of securities to which transaction applies: |
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(2) |
Aggregate number of securities to which transaction applies: |
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth
the amount on which the filing fee is calculated and state how it was determined): |
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Proposed maximum aggregate value of transaction: |
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Fee paid previously with preliminary materials. |
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
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(1) |
Amount Previously Paid: |
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(2) |
Form, Schedule or Registration Statement No.: |
March 18, 2015
To Our
Shareholders:
It is our pleasure to extend to you a cordial invitation to attend the Annual Meeting of Shareholders of Energen Corporation. The
Annual Meeting will be held at the principal office of the Company in Birmingham, Alabama on Thursday, April 30, 2015, at 8:30 a.m., Central Daylight Time.
Details of the matters to be presented at this meeting are given in the Notice of the Annual Meeting and in the Proxy Statement that follow.
We hope that you will be able to attend this meeting so that we may have the opportunity of meeting with you and discussing the affairs of the Company.
However, if you cannot attend, we would appreciate your submitting your proxy by telephone or by Internet, or by completing, signing and returning the enclosed proxy card as soon as convenient so that your stock may be voted.
Yours very truly,
Chairman of the Board
ENERGEN CORPORATION
Notice of Annual Meeting of Shareholders
To Be Held April 30, 2015
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TIME AND DATE |
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8:30 a.m., CDT, on Thursday, April 30, 2015 |
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PLACE |
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Energen Plaza 605 Richard
Arrington Jr. Blvd. North Birmingham, Alabama 35203-2707
Directions to the Annual Meeting are available by calling Investor Relations at 1-800-654-3206. |
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AGENDA |
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(1) To elect four members of the Board of Directors for three-year terms.
(2) To ratify the appointment of PricewaterhouseCoopers LLP as the
Companys independent registered public accounting firm for 2015.
(3) To cast an advisory vote on the Companys executive compensation (Say-on-Pay vote).
(4) To consider and vote upon a shareholder proposal regarding
preparation of a report on methane gas emissions, if properly presented at the Annual Meeting.
(5) To consider and vote upon a shareholder proposal regarding preparation of a report on climate change business risks, if properly presented at the
Annual Meeting. (6) To transact such other business as may properly
come before the Annual Meeting and any adjournment or postponement thereof. |
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RECORD DATE |
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You can vote if you were a shareholder of record of the Company on February 23, 2015. |
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PROXY VOTING |
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It is important that your shares be represented and voted at the Annual Meeting. You can vote your shares by submitting your instructions by telephone or by Internet,
or by completing, signing and returning a proxy card. |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
SHAREHOLDER MEETING TO BE HELD APRIL 30, 2015:
The Companys Proxy Statement on Schedule 14A, form of proxy card and 2014 annual report on Form 10-K are available at:
www.annualmeeting.energen.com.
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Birmingham, Alabama
March 18, 2015 |
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J. David Woodruff Secretary |
PROXY STATEMENT
TABLE OF CONTENTS
i
ii
iii
PROXY STATEMENT
ANNUAL MEETING OF SHAREHOLDERS
OF ENERGEN
CORPORATION
April 30, 2015
PROXY STATEMENT SUMMARY
This summary highlights information contained elsewhere in this Proxy Statement. It does not include all of the information that you should consider and you
should read the entire Proxy Statement before voting. In this Proxy Statement, Energen Corporation may also be referred to as we, us, Energen or the Company.
2015 ANNUAL MEETING OF STOCKHOLDERS
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Date and Time: |
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Thursday, April 30, 2015, 8:30 a.m. CDT |
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Place: |
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Energen Plaza 605 Richard Arrington Jr. Blvd. North
Birmingham, Alabama 35203-2707 |
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Record Date: |
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February 23, 2015 |
VOTING MATTERS AND BOARD
RECOMMENDATIONS
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Our Boards
Recommendations |
Election of Director Nominees (page 9) |
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FOR each Director Nominee |
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Ratification of Appointment of Independent Auditor (page 20) |
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FOR |
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Advisory Vote to Approve Executive Compensation (page 50) |
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FOR |
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Shareholder Proposal Methane Gas Emissions Report (page 52) |
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AGAINST |
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Shareholder Proposal Climate Change Business Risks Report (page 55) |
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AGAINST |
1
DIRECTOR NOMINEES (BEGINNING ON
PAGE 9)
The following table
provides summary information about each Director nominee. Our Directors serve for three-year terms.
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Name |
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Age |
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Director Since |
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Primary Occupation |
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Committee Memberships |
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Other Public Company
Boards |
William G. Hargett * |
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65 |
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Former Chairman, President and CEO of Houston Exploration Company |
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A** |
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None |
Alan A. Kleier* |
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61 |
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Vice President Mid-Continent Business Unit of Chevron |
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A** |
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None |
Stephen A. Snider* |
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67 |
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2000 |
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Former Chief Executive Officer of Exterran Holdings, Inc. |
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C, G |
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Dresser-Rand Group,
Inc. Thermon Group Holdings, Inc. |
Gary C. Youngblood* |
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71 |
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2003 |
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Former President and Chief Executive Officer of Alabama Gas Corporation |
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G |
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None |
*Independent Director.
G |
Governance and Nominations Committee |
** Messrs. Hargett and Kleier will serve on the Audit Committee if elected to the
Board.
QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING
1. |
WHY DID I RECEIVE THESE PROXY MATERIALS? |
We are providing these proxy materials in connection with the solicitation by the Board of Directors of Energen
Corporation, an Alabama corporation, of proxies for use at the 2015 Annual Meeting of Shareholders of the Company and at any adjournment or postponement of the Annual Meeting.
You are invited to attend our Annual Meeting on April 30, 2015, beginning at 8:30 a.m., CDT. The Annual Meeting will be held at our principal office, 605 Richard
Arrington Jr. Blvd. North,
Birmingham, Alabama 35203-2707. You may call Investor Relations at 1-800-654-3206 for additional directions to the Annual Meeting location.
The Notice Regarding the Availability of Proxy Materials (Notice of Internet Availability), Proxy Statement and form of proxy or voting instruction card are
being mailed or made available to shareholders beginning on or about March 18, 2015.
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2. |
WHAT ITEMS WILL BE VOTED ON AT THE ANNUAL MEETING?
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Shareholders will vote on five items at the Annual Meeting:
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the election of four members of the Board of Directors for three-year terms; |
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ratification of the appointment of PricewaterhouseCoopers LLP as Energens independent registered public accounting firm for 2015; |
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an advisory vote on Energens executive compensation;
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a shareholder proposal requesting that Energen issue a report on Energens policies, actions and plans with respect to methane gas emissions; and |
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a shareholder proposal requesting that Energen issue a report on Energens climate change-related business risks. |
At the date this Proxy Statement went to press, we did not know of any other matters to be raised at the Annual Meeting.
3. |
WHAT ARE THE BOARD OF DIRECTORS VOTING RECOMMENDATIONS? |
The Board of Directors recommends that you vote your shares:
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FOR election of each of the nominees to the Board of Directors; |
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FOR ratification of the appointment of PricewaterhouseCoopers LLP as Energens independent registered public accounting firm for 2015;
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FOR the proposal regarding an advisory vote on executive compensation; |
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AGAINST the shareholder proposal requesting that Energen issue a report on Energens policies, actions and plans with respect to methane gas emissions; and |
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AGAINST the shareholder proposal requesting that Energen issue a report on climate change-related business risks.
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4. |
WHO IS ENTITLED TO VOTE AT THE ANNUAL MEETING? |
Holders of Energen common stock of record at the close of business on February 23, 2015 are entitled to receive this
notice of Annual Meeting and Proxy Statement and to vote their shares at the Annual Meeting. As of that date, a total
of 73,082,160 shares of common stock were outstanding and entitled to vote. Each share of common stock is entitled to one vote on each matter properly brought before the Annual Meeting.
5. |
WHAT IS THE DIFFERENCE BETWEEN HOLDING SHARES AS A SHAREHOLDER
OF RECORD AND AS A BENEFICIAL OWNER? |
If your shares are registered in your name with Energens transfer agent, Computershare, you are the
shareholder of record of those shares. The Notice of Internet Availability and, if requested, Proxy Statement and any accompanying materials, have been provided directly to you by Energen.
If your shares are held in a stock brokerage account or by a bank or other holder of record, you are considered the beneficial owner of
those shares. The Notice of Internet Availability and, if requested, Proxy Statement and any accompanying materials, have been forwarded to you by your broker, bank or other holder of record. As
the beneficial owner, you have the right to direct your broker, bank or other holder of record how to vote your shares by using the voting instructions included on the Notice of Internet Availability or the form of proxy or by following your holder
of records instructions for voting by telephone or on the Internet.
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If you hold your shares as a participant in the Energen Corporation Employee Savings Plan, the proxy that you
submit will provide your voting instructions to the plan trustee. If you do not submit a proxy, the plan trustee will vote your plan shares in the same proportion as the
shares for which the trustee receives voting instructions from other participants in that plan. To allow sufficient time for the savings plan trustees to tabulate the vote of the plan
shares, your voting instructions must be received before the close of business on April 27, 2015.
Shareholders of record may vote using any of the following methods:
By mail
Complete, sign and date the accompanying proxy or voting instruction
card and return it in the prepaid envelope. If you return your signed proxy card but do not indicate your voting preferences, the persons named in the proxy card will vote the shares represented by your proxy card as recommended by the Board of
Directors.
If you do not have the prepaid envelope, please mail your completed proxy card to Energen Corporation, c/o Proxy Services, Computershare, P.O. Box 43101,
Providence, RI 02940-5067.
By telephone or on the Internet
Shareholders
of record can vote by calling the toll-free telephone number on the proxy card. Please have the proxy card handy when you call. Easy-to-follow voice prompts will allow you to vote your shares and confirm that your instructions have been properly
recorded.
You may instruct the proxies how to vote by following the instructions listed on the Notice of Internet Availability or the proxy card to vote online. The
website for Internet voting for shareholders of record is www.investorvote.com/EGN. As with telephone voting, you can confirm that your instructions have been properly recorded. If you vote on the Internet, you also can request electronic delivery
of future proxy materials.
Telephone and Internet voting facilities for shareholders of record will be available 24 hours a day until 11:59p.m., Eastern Time, on
April 29, 2015.
If you vote by telephone or on the Internet, you do not have to return your proxy or voting instruction card.
Voting by beneficial owners
The Notice of Internet Availability and,
if requested Proxy Statement and any accompanying materials have been forwarded to you by your broker, bank or other holder of record. As the beneficial owner, you have the right to direct your broker, bank or other holder of record how to vote your
shares by using the voting instructions included in the materials forwarded to you by the holder of record, which may be different from the instructions mailed to shareholders of record, or by following their instructions for voting by telephone or
on the Internet. The availability of telephone and Internet voting for beneficial owners will depend on the voting processes of your broker, bank or other holder of record. We therefore recommend that you follow the voting instructions in the
materials you receive.
In person at the Annual Meeting
Shareholders who attend the Annual Meeting may vote in person at the Meeting. You may also be represented by another person at the Annual Meeting by executing a proper
proxy designating that person. If you are a beneficial owner of shares, you must obtain a legal proxy from your broker, bank or other holder of record and present it to the inspectors of election with your ballot to be able to vote at the Annual
Meeting.
Please vote promptly
Your vote is important. You can
save us the expense of a second mailing by voting promptly.
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7. |
WHAT CAN I DO IF I CHANGE MY MIND AFTER I VOTE? |
Shareholders of record
You can revoke your proxy at any time before it is exercised by:
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written notice to the Secretary of the Company; |
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timely delivery of a valid, later-dated proxy; or |
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voting by ballot at the Annual Meeting. |
Beneficial owners
If you are a beneficial owner of shares, you may submit new voting instructions by contacting your broker, bank or other holder of record.
Employee Savings Plan participants
If you hold shares in the Energen Corporation Employee Savings Plan, you can change your voting instructions for those shares by voting again by telephone or by Internet
or by returning a later dated proxy card. To allow sufficient time for the savings plan trustees to tabulate the vote of the plan shares, if you hold shares in the Energen Corporation Employee Savings Plan, your voting instructions (or any change
to such instructions) must be received before the close of business on April 27, 2015.
8. |
WHAT IS A QUORUM FOR THE ANNUAL MEETING? |
The presence of the holders of a majority of the outstanding shares of common stock entitled to vote at the Annual
Meeting, present in person or represented by proxy, is necessary to constitute a quorum. Abstentions are counted as present and entitled to vote for purposes of determining a quorum. Proxies relating to
shares held by beneficial owners that are voted by brokers on some matters will be treated as shares present for determining the presence of a quorum, but will not be treated as shares entitled
to vote at the Annual Meeting on those matters as to which authority to vote is withheld from the broker (i.e. broker non-votes).
9. |
WHAT IS A BROKER NON-VOTE? |
If you are a beneficial owner whose shares are held of record by a broker, you must instruct the broker on how to vote
your shares. If you do not provide voting instructions, your shares will not be voted on any proposal on which the broker does not have discretionary authority to vote. This is called a broker non-vote. In these cases, the broker can
register your shares as being present at the Annual Meeting for purposes of determining the presence of a quorum but will not be able to vote on those matters for which specific authorization is required under the rules of the New York Stock
Exchange (NYSE). If you are a beneficial
owner whose shares are held of record by a broker, your broker has discretionary voting authority under NYSE rules to vote your shares on the ratification of PricewaterhouseCoopers LLP as our
independent registered public accounting firm, even if the broker does not receive voting instructions from you. However, your broker does not have discretionary authority to vote on the election of Directors, the advisory approval of executive
compensation or on any shareholder proposal without instructions from you, in which case a broker non-vote will occur and your shares will not be voted on these matters.
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10. |
WHAT ARE THE VOTING REQUIREMENTS TO ELECT THE DIRECTORS AND
TO APPROVE EACH OF THE PROPOSALS DISCUSSED IN THIS PROXY STATEMENT?
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Proposal |
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Vote Required |
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Broker Discretionary Voting Allowed |
Election of Directors |
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Majority of Votes Cast |
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No |
Ratification of PricewaterhouseCoopers |
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Majority of Votes Cast |
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Yes |
Advisory Approval of Executive Compensation |
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Majority of Votes Cast |
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No |
Shareholder Proposals |
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Majority of Votes Cast |
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No |
If you abstain from voting or there is a broker non-vote on any matter, your abstention or broker non-vote will not affect the outcome of
such vote, because abstentions and broker non-votes are not considered to be votes cast.
Election of Directors; Majority Vote Policy
Directors must be elected by a majority of the votes cast. This means that the number of votes cast for a Director nominee must exceed the number of votes
cast against that nominee. Abstentions and broker non-votes
are not counted as votes for or against a Director nominee.
Ratification of
PricewaterhouseCoopers LLP
The votes cast for must exceed the votes cast against to approve the ratification of
PricewaterhouseCoopers LLP as our independent registered public accounting firm. Abstentions and broker non-votes are not counted as votes for or against this proposal.
Advisory Approval of Executive Compensation
The votes cast
for must exceed the votes cast against to approve, on an advisory basis, the compensation of our named Executive Officers. Abstentions and broker non-votes are not counted as votes for or against this
proposal.
Shareholder Proposals
The votes cast for
must exceed the votes cast against to approve a shareholder proposal. Abstentions and broker non-votes are not counted as votes for or against a shareholder proposal.
11. |
HOW WILL MY SHARES BE VOTED AT THE ANNUAL MEETING?
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At the Meeting, the proxy holders appointed by the Board of Directors (the persons named in the proxy card or, if
applicable, their substitutes) will vote your shares as you instruct. If you sign your proxy card and return it without indicating how you would like to vote your shares, your shares will be voted as the Board of Directors recommends, which is:
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FOR the election of each of the Director nominees named in this Proxy Statement;
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FOR the ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the 2015 fiscal year; |
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FOR the approval, on an advisory basis, of the compensation of our Named Executive Officers; and |
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AGAINST each shareholder proposal. |
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12. |
COULD OTHER MATTERS BE DECIDED AT THE ANNUAL MEETING? |
At the date this Proxy Statement went to press, we did not know of any matters to be raised at the Annual Meeting other
than those referred to in this Proxy Statement (see Other Business).
If you return your signed and completed proxy card or vote by telephone or on the Internet and other matters are properly
presented at the Annual Meeting for consideration, the Proxy Committee appointed by the Board of Directors will have the discretion to vote for you on such matters.
13. |
WHO WILL PAY FOR THE COST OF THIS PROXY SOLICITATION?
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Energen will pay the cost of soliciting proxies. Proxies may be solicited on our behalf by our Directors, officers or
employees in person or by telephone, mail, electronic transmission and/or facsimile transmission. We have engaged
Okapi Partners, LLC of New York to assist in the solicitation of proxies. We will pay Okapi a fee of $7,500, plus reasonable expenses, for these services.
14. |
WHO WILL COUNT THE VOTES? |
Representatives of our transfer agent, Computershare, will tabulate the votes and act as inspectors of election.
15. |
WHY DID I RECEIVE A NOTICE REGARDING THE AVAILABILITY OF
PROXY MATERIALS BUT NO PROXY MATERIALS? |
We distribute our proxy materials to shareholders via the Internet under the Notice and Access approach
permitted by rules of the SEC. This approach conserves natural resources and reduces our distribution costs, while providing a timely and convenient method
of accessing the materials and voting. On March 18, 2015, we mailed a Notice Regarding the Availability of Proxy Materials to shareholders, containing instructions on how to
access the proxy materials on the Internet.
16. |
CAN I ACCESS THE NOTICE OF ANNUAL MEETING, PROXY STATEMENT AND
THE 2014 ANNUAL REPORT ON FORM 10-K ON THE INTERNET? |
This Proxy Statement, the form of proxy card and the 2014 Annual Report on Form 10-K are available at
www.annualmeeting.energen.com. Securities and Exchange Commission (SEC) rules permit the Company to provide
shareholders with proxy materials electronically instead of in paper form, even if they have not made an election to receive the material electronically.
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ELECTION OF DIRECTORS
Our Board of Directors (or, the Board) has nominated four Directors for election. The Board is divided into three classes serving staggered three-year
terms. The terms of two of the present Directors expire at this Annual Meeting: Stephen A. Snider and Gary C. Youngblood. Judy M. Merritt, prior to her passing in October 2014, was also a member of the 2015 class. Messrs. Snider and Youngblood have
been nominated for re-election as Directors for terms expiring in 2018. The Board also has nominated William G. Hargett and Alan A. Kleier to serve as Directors for terms expiring in 2018.
Our Board of Directors recommends that William G. Hargett, Alan A. Kleier, Stephen A. Snider and Gary C. Youngblood be elected to serve in the class with terms
expiring in 2018. Each nominee has agreed to be named in this Proxy Statement and to serve if elected. We expect each nominee for election as a Director to be able to serve if elected. Biographical data on these nominees and the other members of
the Board of Directors is presented below under the caption Governance of the Company.
Unless you otherwise direct on the proxy form, the proxy holders
intend to vote your shares in favor of the above listed nominees. To be elected, a nominee must receive a majority of the votes cast at the Annual Meeting in person or by proxy. If one or more of the nominees becomes unavailable for election or
service as a Director, the proxy holders may vote your shares for one or more substitutes designated by the Board of Directors.
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GOVERNANCE OF THE COMPANY
The members of our Board of Directors, including the four nominees for election, are identified below.
NOMINEES FOR ELECTION AS DIRECTORS FOR
THREE-YEAR TERMS EXPIRING IN 2018
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Name and Year First Became Director |
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Principal Occupation and Other
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WILLIAM G. HARGETT |
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Mr. Hargett, 65, has 35 years of North American oil and gas industry experience. He retired in 2008 as Chairman, President, and CEO of publicly-traded Houston Exploration Company, following its merger with Forest Oil. He joined
Houston Exploration in 2001 as President and CEO and was elected Chairman in 2004. Mr. Hargett began his career in 1973 as Exploration Geologist with Amoco Production Company; in 1974 he joined Tenneco Oil Company serving in various exploration
positions including Exploration Manager Gulf Coast Division from 1984 to 1988; in 1988 he became President and Director North Central Oil Company; in 1993 President Amax Oil and Gas Inc.; in 1994 President and Chief Operating Officer
(USA) Greenhill Petroleum Corp.; and in 1997 President, Chief Operating Officer, and Director Snyder Oil Company and, following its 1999 merger, President North America Sante Fe Snider. Mr. Hargett is a graduate of the
University of Alabama (B.S. geology; M.S. geology). |
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ALAN A. KLEIER |
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Mr. Kleier, 61, retired in 2013 as Vice President of Chevrons Mid-Continent Business Unit, a position which he had held since 2011. He began his career in 1977 with Texaco Exploration and Production, Inc. as Field
Engineer/Drilling Foreman, subsequently serving in roles of increasing responsibility. At the time of the 2001 Chevron-Texaco merger, Mr. Kleier was Texacos Vice President, Central United States Business Unit. After the merger, he held the
following positions within the Chevron organization: 2001 Vice President Permian Basin Unit; 2003 Vice President International Upstream; and 2004 General Manager of Operations/Managing Director Southern Africa Strategic Business
Unit (Angola). He recently accepted a position on the Industrial Board of Advisors for the University of Louisville J.B. Speed School of Engineering. Mr. Kleier is a graduate of the University of Louisville (B.S. mechanical engineering and M.E.
mechanical engineering). |
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STEPHEN A. SNIDER
Director since 2000 |
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Mr. Snider, 67, retired in 2009 as Chief Executive Officer and director of Exterran Holdings, Inc., a global natural gas compression services company, and also retired as Chief Executive Officer and director for the general
partner of Exterran Partners, L.P., a domestic natural gas contract compression services business. Mr. Snider has over 30 years of experience in senior management of operating companies. He serves as a director of two other publicly traded companies
Dresser-Rand Group, Inc. (NYSE: DRC) and Thermon Group Holdings, Inc. (NYSE: THR). He has within the past five years served as a director of Seahawk Drilling Incorporated. Mr. Snider is a graduate of the University of Detroit (B.S. civil
engineering) and the University of Colorado at Denver (M.B.A.). |
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GARY C. YOUNGBLOOD
Director since 2003 |
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Mr. Youngblood, 71, retired in 2003 as President and Chief Operating Officer of Alabama Gas Corporation, a former subsidiary of the Company. Mr. Youngblood was employed by Alabama Gas Corporation in various capacities for 34
years. He was elected its Executive Vice President in 1993, its Chief Operating Officer in 1995, and its President in 1997. Mr. Youngblood has served in a number of industry and civic leadership roles including Chairman of the Birmingham Chamber of
Commerce, member of the Board of Directors of the Public Affairs Research Council of Alabama, President of the Alabama Natural Gas Association, President of the Southeast Gas Association, and member of the Leadership Council of the American Gas
Association. He is a graduate of the University of Montevallo (B.S. business administration). |
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DIRECTORS WHOSE TERMS EXPIRE
IN 2016
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Name and Year First Became Director |
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Principal Occupation and Other
Information |
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T. MICHAEL GOODRICH
Director since 2000 |
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Mr. Goodrich, 69, retired in 2008 as Chairman of the Board and Chief Executive Officer of BE&K, Inc., an international engineering and construction firm headquartered in Birmingham, Alabama. Upon retirement, Mr. Goodrich
founded an investment and consulting company, Timberline Management Co., Inc. He joined BE&K in 1972 as Assistant Secretary and General Counsel, was named President in 1989 and was named Chairman and Chief Executive Officer in 1995. Mr. Goodrich
is active in a number of industry and civic organizations including the National Academy of Construction. In addition to Energen, Mr. Goodrich serves as a director of one other publicly traded company - Synovus Financial Corp. He is also a director
of First Commercial Bank. Mr. Goodrich is a graduate of Tulane University (civil engineering) and the University of Alabama School of Law (J.D.). |
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JAY GRINNEY
Director since 2012 |
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Mr. Grinney, 64, is President, Chief Executive Officer and a director of HealthSouth Corporation (NYSE: HLS), one of the countrys largest providers of post-acute healthcare services . He was named to these positions in May
2004. Prior to joining HealthSouth, Mr. Grinney served in a number of senior management positions with HCA, Inc., or its predecessor companies, in particular, serving as president of HCAs Eastern Group from May 1996 to May 2004, president of
the Greater Houston Division from October 1993 to April 1996 and as chief operating officer of the Houston region from November 1992 to September 1993. Before joining HCA, Mr. Grinney held several executive positions during a nine-year career at the
Methodist Hospital System in Houston, TX. Mr. Grinney has served in a number of community and civic leadership roles and presently serves on the boards of directors of the Public Affairs Research Council of Alabama, the Community Foundation of
Greater Birmingham and the Birmingham Business Alliance. He is a graduate of St. Olaf College (B.A. psychology), Washington University School of Medicine (M.H.A.), and Washington University Graduate School of Management (M.B.A.). |
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FRANCES POWELL HAWES
Director since 2013 |
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Ms. Frances Powell Hawes, 60, an independent financial consultant, has an extensive background in finance with publicly traded and private companies and is a CPA. Ms. Powell Hawes served as Chief Financial Officer of New Process
Steel, L.P., a privately held steel distribution business in the United States and Mexico from September 2012 through December 2013; as Senior Vice President and Chief Financial Officer of American Electric Technologies, Inc. (NASDAQ: AETI) from
2011 to 2012, as Interim Chief Financial Officer of Sterling Chemicals, Inc. from 2009 to 2010; as Executive Vice President and Treasurer of NCI Building Systems, Inc. (NYSE: NCS) from 2005 to 2008; as a financial advisor to London Merchant
Securities LPC, a real estate and investment company, from 2003 to 2005; and as Chief Financial Officer and Treasurer of Grant Prideco, Inc. (NYSE), a manufacturer of engineered tubular products for the energy industry, from 2000 to 2001. She is a
graduate of the University of Houston (B.B.A.). |
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DIRECTORS WHOSE TERMS EXPIRE
IN 2017
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Name and Year First Became Director |
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Principal Occupation and Other
Information |
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KENNETH W. DEWEY
Director since 2007 |
|
Mr. Dewey, 61, is a co-founder and board member of Caymus Capital Partners, a market-neutral energy equity fund manager. He also serves as a director of Impact Guidance Systems, Inc., a developer of downhole tools used by the oil
and gas industry. Mr. Dewey was a co-founder of Randall & Dewey, a full-service transaction advisory firm specializing in oil and gas mergers, acquisitions and divestments. Randall & Dewey provided marketing, transaction, evaluation and
research services for clients ranging from small, privately held firms to integrated energy companies and major oil companies. Mr. Dewey served as Randall & Deweys Chief Financial Officer from 1989 until his 2006 retirement following the
firms 2005 acquisition by Jefferies & Company. From 1978 to 1989, Mr. Dewey held a variety of positions with Amoco Corporation and its subsidiaries. Mr. Dewey is a graduate of Stanford University (A.B. economics) and Wharton School,
University of Pennsylvania (M.B.A.). |
|
|
M. JAMES GORRIE
Director since January 1, 2014 |
|
Mr. Gorrie, 52, is President and CEO of Brasfield & Gorrie, LLC, one of the largest privately held construction firms in the United States. It provides construction and construction management services for a wide variety of
projects, including commercial, institutional, healthcare, industrial, and treatment plant construction. Mr. Gorrie joined Brasfield & Gorrie in 1984 and served in various roles prior to his election as President in 1994. He was elected to the
additional position of CEO in 2011. Mr. Gorrie serves as a director of one other publicly traded company, ProAssurance Corporation (NYSE: PRA). He is a graduate of Auburn University (B.S. building science). |
|
|
JAMES T. MCMANUS, II
Director since 2006 |
|
Mr. McManus, 56, is Chairman of the Board, President and Chief Executive Officer of the Company. He has been employed by Energen Corporation and its subsidiaries in various capacities since 1986. He was elected Executive
Vice President and Chief Operating Officer of Energen Resources Corporation in October 1995 and President of Energen Resources in April 1997. He was elected President and Chief Operating Officer of the Company effective January 1, 2006, Chief
Executive Officer effective July 1, 2007, and Chairman of the Board effective January 1, 2008. Prior to joining the Company, Mr. McManus worked for PricewaterhouseCoopers. A certified public accountant, he is a graduate of the University of Alabama
(B.S. accounting). |
Each of our Directors also serves as a Director of Energen Resources Corporation (Energen Resources), our principal
subsidiary.
DIRECTOR SKILLS AND QUALIFICATIONS
Our Governance and Nominations Committee considers the qualifications and backgrounds of each of our Directors when
nominated for service on our Board of Directors, and believes that each Director named above possesses skills and qualifications that enhance the quality of the Board as a whole. With respect to the four nominees, we note that:
|
|
Mr. Hargett, retired Chairman, President and CEO of Houston Exploration Company, has 35 years of North American
|
|
|
oil and gas industry experience, a background and expertise in the science of geology, and many years of senior executive experience, including eight years as CEO and Chairman of a
publicly-traded company. |
|
|
Mr. Kleier, retired Vice President of Chevrons Mid-Continent Business Unit, has an engineering background and expertise, 36 years of industry
experience with a major international oil and gas |
11
|
|
company, including senior operations experience in upstream oil and gas, and recent and relevant experience in the onshore North American market. |
|
|
Mr. Sniders experience as Chief Executive Officer of Exterran Holdings, Inc., a publicly traded global natural gas compression services company, together with his current service on the boards of two other
publicly traded companies, provides the Energen Board with industry-related and international business knowledge and experience, as well as senior executive and board governance knowledge and experience.
|
|
|
Mr. Youngblood, retired President and Chief Executive officer of Alabama Gas Corporation (an SEC registrant and, until September 2, 2014, a wholly owned subsidiary of the Company), has significant institutional
knowledge, natural gas industry knowledge, and operational management and budget experience. |
Our nominees respective business backgrounds are
discussed above in more detail.
SELECTION OF BOARD NOMINEES
Our Governance and Nominations Committee identifies and evaluates Board candidates using one or more informal processes
deemed appropriate for the circumstances. A determination of whether to pursue discussions with a particular individual is made after discussion by the Committee and may be preceded by formal or informal discussions involving one or more or all of
the other Board members. Information considered by the Committee may include information provided by the candidate and one or more Committee or Board members. The Committee will also consider potential committee service by Board candidates at the
time such candidates are evaluated for membership on the Board and, if the Board has vacancies on a particular committee or foresees such a vacancy, the Committee may be more likely to consider Board candidates with credentials and experience
suitable for service on such committee. Board candidates are expected to possess high personal and professional ethics, integrity and values, and be committed to representing the long-term interests of the shareholders. They are also expected to
have an inquisitive and objective perspective, practical wisdom, and good judgment. In addition to these fundamental characteristics, the Committee seeks to assemble and maintain a Board membership with a diverse
portfolio of expertise, education, and experience conducive to generating multiple perspectives on the business, community, and strategic issues and opportunities encountered or anticipated by
the Company. Once appropriate candidates have been identified, the Committee recommends nominations to our Board.
During fall 2014, following the unexpected
passing of Dr. Merritt, the Committee began its search to fill the vacancy left by Dr. Merritt and prepare for future Director retirements. The Committee reviewed its prior discussions of potential board candidates and desired attributes.
With respect to attributes, in addition to the characteristics described in the preceding paragraph, the Committee focused on oil and gas industry and public company experience. The Committee retained a Director search firm to assist in identifying
and evaluating candidates, including candidates previously identified by the Committee. With the assistance of the search firm, the Committee considered several candidates and at the end of the process was pleased to recommend William G. Hargett and
Alan A. Kleier for election to the Board at this Annual Meeting. Mr. Hargett first came to the attention of the Committee as a recommendation from the Companys Chief Executive officer, and
12
Mr. Kleier first came to the attention of the Committee as a recommendation from a non-management Director.
Our Governance and Nominations Committee has not adopted a policy or procedure for the consideration of Director candidates recommended by shareholders. Our Board does
not recall an instance in which a shareholder (other than a shareholder serving as an officer or Director) has recommended a
Director candidate; however, as stated in prior years, the Governance and Nominations Committee will consider timely shareholder recommendations. Our Company Bylaws contain detailed procedures
for shareholders desiring to nominate, instead of recommend, a Director candidate. For this Annual Meeting, the Governance and Nominations Committee did not receive any Director candidate recommendations from shareholders holding at least 5% of our
common stock.
BOARD
AND COMMITTEES
In 2014, our Board held 6 meetings and committees of the Board held 13 meetings. Each Director attended 75% or more of the
aggregate of all meetings of the Board and the committees on which the Director served during 2014. We encourage and expect our Board members to attend our Annual Meeting absent extenuating circumstances, but we do not have a formal policy requiring
attendance. All of our Board members attended our Annual Meeting held in 2014.
Our Board has the following three committees, each with a written charter adopted by the Board and available on our
website:
|
|
Governance & Nominations Committee; and |
|
|
Compensation Committee. |
The following table summarizes the primary purpose
and function of each committee.
|
|
|
Committee |
|
Primary Purpose and Function |
Audit |
|
Assist the Board in fulfilling its responsibility to oversee the integrity of the
Companys financial statements, the Companys compliance with legal and regulatory requirements, the independent auditors qualifications and independence, and the performance of the Companys internal audit function and
independent auditors; appointment,
compensation, retention, discharge and replacement of the Companys independent auditors; and
prepare a Committee report as required by the SEC to be included in the Companys annual Proxy
Statement. |
Governance & Nominations |
|
Review and advise the Board on general governance and structure issues, including
corporate governance principles and guidelines applicable to the Company;
lead the Boards Director succession planning;
review potential Board candidates and
recommend Director nominations to the Board; and
review and recommend non-employee Director compensation to the Board.
|
Compensation |
|
Review and approve corporate goals and objectives in the areas of salary and bonus compensation, benefits, and equity-based
compensation, as these areas relate to the CEO, evaluating the CEOs performance based on those goals and |
13
|
|
|
Committee |
|
Primary Purpose and Function |
|
|
objectives and, either as a committee or together with the other independent directors (as directed by the Board) determine and
approve the CEOs compensation level based on that evaluation;
make recommendations to the Board with respect to non-CEO executive officer compensation, incentive
compensation plans and equity-based plans that are subject to Board approval;
produce an annual report on executive compensation as required by the SEC to be included in or incorporated by
reference into the Companys Proxy Statement or other applicable SEC filings; and
under delegation from our Board, determine and approve our compensation philosophy, the compensation of our
non-CEO executive officers and equity-based compensation applicable to non-executive officer employees. |
The table below provides membership and meeting information for each of the standing Board committees for 2014. If elected as Directors,
Mr. Hargett and Mr. Kleier will serve on the Audit Committee.
|
|
|
|
|
|
|
Name |
|
Audit |
|
Compensation |
|
Governance &
Nominations |
Mr. Dewey* |
|
C |
|
M |
|
|
Mr. Goodrich* |
|
|
|
M |
|
C |
Mr. Gorrie (a)* |
|
M |
|
|
|
|
Mr. Grinney* |
|
M |
|
M |
|
|
Ms. Powell Hawes* |
|
M |
|
|
|
|
Mr. McManus (b) |
|
|
|
|
|
|
Dr. Merritt (c)* |
|
M |
|
|
|
M |
Mr. Snider* |
|
|
|
C |
|
M |
Mr. Youngblood* |
|
|
|
|
|
M |
2014 Meetings |
|
5 |
|
6 |
|
2 |
C: Chair M:
Member *Independent Director
(a) |
Mr. Gorrie joined the Audit Committee effective April 1, 2014. |
(b) |
Mr. McManus, as Chief Executive Officer of the Company, is not a member of any Committee. |
(c) |
Dr. Merritt served as a member of the Audit and Governance and Nominations Committees until the date of her passing on October 19, 2014. |
14
INDEPENDENCE DETERMINATIONS
Our Board of Directors has adopted independence standards consistent with the listing standards adopted by the NYSE. A
Director will be considered independent and found to have no material relationship with the Company if:
(1) During the prior three years:
|
|
|
The Director has not been an employee of the Company or any of its subsidiaries; |
|
|
|
No immediate family member of the Director has been an executive officer of the Company; |
|
|
|
Neither the Director nor an immediate family member of the Director has received more than $120,000 per year in direct compensation from the Company other than director and committee fees and pension or other forms of
direct compensation for prior service (provided such compensation is not contingent in any way on future service); |
|
|
|
Neither the Director nor an immediate family member of the Director has been employed as an executive officer of another company where any of the Companys present executives serve on that companys
compensation committee; and |
|
|
|
The Director has not been an executive officer or employee, and no immediate family member of the Director has been an executive officer, of a company that made payments to or received payments from the Company for
property or services in an amount which, in any single fiscal year, exceeded the greater of $1 million or 2% of such other companys consolidated gross revenues; |
and
|
(2) |
The Director is not a current partner or employee of a firm that is the Companys internal or external auditor;
|
|
|
|
The Director does not have an immediate family member who is a current partner of such a firm; |
|
|
|
The Director does not have an immediate family member who is a current employee of such a firm and personally works on the Companys audit; and |
|
|
|
Neither the Director nor an immediate family member was within the last three years a partner or employee of such a firm and personally worked on the Companys audit within that time. |
In January 2015, the Board reviewed the independence of its members and nominees. Based on this review and the independence standards set forth above, the Board of
Directors determined that none of the Director nominees and none of the current Directors, with the exception of Mr. McManus, have a material relationship with the Company other than in their capacities as members of the Board of Directors.
Mr. McManus is not considered an independent Director due to his employment as Chief Executive Officer of the Company.
The Board of Directors has determined
that each member of the Audit Committee and Messrs. Hargett and Kleier meet the independence standards required by applicable SEC regulations and NYSE listing standards, and the financial literacy and accounting or financial management requirements
of the NYSE listing standards. The Board has also determined that Ms. Powell Hawes is an audit committee financial expert under the rules and regulations of the SEC.
The Board of Directors has determined that each member of the Compensation Committee and the Governance and Nominations Committee meets the independence requirements of
applicable SEC regulations and NYSE listing standards.
15
In evaluating the independence of the Directors and nominees, the Board was not aware of, and did not consider, any
relationships between a Director or Director nominee, or any family member of a Director or Director nominee, and the Company or any of its executive officers.
Although the Company does not have specific policies and procedures for the review, approval or ratification of Company transactions in which any Director, executive
officer or other related person will have a direct or indirect material interest, the Company does have conflict of interest disclosure requirements in its Business Conduct Guidelines and its Corporate Governance Guidelines. The Business Conduct
Guidelines require each officer, employee and Director to notify the Company if he/she or a close family member has a financial interest in a transaction involving the Company. The Corporate Governance Guidelines further provide that
Directors are expected to disclose to the Board any potential conflicts of interest that they may have with respect to any matters under discussion and refrain from voting on such matters, if
appropriate.
We rely on our Directors and executive officers to make advance disclosure to the Board of Directors of transactions with the Company in which a
Director or an executive officer will have a direct or indirect interest. Our Board of Directors would then evaluate and determine whether to approve any such proposed transaction. Failure to disclose such a transaction to our Board of Directors in
advance and to seek approval from our Board prior to engaging in such a transaction would constitute a violation of our Companys Business Conduct Guidelines. Our Directors and executive officers also complete an annual questionnaire that
identifies or confirms the absence of any direct or indirect participation in any transaction with the Company.
BOARD
LEADERSHIP STRUCTURE AND ROLE IN RISK OVERSIGHT
The Chairman of the Companys Board of Directors is Mr. McManus, who also serves as the Companys Chief
Executive Officer. This combined Chairman-CEO leadership role has been used by the Company for many years except during brief succession transition periods. The Company has also always had a majority independent Board membership. Currently,
Mr. McManus is the only non-independent member of the Board. Under our Corporate Governance Guidelines, our Board designates a lead Director for purposes of convening and chairing meetings of our non-management Directors. The role of lead
Director is currently filled by Mr. Goodrich. Based on many years of experience, the Board believes that this structure serves the Company well in providing effective and efficient leadership with active independent oversight.
The Board exercises its risk oversight role through Board and Committee meetings. As noted above, a majority of the Board
members and all Committee members are independent. Risk oversight matters are discussed and reviewed in various ways: normal agenda items; presentations in response to Director requests; presentations initiated by management; and issues raised and
discussed during the course of Board and Committee meetings. The Board has developed a matrix identifying key risks and specifying full Board or specific Committee oversight responsibility. The Governance and Nominations Committee is charged with
coordinating periodic review, update and assessment of the matrix.
COMMUNICATION WITH THE BOARD OF DIRECTORS
Based on past experience, we expect to receive and respond to shareholder communications in a variety of ways. Our
Board does not want to limit this flexibility and has not implemented a defined process for shareholders to send communications to the
16
Board. Any shareholder or other interested person wishing to communicate with a member of the Board may send correspondence to his or her attention at Energen Corporation, 605 Richard Arrington
Jr. Blvd. North, Birmingham, Alabama 35203-2707. The names, titles and committee assignments of our officers and Directors, together with our mailing address and telephone number, can be found on our website under the heading Investor
Relations and subheading Corporate Governance
(www.energen.com). Also under that subheading, page 16 of our Business Conduct Guidelines details the procedure adopted by our Audit Committee for the handling of inquiries and
correspondence relating to errors, deficiencies and misrepresentations in accounting, internal control, and audit related matters. Such inquiries and correspondence are to be forwarded by our General Counsel to the Chairman of our Audit Committee.
CODE
OF ETHICS
The Company has a code of ethics, titled Business Conduct Guidelines, which is applicable to all of the Companys
employees, including the principal executive officer, the principal financial officer and the principal accounting officer. The Business Conduct Guidelines are also applicable to all of the
Directors of the Company. We intend to post amendments to or waivers from the Business Conduct Guidelines that are applicable to the Companys Directors, principal executive officer,
principal financial officer and principal accounting officer on our website.
AVAILABILITY OF CORPORATE GOVERNANCE DOCUMENTS.
Our corporate governance documents are available on our website under the heading Investor Relations and
subheading Corporate Governance (www.energen.com). Our corporate governance documents include the following:
|
|
Corporate Governance Guidelines; |
|
|
charters for each Board committee; and |
|
|
Business Conduct Guidelines. |
Shareholders also may obtain copies of these documents from us without charge by requesting such documents in writing or
by telephone at the following address or telephone number:
J. David Woodruff
Energen Corporation
605 Richard Arrington Jr. Blvd.
North
Birmingham, Alabama 35203-2707
Phone:
(205) 326-2700
COMPENSATION COMMITTEE PROCESS
The Compensation Committee is responsible for overseeing and administering the Companys executive compensation
program. The Compensation Committee establishes the salaries and other compensation of the executive officers of the Company, including the Chairman and CEO, the CFO, and other executive officers named in the Summary Compensation Table. In setting
salaries and granting other forms of compensation, the Compensation Committee receives and considers information and recommendations
from the CEO and the Vice President of Human Resources. The Compensation Committee also reviews and considers reports and analysis provided by its executive compensation consultant, Pay
Governance, LLC (Pay Governance). Pay Governance is engaged by the Company at the direction of the Compensation Committee. The Compensation Committee conducted an assessment of the independence of Pay Governance utilizing the factors
identified in Rule 10C-1 promulgated under the Securities
17
Exchange Act of 1934, as amended. Pay Governance did not identify any conflicts to be considered by the Compensation Committee as part of its independence analysis. Management meets with Pay
Governance representatives and participates in most meetings between Pay Governance and the Compensation Committee. Pay Governance provides assessments of the competitiveness of the Companys executive compensation
levels and practices relative to relevant executive labor markets and other assignments as required by the Compensation Committee. For a more detailed description of the Compensation
Committees authority and interaction with management and Pay Governance, see Compensation Discussion and Analysis beginning on page 27 of this proxy statement.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER
PARTICIPATION
None of the Directors serving on the Compensation Committee has served as an officer or employee of the Company or had a
relationship with the Company that required consideration by our Board of Directors in connection with their review of Director
independence. No executive officer of the Company has served or serves on the compensation committee or board of any company that employed or employs any member of the Compensation Committee.
DIRECTORS COMPENSATION
2014 Director Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name |
|
Fees Earned or Paid in
Cash ($) |
|
|
Stock
Awards ($) |
|
|
Option Awards
($) |
|
Non-Equity
Incentive Plan Compensation
($) |
|
Change
in Pension Value and
Nonqualified Deferred
Compensation Earnings |
|
All Other
Compensation ($) |
|
|
Total
($) |
|
(a) |
|
(b) |
|
|
(c)(1) |
|
|
(d) |
|
(e) |
|
(f) |
|
(g)(2) |
|
|
(h) |
|
|
|
|
|
|
|
|
|
Dewey |
|
|
88,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
1,607 |
|
|
|
195,912 |
|
|
|
|
|
|
|
|
|
Goodrich |
|
|
76,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
2,224 |
|
|
|
184,529 |
|
|
|
|
|
|
|
|
|
Gorrie(3) |
|
|
67,875 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
1,854 |
|
|
|
61,854 |
|
|
|
|
|
|
|
|
|
Grinney |
|
|
76,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
182,305 |
|
|
|
|
|
|
|
|
|
Merritt (4) |
|
|
62,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
168,305 |
|
|
|
|
|
|
|
|
|
Powell
Hawes |
|
|
70,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
1,967 |
|
|
|
178,272 |
|
|
|
|
|
|
|
|
|
Snider |
|
|
80,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
2,373 |
|
|
|
188,678 |
|
|
|
|
|
|
|
|
|
Youngblood |
|
|
64,500 |
|
|
|
105,805 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
170,305 |
|
(1) The Stock Awards in column (c) reflect the January 2014 grant of 1480 unrestricted shares under the Companys Directors
Stock Plan with a grant date value of $71.49 per share. There were no stock awards outstanding at year-end.
(2) Column (g) reflects income tax reimbursements
related to Company paid spousal travel expenses. The aggregate amount of perquisites and other personal benefits, or property, including Company paid spousal travel expenses was less than $10,000 for each Director.
18
(3) Mr. Gorrie joined the Board of Directors effective January 1, 2014.
(4) Dr. Merritt served as a member of the Board until the date of her passing on October 19, 2014.
The Governance and Nominations Committee charter provides that:
At such times as it determines appropriate or as requested by the Board, the Committee will review and make recommendations with respect to Director
compensation. Such compensation is intended to be sufficient to attract and retain qualified candidates and may include a combination of cash and stock based compensation.
Management discusses Director compensation with the Governance and Nominations Committee and makes recommendations on
Director compensation that the Governance and Nominations Committee considers as part of its process in reviewing Director compensation. The Director monthly cash retainer fees and meeting fees paid in 2014 were approved by the Board effective
January 1, 2014. The 2014 share awards were issued pursuant to the Amended and Restated Directors Stock Plan. The Governance and Nominations Committee targeted a grant of shares that would equal approximately $100,000 in value to each
non-employee Director based on share prices during the first ten trading days of January 2014.
Non-employee Director Fees.
|
|
$51,000 annual retainer |
|
|
$1,500 fee per Board meeting attended |
|
- |
|
Chair: $22,500 per year |
|
- |
|
Member: $10,500 per year |
|
|
Compensation Committee: |
|
- |
|
Chair: $16,000 per year |
|
- |
|
Member: $6,000 per year |
|
|
Governance and Nominations Committee: |
|
- |
|
Member: $4,500 per year |
|
|
Lead Director: $3,000 per year |
No Director who is an employee of the Company is compensated for service as a member of
the Board of Directors or any committee of the Board of Directors.
Share Awards and Deferred Compensation. Our Board has authority to make compensatory grants of
stock, restricted stock and stock options to non-employee Directors pursuant to the Amended and Restated Directors Stock Plan at such times and in such amounts as the Board may determine. Awards under the Amended and Restated Directors Stock Plan
are in addition to the payment of monthly cash retainers and meeting fees. The plan also allows each non-employee Director to elect to have any part or all of the cash fees payable for services as a Director of the Company and its subsidiaries paid
in shares of common stock.
The Governance and Nominations Committee administers the Amended and Restated Directors Stock Plan. Although the plan has no fixed
duration, the Board of Directors or our shareholders may terminate the plan. Our Board of Directors also may amend the plan from time to time, but any amendment that materially increases the benefits accruing to participants, increases the number of
shares of common stock that may be issued or materially modifies eligibility requirements would require the approval of our shareholders.
Under the Companys
1997 Deferred Compensation Plan, members of the Board of Directors may elect to defer part or all of their Director compensation. The 1997 Deferred Compensation Plan is discussed below in greater detail under the caption Compensation
Discussion and Analysis 1997 Deferred Compensation Plan.
Stock Ownership Guideline. The stock ownership expectation of
non-employee Directors is 5,000 shares including share equivalents under the 1997 Deferred
19
Compensation Plan. New Directors are expected to reach this ownership target within five years of joining the Board of Directors.
Other. The Company reimburses Directors for travel, lodging, and related expenses incurred in attending Board and Committee meetings. These
reimbursements include the expenses
incurred by the Directors spouses in accompanying the Directors at the invitation of the Company, along with taxes related to such payments. Directors previously had family coverage under
the Companys membership in a medical emergency travel assistance program, but such coverage was terminated during 2014.
RATIFICATION OF APPOINTMENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Audit Committee of the Board of Directors of the Company has selected the accounting firm of PricewaterhouseCoopers
LLP to serve as the independent registered public accounting firm of the Company with respect to its operations for the year 2015. While shareholder ratification of the appointment is not required, the Audit Committee has determined to seek input
from the shareholders as part of the selection process. PricewaterhouseCoopers LLP has served as the Companys independent registered public accounting firm for a number of years. If the appointment of PricewaterhouseCoopers LLP is not ratified
by the shareholders, the matter of
the appointment of an independent registered public accounting firm will be reconsidered by the Audit Committee.
The firm of PricewaterhouseCoopers LLP audited our financial statements for the fiscal year ended December 31, 2014, and the Audit Committee plans to continue the
services of this firm for the fiscal year ending December 31, 2015. A representative of PricewaterhouseCoopers LLP will be present at the Annual Meeting, will have an opportunity to make a statement if he or she desires to do so, and will be
available to respond to appropriate questions.
FEE
DISCLOSURE
The following table presents fees billed or expected to be billed for professional audit services rendered by
PricewaterhouseCoopers LLP for the audit of the Companys annual financial statements for the years ended December 31, 2014 and December 31, 2013, and fees billed for other services rendered by PricewaterhouseCoopers LLP during those
periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
(1) Audit fees |
|
|
|
$1,993,834 |
|
|
|
|
$1,836,000 |
|
(2) Audit-related fees (a) |
|
|
|
$1,546,892 |
|
|
|
|
$217,000 |
|
(3) Tax fees (b) |
|
|
|
$74,000 |
|
|
|
|
$96,000 |
|
(4) All other fees |
|
|
|
$0 |
|
|
|
|
$0 |
|
(a) |
Includes fees for audits of certain of the Companys employee benefit plans, review of the application of accounting standards and internal control review. |
(b) |
Includes fees incurred in connection with the Companys tax returns and review of certain tax matters.
|
PRE-APPROVAL PROCESS
Our Audit Committee approved, directly or through our pre-approval process, one hundred
percent (100%) of the services provided by PricewaterhouseCoopers LLP during 2014,
20
and concluded that the provision of such services by PricewaterhouseCoopers LLP was compatible with the maintenance of that firms independence in the conduct of its auditing functions.
Our Audit Committee pre-approved the engagement through June 30, 2015 of the independent auditors with respect to the following services: (i) services
necessary to perform the audit or review of the Companys financial statements; (ii) audit-related services such as employee benefit plan audits, due diligence related to mergers and acquisitions, accounting assistance and internal control
reviews; and (iii) tax services including preparation and/or review of, and consultation and advice with respect to, tax returns and reports; claims for tax refund; tax planning
services; tax implications of changes in accounting methods and applications for approval of such changes; tax basis studies; tax implications of mergers, acquisitions and divestitures; tax
issues relating to payroll; tax issues relating to employee benefit plans; requests for technical advice from tax authorities and tax audits and appeals (not including representation before a tax court, district court or federal court of claims
or a comparable state or local court). In addition, the Chairman of the Audit Committee has been delegated the authority by the Audit Committee to pre-approve the engagement of the independent auditors for services not covered by the above
authority. All such pre-approvals must be reported to the Audit Committee at the next committee meeting.
REQUIRED VOTE
The affirmative vote of a majority of the votes cast at the Annual Meeting in person or by proxy by shareholders entitled
to vote on the matter is required to ratify the appointment of
PricewaterhouseCoopers LLP as the independent registered public accounting firm of the Company.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT THE
SHAREHOLDERS VOTE FOR THE RATIFICATION OF THE APPOINTMENT OF PRICEWATERHOUSECOOPERS LLP AS THE COMPANYS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.
21
2014 AUDIT COMMITTEE REPORT
In compliance with the requirements of the NYSE, the Audit Committee has a formal written charter approved by the Board of Directors, a copy of which is available on
our website under the heading Investor Relations and subheading Corporate Governance (www.energen.com). In connection with the performance of its responsibility under its charter, the Audit Committee has:
|
|
|
Reviewed and discussed the audited financial statements of the Company with management; |
|
|
|
Discussed with the independent auditors the matters required to be discussed by PCAOB Auditing Standard No. 16 (required communication by external auditors with audit committees); |
|
|
|
Received from the independent auditors disclosures regarding the auditors independence required by the applicable requirements of the Public Company Accounting Oversight Board and discussed with the auditors the
auditors independence; and |
|
|
|
Recommended, based on the review and discussion noted above, to the Board of Directors that the audited financial statements be included in the Companys Annual Report on Form 10-K for the year ended
December 31, 2014 for filing with the SEC. |
The Audit Committee has also considered whether the independent registered public accountants
provision of non-audit services to the Company is compatible with maintaining their independence.
AUDIT
COMMITTEE
Kenneth W. Dewey, Chair
M. James Gorrie
Jay Grinney
Frances Powell Hawes
22
SHARE OWNERSHIP
PRINCIPAL HOLDERS
The only persons known by the Company to be beneficial owners
of more than five percent (5%) of the Companys common stock are the following:
|
|
|
|
|
Name and Address of Beneficial Owner |
|
Number
of Shares
Beneficially
Owned (1) |
|
Percent of Class
Beneficially
Owned (1) |
BlackRock, Inc.
(2) 40 East 52nd Street
New York, NY 10022 |
|
4,978,588 |
|
6.8% |
State Street
Corporation (3) State Street Financial Center
One Lincoln Street Boston, MA 02111 |
|
4,070,197 |
|
5.6% |
The Vanguard Group
(4) 100 Vanguard Blvd. Malvern, PA
19355 |
|
5,100,994 |
|
6.96% |
Wellington Management
Group LLP (5) c/o Wellington Management Company LLP
280 Congress Street Boston, MA 02210 |
|
8,276,329 |
|
11.31% |
Boston Partners
(6) One Beacon Street Boston, MA
02108 |
|
6,629,178 |
|
9.06% |
JPMorgan Chase &
Co. (7) 270 Park Avenue New York, NY
10017 |
|
4,792,547 |
|
6.5% |
(1) |
Reflects shares reported on Schedule 13G as beneficially owned as of December 31, 2014. |
(2) |
In a Schedule 13G dated January 12, 2015, BlackRock, Inc., together with certain affiliated entities (BlackRock), reported having sole power to vote 4,620,621 shares of common stock and sole power to
dispose or direct the disposition of 4,978,588 shares of common stock. All information in this footnote was obtained from the Schedule 13G filed by BlackRock. |
(3) |
In a Schedule 13G dated February 11, 2015, State Street Corporation, together with certain affiliated entities (State Street), reported having shared power to vote 4,070,197 shares of common stock and
shared power to dispose or direct the disposition of 4,070,197 shares of common stock. All information in this footnote was obtained from the Schedule 13G filed by State Street. |
(4) |
In a Schedule 13G dated February 9, 2015, The Vanguard Group, together with certain affiliated entities (Vanguard), reported having sole power to vote 68,481 shares of common stock, sole power to
dispose or direct the disposition of 5,039,174 shares of common stock and shared power to dispose or direct the disposition of 61,820 shares of common stock. All information in this footnote was obtained from the Schedule 13G filed by Vanguard.
|
23
(5) |
In a Schedule 13G dated February 12, 2015, Wellington Management Group LLP, together with certain affiliated entities (Wellington), reported having shared power to vote 3,934,911 shares of common stock
and shared power to dispose or direct the disposition of 8,276,329 shares of common stock. All information in this footnote was obtained from the Schedule 13G filed by Wellington. |
(6) |
In a Schedule 13G dated February 9, 2015, Boston Partners reported having sole power to vote 4,975,199 shares of common stock, shared power to vote 13,500 shares of common stock and sole power to dispose or direct
the disposition of 6,629,178 shares of common stock. All information in this footnote was obtained from the Schedule 13G filed by Boston Partners. |
(7) |
In a Schedule 13G dated January 27, 2015, JPMorgan Chase & Co., together with certain affiliated entities (JPMorgan), reported having sole power to vote 4,627,029 shares of common stock, shared
power to vote 8,648 shares of common stock, sole power to dispose or direct the disposition of 4,760,963 shares of common stock and shared power to dispose or direct the disposition of 15,984 shares of common stock. All information in this footnote
was obtained from the Schedule 13G filed by JPMorgan. |
24
DIRECTORS AND EXECUTIVE OFFICERS
As of February 25, 2015, our Directors, Director
nominees and executive officers beneficially owned shares of our common stock as described in the table below. Beneficial ownership includes shares that each person has the right to acquire within sixty (60) days of February 25, 2015.
Except as we have noted below, each individual listed below has sole voting power and sole investment power with respect to shares they beneficially own, and has not pledged any of their shares of our common stock. The final column indicates common
stock share equivalents held under the Energen Corporation Deferred Compensation Plan as of February 25, 2015. Company policy prohibits our officers and directors from pledging our common stock or trading in derivatives of our common stock.
|
|
|
|
|
|
|
Name of Entity, Individual or Persons in
Group |
|
Number
of Shares
Beneficially
Owned (1)(2) |
|
Percent
of Class
Beneficially
Owned (2) |
|
Share Equivalents Under
Deferred Plan
(3) |
Kenneth W. Dewey |
|
15,000 |
|
* |
|
21,737 |
David Godsey |
|
23,843 |
|
* |
|
264 |
T. Michael Goodrich |
|
16,940 |
|
* |
|
26,036 |
M. James Gorrie |
|
3,070 |
|
* |
|
0 |
Jay Grinney |
|
2,500 |
|
* |
|
8,542 |
William G. Hargett |
|
1,000 |
|
* |
|
0 |
Frances Powell Hawes |
|
2,990 |
|
* |
|
2,117 |
Alan A. Kleier |
|
500 |
|
* |
|
0 |
James T. McManus, II |
|
310,412 |
|
* |
|
0 |
Charles W. Porter, Jr. |
|
68,061 |
|
* |
|
946 |
John S. Richardson |
|
165,568 |
|
* |
|
3,065 |
Stephen A. Snider |
|
28,870 |
|
* |
|
4,477 |
J. David Woodruff |
|
179,936 |
|
* |
|
830 |
Gary C. Youngblood |
|
46,118 |
|
* |
|
0 |
All Directors, Director nominees and executive officers (17 persons) |
|
907,643 |
|
1.24% |
|
69,867 |
(1) |
The shares of common stock shown above include shares owned by spouses and children, as well as shares held in trust. The shares of common stock shown above for Messrs. Godsey, McManus, Porter, Richardson, Woodruff and
the other executive officers of the Company include shares that are held for their respective accounts under the Energen Corporation Employee Savings Plan. Messrs. Godsey, McManus, Porter, Richardson, Woodruff and all Directors and executive
officers as a group hold presently exercisable options to acquire 5,087, 158,645, 40,199, 105,171, 84,004, and 409,857 shares of common stock, respectively, which amounts are included in the above table. |
(2) |
The number and percentage of common stock beneficially owned does not include shares of common stock credited to Company Stock Accounts under the Energen Corporation Deferred Compensation Plan. |
25
(3) |
Represents shares of common stock credited to Company Stock Accounts under the Energen Corporation Deferred Compensation Plan. The value of Company Stock Accounts tracks the performance of the common stock, with
reinvestment of dividends. The Company Stock Accounts have no voting rights. |
SECTION 16(A) BENEFICIAL
OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires our executive officers, Directors and persons who own more than 10% of our
common stock, to file initial reports of ownership on Form 3 and changes in ownership on Form 4 or Form 5 within specified time frames with the SEC, and
to provide us with copies of all forms filed. We believe, based on a review of Forms 3, 4 and 5 furnished to us, that, during fiscal 2014, our executive officers, Directors and 10% shareholders
complied in full with all applicable Section 16(a) filing requirements.
26
COMPENSATION DISCUSSION AND ANALYSIS
EXECUTIVE SUMMARY
Overview. The following discussion details how the Compensation Committee (Compensation
Committee) of the Board of Directors of the Company determines compensation for the Companys Chairman and CEO, the CFO, and the other executive officers named in the Summary Compensation Table (sometimes referred to as the named
executive officers). The Companys approach to executive compensation is guided by the following objectives:
¡ |
|
attract and retain highly qualified executives; |
¡ |
|
link a substantial portion of individual compensation to Company performance; and |
¡ |
|
align the interests of executives with the long-term interests of shareholders. |
The Compensation Committee attempts to
structure compensation packages for the named executive officers such that at target performance a majority of an officers compensation is delivered through incentive compensation, with a majority of total incentive compensation delivered
through long-term incentive compensation. The Compensation Committee utilizes competitive data provided by the Companys compensation consultant, input from the Chief Executive Officer regarding the performance of named executive officers other
than him, and consideration of internal equity to set total compensation ranges for each executive position and allocate compensation among salary, annual incentives and long-term incentives. The combination of salary, short-term incentives and
long-term incentives is intended to compensate Company executives at approximately the 50th percentile of the market when the Company performs at a target level.
Compensation Practices. Energens executive compensation policies and practices include the following features designed to align
compensation with performance and the long-term interests of shareholders.
¡ |
|
The annual cash incentive compensation program is based on objective financial and operational metrics. |
¡ |
|
The long-term incentive compensation plan is 100% equity-based. |
¡ |
|
The long-term incentive compensation plan includes the use of performance shares based on total shareholder return performance relative to the companies included in the S&P Supercomposite Oil and Gas E&P index.
|
¡ |
|
Change in control provisions are double trigger, meaning that in the event of a Company change in control, severance compensation is paid and accelerated equity award vesting occurs only if a
participants employment is terminated following a change in control of the Company. |
¡ |
|
We maintain stock ownership guidelines, which align the financial interests of executives with shareholders. |
¡ |
|
We prohibit hedging of Company common stock by officers and directors. |
¡ |
|
We prohibit pledging of Company common stock by officers and directors. |
¡ |
|
Although 2007 and earlier change in control severance agreements include a tax gross-up provision, severance agreements entered into since 2007 do not contain a tax gross-up provision and the Compensation Committee does
not expect to include such a provision in future agreements. |
Company Performance. The Companys Permian Basin drilling and
development program led to a 17 percent year-over-year increase in oil and natural gas liquids production and a 7 percent increase in proved reserves.
27
During 2014 the Company sold its utility subsidiary, Alabama Gas Corporation (Alagasco), in a $1.6 billion
transaction, clarifying Energen as a pure-play oil and gas exploration and production company.
The Companys adjusted net income of $2.05 per diluted share
fell short of our $2.17 per diluted share performance target. The adjusted net income of $2.05 per diluted share, a non-GAAP measure, excludes the impact of (i) open mark-to-market gains and losses, (ii) non-cash
proved property and unproved leasehold impairments, (iii) changes in accounting principles or other provisions that materially affect reported results, (iv) gains or losses (net of
earnings on sold production) on asset dispositions greater than five million dollars, and (v) unbudgeted reorganization costs. The Companys 2014 GAAP net income was $7.75 per diluted share. (See Non-GAAP Financial Measures on
Appendix B for explanation and reconciliation).
COMPENSATION ELEMENTS
Base Salary. The Compensation Committees objective of targeting compensation for named executive
officers at the 50th percentile of the market translates into salary ranges for executives intended to approximate the median salaries for comparable positions in our peer companies. When making
salary adjustments within the target ranges, the Compensation Committee considers competitive salary data, recommendations from the CEO and the Vice President of Human Resources, internal comparability considerations and the executives
experience, tenure, and performance.
Annual Cash Incentives and Company Performance. Payment of annual cash incentive compensation is linked to the
annual performance of the Company and its subsidiaries through performance factors established by the Compensation Committee at the beginning of each year. For 2014, the applicable performance metrics fell between threshold and target for Energen
and above target for Energen Resources. These results were reflected in the incentive payments described below.
Long-Term Equity
Compensation. In 2014, the Compensation Committee delivered long-term incentives to our executives using a combination of performance shares, restricted stock units and stock options.
Prior to 2013, the Committee used stock options as its primary long-term incentive. In
January 2013 and 2014, it granted a mix of performance shares (50%), restricted awards (25%) and stock options (25%)(percentages indicate estimated value allocation). In February 2015, the
Committee granted a mix of performance shares (60%) and restricted awards (40%), but did not grant stock options.
Payout of performance shares is based on
total shareholder return performance relative to companies in the S&P Supercomposite Oil and Gas E&P Index. Although performance shares typically have a three-year award measurement period, as part of the 2013 transition, the Committee
granted performance shares with a two-year award period that ended December 31, 2014. The Companys total shareholder return of 37.7% for this two-year period placed it at the 91st
percentile resulting in a maximum payout. The operation of the plan is discussed in greater detail below.
Transaction Bonus. Following the
Companys successful $1.6 billion divestiture of its utility operations in September 2014, the Committee recommended and the Board used its discretionary authority to pay an aggregate of approximately $948,000 in cash bonuses to certain
officers, including the following three named executive officers: McManus - $250,000, Porter - $171,200, and Woodruff - $110,700.
COMPENSATION PHILOSOPHY
The Companys executive compensation program is designed
to serve the Company
28
and its shareholders by aligning executive compensation with shareholder interests and by encouraging and rewarding management initiatives that will benefit the Company, its shareholders and
employees over the long-term. Specifically, the executive compensation program seeks to:
¡ |
|
attract and retain highly qualified executives; |
¡ |
|
link a substantial portion of individual compensation to Company performance; and |
¡ |
|
align the interests of executives with the long-term interests of shareholders. |
The Companys executive
compensation program includes base salary, annual cash incentive awards, long-term equity based incentive opportunities and retirement benefits. In the case of a change in control, we also provide severance compensation for qualified terminations
related to the change in control. The Compensation Committee believes that each of these components is a factor in the attraction, retention and motivation of qualified executives. The annual cash and long-term equity incentives link each
executives compensation to corporate performance, with the annual cash incentives keyed to short-term financial and operational objectives and the long-term equity incentives providing alignment with shareholder returns.
The combination of salary, short-term cash and long-term equity incentives is intended to compensate Company executives at
approximately the 50th percentile of the market when the Company performs at a target level; above median when the Company performs above target; and below median for below-target performance.
Target performance represents the performance expectations of the Compensation Committee as measured by the performance metrics set by the Compensation Committee for the Annual Incentive Compensation Plan and the relative total shareholder return
performance target associated with our use of long-term performance shares. The allocation between the various elements of the compensation package is intended to emphasize incentive compensation while remaining in line with market allocations for
similar positions in comparable companies. As shown in the chart below, a majority of 2014 target compensation is represented by incentive compensation and a majority of the incentive compensation is represented by long-term equity incentive
compensation. The allocation to incentive compensation increases with position seniority since we believe that the compensation of our most senior executives should be linked most closely to Company performance.
Allocation of Target Compensation
by Percentage
29
ADMINISTRATION OF EXECUTIVE
COMPENSATION ROLES AND RESPONSIBILITIES
Role of the Compensation Committee: The Compensation Committee oversees and administers the Companys executive compensation program. It establishes
the salaries and other compensation of the executive officers of the Company, including the named executive officers. On an annual basis, the Committee conducts performance evaluations of the CEO which include obtaining written input from each of
the independent members of the Board of Directors. As noted below, the Committee then meets with the CEO to discuss his performance. Each member of the Compensation Committee is an independent Director.
Role of Management: In evaluating compensation, the Compensation Committee receives and considers information and recommendations from the CEO and the
Vice President of Human Resources. On an annual basis, the Compensation Committee meets with the CEO to discuss his performance and the CEO provides the Compensation Committee with his evaluation of the performance of the other executive officers in
connection with the annual compensation review of those officers.
Role of the Compensation Consultant: The Compensation Committee also reviews and
considers reports and analysis provided by its independent executive compensation consultant, Pay Governance. Pay Governance is engaged by the Company at the direction of the Compensation Committee. The Compensation Committee determined Pay
Governance to be independent following consideration of the factors identified in Rule 10C-1(b)(4) promulgated under the Exchange Act. Management meets with Pay Governance representatives and participates in most meetings between Pay Governance and
the Compensation Committee.
Pay Governance provides assessments of the competitiveness of the Companys executive compensation levels and practices relative
to
relevant executive labor markets and other assignments as requested by the Compensation Committee. Specifically, during 2014, Pay Governance assisted the Compensation Committee and the Company in
the following areas:
¡ |
|
providing information on general trends in executive compensation; |
¡ |
|
providing prevalence and plan design information on various types of incentive plans; |
¡ |
|
providing compensation analyses of the competitiveness of the compensation of the Companys executive positions, including an assessment of our pay and performance relative to peers; and |
¡ |
|
preparing estimates of the benefits to be received by each named executive officer in the event of a change in control. |
Pay Governance does not make specific recommendations on individual pay levels, but rather provides competitive data for review and use by the Compensation Committee
and Company. The Compensation Committee uses the Pay Governance-provided data and analysis for general reference purposes.
Each year, the Compensation Committee
examines the competitive salary data provided by Pay Governance to determine base salary ranges for the Companys executive officers, including the named executive officers. The Compensation Committee also reviews the market data provided by
Pay Governance to assess the total compensation levels that would place Company executives at approximately the 50th percentile of the market, assuming the Company meets target performance
objectives. In accordance with its practice in prior years, the Compensation Committee reviewed compensation data and analyses provided by Pay Governance in preparation for the 2014 compensation review. The information provided by Pay Governance
utilized compensation data and analysis from five reference points: (1) Custom Peer Group 27 companies representing a mix of oil and gas, diversified companies with regulated gas operations, and pure-play gas utility companies
30
selected to approximate Energens business mix (which at the time included utility operations); (2) Oil & Gas 23 companies from Towers Watsons 2013 CDB General
Industry Executive Compensation Survey; (3) Energy Sector 95 companies from the 2013 Energy Sector Mercer Total Compensation Survey; (4) Utility Industry 56 utility focused companies from Towers Watsons 2013 CDB Survey
Energy Services Executive Compensation Survey; and (5) Broader
General Industry general industry data from Towers Watsons 2013 CDB General Industry Executive Compensation Survey. Companies included in the Custom Peer Group data base, Utility
Industry data base, Oil & Gas data base, and the Energy Sector data base are listed on Appendix A. The Compensation Committee has not requested a listing of the companies in the Towers Watsons 2013 CDB General Industry Executive
Compensation Survey that includes over 400 companies.
2014
COMPANY PERFORMANCE
Energens oil and natural gas liquids (NGL) production increased 17 percent in 2014 as the Company continued to grow
through active drilling in the Permian Basin led by a new Wolfcamp shale development program in the Midland Basin. Production in the Permian Basin increased 22 percent from the prior year. Companywide, production in 2014 grew 10 percent to a record
25.7 million barrels of oil equivalent (MMBOE).
Active drilling in the Permian Basin also led to a 7 percent increase in Energens proved reserves in
2014. Proved reserves at December 31, 2014, totaled a record 372.7 MMBOE, with oil and NGL reserves representing approximately 68 percent.
Energens
transformation to a pure-play oil and gas exploration and production company was completed in September 2014 with the sale of the Companys natural gas utility, Alabama Gas Corporation. The transaction, valued at $1.6 billion, closed within
five months of the signing of a definitive stock purchase agreement in April. The sale of the utility clarified Energens corporate structure and
enhanced its financial capacity to pursue the drilling and development of its Permian and San Juan oil basin properties.
As detailed below in the Annual Cash Incentives discussion, our net income fell short of target. Adjusted net income (a non-GAAP measure) was $2.05 per diluted share,
and compared with our target net income of $2.17 per diluted share. The target income shortfall largely reflects lower realized oil and NGL prices, partially offset by higher production volumes. For purposes of measuring performance for annual cash
incentives, net income is adjusted to exclude the impact of (i) open mark-to-market gains and losses, (ii) non-cash proved property and unproved leasehold impairments, (iii) changes in accounting principles or other provisions that
materially affect reported results, (iv) gains or losses (net of earnings on sold production) on asset dispositions greater than five million dollars, and (v) unbudgeted reorganization costs. Energens 2014 GAAP net income was $7.75
per diluted share. (See Non-GAAP Financial Measures on Appendix B for explanation and reconciliation.)
BASE
SALARY
As discussed above, the Compensation Committee attempts to provide competitive salaries. In setting 2014 salaries, the
Compensation Committee reviewed competitive salary data for each position. Competitive salary data was intended to
approximate the median salary of similar positions with comparable companies. In approving salary adjustments, the Compensation Committee considered the competitive salary data, recommendations
from the CEO and the Vice President of
31
Human Resources, internal comparability considerations and the executives years of experience and performance
The differences in amounts of compensation awarded to the named executive officers reflect differences in the competitive market data for
the positions held by the executives as well as internal comparability. From an internal comparability perspective, Mr. McManus holds the position with the greatest corporate responsibility
and thus has the highest compensation among the named executive officers.
ANNUAL
CASH INCENTIVES
Annual Incentive Compensation Plan (AICP). In order to link compensation to the Companys annual
performance, officers are eligible each year for cash incentive awards under the AICP. Awards are based upon attaining performance objectives approved by the Compensation Committee. Objectives are established at the corporate level for Energen and
at the subsidiary level for Energen Resources and, prior to its divestiture, Alagasco.
For 2014, earned annual cash incentives were calculated by applying Company
and business unit performance factors to each officers target incentive opportunity. The target incentive opportunities are set each year as a percentage of base salary. For 2014, the named executive officers had the following target incentive
opportunities:
|
|
|
Named Executive Officer |
|
Target Incentive Opportunity |
McManus |
|
100% |
Porter |
|
80% |
Richardson |
|
85% |
Godsey |
|
65% |
Woodruff |
|
60% |
The applicable portions of target incentive opportunities subject to Company and business unit performance factors were as
follows:
Business Unit Allocation Factor
|
|
|
|
|
|
|
|
|
Energen |
|
Energen Resources |
|
Alagasco |
McManus |
|
80% |
|
10% |
|
10% |
Porter |
|
80% |
|
10% |
|
10% |
Richardson |
|
25% |
|
75% |
|
- |
Godsey |
|
25% |
|
75% |
|
- |
Woodruff |
|
80% |
|
10% |
|
10% |
At the time that it set the Business Unit Allocation Factors, the Compensation Committee was aware that Alagasco might be divested
during 2014 and the Compensation Committee provided that, in the event of a divestiture, the incentive allocations to Alagasco would be scored at target for the portion of the year prior to divestiture and measured by Energen performance for the
remainder of the year. The closing of the divestiture of Alagasco occurred September 2, 2014.
Performance Factors and 2014 Results:
The performance factors as well as actual 2014 results were as follows:
|
|
|
|
|
|
|
|
|
|
|
Performance Factor |
|
|
|
|
Threshold |
|
Target |
|
Maximum |
|
2014 Actual |
Energen |
|
0.50 |
|
1.00 |
|
2.00 |
|
0.86 |
Energen Resources |
|
0.50 |
|
1.00 |
|
2.00 |
|
1.07 |
Alagasco |
|
0.75 |
|
1.00 |
|
1.25 |
|
1.00 |
32
The performance factor scores were calculated based on the following criteria, results and weights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Threshold |
|
Target |
|
Maximum |
|
2014
Result |
|
2014 Score |
|
Weight |
Energen |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per share |
|
$1.74 |
|
$2.17 |
|
$2.60 |
|
$2.05 |
|
0.86 |
|
100% |
|
|
|
|
|
|
|
Energen Resources |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income (millions) |
|
$127 |
|
$159 |
|
$191 |
|
$149 |
|
0.85 |
|
70% |
Total Production (excluding acquisitions and divestitures) MMBOE |
|
23.6 |
|
24.9 |
|
26.1 |
|
25.7 |
|
1.67 |
|
5% |
|
|
|
|
|
|
|
Operating Cost per BOE (excluding severance tax) |
|
$12.15 |
|
$11.46 |
|
$10.77 |
|
$11.72 |
|
0.81 |
|
5% |
|
|
|
|
|
|
|
Exploitation percentage production replacement (excluding acquisitions and divestitures) |
|
50% |
|
100% |
|
150% |
|
213% |
|
2.00 |
|
10% |
|
|
|
|
|
|
|
Safety-Percentage of industry Average |
|
150% |
|
100% |
|
50% |
|
|
|
1.53 |
|
10% |
|
|
|
|
|
|
|
Vehicle Frequency (40%) |
|
150% |
|
100% |
|
50% |
|
42% |
|
|
|
|
DART Rate (20%) |
|
150% |
|
100% |
|
50% |
|
84% |
|
|
|
|
Lost Time (20%) |
|
150% |
|
100% |
|
50% |
|
118% |
|
|
|
|
Recordable Incident Rate (20%) |
|
150% |
|
100% |
|
50% |
|
75% |
|
|
|
|
|
|
|
|
|
|
|
Total Weighted Score |
|
|
|
|
|
|
|
|
|
1.07 |
|
|
Alagasco
Alagascos
target factors are not included because, due to the divestiture, the Alagasco performance factor scores were all included at target, as explained above.
Based on the performance criteria and the 2014 results detailed above, the named executive officers received AICP incentive payments in January 2015 as
reflected in the table below (also reflected in the column (g) 2014 disclosure in the Summary Compensation Table). The table also reflects the amounts that would have been paid to each named executive officer at target performance.
|
|
|
|
|
|
|
Named Executive Officer |
|
AICP Target Annual Incentive
($) |
|
AICP Actual Annual Incentive
($) |
|
Actual as Percent of Target |
McManus |
|
837,000 |
|
745,293 |
|
89% |
Porter |
|
342,400 |
|
304,884 |
|
89% |
Richardson |
|
392,700 |
|
399,867 |
|
102% |
Godsey |
|
240,500 |
|
244,889 |
|
102% |
Woodruff |
|
221.400 |
|
197,142 |
|
89% |
Earned AICP incentives are calculated by the following formula for each business unit - base salary x target incentive
opportunity x business unit allocation factor x business unit performance factor. No incentives are paid unless Energen achieves its threshold earnings per share. If a subsidiary does not
33
achieve its threshold income performance factor, no incentive is paid with respect to that subsidiary. The minimum score for the other subsidiary performance factors is the threshold score. For
example, Mr. McManuss 2014 AICP incentive was calculated as follows:
Calculation of McManus Actual AICP Incentive
|
|
|
|
|
|
|
|
|
|
|
Business Unit |
|
Base Salary |
|
Target Incentive Opportunity |
|
Business Unit Target Allocator |
|
Business Unit Performance Factor |
|
Actual Incentive |
Energen |
|
$837,000 |
|
100% |
|
80% |
|
0.86 |
|
$575,856 |
Energen
Resources |
|
$837,000 |
|
100% |
|
10% |
|
1.07 |
|
$ 89,643 |
Alagasco target(1) |
|
$837,000 |
|
100% |
|
6.7% |
|
1.00 |
|
$ 55,803 |
Alagasco-Energen(1) |
|
$837,000 |
|
100% |
|
3.3% |
|
0.86 |
|
$ 23,991 |
TOTAL |
|
|
|
|
|
|
|
|
|
$745,293 |
|
(1) |
As discussed above, when setting objectives the Compensation Committee provided that, in the event of a divestiture of Alagasco, the Alagasco allocation factor would be scored at target for the period prior to
divestiture and measured by Energen performance for the remainder of the year. |
Discretionary Authority Applicable to Cash Incentive Awards. The Annual Incentive Compensation Plan provides
the Compensation Committee with the discretion to decrease, but not increase, an earned incentive by up to 25%. This allows the Compensation Committee to reduce an individual payout for any reason including poor individual performance. The
Compensation Committees negative discretion does not apply to plans other than the Annual Incentive Compensation Plan. Such discretion was not utilized with respect to 2014 payments.
In addition to performance-based awards, the Board of Directors has the inherent authority, in its absolute discretion, to award cash bonuses to such employees and in
such amounts as it determines. As discussed below, such discretion was used in 2014 to provide transaction bonuses to certain officers in connection with the divestiture of Alagasco.
Transaction Bonus. As discussed above under Company Performance, during 2014 Energen sold its natural gas utility, Alabama Gas Corporation. This reflected
a strategic decision by the Board to transform Energen to a pure-play oil and gas exploration and production company. In size, complexity and nature, this was an out-of-the-ordinary
transaction for the Company involving successful coordination of state and federal regulatory approvals; refinancings of Energen and Alagasco debt; and the separation of longtime shared human
resources, financial, tax, information technology and other corporate services, systems and facilities. The $1.6 billion transaction closed on September 2, 2014, less than five months after the signing of a definitive sale agreement.
Following completion of the divestiture, in September 2014, the Compensation Committee recommended - and the Board used its discretionary authority to pay - an
aggregate of approximately $948,000 in cash bonuses to certain officers, including the following three named executive officers: McManus - $250,000, Porter - $171,200, and Woodruff - $110,700. Early in 2014 when the Committee set Annual Incentive
Compensation Plan objectives, it did not include divestiture transaction incentives. As a result, the Board retained full flexibility to evaluate and determine whether to pay transaction-related bonuses. In light of the very successful and timely
execution of the Alagasco sale, the Committee and Board determined that it was appropriate to award bonuses to recognize the efforts and leadership of key contributors to the transaction.
34
LONG-TERM EQUITY INCENTIVE
COMPENSATION
Stock Incentive Plan. The Stock Incentive Plan is intended to align officer compensation with
long-term company performance and changes in shareholder value. It provides for the grant of performance shares, restricted stock, restricted stock units and stock options. The Compensation Committee normally makes awards during its first meeting of
the year. In 2014 and recent years this occurred during January. In 2015, the Compensation Committee made awards during February and expects to continue making awards in February during future years. The Compensation Committee also retains the
authority to make awards at other times of the year. Equity grants for 2014 are reflected in the table under Executive Compensation Grants of Plan-Based Awards.
In 2014, the Compensation Committee delivered long-term incentives using a combination of performance shares, restricted stock units and stock options providing a
balanced program with measures that incentivize and reward relative performance as well as absolute performance.
Performance Shares. A performance share is
the value equivalent of one share of our common stock. An award of performance shares becomes payable if the Compensation Committee determines that all conditions of payment have been satisfied at the end of the applicable award period. The standard
performance share award period is three years. For example, the performance shares granted in January 2014 have an award period beginning January 1, 2014, and ending December 31, 2016. Payout of the performance shares will be based on
Energens total shareholder return relative to companies (peer companies) included in the S&P Supercomposite Oil and Gas E&P index as constituted on the first day of the applicable award period. For grants made in 2013 and
2014, the threshold goal will be met if the Companys total shareholder return percentile ranking relative to the peer companies is at
least 35th (25th for 2015 grants), the target goal will be met if the Companys
total shareholder return percentile ranking relative to the peer companies is 50th, and the maximum goal will be met if the Companys total shareholder return percentile ranking relative to
the peer companies is 80th (90th for 2015 grants) at the end of the respective award period. If performance is below threshold, no portion of
the performance shares will be paid. Threshold performance results in payment of 25% of the performance shares, target performance results in payment of 100% of the performance shares and maximum performance results in payment of 200% of the
performance shares.
Restricted Awards. The Stock Incentive Plan also provides for the grant of restricted stock and restricted stock units. No shares of
restricted stock may be sold, and restricted stock units do not pay out, until the restrictions on such shares or units have lapsed or been removed. The Compensation Committee establishes the terms and conditions upon which the restrictions on each
award shall lapse, which terms and conditions may include a required period of service or individual or corporate performance conditions. The restricted stock unit grants made in January 2014 have a three-year service period condition, vesting in
January 2017.
Stock Options. The stock option provisions of the Stock Incentive Plan provide for the grant of non-qualified stock options and stock
appreciation rights or a combination thereof to officers and key employees, all as determined by the Compensation Committee. The Companys stock options typically vest ratably over three years and expire after 10 years. The Compensation
Committee has not placed performance conditions, other than employment vesting periods, on grants of stock options as it believes that the option itself is performance-based. The Compensation Committee has not utilized the stock appreciation right
feature in recent years.
35
OWNERSHIP GUIDELINES/ANTI-HEDGING
AND PLEDGING
The Company has the following suggested stock ownership guidelines for officers: CEO and Chairman (McManus) - 5 times base
salary; CFO (Porter), COO (Richardson), and General Counsel (Woodruff) - 3 times base salary; and SVP (Godsey) - 2 times base salary. The Companys other officers have ownership guidelines of 1 or 2 times base salary depending on position. For
purposes of the guidelines, stock ownership includes (1) shares owned directly by the executive and immediate family members, (2) share holdings in the Companys 401(k) plan, (3) deferred compensation shares and (4) unvested
restricted stock and restricted stock units subject to service-based vesting. It is expected
that an officer will not sell or otherwise transfer shares of Company common stock if the officer does not meet the ownership guidelines or if the sale or transfer would cause the officer to not
meet the ownership guidelines, excepting shares sold or withheld for taxes on equity awards. As of December 31, 2014, each of our named executive officers maintained ownership exceeding the guidelines. The guidelines have not been a factor in
the Compensation Committees recent compensation decisions. In addition, the Company has policies that prohibit employees and directors from hedging or entering into pledging transactions utilizing Company common stock.
1997
DEFERRED COMPENSATION PLAN
The Company also provides a program that allows our Directors and officers to defer receipt of compensation. Amounts
deferred by a participant under the Deferred Compensation Plan are credited to one of two separate accounts maintained for a participant, a Company stock account or an investment account. The value of a participants Company stock account
tracks the performance of our common stock, including reinvestment of dividends. At distribution, the participants Company stock account is payable in the form of shares of Company common stock. The value of a participants investment
account tracks the performance of selected mutual funds offered by The Vanguard Group, Inc. All of the mutual funds utilized to track performance under the Deferred Compensation Plan are also investment options for employees under the Companys
generally available Employee Savings Plan. At distribution, the participants investment
account is payable in cash. The Deferred Compensation Plan is primarily designed as a financial planning and savings tool for participants. It does, however, include a Company contribution
provision for officers that mirrors the Company match and supplemental contribution provisions of the Employee Savings Plan. The Company has established trusts and has funded the trusts, and presently plans to continue funding the trusts, in a
manner that generally tracks participants accounts under the Deferred Compensation Plan. Although there is generally no requirement that the trusts be so funded or invested, if a change in control of the Company occurs, the trusts must be
funded in an amount equal to the aggregate value of the participants accounts at the time of the change of control. While intended for payment of benefits under the Deferred Compensation Plan, the trusts assets remain subject to the
claims of our creditors.
RETIREMENT INCOME PLAN AND RETIREMENT
SUPPLEMENTAL AGREEMENTS
The Energen Corporation Retirement Income Plan, a defined benefit plan, covers our officers along with substantially all
of our salaried employees. During 2014, our Board took action to (1) exclude from participation employees
hired by the Company on or after November 1, 2014, (2) freeze the accrual of benefits under the plan for all participants, effective December 31, 2014, and (3) terminate the
Retirement Income Plan, effective January 31,
36
2015. Prior to the amendment and restatement of the Retirement Income Plan, our officers would have received benefits under the plan based on years of service at retirement and on Final
Earnings, the average base compensation for the highest 60 consecutive months out of the final 120 months of employment. (Average base compensation includes base salary only, and does not include bonus payments, payments in the form of
contributions to other benefit plans or any other form of payment such as annual or long-term incentives.) The Retirement Income Plan provides that affected participants are fully vested in their accrued benefits upon plan termination. Plan
participants may elect to receive an immediate benefit upon plan termination, including a lump sum distribution, or may defer benefit commencement to a later date. Certain of our officers would be eligible for a special early retirement window
benefit if certain conditions based on age and years of service are met. Section 415 of the Internal Revenue Code of 1986, as amended (the Code), imposes limits on benefits payable to an employee under the plan.
We have entered into Executive Retirement Supplement Agreements (Supplemental Agreements) with certain officers, including each of the named executive
officers other than Mr. Godsey. Each Supplemental Agreement provides that the employee will receive a supplemental retirement benefit equal to the difference between 60% of the employees monthly compensation and the employees
monthly retirement benefit under the Retirement Income Plan (including Social Security benefit). An officers compensation will
be determined based on a formula taking into account the average of the highest 36 consecutive months of base salary during the five years prior to severance plus the average of the three highest
annual incentive awards for the ten full fiscal years prior to the earlier of (1) severance or (2) the officers 61st birthday. In October 2014, our Board approved termination of the Supplemental Agreements as of December 31,
2014, and provided for distribution of the corresponding benefits in accordance with applicable law. Benefit accruals under the Supplemental Agreements (which are not subject to the payment restrictions under Section 409A of the Internal
Revenue Code) were paid as soon as practicable following termination of the Supplemental Agreements. Benefit accruals that are subject to Code Section 409A may not be paid within 12 months of the date the Board of Directors took action to
terminate the Supplemental Agreements (other than payments that would be payable under the terms of the Supplemental Agreements if the action to terminate had not occurred), but all such accruals must be paid within 24 months of the same date.
Each of our named executive officers, with the exception of Mr. Godsey, has sufficient service with the Company to have earned vested benefits under the Retirement
Income Plan and the Supplemental Agreements. The benefits accumulated as of December 31, 2014 under the Retirement Income Plan and the Supplemental Agreements for each of the Companys named executive officers are reflected in the table
under Executive Compensation Pension Benefits in 2014.
SEVERANCE COMPENSATION AGREEMENTS AND CHANGE IN
CONTROL
We have entered into Severance Compensation Agreements with certain officers including Messrs. McManus, Porter,
Richardson, Woodruff and Godsey. We designed these agreements to retain the executives and provide continuity of management in the event of any actual or threatened change in control of the Company. The agreements are double-trigger
agreements meaning that benefits are payable
only if a change in control occurs and the executives employment is terminated or constructively terminated. Each agreement provides that if, during a base period following
the occurrence of a change in control of the Company, the employees employment is terminated in a qualified termination, then we will pay the employee an amount equal to a percentage of the employees (a) annual base salary in effect
immediately prior to the change
37
in control, plus (b) the employees highest annual cash bonus compensation for the three fiscal years immediately prior to the fiscal year during which the change in control occurs.
Our Severance Compensation Agreements define a change in control as any of the following events:
¡ |
|
any person, as defined in the Exchange Act, acquires 30 percent or more of our voting securities; |
¡ |
|
a majority of our Directors are replaced in certain circumstances, including: |
|
¡ |
|
a majority of such Directors are replaced such that a majority of our current Directors does not approve their election or nomination for election; or |
|
¡ |
|
Directors are replaced by an individual or individuals whose initial assumption of office occurs as a result of an actual or threatened election contest; or |
¡ |
|
consummation of certain mergers, or a liquidation or sale of our assets. |
In addition, transactions involving the
transfer of 80 percent or more of the voting securities or substantially all the assets of a subsidiary would constitute a change in control for the officers of that subsidiary. If the subsidiary is the Companys largest subsidiary (currently
Energen Resources), then such a transaction is also a change in control for the officers of Energen Corporation.
For purposes of the Severance Compensation
Agreements, (1) the term qualified termination means a termination (a) by the Company other than for cause, (b) by the employee for good reason or (c) by written agreement to such effect between the employee and the
Company, (2) the term cause generally means failure to substantially perform duties, misconduct injurious to the Company or conviction of a felony, and (3) the term good reason generally means a material diminution
in the authority, duties, responsibilities, or benefits of the employees job.
Continuity of management and retention during transition periods is encouraged by providing severance benefits in the
event of loss of employment following a change in control. The percentage payable and base period varies by executive and ranges from 100% with a one-year base period to 300% with a three-year base period. The 100%, 200% and 300% multiples reflect
consideration of the executives level of corporate responsibility, specialized skills, and availability of other comparable job opportunities. A higher multiple reflects a higher importance of retention. Thus, officers with higher levels of
corporate responsibility or specialized skill or knowledge have higher multiples. Officers who, due to senior responsibilities or specialized skills, may have fewer comparable alternative employment opportunities also have higher multiples to
provide compensation during a longer job search. All named executive officers except Mr. Godsey have a 300% multiple and three-year base period. Mr. Godsey has a 200% multiple and two-year base period. The Severance Compensation Agreements
also provide for the continuance of certain insurance and other employee benefits for a period of twenty-four months following any such termination of employment. Agreements entered into in 2007 and earlier, which include the agreements with Messrs.
McManus, Porter, Richardson and Woodruff, include a tax gross-up provision that provides that, in the event the executive receives compensation subject to the tax imposed by Section 4999 of the Code, the executive shall be entitled to receive
an additional payment in an amount necessary to put the executive in the same after-tax position as if such tax had not been imposed unless the tax would not apply if the payments under the Severance Compensation Agreement were reduced by up to 10%
of the amount subject to the tax, in which case such a reduction is made. Severance Compensation Agreements that have been entered into since 2007, including with Mr. Godsey, do not include a tax gross-up provision and the Compensation
Committee does not expect to include such a provision in future agreements.
Our Annual Incentive Compensation Plan provides that upon a change in control and
38
termination of a participants employment, the participant will receive a pro rata incentive based on target performance and the number of days of employment during the Plan year.
The Companys Stock Incentive Plan includes change in control provisions which, like the similar provisions in the Severance Agreements, are double
trigger meaning that, in the event of a Company change in control, early vesting or payment occurs only if a change in control occurs and the executives employment is terminated or constructively terminated. As discussed
above, a change in control of a subsidiary constitutes a change in
control for the officers of that subsidiary. In the event of a subsidiary change in control, for purposes of the Stock Incentive Plan, a subsidiary officer has a termination of employment unless
he or she continues to be employed by the Company or one of its remaining subsidiaries.
For a description of the potential benefits payable to the Companys
named executive officers upon a termination or change in control effective as of December 31, 2014, refer to the discussion and tabular disclosure included under Executive Compensation Potential Payments Upon Termination or Change
in Control on page 47.
RESULTS
OF 2014 ADVISORY VOTE ON EXECUTIVE COMPENSATION
At the 2014 Annual Meeting, the Advisory Vote on Executive Compensation generated 97.7% of votes cast in favor of the
Companys executive compensation. As part of its 2015 executive compensation discussions, the
Compensation Committee reviewed the advisory vote result and considered it to be supportive of the Companys compensation practices.
CHANGES FOR 2015
For 2015, the basic structure of the Companys executive compensation program remains unchanged with the exception of
the termination of the Retirement Income Plan and the Supplemental Agreements described above. The Compensation Committee has established threshold, target and maximum performance factors for potential awards under the Annual Incentive Compensation
Plan that are consistent with the Companys compensation philosophy and goals. With respect to the Stock Incentive Plan, grants made in February 2015 included performance shares and restricted stock units but did not include stock options, with
the estimated value allocated approximately 60% to performance shares and 40% to restricted stock units. As in prior years, payout of the 2015 performance share grants will be based on the Companys
total shareholder return relative to the S&P Supercomposite Oil and Gas E&P Index as constituted on the first day of the applicable award period. Threshold and maximum performance for the
2015 grants will be percentile rankings of 25th and 90th, respectively (in prior years, threshold and maximum were 35th and 80th, respectively). The Compensation Committee considered these changes and adjustments to be appropriate in light of Energens
transformation to a pure play oil and gas exploration company.
Effective January 1, 2015, Mr. McManuss salary was increased to $884,000 reflecting a
market adjustment consistent with the policies discussed above. Mr. McManus has served as the Companys President and Chief Executive Officer since July 2007.
39
COMPENSATION COMMITTEE REPORT
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management and based on that review and discussion, the Committee
recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement.
COMPENSATION COMMITTEE:
Stephen A. Snider, Chair
Kenneth W. Dewey
T. Michael Goodrich
Jay Grinney
40
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table sets forth the information required by
Item 402 of Regulation S-K promulgated by the SEC. The amounts shown represent the compensation paid to our named executive officers for each fiscal year noted in the table, for services rendered to us. For a more complete discussion of the
elements of compensation included in this table, please refer to the discussion reflected in Compensation Discussion and Analysis beginning on page 27 of this Proxy Statement.
|
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|
Name and Principal
Position |
|
Year |
|
|
Salary
($) |
|
|
Bonus
($) |
|
|
Stock Awards
($)(1)(2) |
|
|
Option
Awards ($)(1) |
|
|
Non-
Equity Incentive Plan Compen- sation
Earnings ($)(3) |
|
|
Change in Pension Value
and Nonquali- fied Deferred Compen- sation Earnings ($)(4)(5) |
|
|
All Other Compensation ($)(6) |
|
|
Total ($) |
|
(a) |
|
(b) |
|
|
(c) |
|
|
(d) |
|
|
(e) |
|
|
(f) |
|
|
(g) |
|
|
(h) |
|
|
(i) |
|
|
(j) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McManus, II, James T. Chairman and Chief Executive Officer |
|
|
2014 |
|
|
|
837,000 |
|
|
|
250,000 |
|
|
|
3,025,561 |
|
|
|
1,016,091 |
|
|
|
745,293 |
|
|
|
- |
|
|
|
83,865 |
|
|
|
5,957,810 |
|
|
|
2013 |
|
|
|
805,000 |
|
|
|
- |
|
|
|
4,370,603 |
|
|
|
809,876 |
|
|
|
788,578 |
|
|
|
- |
|
|
|
87,174 |
|
|
|
6,861,231 |
|
|
|
2012 |
|
|
|
775,000 |
|
|
|
127,348 |
|
|
|
- |
|
|
|
2,423,008 |
|
|
|
412,378 |
|
|
|
3,303,947 |
|
|
|
64,071 |
|
|
|
7,105,752 |
|
Porter,
Jr., Charles W. Vice President, Chief Financial Officer and Treasurer |
|
|
2014 |
|
|
|
428,000 |
|
|
|
171,200 |
|
|
|
928,255 |
|
|
|
311,734 |
|
|
|
304,884 |
|
|
|
171,734 |
|
|
|
34,781 |
|
|
|
2,350,588 |
|
|
|
2013 |
|
|
|
400,000 |
|
|
|
- |
|
|
|
1,085,840 |
|
|
|
201,219 |
|
|
|
293,880 |
|
|
|
- |
|
|
|
31,780 |
|
|
|
2,012,719 |
|
|
|
2012 |
|
|
|
380,000 |
|
|
|
40,587 |
|
|
|
- |
|
|
|
613,813 |
|
|
|
131,429 |
|
|
|
1,203,330 |
|
|
|
39,826 |
|
|
|
2,408,985 |
|
Richardson, John S. President and Chief Operating Officer of Energen Resources Corporation
|
|
|
2014 |
|
|
|
462,000 |
|
|
|
- |
|
|
|
1,113,306 |
|
|
|
373,848 |
|
|
|
399,867 |
|
|
|
592,818 |
|
|
|
47,850 |
|
|
|
2,989,689 |
|
|
|
2013 |
|
|
|
440,000 |
|
|
|
- |
|
|
|
1,343,771 |
|
|
|
249,000 |
|
|
|
342,304 |
|
|
|
- |
|
|
|
42,425 |
|
|
|
2,417,500 |
|
|
|
2012 |
|
|
|
420,000 |
|
|
|
155,642 |
|
|
|
- |
|
|
|
809,755 |
|
|
|
40,438 |
|
|
|
1,646,828 |
|
|
|
50,060 |
|
|
|
3,122,723 |
|
Godsey, David Senior Vice President - Exploration and Geology of Energen Resources
|
|
|
2014 |
|
|
|
370,000 |
|
|
|
- |
|
|
|
416,104 |
|
|
|
139,698 |
|
|
|
244,889 |
|
|
|
62,010 |
|
|
|
37,440 |
|
|
|
1,270,141 |
|
Woodruff, J. David Vice President, General Counsel and Secretary |
|
|
2014 |
|
|
|
369,000 |
|
|
|
110,700 |
|
|
|
355,636 |
|
|
|
119,433 |
|
|
|
197,142 |
|
|
|
315,181 |
|
|
|
38,569 |
|
|
|
1,505,661 |
|
|
|
2013 |
|
|
|
355,000 |
|
|
|
- |
|
|
|
409,598 |
|
|
|
75,920 |
|
|
|
173,879 |
|
|
|
- |
|
|
|
34,028 |
|
|
|
1,048,425 |
|
|
|
2012 |
|
|
|
340,000 |
|
|
|
27,934 |
|
|
|
- |
|
|
|
301,185 |
|
|
|
90,457 |
|
|
|
1,006,339 |
|
|
|
42,666 |
|
|
|
1,808,581 |
|
41
|
(1) |
The amounts in columns (e) and (f) reflect grant date fair value. The valuation assumptions are discussed in Note 6 to the Companys financial statements included in the Companys Annual Report on
Form 10-K for the year ended December 31, 2014. |
|
(2) |
Column (e), Stock Awards, includes restricted stock and performance share awards. 66.75% of the grant date value represents performance shares, and the remaining 33.25% represents restricted stock. See footnote 3 to the
Grants of Plan-Based Awards table on page 43 for more detail about the performance share awards. If the highest level of performance conditions is achieved, the value of the stock awards reflected in column (e) for Messrs. McManus, Porter,
Richardson, Godsey and Woodruff would be $5,044,992, $1,547,848, $1,856,391, $693,818, and $593,025, respectively. |
|
(3) |
The amounts in column (g) reflect Annual Incentive Compensation payouts as discussed on pages 32 - 34 of this Proxy Statement. |
|
(4) |
The amounts in column (h) reflect that there was an increase in pension value for each of our named executive officers, except for Mr. McManus. |
|
(5) |
The benefits for which changes in value are reflected in column (h) are the Supplemental Agreements and the Retirement Income Plan. The Company terminated the Supplemental Agreements as of December 31, 2014.
The actual lump sums that will be paid to participants pursuant to the terminated Supplemental Agreements were used for purposes of computing the present value of accumulated benefits thereunder. In addition, the Company froze the accrual of
benefits under the Retirement Income Plan as of December 31, 2014 and terminated the Plan effective January 31, 2015. The 2014 changes in pension value are primarily due to the shortened discount periods, an increase in accrued benefits,
and the termination of the plans. |
|
(6) |
The amounts reported in column (i) for 2014 reflect the Companys contributions to defined contribution plans, MedJet insurance, dinner club memberships, life insurance premiums, financial planning, spousal
travel, and tax reimbursements related to spousal travel. |
|
|
|
|
|
|
|
Defined Contributions ($) |
|
Spousal Travel Tax Reimbursement
($) |
McManus |
|
70,996 |
|
4,245 |
Porter |
|
27,717 |
|
2,402 |
Richardson |
|
39,172 |
|
2,670 |
Godsey |
|
31,362 |
|
1,259 |
Woodruff |
|
31,307 |
|
2,215 |
42
GRANTS OF PLAN-BASED
AWARDS
The following
table sets forth information with respect to annual cash incentives and long-term equity incentives to our named executive officers. For a more complete discussion of the awards, please refer to the discussion of these incentives contained in
Compensation Discussion and Analysis, beginning on page 27 of this Proxy Statement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Grant Date
|
|
|
Meeting Date(1)
|
|
|
Estimated Future Payouts Under Non-Equity Incentive Plan Awards(2) |
|
|
Estimated Future Payouts Under
Equity Incentive Plan Awards (3)(4) |
|
|
All Other Stock Awards: Number of Shares of Stock or Units (#)(5)
|
|
|
All Other
Option Awards: Number of
Securities Underlying Options(#)(6) |
|
|
Exercise or Base Price
of Option Awards ($/Sh) |
|
|
Grant
Date Fair Value of Stock and Option Awards(7) |
|
|
|
|
Threshold
($) |
|
|
Target
($) |
|
|
Maximum ($)
|
|
|
Threshold
(#) |
|
|
Target (#)
|
|
|
Maximum
(#) |
|
|
|
|
|
(a) |
|
(b) |
|
|
|
|
|
(c) |
|
|
(d) |
|
|
(e) |
|
|
(f) |
|
|
(g) |
|
|
(h) |
|
|
(i) |
|
|
(j) |
|
|
(k) |
|
|
(l) |
|
McManus |
|
|
1/22/14 |
|
|
|
1/21/14 |
|
|
|
439,425 |
|
|
|
837,000 |
|
|
|
1,611,225 |
|
|
|
5,421 |
|
|
|
21,684 |
|
|
|
43,368 |
|
|
|
14,235 |
|
|
|
36,855 |
|
|
|
72.39 |
|
|
|
4,041,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Porter |
|
|
1/22/14 |
|
|
|
1/21/14 |
|
|
|
179,760 |
|
|
|
342,400 |
|
|
|
659,120 |
|
|
|
1,663 |
|
|
|
6,653 |
|
|
|
13,306 |
|
|
|
4,367 |
|
|
|
11,307 |
|
|
|
72.39 |
|
|
|
1,239,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richardson |
|
|
1/22/14 |
|
|
|
1/21/14 |
|
|
|
196,350 |
|
|
|
392,700 |
|
|
|
785,400 |
|
|
|
1,995 |
|
|
|
7,979 |
|
|
|
15,958 |
|
|
|
5,238 |
|
|
|
13,560 |
|
|
|
72.39 |
|
|
|
1,487,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Godsey |
|
|
1/22/14 |
|
|
|
1/21/14 |
|
|
|
120,250 |
|
|
|
240,500 |
|
|
|
481,000 |
|
|
|
746 |
|
|
|
2,982 |
|
|
|
5,964 |
|
|
|
1,958 |
|
|
|
5,067 |
|
|
|
72.39 |
|
|
|
555,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodruff |
|
|
1/22/14 |
|
|
|
1/21/14 |
|
|
|
116,235 |
|
|
|
221,400 |
|
|
|
426,195 |
|
|
|
637 |
|
|
|
2,549 |
|
|
|
5,098 |
|
|
|
1,673 |
|
|
|
4,332 |
|
|
|
72.39 |
|
|
|
475,069 |
|
|
(1) |
The Compensation Committee generally sets award amounts at a meeting that occurs the day prior to the grant date. |
|
(2) |
Columns (c) (e) reflect the annual cash incentive payout values for each named executive officer for 2014 if the threshold, target or maximum goals had been satisfied. The actual payout is reflected in
column (g) of the Summary Compensation Table. For a discussion of the criteria applied when determining amounts payable, see the description of Annual Incentive Compensation in Compensation Discussion and Analysis beginning on page
32 of this Proxy Statement. |
|
(3) |
Payment of performance share awards will be based on the Companys total shareholder return (TSR) relative to companies in the S&P Supercomposite E&P Index as comprised on the first day of the applicable
award period (the peer companies). Columns (f) (h) reflect the payment of performance share awards for each named executive officer if the threshold, target or maximum goals are met. The threshold goal will be met if the
Companys TSR percentile ranking relative to the peer companies is at least 35th, the target goal will be met if the Companys TSR percentile ranking relative to the peer companies is 50th, and the maximum goal will be met if the Companys TSR percentile ranking relative to the peer companies is 80th at the end of the
respective award period. |
|
(4) |
These performance shares have a three-year award period ending December 31, 2017. |
|
(5) |
These restricted stock units granted January 22, 2014 vest on January 21, 2017. |
|
(6) |
The stock options granted January 22, 2014 vest in equal installments on January 24, 2015, 2016, and 2017. |
|
(7) |
Column (l) represents the sum of the grant date fair values of all stock and option awards, as reflected in columns (e) and (f) of the Summary Compensation Table. |
43
OUTSTANDING EQUITY AWARDS AT
FISCAL YEAR-END
The following table sets forth information with respect to outstanding equity awards held by our named executive officers as of December 31, 2014. This table
includes unexercised and unvested option awards and unvested restricted stock and performance share awards. Each equity grant is shown separately for each named executive officer. The vesting schedule for each grant is shown following this table.
For additional information about the outstanding equity awards, see the description of long-term incentive compensation in Compensation Discussion and Analysis beginning on page 27.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option
Awards |
|
|
Stock
Awards |
|
Name |
|
Grant Date |
|
|
Number
of
Securities Underlying Unexercised Options
(#) Exercisable |
|
Number
of Securities Underlying Unexercised Options (#)
Unexercisable |
|
|
Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options
(#) N/A |
|
Option Exercise Price
($) |
|
|
Option Expiration Date |
|
|
Number of Shares or Units of Stock That Have Not Vested
(#) |
|
Market Value of Shares
or Units of Stock That Have Not Vested
($) |
|
|
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested
(#) |
|
Equity Incentive Plan Awards:
Market or Payout Value of Unearned Shares, Units or Other
Rights That Have Not Vested
($) |
|
(a) |
|
|
|
|
(b) |
|
(c) |
|
|
(d) |
|
(e) |
|
|
(f) |
|
|
(g) |
|
(h) |
|
|
(i) |
|
(j) |
|
McManus |
|
|
1/25/12 |
|
|
70,968 |
|
|
42,984(1) |
|
|
|
|
|
54.11 |
|
|
|
1/24/2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/24/13 |
|
|
16,204 |
|
|
32,408(2) |
|
|
|
|
|
48.36 |
|
|
|
1/23/2023 |
|
|
16,722(4) |
|
|
1,066,195 |
|
|
58,302(7) |
|
|
3,717,336 |
|
|
|
1/22/14 |
|
|
|
|
|
36,855(3) |
|
|
|
|
|
72.39 |
|
|
|
1/21/2024 |
|
|
14,235(5) |
|
|
907,624 |
|
|
43,368(8) |
|
|
2,765,144 |
|
Porter |
|
|
1/26/11 |
|
|
12,045 |
|
|
|
|
|
|
|
|
54.99 |
|
|
|
1/25/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/25/12 |
|
|
5,444 |
|
|
10,889(1) |
|
|
|
|
|
54.11 |
|
|
|
1/24/2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/24/13 |
|
|
4,026 |
|
|
8,052(2) |
|
|
|
|
|
48.36 |
|
|
|
1/23/2023 |
|
|
4,155(4) |
|
|
264,923 |
|
|
14,484(7) |
|
|
923,500 |
|
|
|
1/22/14 |
|
|
|
|
|
11,307(3) |
|
|
|
|
|
72.39 |
|
|
|
1/21/2024 |
|
|
4,367(5) |
|
|
278,440 |
|
|
13,306(8) |
|
|
848,391 |
|
Richardson |
|
|
1/23/08 |
|
|
21,275 |
|
|
|
|
|
|
|
|
60.56 |
|
|
|
1/22/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/26/11 |
|
|
31,317 |
|
|
|
|
|
|
|
|
54.99 |
|
|
|
1/25/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/25/12 |
|
|
23,730 |
|
|
14,365(1) |
|
|
|
|
|
54.11 |
|
|
|
1/24/2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/24/13 |
|
|
4,982 |
|
|
9,964(2) |
|
|
|
|
|
48.36 |
|
|
|
1/23/2023 |
|
|
5,141(4) |
|
|
327,790 |
|
|
17,926(7) |
|
|
1,142,962 |
|
|
|
1/22/14 |
|
|
|
|
|
13,560(3) |
|
|
|
|
|
72.39 |
|
|
|
1/21/2024 |
|
|
5,238(5) |
|
|
333,975 |
|
|
15,958(8) |
|
|
1,017,482 |
|
Godsey |
|
|
12/12/12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,115(6) |
|
|
708,692 |
|
|
|
|
|
|
|
|
|
1/24/13 |
|
|
1,699 |
|
|
3,398(2) |
|
|
|
|
|
48.36 |
|
|
|
1/23/2023 |
|
|
1,753(4) |
|
|
111,771 |
|
|
6,110(7) |
|
|
389,574 |
|
|
|
1/22/14 |
|
|
|
|
|
5,067(3) |
|
|
|
|
|
72.39 |
|
|
|
1/21/2024 |
|
|
1,958(5) |
|
|
124,842 |
|
|
5,964(8) |
|
|
380,265 |
|
Woodruff |
|
|
1/24/07 |
|
|
13,855 |
|
|
|
|
|
|
|
|
46.45 |
|
|
|
1/23/2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/23/08 |
|
|
12,100 |
|
|
|
|
|
|
|
|
60.56 |
|
|
|
1/22/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/28/09 |
|
|
7,281 |
|
|
|
|
|
|
|
|
29.79 |
|
|
|
1/27/2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/27/10 |
|
|
15,468 |
|
|
|
|
|
|
|
|
46.69 |
|
|
|
1/26/2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/26/11 |
|
|
14,789 |
|
|
|
|
|
|
|
|
54.99 |
|
|
|
1/25/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/25/12 |
|
|
10,686 |
|
|
5,343(1) |
|
|
|
|
|
54.11 |
|
|
|
1/24/2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1/24/13 |
|
|
1,519 |
|
|
3,038(2) |
|
|
|
|
|
48.36 |
|
|
|
1/23/2023 |
|
|
1,567(4) |
|
|
99,912 |
|
|
5,464(7) |
|
|
348,385 |
|
|
|
1/22/14 |
|
|
|
|
|
4,332(3) |
|
|
|
|
|
72.39 |
|
|
|
1/21/2024 |
|
|
1,673(5) |
|
|
106,670 |
|
|
5,098(8) |
|
|
325,048 |
|
Vesting Dates:
|
(1) |
These options vest on January 25, 2015. |
44
|
(2) |
These options vest in two equal installments on January 24, 2015 and 2016. |
|
(3) |
These options vest in three equal installments on January 22, 2015, 2016 and 2017. |
|
(4) |
This restricted stock vests January 24, 2016. |
|
(5) |
These restricted stock units vest January 22, 2017. |
|
(6) |
This restricted stock vests December 12, 2015. |
|
(7) |
These performance shares have a three-year award period that ends December 31, 2015. Payout amounts are calculated at maximum (200%) due to 2014 performance exceeding target performance measures.
|
|
(8) |
These performance shares have a three-year award period that ends December 31, 2016. Payout amounts are calculated at a maximum (200%) due to 2014 performance exceeding target performance measures.
|
OPTION EXERCISES AND STOCK VESTED
IN 2014
The following table provides
information, for the named executive officers, on (1) stock option exercises during 2014, including the number of shares acquired upon exercise and the value realized and (2) the number of shares acquired upon the vesting of stock awards
and the value realized, each before payment of any applicable withholding tax and broker commissions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards |
|
|
Stock Awards |
|
Name |
|
Number of
Shares Acquired
on Exercise (#) |
|
|
Value Realized
on Exercise ($) |
|
|
Number of
Shares Acquired
on Vesting (#) |
|
|
Value Realized
on Vesting ($) |
|
(a) |
|
(b) |
|
|
(c) |
|
|
(d) |
|
|
(e) |
|
McManus |
|
|
172,767 |
|
|
|
5,472,600 |
|
|
|
60,458 |
|
|
|
3,993,855 |
|
Porter |
|
|
60,101 |
|
|
|
2,126,494 |
|
|
|
15,020 |
|
|
|
992,221 |
|
Richardson |
|
|
31,091 |
|
|
|
1,108,852 |
|
|
|
18,588 |
|
|
|
1,227,923 |
|
Godsey |
|
|
- |
|
|
|
- |
|
|
|
8,214 |
|
|
|
542,617 |
|
Woodruff |
|
|
14,000 |
|
|
|
837,885 |
|
|
|
5,666 |
|
|
|
374,296 |
|
PENSION BENEFITS IN 2014
The Energen Corporation Retirement Income Plan, a defined benefit plan, covers our officers along with substantially all
of our salaried employees. During 2014, the Board of Directors took action to (1) exclude from participation employees hired by the Company on or after November 1, 2014, (2) freeze the accrual of benefits under the plan for all
participants, effective December 31, 2014, and (3) terminate the Retirement Income Plan, effective January 31, 2015. Prior to the amendment and restatement of the Retirement Income Plan, our officers would have received benefits under
the plan based on years of service at retirement and on Final Earnings, the average base compensation for the highest 60 consecutive months out of the final 120
months of employment. (Average base compensation includes base salary only, and does not include bonus payments, payments in the form of contributions to other benefit plans or any other form of
payment such as annual or long-term incentives.) The plan provides that affected participants are fully vested in their accrued benefits upon plan termination. Plan participants may elect to receive an immediate benefit upon plan termination,
including a lump sum distribution, or may defer benefit commencement to a later date. Certain of our officers would be eligible for a special early retirement window benefit if certain conditions based on age and years of service are met.
Section 415 of the Code imposes limits on benefits payable to an employee under the plan.
45
We have entered into Executive Retirement Supplement Agreements (Supplemental Agreements) with certain
officers, including each of the named executive officers. Each Supplemental Agreement provides that the employee will receive a supplemental retirement benefit equal to the difference between 60% of the employees monthly compensation and the
employees monthly retirement benefit under the Retirement Income Plan (including Social Security benefit). Generally, an employees compensation will be determined based on a formula taking into account the average of the highest 36
consecutive months of base salary during the five years prior to severance plus the average of the three highest annual incentive awards for the ten full fiscal years prior to the earlier of (1) severance or (2) the officers 61st
birthday. In October 2014, our Board of Directors approved termination of the Supplemental Agreements as of December 31, 2014, and to provide for a distribution of the corresponding benefits in accordance with applicable law. Benefit accruals
under the Supplemental Agreements (which are not subject to the
payment restrictions under Section 409A of the Internal Revenue Code) were paid as soon as practicable following termination of the Supplemental Agreements. Benefit accruals that are
subject to Code Section 409A may not be paid within 12 months of the date the Board of Directors took action to terminate the Supplemental Agreements (other than payments that would be payable under the terms of the Supplemental Agreements if
the action to terminate had not occurred), but all such accruals must be paid within 24 months of the same date.
Each of our named executive officers except
Mr. Godsey has sufficient service with the Company to have earned vested benefits under the Retirement Income Plan and the Supplemental Agreements. The table below sets forth information on the pension benefits for each of the named executive
officers under each of the Companys pension plans as of December 31, 2014. As noted above, both the Retirement Income Plan and the Supplemental Agreements have been terminated and no further benefits shall accrue thereunder.
|
|
|
|
|
|
|
|
|
Name
|
|
Plan Name
|
|
Number of Years Credited Service
(#) |
|
Present
Value of Accumulated Benefit
($)(1) |
|
Payments During Last Fiscal Year
($) |
(a) |
|
(b) |
|
(c) |
|
(d) |
|
(e) |
McManus |
|
Retirement Income Plan |
|
29 |
|
2,025,500 |
|
- |
|
|
SERP |
|
29 |
|
9,316,403 |
|
- |
Porter |
|
Retirement Income Plan |
|
25 |
|
875,665 |
|
- |
|
|
SERP |
|
25 |
|
2,499,339 |
|
- |
Richardson |
|
Retirement Income Plan |
|
29 |
|
1,745,822 |
|
- |
|
|
SERP |
|
29 |
|
4,259,191 |
|
- |
Godsey |
|
Retirement Income Plan |
|
2 |
|
112,222 |
|
- |
|
|
SERP |
|
N/A |
|
N/A |
|
N/A |
Woodruff |
|
Retirement Income Plan |
|
29 |
|
2,256,644 |
|
- |
|
|
SERP |
|
29 |
|
2,690,935 |
|
- |
(1) |
Benefit values assume a retirement age of 60. Other assumptions are set forth in Note 5 to the Companys financial statements included in the Companys Annual Report on Form 10-K for the year ended
December 31, 2014. |
No pension benefits were paid to any of the named executive officers during 2014; however, some of our named executive
officers will begin receiving payments in 2015 in connection with the termination of the pension plans.
46
NONQUALIFIED DEFERRED COMPENSATION
TABLE IN 2014
The table
below provides information on the non-qualified deferred compensation of the named executive officers in 2014 pursuant to the Companys 1997 Deferred Compensation Plan. For a more detailed discussion of the 1997 Deferred Compensation Plan,
refer to Compensation Discussion and Analysis beginning on page 27 of this Proxy Statement.
|
|
|
|
|
|
|
|
|
|
|
Name |
|
Executive Contributions in Last FY
($) |
|
Registrant Contributions in Last FY
($) |
|
Aggregate Earnings in Last
FY ($) |
|
Aggregate Withdrawals/
Distributions ($) |
|
Aggregate Balance at Last
FYE ($) |
(a) |
|
(b) |
|
(c) (1) |
|
(d) |
|
(e) |
|
(f) |
McManus |
|
34,620 |
|
48,896 |
|
(10,402) |
|
460,197 |
|
75,263 |
Porter |
|
10,080 |
|
10,817 |
|
(2,950) |
|
- |
|
108,434 |
Richardson |
|
12,120 |
|
17,072 |
|
(11,606) |
|
87,597 |
|
232,596 |
Godsey |
|
6,600 |
|
9,262 |
|
(1,760) |
|
- |
|
29,772 |
Woodruff |
|
6,540 |
|
9,207 |
|
(3,186) |
|
- |
|
87,131 |
|
(1) |
Amounts reported in column (c) are reported in the Summary Compensation Table. |
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE
IN CONTROL
We have entered into Severance Compensation Agreements with certain officers including Messrs. McManus, Porter,
Richardson, Woodruff and Godsey. We designed the agreements to retain the executives and provide continuity of management in the event of any actual or threatened change in control of the Company. Each such agreement provides that if, during a base
period following the first to occur of a change in control of the Company (as defined in the agreements) or shareholder approval of a transaction that will constitute a change in control, the employees employment is terminated in a qualified
termination, then we will pay the employee an amount equal to a percentage of the employees (a) annual base salary in effect immediately prior to the change in control, plus (b) the employees highest annual cash bonus
compensation for the three fiscal years immediately prior to the fiscal year during which the change in control occurs.
Continuity of management or retention is
encouraged by providing severance benefits in the event of loss of employment following a change in control. The percentage payable and base period varies by executive and ranges from 100% with a one-year base period to
300% with a three-year base period. The 100%, 200% and 300% multiples reflect consideration of the executives level of corporate responsibility, specialized skills, and availability of
other job opportunities. A higher multiple reflects a higher importance of retention. Thus, officers with higher levels of corporate responsibility or specialized skill or knowledge have higher multiples. Officers who, due to senior responsibilities
or specialized skills, may have fewer alternative employment opportunities also have higher multiples to provide compensation during a longer job search. All named executive officers except Mr. Godsey have a 300% multiple and three-year base
period. Mr. Godsey has a 200% multiple and a two-year base period. The Severance Compensation Agreements also provide for the continuance of certain insurance and other employee benefits for a period of twenty-four months following any such
termination of employment. Agreements entered into in 2007 and earlier, which include the agreements with each of Messrs. McManus, Porter, Richardson and Woodruff, include a tax gross up provision which provides that, in the event the executive
receives compensation subject to the tax imposed by Section 4999 of the Code, the executive shall
47
be entitled to receive an additional payment in an amount necessary to put the executive in the same after-tax position as if such tax had not been imposed unless the tax would not apply if the
payments under the Severance Compensation Agreement were reduced by up to 10% of the amount subject to the tax, in which case such a reduction is made. Mr. Godseys Severance Compensation Agreement does not include a tax gross up provision
and the Compensation Committee does not expect to include such a provision in future agreements.
For purposes of the Severance Compensation Agreements,
(1) the term qualified termination means a termination (a) by the Company other than for cause, (b) by the employee for good reason or (c) by written agreement to such effect between the employee and the Company,
(2) the term cause generally means failure to substantially perform duties, misconduct injurious to the Company or conviction of a felony, and (3) the term good reason generally means a material diminution in the
authority, duties, responsibilities or benefits of the employees job.
As defined in our Severance Compensation Agreements, as well as our Stock Incentive
Plan and Annual Incentive Compensation Plan, a change in control would include any of the
following events:
|
|
any person, as defined in the Exchange Act, acquires 30 percent or more of our voting securities; |
|
|
a majority of our Directors are replaced in certain circumstances, including: |
|
¡ |
|
a majority of such Directors are replaced such that a majority of our current Directors does not approve their election or nomination for election; or |
|
¡ |
|
Directors are replaced by an individual or individuals whose initial assumption of office occurs as a result of an actual or threatened election contest; or |
|
|
|
consummation of certain mergers or consolidations, or a liquidation or sale of our assets. |
In addition, transactions
involving the transfer of 80 percent or more of the voting securities or substantially all the assets of Energen Resources would constitute a change in control for the officers of Energen Resources and the officers of Energen.
Assuming the occurrence of a triggering event on December 31, 2014 for payment of change in control related compensation, we estimate that the following officers
would receive the following benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
McManus
$ |
|
Porter
$ |
|
Richardson
$ |
|
Godsey
$ |
|
Woodruff $ |
Cash Severance |
|
5,372,892 |
|
2,165,640 |
|
2,422,035 |
|
1,155,906 |
|
1,680,360 |
Health & Welfare Benefit (1) |
|
34,450 |
|
33,146 |
|
27,408 |
|
26,838 |
|
26,816 |
Excise Tax reimbursement (2) |
|
- |
|
1,372,988 |
|
- |
|
N/A |
|
- |
|
(1) |
Represents the incremental value of two years continuation of medical, life and disability insurance benefits. |
|
(2) |
Tax gross-up reflects the additional compensation provided to cover excise taxes incurred when the executives parachute payment exceeds 2.99 times the Code Section 280G base amount. Base
amount is defined as the executives five-year average W-2 earnings. |
The Stock Incentive Plan also provides that in the event of a
termination of employment, other than a qualified termination or a change in control termination, all unvested options expire and all unvested restricted stock and outstanding restricted stock units and performance shares are
forfeited. In the
48
event of a qualified termination, unvested options, unvested restricted stock and restricted stock units with a grant date at least ten months prior to the date of termination vest and
outstanding performance shares remain eligible for payout subject to the applicable award period and performance conditions. Under the Stock Incentive Plan the term qualified termination means:
|
(1) |
a termination expressly agreed in writing by the executive and the Company to constitute a qualified termination; |
|
(2) |
death or disability; or |
In the event of a change in control termination, unvested options, unvested restricted stock and restricted
stock units vest and outstanding performance shares pay out at target performance within thirty days of termination. The Board of Directors defined change in control termination to mean:
|
(1) |
an involuntary termination other than for cause after the occurrence of a change in control; or |
|
(2) |
a voluntary termination for good reason entitling the employee to severance compensation under a written change in control severance agreement. |
The following table contains a schedule of unvested options, restricted stock and restricted stock units that would vest upon a qualified termination or a change in
control termination, valued as of December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
Name |
|
Shares Represented by Unvested Options
(#) |
|
Value of Unvested Options
($) |
|
Restricted Stock
(#) |
|
Value of Restricted Stock
($) |
|
Restricted Stock Units (#) |
|
Value of Restricted Stock Units ($) |
McManus |
|
112,247 |
|
913,879 |
|
16,722 |
|
1,066,195 |
|
14,235 |
|
907,624 |
Porter |
|
30,248 |
|
229,080 |
|
4,155 |
|
264,923 |
|
4,367 |
|
278,440 |
Richardson |
|
37,889 |
|
292,068 |
|
5,141 |
|
327,790 |
|
5,238 |
|
333,975 |
Godsey |
|
8,465 |
|
52,329 |
|
12,868 |
|
820,464 |
|
1,958 |
|
124,842 |
Woodruff |
|
12,713 |
|
98,345 |
|
1,567 |
|
99,912 |
|
1,673 |
|
106,670 |
The following table contains a schedule of unvested performance shares that would vest upon a change in control termination, valued as
of December 31, 2014:
|
|
|
|
|
Name |
|
Performance Shares(#) |
|
Value of Performance Shares($) |
McManus |
|
50,835 |
|
3,241,240 |
Porter |
|
13,895 |
|
885,945 |
Richardson |
|
16,942 |
|
1,080,222 |
Godsey |
|
6,037 |
|
384,919 |
Woodruff |
|
5,281 |
|
336,717 |
Our Annual Incentive Compensation Plan provides that upon a change in control and termination of a participants employment, the
participant will receive a pro rata incentive based on target performance and the number of days of employment during the Plan year. The Annual Incentive Compensation Plan also provides that in the event a participant terminates employment due to
retirement, death or disability during a performance period, the participant shall receive an incentive equal to the amount the participant would have received as an incentive if the participant had remained an employee
49
through the end of the performance period multiplied by a fraction which reduces the award in proportion to the amount of time remaining in the performance period. If a participants
employment is terminated for any other reason during a performance period, the participant shall receive no incentive payment for such performance period unless the Compensation Committee, in its discretion, determines to pay such participant (other
than a participant terminated for cause) up to a pro rata incentive payment. Assuming a December 31, 2014 triggering event, there would be no pro rata target performance pay out, since the performance period would have concluded and the amounts
owed to the participants could be determined in accordance with the terms of the Annual Incentive Compensation Plan.
Each of our named executive officers has
vested benefits under the Retirement Income Plan and, except for Mr. Godsey, under the Supplemental Agreements. Although both the Retirement Income Plan and the Supplemental Agreements were frozen as of December 31, 2014, the benefits
under both such plans would not have increased or accelerated upon termination or a change in control. For a description of our Retirement Income Plan and Supplemental Agreements, see Executive Compensation Pension Benefits in
2014 beginning on page 45 of this Proxy Statement.
ADVISORY VOTE ON EXECUTIVE COMPENSATION
(SAY-ON-PAY VOTE)
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), which was signed into law
July 21, 2010, provides shareholders with an opportunity to cast an advisory vote on the compensation of executive officers as disclosed in this Proxy Statement. This proposal, commonly known as a Say-on-Pay vote, gives shareholders
the opportunity to approve, reject or abstain from voting with respect to our fiscal 2014 executive compensation programs and policies and the compensation paid to the named executive officers of the Company.
As discussed beginning on page 27 of this Proxy Statement under the heading Compensation Discussion and
Analysis, our executive compensation program is designed to serve the Company and its shareholders by aligning executive compensation with shareholder interests and by encouraging and rewarding management initiatives that will benefit the
Company and its shareholders, customers, and employees over the long-term.
PROPOSAL
The Company is presenting this proposal, which gives you as a shareholder the opportunity to express your view on our
executive compensation by voting for or against the following resolution:
RESOLVED, that the shareholders of the Company approve, on an advisory basis, the
compensation of the named executive officers of Energen Corporation, as disclosed in the Compensation Discussion and Analysis, the compensation tables, and the related disclosures contained in
the Companys 2015 Proxy Statement.
REQUIRED VOTE
Approval of this proposal requires the affirmative vote of the holders of a majority of the shares entitled to vote on,
and who vote for and against, this proposal.
This proposal allows our shareholders to express their opinions regarding the decisions of the Compensation Committee on
the prior years annual compensation to the named executive officers. Although your vote on this
50
matter is advisory in nature and therefore will not be binding upon the Company, the Compensation Committee or the Board of Directors, your advisory vote will serve as an additional tool to guide
the Board of Directors
and the Compensation Committee in continuing to improve the alignment of the Companys executive compensation programs with the interests of the Company and its shareholders.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS A VOTE
FOR THE EXECUTIVE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT.
51
SHAREHOLDER PROPOSAL METHANE GAS EMISSIONS REPORT
We expect the following proposal to be presented by a shareholder at the Annual Meeting. Following SEC rules, other than minor formatting changes, we are reprinting the
proposal and supporting statement as they were submitted to us. To ensure that readers can easily distinguish between the materials provided by the proponent and the materials we have provided, we have placed a box around material provided by the
proponent.
The Board recommends you vote AGAINST the shareholder proposal for the reasons we give after the proposal.
PROPOSAL RESPECTING PREPARATION OF REPORT ON
METHANE GAS EMISSIONS
This proposal was submitted by Miller/Howard Investments, Inc., 324 Upper Byrdcliffe Road, Woodstock, New York 12498 on behalf of Lowell Miller. Mr. Miller
beneficially owned, as of November 24, 2014, 228 shares of Energen common stock. Clean Yield Asset Management, 6 Curtis Street, Salem, Massachusetts 01970 was a co-filer of the proposal on behalf of Marie Hausman. Ms. Hausman beneficially
owned, as of November 24, 2014, 1,200 shares of Energen common stock. Finally, Domini Social Investments, 532 Broadway, 9th Floor, New York, New York 10012-3939 also was a co-filer of the
proposal on behalf of the Domini Social Equity Fund. The Domini Social Equity Fund beneficially owned, as of November 24, 2014, 187 shares of Energen common stock.
Shareholder Proposal
METHANE EMISSIONS REPORTING
WHEREAS: Methane emissions are a significant contributor to climate change, with an impact on global temperature roughly 86x
that of CO2 over a 20-year period. Methane represents over 25% of 20-year CO2 equivalent emissions according to the Environmental Protection Agency (EPA) Greenhouse Gas Inventory.
Studies from the National Oceanic and Atmospheric Administration (NOAA), Harvard University and others estimate highly varied methane
leakage rates as a percentage of production. The attendant uncertainty surrounding methane leakage has, according to the New York Times, made it the Achilles heel of hydraulic fracturing.
A 2013 study, Anthropogenic Emissions of Methane in the United States, finds EPA prescribed methodologies
underestimate methane emissions nationally by a factor of 1.5. The EPAs auditor refers to current emissions estimates as being of questionable quality.
The International Energy Agency (IEA) highlights the risk of failing to implement best practice methane management in Golden
Rules for a Golden Age of Gas, recommending actions necessary to realize the economic and energy security benefits [of gas development] while meeting public concerns, including eliminating venting, minimizing flaring and setting
targets on emissions.
Reducing methane emissions in upstream oil and gas production is one of four policies proposed by the IEA
that could stop the growth in global energy-related emissions by the end of this decade at no net economic cost. The policies rely only on existing technologies and would not harm economic growth.
A failure by companies to proactively reduce methane emissions may invite more rigorous regulations. The
Presidents Climate Action Plans Strategy to Reduce Methane Emissions empowers the EPA to determine how to reduce methane emissions.
52
States have begun to adopt stricter regulations. In 2014, Colorado approved regulations to fix persistent methane
leaks. Industry representatives who helped craft the regulations called them the right thing to do for our business, noting that the regulations are needed to ensure their investments pay off.
Methane leakage has a direct economic impact on Energen Corp., as lost gas is not available for sale. The Natural Resources Defense
Council estimates control processes could generate $2 billion in annual revenues for the industry and reduce methane pollution 80%, while ICF International estimates currently available controls could cut emissions 40%, with the most-cost effective
opportunities creating $164 million in net savings.
A strong program of measurement, mitigation, target setting and disclosure
would reduce regulatory and legal risk, maximize gas for sale and potentially bolster shareholder value.
RESOLVED:
Shareholders request that Energen Corp. issue a report (by September 2015, at reasonable cost, omitting proprietary information) reviewing the Companys policies, actions and plans to measure, mitigate, disclose and set quantitative reduction
targets for methane emissions resulting from all operations under the Companys financial or operational control.
SUPPORTING STATEMENT: The report can include the leakage rate as a percentage of production, best practices,
worst performing assets, environmental impact, quantitative reduction targets and methods to track progress over time. Real-time measurement and monitoring technologies are recommended.
THE COMPANYS BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE AGAINST THIS PROPOSAL
COMPANY STATEMENT IN OPPOSITION
Energen has worked for many years to reduce methane emissions.
These efforts include voluntary implementation of emissions reduction activities and equipment as well as compliance with methane emission control, reduction, and reporting regulations.
Since 2003, the Company has participated in the United States Environmental Protection Agency (EPA) Natural Gas STAR Program. Gas STAR is a voluntary program that
encourages oil and natural gas companies to employ technologies and practices to improve operational efficiency and methane emission reduction. Since joining, the Company has achieved Gas STAR estimated cumulative methane emission reductions of over
5.2 billion cubic feet through the end of 2013. This number reflects only voluntary reductions, which are over and above regulatory-driven reductions. These voluntary reductions were achieved through:
|
|
|
Installation of electric motors on pumping units and compressors previously natural gas fueled |
|
|
|
Installation of vapor recovery units (VRUs) |
|
|
|
Installation of pumping units on gas wells to reduce venting while removing fluids from gas well bores |
|
|
|
Capture of casinghead gas by VRU or compressor |
|
|
|
Reduction of blanket gas blow-by to atmosphere |
|
|
|
Flaring instead of venting where gas could not be captured into a pipeline system |
53
In addition to the initiatives reported under the Gas STAR Program, the Company has taken, and continues to take, other
actions to reduce methane emissions, including:
|
|
|
Installation of low-bleed or no-bleed pneumatic devices and installation of no-bleed level controllers where electricity is available |
|
|
|
Implementation of reduced emission completions |
|
|
|
Optimization of plunger lift installations |
|
|
|
Pipeline/Flowline leak monitoring |
|
|
|
Installation of vapor combustors and flares on tank batteries |
|
|
|
Instituting a thief hatch/enardo valve inspection program |
The Company expects to achieve further reductions through
these and other initiatives and through implementation of regulatory-mandated procedures and equipment modifications under the EPAs New Source Performance Standards (NSPS) Subpart OOOO (Quad O) regulations and National Emissions
Standards for Hazardous Air Pollutants (NESHAPS) Subpart HH regulations.
The majority of the Companys methane emissions are disclosed via existing regulatory
programs. Annual methane emission reports are made to the EPA pursuant to EPAs Mandatory Greenhouse Gas Reporting regulations (40 CFR Part 98). Under Subpart W, the Company reports direct methane emissions via EPAs online electronic
greenhouse gas reporting tool (e-GGRT). Reported data is publicly available on the EPAs website.
Comprehensive, independently derived methane emission
factors and disclosure methodologies are currently incomplete. The Environmental Defense Fund has organized a comprehensive research initiative involving a series of studies to measure and evaluate methane emissions from the natural gas value
chain. Until these and other studies have been completed and peer-reviewed emission factors and reporting methodologies have been established, disclosure of estimated methane emissions, beyond current regulatory disclosures, would lack adequate
qualitative and quantitative controls.
The Company believes that a report of the type requested by the proposal would be of limited usefulness to shareholders and
management and duplicative of past and ongoing Company and regulatory activities. Given the limited value of such a report, it is the judgment of the Board of Directors that its preparation would be an inefficient use of corporate resources and an
unnecessary expense.
RECOMMENDATION
ACCORDINGLY, THE BOARD OF DIRECTORS
UNANIMOUSLY RECOMMENDS THAT YOU VOTE AGAINST THIS SHAREHOLDER PROPOSAL.
54
SHAREHOLDER PROPOSAL CLIMATE CHANGE BUSINESS RISKS REPORT
We expect the following proposal to be presented by a shareholder at the Annual Meeting. Following SEC rules, other than minor formatting changes, we are reprinting the
proposal and supporting statements as they were submitted to us. To ensure that readers can easily distinguish between the materials provided by the proponent and the materials we have provided, we have placed a box around material provided by the
proponent.
The Board recommends you vote AGAINST the shareholder proposal for the reasons we give after the proposal.
PROPOSAL REGARDING PREPARATION OF REPORT ON
CLIMATE CHANGE BUSINESS RISKS
This proposal was submitted by Connecticut Retirement Plans and Trust Funds, 55 Elm Street, Hartford, Connecticut 01606-1773. Connecticut Retirement Plans and Trust
Funds beneficially owned, as of November 24, 2014, 15,800 shares of Energen common stock.
Shareholder Proposal
Connecticut Retirement Plans and Trust Funds (CRPTF)
WHEREAS:
Recognizing the risks of climate change,
nearly all nations signed the Cancun Agreement proclaiming the increase in global temperature should be below 2 degrees Celsius. In light of these goals, the International Energy Agency (IEA) has developed scenarios to help policymakers
and market participants understand potential energy demand futures. Oil demand would need to begin to decline starting in 2020 under a scenario consistent with policymakers 2 degree target. Per HSBC, the equity valuation of oil producers could
drop by 40-60 percent under such a low carbon emissions scenario.
Climate change concerns are already affecting oil demand through policies related
to air quality, fuel efficiency, and lower-carbon energy. Analysts from Citi, Deutsche Bank and Statoil, among others, predict that global oil demand could peak in the next 10-15 years. Any action to address climate change will only accelerate these
trends.
Industry production costs have risen significantly in recent years, leaving many companies vulnerable to any downturn in demand. Carbon
Tracker estimates that projects which require over $95/barrel to be sanctioned are clearly in excess of the requirements for fossil fuel investment in a 2 degree scenario, and that there is an estimated $1.1 trillion of capital expenditures (capex)
earmarked for high cost projects out to 2025 needing a price of over $95 to generate an economic return, raising the risk of stranded, or unprofitable, resources.
We recognize the importance of the oil and gas sector in meeting continuing energy needs. However, we are concerned that Energen Corporations
current business strategy is not sustainable given the changing nature of demand, emerging technologies, and policy interventions aimed at reducing pollution.
Investors require additional information on how Energen is preparing for market conditions in which demand growth for oil and gas is reduced due to a
combination of factors.
Resolved: Shareholders request that Energen prepare a report analyzing the consistency of company
capital expenditure strategies with policymakers goals to limit climate change, including analysis of long- and short- term financial risks to the company associated with high-cost projects in low-demand
55
scenarios, as well as analysis of options to mitigate related risk. The report should be overseen by a committee of independent
directors, omit proprietary information, and be prepared at reasonable cost by September 2015.
SUPPORTING STATEMENT:
We recommend the report include:
|
|
|
Assumptions regarding breakeven costs of production for the companys highest cost projects. |
|
|
|
Consideration of a range of lower-demand scenarios accounting for more-rapid-than-expected policy and/or technology developments, including the 2 degree scenario as outlined by the MA. |
|
|
|
An assessment of different capital allocation strategies in the face of low-demand scenarios. |
|
|
|
How the company will manage risks under these scenarios, such as reducing the carbon intensity of its assets or returning capital to shareholders. |
|
|
|
The Board of Directors role in overseeing climate risk reduction strategies and related capital allocation. |
THE COMPANYS BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE AGAINST THIS PROPOSAL
COMPANY STATEMENT IN OPPOSITION
Energen recognizes the importance of environmental protection
and strives to conduct its business operations in an environmentally responsible manner. The Company is also aware of and experienced in responding to the business risks and opportunities of changes in market supply and demand generated by a variety
of factors and events.
The Company Already Provides Disclosures that Address Concerns Regarding Business Risks Including Risks Associated With Environmental
Policy Making.
To the extent that the proposal seeks a report on the Companys long- and short-term financial and operational risks associated with
policymaker goals to limit climate change, our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 provides information directly responsive to the proposal. Similar disclosures can be found in our 2014 Form 10-K.
Specifically, the Companys 2013 Form 10-K addresses the following risks and matters:
Environmental Matters and Climate Change [pages
8-9]
. . . .
Federal, state and local legislative bodies and agencies frequently exercise their respective authority to adopt new laws and
regulations and to amend and interpret existing laws and regulations. Such law and regulation changes may occur with little prior notification, subject the Company to cost increases, and impose restrictions and limitations on the Companys
operations. Currently, there are various proposed law and regulatory changes with the potential to materially impact the Company. Such proposals include, but are not limited to, measures dealing with hydraulic fracturing, emission limits and
reporting and the repeal of certain oil and gas tax incentives and deductions. Due to the nature of the political and regulatory processes and based on its consideration of existing proposals, the Company is unable to determine whether such proposed
laws and regulations are reasonably likely to be enacted or to determine, if enacted, the magnitude of the potential impact of such laws.
56
. . . .
Various states in which we operate have adopted a variety of well construction, set back, and disclosure regulations limiting how
drilling can be performed and requiring various degrees of chemical and water usage disclosure for operators that employ hydraulic fracturing. We are complying with these additional regulations as part of our routine operations and within the normal
execution of our business plan. The adoption of additional federal or state regulations, however, could impose significant new costs and challenges. For example, adoption of new hydraulic fracturing permitting requirements could significantly delay
or prevent new drilling. Adoption of new regulatory restrictions on the use of hydraulic fracturing could reduce the amount of oil and gas that we are able to recover from our reserves. The degree to which additional oil and gas industry regulation
may impact our future operations and results will depend on the extent to which we utilize the regulated activity and whether the geographic locations in which we operate are subject to the new regulation.
Existing federal, state and local environmental laws and regulations also have the potential to increase costs, reduce liquidity, delay operations and
otherwise alter business operations. These existing laws and regulations include, but are not limited to, the Clean Air Act; the Clean Water Act; Oil Pollution Prevention: Spill Prevention, Control, and Countermeasure regulations; Toxic Substances
Control Act; Resource Conservation and Recovery Act; and the Federal Endangered Species Act. . . . .
Climate change, whether
arising through natural occurrences or through the impact of human activities, may have a significant impact upon the operations of [the Company]. Volatile weather patterns and the resulting environmental impact may adversely impact the results of
operations, financial position and cash flows of the Company. The Company is unable to predict the timing or manifestation of climate change or reliably estimate the impact to the Company. However, climate change could affect the operations of the
Company as follows:
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sustained increases or decreases to the supply and demand of oil, natural gas and natural gas liquids; |
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potential disruption to third party facilities to which [Company] delivers . . . . |
Such facilities
include third party oil and gas gathering, transportation, processing and storage facilities and are typically limited in number and geographically concentrated.
Commodity prices for crude oil and natural gas are volatile, and a substantial reduction in commodity prices could adversely affect the
Companys results and the carrying value of its oil and natural gas properties [page 10]: The Company [is] significantly influenced by commodity prices. Historical markets for oil, natural gas and natural gas liquids have been volatile.
Energen Resources revenues, operating results, profitability and cash flows depend primarily upon the prices realized for its oil, gas and natural gas liquid production. Additionally, downward commodity price trends may impact expected cash
flows from future production and potentially reduce the carrying value of Company-owned oil and natural gas properties. . . . .
The Companys oil and natural gas reserves are estimates, and actual future production may vary significantly and may also be
negatively impacted by its inability to invest in production on planned timelines [page 11]: There are numerous uncertainties inherent in estimating quantities of proved oil and gas reserves and in projecting future rates of production
57
and timing of development expenditures. The total amount or timing of actual future production may vary significantly from reserve and production estimates. In the event Energen Resources is
unable to fully invest its planned development, acquisition and exploratory expenditures, future operating revenues, production, and proved reserves could be negatively affected. The drilling of development and exploratory wells can involve
significant risks, including those related to timing, success rates and cost overruns, and these risks can be affected by lease and rig availability, complex geology and other factors. Anticipated drilling plans and capital expenditures may also
change due to weather, manpower and equipment availability, changing emphasis by management and a variety of other factors which could result in actual drilling and capital expenditures being substantially different than currently planned.
The Company is subject to numerous federal, state and local laws and regulations that may require significant expenditures or impose
significant restrictions on its operations [Page 11]: [The Company is] subject to extensive federal, state and local regulation which significantly influences operations. Although the Company believes that operations generally comply with
applicable laws and regulations, failure to comply could result in the suspension or termination of operations and subject the Company to administrative, civil and criminal penalties. Federal, state and local legislative bodies and agencies
frequently exercise their respective authority to adopt new laws and regulations and to amend, modify and interpret existing laws and regulations. Such changes can subject the Company to significant tax or cost increases and can impose
significant restrictions and limitations on the Companys operations.
The Requested Report is Unlikely to be of Value to Shareholders
As a mid-cap, independent oil and gas exploration and production company with operations primarily in Texas and New Mexico, Energen has commodity price exposure but
does not generally participate in the high-cost projects referenced in the proposal. The oil and gas business has a history of price volatility reflecting, in large part, the impact of changes in supply-and-demand. The late 2014 and
early 2015 oil price decline provides a recent illustration of supply out stripping demand.
Energens history demonstrates an ability to weather market
volatility and, within relatively short time frames, successfully adjust drilling and development programs and capital investment plans in response to changing circumstances and opportunities. Discussions and updates of Energens capital
investment plans can be found in our quarterly earnings releases (available in the Investor Relations section of our website: energen.com). We have no particular expertise in predicting future governmental policies and actions with respect to
climate change or other matters and do not believe that preparation of the requested report is a wise use of management time and corporate funds or likely to generate beneficial information beyond what the Company already provides.
RECOMMENDATION
ACCORDINGLY, THE BOARD OF DIRECTORS
UNANIMOUSLY RECOMMENDS THAT YOU VOTE AGAINST THIS SHAREHOLDER PROPOSAL.
58
SHAREHOLDER PROPOSALS FOR 2016 ANNUAL MEETING
In order to be considered for inclusion in our Proxy Statement and form of proxy, proposals of shareholders intended to be presented at the 2016 Annual Meeting must be
received at the Companys principal executive offices no later than November 19, 2015. If a shareholder desires to bring other business before the 2016 Annual Meeting without including such proposal in the Companys Proxy Statement,
the shareholder must notify the Company in writing no earlier than January 1, 2016 and no later than January 31, 2016. Shareholders who wish to nominate individuals to serve on the Board of Directors must follow the requirements set forth
in Section 1.11 of the Companys Bylaws. In order to be eligible to nominate a person for election to our Board of Directors a shareholder must (i) comply with the notice procedures set forth in the Bylaws and (ii) be a
shareholder of record on the date of giving such notice as well as on the meeting date. To be timely, any shareholder who wishes to make a nomination to be considered at the 2016 Annual Meeting must deliver the notice specified by our Bylaws between
January 1, 2016 and January 31, 2016. The Bylaws contain a number of substantive and procedural requirements that should be reviewed by any interested shareholder. Shareholder proposals and director nominations should be directed to J.
David Woodruff, Secretary, Energen Corporation, 605 Richard Arrington Jr. Blvd. North, Birmingham, Alabama 35203-2707.
ENERGEN
CORPORATION
Chairman of the Board
Birmingham, Alabama
March 18, 2015
59
Appendix A
The following peer groups are referred to on page 28 of the Proxy Statement.
CUSTOM PEER GROUP DATA BASE
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AGL Resources Inc. |
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Piedmont Natural Gas Co Inc |
Atmos Energy Corp |
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Pioneer Natural Resources Co |
Cabot Oil & Gas Corp |
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QEP Resources |
Cimarex Energy Co |
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Questar Corp |
Comstock Resources Inc |
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Quicksilver Resources Inc |
Concho Resources |
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Range Resources Corp |
Denbury Resources Inc |
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SM Energy Co |
EQT Corp |
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Southwestern Energy Co |
Forest Oil Corp |
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Ultra Petroleum Corp |
Linn Energy |
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Vectren Corp |
MDU Resources Group Inc |
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WGL Holdings Inc |
Newfield Exploration Co |
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Whiting Petroleum Corp |
Noble Energy Inc |
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Williams Companies Inc |
Oneok Inc |
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OIL AND GAS DATA BASE
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Anadarko Petroleum |
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Irving Oil Commercial G.P. |
Apache |
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Magellan Midstream Partners |
BG US Services |
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Marathon Oil |
Devon Energy |
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McDermott International |
EnCana Oil & Gas USA |
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MDU Resources |
EQT Corporation |
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Noble Energy |
Exterran |
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Occidental Petroleum |
Hercules Offshore |
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Rowan Companies |
Hess |
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Suburban Propane |
Holly Frontier Corporation |
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Tesoro |
Hunt Consolidated |
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Transocean |
ION Geophysical |
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ENERGY SECTOR DATA BASE
Addax Petroleum US
Afren Resources USA,
Inc.
Anadarko Petroleum Corporation
Apache Corporation
Atlas Energy, L.P.
Atlas Resource Partners, L.P.
Baytex Energy USA, Ltd.
BHP Billiton Petroleum
BreitBurn Energy Partners L.P.
Breitburn Energy
Partners L.P. - Breitburn Energy Company LP
BreitBurn Energy Partners L.P. - Breitburn Energy
Company LP, Orcutt Facility
BreitBurn Energy Partners L.P. - Breitburn Energy
Company LP, West Pico Facility
BreitBurn Energy Partners L.P. - Eastern Division
BreitBurn Energy Partners L.P. - Pacific Coast Energy
Company LP
BreitBurn Energy
Partners L.P. - Regional Operations-
Bigler, Texas Operations
BreitBurn Energy Partners L.P. - Western Division,
California Operations
BreitBurn Energy Partners L.P. - Western Division, Florida
Operations
BreitBurn Energy
Partners L.P. - Western Division,
Wyoming Operations
Carrizo Oil & Gas, Inc.
Chesapeake Energy Corporation
Chief Oil & Gas, LLC
Cimarex Energy Co.
Citation Oil & Gas Corp.
Cobalt International Energy
COG Operating, LLC
ConocoPhillips
Crescent Point Energy US Corp.
Davis Petroleum Corp.
Denbury Resources, Inc.
Devon Energy Corporation
EDF Trading Resources, LLC
Encana Oil & Gas (USA), Inc.
Energen Corporation - Energen Resources Corporation
Enerplus Resources (USA)
Corporation
EnerVest Operating, LLC
EnerVest, Ltd.
Eni US Operating Company, Inc.
A-1
EOG Resources, Inc.
EP Energy, LLC
Equal Energy US, Inc.
EV Energy Partners
EXCO Resources, Inc.
EXCO Resources, Inc. - EXCO Appalachia
EXCO Resources, Inc. - EXCO East TX/LA
Forest Oil Corporation
Halcón Resources Corporation
Hess Corporation
HighMount Exploration & Production, LLC
Hilcorp Energy Company
Hunt Consolidated - Hunt Oil Company
ION Geophysical Corporation
J-W Energy Company - J-W Operating Company
JX Nippon Oil Exploration (U.S.A.), Ltd.
Kosmos Energy, LLC
Laredo Petroleum Holdings, Inc.
Legacy Reserves, LP
Linn Energy, LLC
Marathon Oil Company
McMoRan Exploration Co.
MCX Exploration (USA), Ltd.
MDU Resources Group,
Inc. - Fidelity Exploration & Production Company
Mitsui E&P USA, LLC
Murphy Oil Corporation
Newfield Exploration Company
Nexen Petroleum U.S.A. Inc.
Noble Energy, Inc.
Oasis Petroleum, Inc.
Occidental
Petroleum Corporation
Parallel Petroleum, LLC
PDC Energy
Pioneer Natural Resources Company
Plains Exploration & Production Company
Premier Natural Resources, LLC
QEP Resources, Inc.
R Lacy Services, Ltd.
Range Resources Corp.
Repsol Services Company
Resolute Energy Corporation
RKI Exploration & Production, LLC
Rosewood Resources, Inc.
Samson Energy Company, LLC
Samson Exploration
Samson Offshore
SM Energy Company
Southern Ute Indian Tribe - Red Willow Production Company
Southwestern Energy Company
Statoil
Talisman Energy, Inc. US
Tellus Operating Group, LLC
Total E&P USA, Inc.
Unit Corporation
Unit Corporation - Unit Petroleum Company
Venari Resources, LLC
Whiting Petroleum Corporation
WPX Energy, Inc.
UTILITY INDUSTRY DATA BASE
AES
AGL Resources
Allete
Alliant Energy
Ameren
American Electric Power
Atmos Energy
Avista
Black Hills
CenterPoint Energy
CH Energy Group
Cleco
CMS Energy
Consolidated Edison
Dominion Resources
DTE Energy
Duke Energy
Edison International
Entergy
EQT Corporation
Exelon
FirstEnergy
Iberdrola USA
Idaho Power
Integrys Energy Group
ITC Holdings
LG&E
KU Energy Services
MDU Resources
NextEra Energy
NiSource
Northeast Utilities
Northwestern Energy
NV Energy
NW Natural
OGE Energy
Otter Tail
Pacific Gas & Electric
Pepco Holdings
Pinnacle West Capital
PNM Resources
Portland General Electric
PPL
Public Service Enterprise Group
SCANA
Sempra Energy
Southern Company Services
Southwest Gas
TECO Energy
UGI
UIL Holdings
UNS Energy
Unitil
Vectren
Westar Energy
Wisconsin Energy
Xcel Energy
A-2
Appendix B
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) that excludes certain non-cash
mark-to-market derivative financial instruments; a gain on disposal of discontinued operations; a non-cash write-off of proved property and unproved leaseholds; unbudgeted reorganizations costs; and income from discontinued operations. The
Compensation Committee believes that adjusting for the impact of these items is appropriate in evaluating Energens performance for purposes of its Annual Incentive Compensation Plan.
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Year-to-Date Ended 12/31/2014
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Consolidated Net Income ($ in millions except per share data) |
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Net Income |
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Per Diluted Share |
Net Income (GAAP) |
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568.0 |
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7.75 |
Non-cash mark-to-market gains (net of $113.7 tax) |
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(201.8) |
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(2.75) |
Gain on disposal of discontinued operations (net of $285.5 tax) |
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(439.1) |
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(5.99) |
Income from discontinued operations (net of $17.9 tax) |
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(29.3) |
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(0.40) |
Non-cash proved property and unproved leasehold write-off (net of $159.5 tax) |
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257.3 |
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3.51 |
Unbudgeted reorganization costs net of related finance cost
savings (net of $3.3 tax) |
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(4.80) |
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(0.07) |
Adjusted Net Income (Non-GAAP) |
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$150.30 |
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$2.05 |
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Note: Amounts may not sum due to rounding |
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B-1
ENERGEN CORPORATION
605 Richard Arrington, Jr. Blvd. North
Birmingham, Alabama 35203-2707
(205)
326-2700
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IMPORTANT ANNUAL MEETING INFORMATION |
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Electronic Voting Instructions |
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Available 24 hours a day, 7 days a week! |
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Instead of mailing your proxy, you may choose one of the voting methods outlined below to vote your proxy. |
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VALIDATION DETAILS ARE LOCATED BELOW IN THE TITLE BAR. |
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Proxies submitted by the Internet or telephone must be received by 11:59 p.m. Eastern Time on April 29, 2015. (April 27, 2015 for Employee Savings Plan Participants) |
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Vote by Internet |
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Go to
www.investorvote.com/EGN |
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Or scan the QR
code with your smartphone |
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Follow the steps outlined on the secure website |
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Vote by telephone |
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Call toll free 1-800-652-VOTE (8683) within the USA, US territories & Canada on a touch tone
telephone |
Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas. |
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Follow the instructions provided by the recorded message |
q IF YOU HAVE NOT VOTED VIA
THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q
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Proposals The Board of Directors recommends a vote FOR all the nominees listed, FOR Proposals 2 and 3, and AGAINST Proposals 4 and 5. |
1. Election of Directors- Nominees:
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For |
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Abstain |
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01 - William G. Hargett |
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2. Ratification of the appointment of the independent registered public accounting firm. |
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02 - Alan A. Kleier |
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3. Approval of the advisory
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03 - Stephen A. Snider |
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Management recommends a vote AGAINST the Shareholder
Proposals. |
04 - Gary C. Youngblood |
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For |
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Abstain |
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4. Shareholder Proposal
Methane Gas Emissions Report |
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5. Shareholder Proposal
Climate Change Business Risks Report |
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In their discretion, the proxies are authorized to vote upon such other business as may properly come before the
Annual Meeting or any adjournment or postponement thereof.
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Change of Address Please print new address below. |
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Comments Please print your comments below. |
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Authorized Signatures This section must be completed for your vote to be counted. Date and Sign Below |
NOTE: Please sign as name appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator,
trustee, guardian, or custodian, please give full title as such.
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Date (mm/dd/yyyy) Please print date below. |
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Signature 1 Please keep signature within the box. |
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Signature 2 Please keep signature within the box. |
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0205ED
NOTICE TO EMPLOYEE SAVINGS PLAN PARTICIPANTS. If you are a participant in the Energen Corporation Employee
Savings Plan (the Plan) you have the right to direct the Trustee under the Plan how full shares of the Companys Common Stock allocable to your account under the Plan as of February 23, 2015, should be voted at the Annual
Meeting of Shareholders of Energen Corporation (the Company). Energens stock transfer agent, Computershare, will forward your instructions to the Vanguard Fiduciary Trust Company, Trustee of the Plan. If directions are not received
by the transfer agent on or before April 27, 2015, you will be treated as directing the Plans Trustee to vote your shares in the same proportion as the shares for which the Trustee has received timely instructions from others who do vote.
Important notice regarding the Internet availability of proxy materials for the Annual Meeting of Shareholders.
The Proxy Statement and the 2014 Annual Report to Shareholders are available at:
www.annualmeeting.energen.com
q IF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE,
FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q
Proxy ENERGEN CORPORATION
Annual Meeting of Shareholders
April 30, 2015
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE COMPANY
The undersigned hereby appoints James T. McManus, II and J. David Woodruff, and each of them, with power to act without the other and with power of
substitution, as proxies and attorneys-in-fact and hereby authorizes them to represent and vote, as provided on the other side, all the shares of Energen Corporation Common Stock which the undersigned is entitled to vote and, in their discretion, to
vote upon such other business as may properly come before the Annual Meeting of Shareholders of the Company to be held April 30, 2015, or at any adjournment or postponement thereof, with all powers which the undersigned would possess if present
at the Meeting.
(Continued and to be marked, dated and signed, on the other side)
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IMPORTANT ANNUAL MEETING INFORMATION |
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Vote by Internet
Go to www.investorvote.com/EGN
Or scan the QR code with your
smartphone
Follow the steps outlined on the secure website |
Important Notice Regarding the Availability of Proxy Materials for the
Energen Shareholder Meeting to be Held on April 30, 2015
Under Securities and Exchange Commission rules, you are receiving this notice that the proxy materials for the annual shareholders meeting are available
on the Internet. Follow the instructions below to view the materials and vote online or request a copy. The items to be voted on and location of the annual meeting are on the reverse side. Your vote is important!
This communication presents only an overview of the more complete proxy materials that are available to you on the Internet. We encourage you to access and
review all of the important information contained in the proxy materials before voting. The proxy statement and annual report to shareholders are available at:
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Easy Online Access A Convenient Way to View Proxy Materials and Vote |
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When you go online to view materials, you can also vote your
shares. |
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Step 1: Go to www.investorvote.com/EGN. |
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Step 2: Click on the icon on the right to view current
meeting materials. |
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Step 3: Return to the investorvote.com window and follow the
instructions on the screen to log in. |
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Step 4: Make your selection as instructed on each screen to
select delivery preferences and vote. |
When you go online, you can also help the environment by consenting to receive electronic delivery of future materials.
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Obtaining a Copy of the Proxy Materials If you want to receive
a copy of these documents, you must request one. There is no charge to you for requesting a copy. Please make your request for a copy as instructed on the reverse side on or before April 20, 2015 to facilitate timely delivery. |
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0205GC
Energens Annual Meeting of Shareholders will be held on April 30, 2015 at 605 Richard Arrington, Jr. Blvd. N.
Birmingham, Alabama at 8:30 a.m. Central Time.
Proposals to be voted on at the meeting are listed below along with the Board of Directors
recommendations.
The Board of Directors recommends that you vote FOR the following Proposals:
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Election of Directors: William G. Hargett; Alan A. Kleier; Stephen A. Snider; Gary C. Youngblood |
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2. |
Ratification of Appointment of Independent Registered Public Accounting Firm |
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Approval of the advisory (non-binding) resolution relating to executive compensation |
The Board of
Directors recommends that you vote AGAINST the following proposals:
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4. |
Shareholder proposal Methane Gas Emissions Report |
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5. |
Shareholder proposal Climate Change Business Risks Report |
PLEASE NOTE YOU CANNOT VOTE BY
RETURNING THIS NOTICE. To vote your shares you must vote online or request a paper copy of the proxy materials to receive a proxy card. If you wish to attend and vote at the meeting, please bring this notice with you.
NOTICE TO EMPLOYEE SAVINGS PLAN PARTICIPANTS. If you are a participant in the Energen Corporation Employee Savings Plan (the Plan) you have
the right to direct the Trustee under the Plan how full shares of the Companys Common Stock allocable to your account under the Plan as of February 23, 2015, should be voted at the Annual Meeting of Shareholders of Energen Corporation
(the Company). Energens stock transfer agent, Computershare, will forward your instructions to the Vanguard Fiduciary Trust Company, Trustee of the Plan. If directions are not received by the transfer agent on or before
April 27, 2015, you will be treated as directing the Plans Trustee to vote your shares in the same proportion as the shares for which the Trustee has received timely instructions from others who do vote.
Directions to the Energen Corporation 2015 Annual Meeting
Directions to the Energen Corporation 2015 annual
meeting are
available by calling Investor Relations at
1-800-654-3206.
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Heres how to order a copy of the proxy materials and select a future delivery preference: |
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Paper copies: Current and future paper delivery
requests can be submitted via the telephone, Internet or email options below. |
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Email copies: Current and future email delivery
requests must be submitted via the Internet following the instructions below. |
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If you request an email copy of current materials you will
receive an email with a link to the materials. |
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PLEASE NOTE: You must use the number in the shaded
bar on the reverse side when requesting a set of proxy materials. |
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Internet Go to www.investorvote.com/EGN. Follow the
instructions to log in and order a copy of the current meeting materials and submit your preference for email or paper delivery of future meeting materials. |
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Telephone Call us free of charge at 1-866-641-4276 and
follow the instructions to log in and order a paper copy of the materials by mail for the current meeting. You can also submit a preference to receive a paper copy for future meetings. |
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g |
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Email Send email to investorvote@computershare.com with
Proxy Materials Energen in the subject line. Include in the message your full name and address, plus the number located in the shaded bar on the reverse, and state in the email that you want a paper copy of current meeting materials. You
can also state your preference to receive a paper copy for future meetings. |
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To facilitate timely delivery, all requests for a paper copy of the
proxy materials must be received by April 20, 2015. |
0205GC
Energen (NYSE:EGN)
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