There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

August 29, 2011 - Energen Corporation, (EGN-NYSE) an energy holding company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the continental United States. It also purchases, distributes, and sells natural gas to residential, commercial, and industrial customers, as well as other end-users of natural gas in central and north Alabama.

In 2010, utility revenues were 66.9% from residential, 25.8% commercial and industrial and 7.3% from transportation and other users. The company was founded in 1929 and is headquartered in Birmingham, Alabama.

Energen is delivering more than oil and gas. It surprised analysts in the second quarter with earnings of 87 cents, well above the consensus estimate of 76 cents (up 14.5%). Two factors made up the surprise: better gas prices and fewer operational costs. After the announcement, management came out with a revised (upward) estimate for the rest of the year, believing earnings will be between $3.60 and $4.00 a share, well ahead of earlier estimates of $3.35 to $3.75. The consensus estimate from 9 analysts is for $3.92 (compared to $4.38 last year). For 2012, they see $4.34. Expect higher production growth next year to help reach that number.

The company is actively hedging its oil and gas positions. Recently it pre-sold 960,000 barrels of its estimated oil producton in 2012 and 480,000 barrels of its estmated oil production in both 2013 and 2014 for more than $91 a barrel. By using hedges, the company guarantees the price of its oil and isn't as affected by the volatility of prices.

Essential numbers: Trailing P/E is 11.44. Forward P/E is 10. Price to sales ratio is 2.21. Price to Book is 1.42. In the last 12 months, Operating margin was 32.22% and Profit margin was 18.97%. Return on equity was 12.43% and Return on assets was 6.88%. Revenues were $1.46 billion. Total cash is $15.43 million for 21 cents a share. Total Debt is $711.98 million. Total debt to equity is 31.54% Current ratio is .44. Book value per share is $31.37. There are 72.08 million shares Outstanding with a Float of 71.23 million. Insiders own 1.32%. Institutions have 72.6% of the Float. The annual dividend is 54 cents for a yield of 1.2%.

EGN recently took a deep dive, pulling back from $65.40 earlier this year. Now it's trading at $44, almost 1/3 below that price. Last year, its range was $40.30 to $49.90. With a positive surprise last quarter and revised upward earnings for the full year, this stock may be poised to rally back to the $60's.

- Company Web site: www.energen.com

  Ted Allrich