Energen's Alabama gas utility reportedly attracts interest from Sempra, AGL

|About: Sempra Energy (SRE)|By:, SA News Editor

Sempra Energy (SRE +1.4%) and AGL Resources (GAS +0.9%) have expressed interest in buying Energen’s (EGN +0.7%) natural gas utility, which could fetch more than $1B, Bloomberg reports.

EGN, which has said it wants to focus on oil and gas exploration, reportedly is working with J.P. Morgan to solicit bids for Alagasco, which is Alabama’s largest gas distributor and services 425K homes and businesses.

SRE is believed to be interested in Alagasco because it owns an Alabama gas utility and would like expand its reach across the state; AGL has said it wants to make more acquisitions now that it has finished integrating the Nicor gas utility it bought in 2011.