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DUFF & PHELPS REVIEWS MAXUS ANNOUNCEMENT TO REJECT BIDS ON ASSET SALES

 CHICAGO, Sept. 29 /PRNewswire/ -- Maxus announced that it has rejected as inadequate bids received for the sale of its interest in the Northwest Java area of Indonesia. The company in May announced its intention to sell these assets as part of a strategy to gain greater control over program spending, increase its financial flexibility, and redeploy assets to other areas.
 The near-term impact of the decision not to sell these assets will be positive for earnings and cash flow because production has recently started from a major Northwest Java gas project in which Maxus holds a 24 percent interest. Longer-term, however, we remain concerned about the company's level of capital spending, high leverage and associated debt service requirements, and its upcoming preferred stock redemption requirements.
 Duff & Phelps currently rates Maxus Energy Corporation's notes and debentures 'BB+' (double B plus) and its convertible notes and its cumulative convertible preferred stock 'BB-' (double B minus).
 -0- 9/30/93
 /CONTACT: Timothy P. Lohmann of Duff & Phelps, 312-630-4565/


CO: Maxus Energy Corporation ST: IN: SU:

SH -- NY039 -- 7229 09/30/93 11:17 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
Words:181
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