Cornerstone Announces Higher Third Quarter Earnings; Net Income Increases 41% Despite El Nino Weather.

WATSONVILLE, Calif.--(BUSINESS WIRE)--April 30, 1998--Cornerstone Propane GP, Inc - the managing general partner of Cornerstone Propane Partners, L.P. ("Cornerstone" or the "Partnership"), reported that the Partnership posted net income of 76 cents per limited partner unit for the quarter ended March 31, compared to 65 cents for the same period last year.

The Partnership had record retail volumes of 83 million gallons which drove EBITDA up 30% and net income up 41% for the quarter versus the same quarter last year.

For the quarter ended March 31, 1998, the Partnership reported net income of approximately $15.0 million, an increase of $4.4 million (41.5%) over the same period last year. This increase reflects the benefit of recently completed acquisitions (approximately $2.5 million) and increases in existing business for the balance of the increase. This in spite of a very mild third quarter heating season due to the impact of El Nino in the areas of the Partnership's operation.

Retail sales volume (measured in gallons) for the quarter ended March 31, 1998, increased by 12.8% compared to last year. The record volumes and operating profits reflect the benefit of the Partnership's aggressive acquisition program which added approximately 9.0 million gallons for the quarter. Additionally Cornerstone has been successful in its internal growth programs. Much of the benefit from net customer growth, however, was offset by mild winter conditions in the Partnership's markets this past quarter.

Revenues for the quarter ended March 31, 1998, increased 4.0% compared to last year.

EBITDA for the quarter increased 30% ($5.7 million) compared to last year. This was due in large measure to acquisitions which added $3.1 million, and earnings contributions from increased retail propane margins. With the mild winter, acquisitions have been the driving force behind increases in retail sales volumes and earnings.

The average number of heating degree days for the quarter in markets served by Cornerstone were down 7% compared to normal. While this indicator normally gives a general indication of the impact on weather, the impact was further compounded by the Partnership's high residential customer sales mix and the timing of the warm weather. January's heating degree days were 22% below normal and this is usually the Partnerships largest sales volume and earnings month of the year.

"We are extremely pleased with our third quarter results. In spite of a winter that was the second warmest in the last 103 years, we were able to increase volumes and margins and control expenses at existing customer service centers to generate outstanding results." said Keith Baxter, chief executive officer. "Our integration plan for the three companies remains on schedule. Acquisitions have continued at a very rapid pace as we completed four retail acquisitions this last quarter with annual aggregate sales volumes just over 6.0 million gallons. We will continue to aggressively seek out businesses that fit well within the Cornerstone family and will structure transactions that are beneficial to all of Cornerstone's partners."

Cornerstone Propane Partners, L.P. and subsidiaries condensed consolidated statements of operations for the quarter and nine months ended March 31, 1998 are presented below. Due to the Partnership being formed in December, 1996, data for fiscal 1997 for the quarter reflects actual results while the nine month data is presented on a pro forma basis as if the companies had been combined as of the beginning of fiscal 1997. Figures are in thousands of dollars except for per unit and per gallon data. -0-

                  Cornerstone Propane Partners, L.P.
            Condensed Consolidated Statements of Operations
                Quarter and Nine Months Ended March 31

                          Quarter Ended          Nine Months Ended
                                                        Pro Forma(a)
                         Mar. 31,   Mar. 31,    Mar. 31,  Mar. 31,
                           1998       1997       1998       1997

Revenues                 $229,332   $220,566   $623,267   $535,503
Gross Profit               49,970     42,516    117,965    106,544
Dep. & Amortization         4,715      3,819     13,615     10,948
Interest Expense            4,824      4,450     14,641     13,499
Net Income after Taxes     15,049     10,637     16,857     15,818
Retail Gallons Sold        83,464     74,015    199,709    183,127
Gross Profit/Retail
Gallon                   $   .599   $   .574   $   .591   $   .582
EBITDA (b)                 24,631     18,926     45,208     40,335
EBITDA per Unit          $   1.27   $   1.15   $   2.52   $   2.46
Net Income Per Unit      $    .76   $    .65   $    .92   $    .96

(a)  Pro forma results reflect the operations of Empire Energy and
     Synergy for the five and one-half months, Coast for the four and
     one half months ended December 16, 1996 and Cornerstone Propane
     Partners, L.P. from December 17, 1996 to March 31, 1997 as if the
     Partnership had been formed at the beginning of the period
     reported, adjusted to reflect anticipated savings from the
     elimination of general and administrative expenses and income tax
     provision, lower interest rates and certain other anticipated
     savings.

(b)  EBITDA is defined as earnings before interest, income taxes,
     depreciation and amortization. EBITDA should not be considered as
     an alternative to net income or loss (as an indicator of
     operating performance) or as an alternative to cash flow (as a
     measure of liquidity or ability to service debt obligations) and
     it is not in accordance with nor superior to generally accepted
     accounting principles but provide additional information for
     evaluating the Partnership's ability to distribute the Minimum
     Quarterly Distribution (MQD).

     Cornerstone Propane Partners, L.P. and subsidiaries condensed
consolidated balance sheets as of March 31, 1998, December 31, 1997
and June 30, 1997 are presented below.


                  Cornerstone Propane Partners, L.P.
                 Condensed Consolidated Balance Sheets
       as of March 31, 1998, December 31, 1997 and June 30, 1997

                                     Mar. 31,   Dec. 31,   June 30,
                                      1998       1997        1997
Assets                            (unaudited) (unaudited) (audited)
Current Assets                      $ 63,906   $ 85,375   $ 70,261
Property, plant and equipment,
 net of accumulated depreciation     271,256    259,296    247,943
Other assets, net                    245,062    239,092    222,789
Total Assets                        $580,224   $583,763   $540,993

Liabilities and Partner's Capital

Current Liabilities                 $ 43,555   $ 72,950   $ 60,742
Long-term debt                       236,510    264,281    231,532
Other non-current liabilities          5,875      4,957      4,790
Partner's Capital Accounts           294,284    241,575    243,929
Total Liabilities and Partner's
 Capital                            $580,224   $583,763   $540,993

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Cornerstone Propane Partners, L.P. is a master limited partnership. The partnership is the nation's fifth largest retail propane marketer serving over 380,000 customers with sales of approximately 235 million gallons annually in 27 states through 301 customer service centers. Through it's Coast Energy Group division, the Partnership also markets over 330 million gallons of natural gas liquids annually to resellers and end users and an average of 238,000 mmbtu's per day of natural gas and 7,800 barrels per day of crude oil.

CONTACT: Cornerstone Propane

R. J. Goedde, 408/724-1921