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BROOKLYN UNION GAS REPORTS SECOND QUARTER EARNINGS

 BROOKLYN UNION GAS REPORTS SECOND QUARTER EARNINGS
 NEW YORK, April 22 /PRNewswire/ -- Brooklyn Union Gas today


announced that consolidated income available for common stock for the second quarter of fiscal 1992 was $57.5 million, or $2.02 per share, compared to $61.2 million, or $2.41 per share, for last year's second quarter. Earnings for the second quarter of fiscal 1992 include a non- cash depletion expense of $13 million, after Federal income taxes, or 46 cents per share. This impairment charge, recorded by the company's gas- exploration subsidiary, is related to depressed gas prices at the wellhead, and is required by the asset ceiling test limitations of the Securities and Exchange Commission in the valuation of proved gas reserves. Without this non-cash charge, earnings for the quarter would have been $70.5 million, or $2.48 per share.
 Earnings of $2.42 per share from utility operations for the second quarter of fiscal 1992 were eight cents ahead of earnings for the second quarter last year. The increase reflects continued sales growth in core gas-heating markets, despite a less than robust economy, and the 4.6 percent annual revenue increase that became effective in October.
 Earnings for the 12 months ended March 31, 1992 were $58.0 million, or $2.06 per share, compared to $56.4 million, or $2.26 per share, for the 12 months ended March 31, 1991, which included a non-cash impairment charge of $7 million, after Federal income taxes, or 28 cents per share, related to a methane-recovery plant at a local landfill. Earnings for the 12 months increased despite the current impairment charge of $13 million, while per share amounts decreased reflecting additional common equity resulting from the sale of 2.6 million new shares in March 1991.
 The weather-normalization adjustment in the company's tariff has provided substantial protection of earnings from the adverse effect of warm weather on utility gas sales to firm customers. The current heating season and last year's were 9.5 percent and 16 percent warmer than normal, respectively.
 Sales
 Firm sales for the second quarter of fiscal 1992 were 53,233 MDTH, compared to 47,531 MDTH for the same period last year. Increased sales reflect weather which was 11 percent colder than last year and sales growth in the first six months which was 3 percent above last year's level. Growth was primarily in large-volume markets, including large apartment buildings converting from oil to gas heating. In a cooperative effort with the Consolidated Edison Company, Brooklyn Union will supply natural gas to the U.S. Coast Guard on Governor's Island, which lies between Brooklyn and Manhattan. The combined annual gas sales of 250 MDTH will displace approximately 40,000 barrels of imported oil and provide significant environmental benefits.
 Gas Supply
 On Jan. 28, 1992, the company celebrated the opening of the Iroquois Gas Transmission System, the first major natural-gas pipeline to be built from Canada to the Northeastern United States. Through a subsidiary, North East Transmission Company, Brooklyn Union has an 11 percent ownership interest in the Iroquois Pipeline. "Iroquois dramatically increases gas supply for the New York area and the Northeast region," said Executive Vice President and Chief Financial Officer Craig G. Matthews. "And its first few months of operation has been an unqualified success, with gas deliveries greatly exceeding projected volumes."
 In addition, the company and its partners are proceeding with plans to construct a new pipeline, the Liberty Pipeline, which will connect with existing facilities in New Jersey and transport approximately 200 million cubic feet of gas to our service territory by 1994. The company is proud of these pipeline projects which will satisfy Brooklyn Union's incremental energy requirements well into the next century.
 BROOKLYN UNION GAS
 Consolidated Summary of Earnings
 (Thousands of dollars)
 Periods ended Three months 12 months
 March 31 1992 1991 1992 1991
 Operating revenues $433,309 $402,829 $1,035,925 $992,476
 Cost of gas 168,958 164,595 379,521 381,441
 Net revenues 264,351 238,234 656,404 611,035
 Operating and maintenance
 expense 89,193 81,372 327,135 308,706
 Depreciation and depletion 32,493 10,883 66,930 52,217
 General taxes 48,094 46,006 138,970 131,952
 Federal income tax 28,731 30,525 27,603 22,464
 Operating income 65,840 69,448 95,766 95,696
 Other income 2,787 3,156 5,140 6,948
 Income before interest
 charges 68,627 72,604 100,906 102,644
 Interest charges 10,155 10,449 39,123 42,358
 Net income 58,472 62,155 61,783 60,286
 Dividends on preferred stock 945 964 3,810 3,884
 Income available for
 common stock 57,527 61,191 57,973 56,402
 Per share common stock 2.02 2.41 2.06 2.26
 This interim summary of earnings should not be taken as a prediction for the fiscal year. Our business is influenced by seasonal weather conditions and the timing of approved base tariff rate changes.
 Other Information
 Capital expenditures 45,688 38,703 173,266 132,696
 Firm gas sales
 (10,000 therms or MDTH) 53,233 47,531 117,652 109,941
 Degree days 2,496 2,248 4,431 4,118
 Warmer than normal
 (in percent) 5.8 14.8 9.5 16.0
 Average common shares
 (in 000) 28,486 25,413 28,195 24,946
 -0- 4/22/92
 /CONTACT: Norma Y. Rodriguez of Brooklyn Union Gas, 718-403-3382/
 (BU) CO: Brooklyn Union Gas ST: New York IN: UTI SU: ERN


KD-OS -- NY052 -- 1328 04/22/92 13:34 EDT
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Date:Apr 22, 1992
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