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MCN CORPORATION REPORTS FIRST QUARTER EARNINGS

 DETROIT, April 23 /PRNewswire/ -- MCN Corporation (NYSE: MCN) today reported 1993 first quarter earnings of $54 million, down approximately 5 percent from $57 million in the first quarter of 1992. Earnings per share were $1.85, compared to $2.16 per share in first quarter 1992. The company had approximately 2.7 million, or 10 percent, more shares outstanding in the 1993 period.
 "The decrease in first quarter earnings per share is attributable primarily to additional common stock being issued in late 1992 to support expansion of our natural gas businesses, particularly our investment in Antrim shale gas drilling," explained MCN Chairman, President and Chief Executive Officer Alfred R. Glancy III.
 Glancy added, "With higher earnings expected later in the year, we anticipate another strong year in 1993 assuming there are no significant weather surprises in the fourth quarter."
 Utility operations earnings were $53.2 million for the quarter versus $55.3 million in the comparable 1992 period. Although colder weather in the first quarter of 1993 increased earnings by $5.1 million compared to 1992, this was more than offset by two items.
 First, MichCon's gas brokering operations had lower profits from a year ago when the brokering operations experienced higher profit margins due to abnormally low spot market prices for gas supply.
 The second item concerns the timing of expenses related to refund obligations for overcollection of gas supply realignment costs. The timing of these costs, while adversely impacting quarter-to-quarter comparisons, should not affect fiscal year comparisons.
 Nonutility operations contributed $0.8 million in the quarter, down from $1.7 million from first quarter 1992. The decrease was mainly due to lower earnings in the computer services business as a result of losing two large customers in the second half of 1992. The signing of new customers in late 1992 and early 1993 with contracts worth more than $8 million in annual revenues, as well as increased services to existing customers, are anticipated to more than offset the effect of losing those customers for the year as a whole.
 Nonutility operations also are expected to improve throughout the year as newly signed gas sales contracts by CoEnergy Ventures begin to contribute to earnings. Nonutility gas markets reached nearly 20 Bcf in the first quarter of 1993, an increase of 10 Bcf from first quarter 1992, although with somewhat lower profit margins.
 In addition, contributions to earnings are expected later in the year from gas production from the Antrim shale gas projects and the start of operations of the Blue Lake gas storage project.
 "We expect 1993 earnings from our nonutility operations to improve significantly over last year," said Glancy.
 He added, "We anticipate the company's 1993 capital investments to be about $200 million as opportunities continue to come our way to grow the business."
 MCN Corporation is the holding company for Michigan Consolidated Gas Company, a natural gas distribution, transmission and storage company serving 1.1 million customers in more than 500 communities throughout Michigan; for Citizens Gas Fuel Company, a Michigan natural gas utility; and for MCN Investment Corporation, which owns subsidiaries in the gas services, computer operations services, and natural gas technology businesses.
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS (Unaudited)
 Three Months Ended
 March 31,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $556,738 $534,852
 Operating Expenses ...................... 466,098 436,782
 Operating Income (Loss)
 Utility Services....................... 88,561 93,655
 Gas Services........................... 3,041 3,916
 Computer Operations Services .......... 207 1,117
 Other ................................. (1,169) (618)
 Total ............................. 90,640 98,070
 Other Income and (Deductions) ........... (8,552) (10,249)
 Income Before Income Taxes............... 82,088 87,821
 Income Tax Provision .................... 28,044 30,787
 Net Income .............................. $ 54,044 $ 57,034
 Earnings Per Share
 Utility Services....................... $ 1.82 $ 2.09
 Nonutility Services.................... .03 .07
 Total ............................... $ 1.85 $ 2.16
 Average Common Shares Outstanding ....... 29,174 26,457
 Dividends Paid Per Share ................ $ .42 $ .41
 Gas Markets (MMcf)
 Utility Services:
 Gas Sales ............................ 124,942 120,033
 End User Transportation .............. 41,134 39,412
 Intermediate Transportation (1) ...... 75,691 29,000
 Total .............................. 241,767 188,445
 Nonutility Services:
 Gas Sales ............................ 14,014 3,402
 Transportation ....................... 5,700 6,145
 Total .............................. 19,714 9,547
 Total Utility and Nonutility ........... 261,481 197,992
 Less Intercompany Transactions ......... 14,355 5,915
 Total .................................. 247,126 192,077
 Effect of Weather
 Degree Days ............................ 3,293 3,107
 Percent Colder (Warmer) than Normal .... (3.5) (10.0)
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (3,271) (9,424)
 Net Income ............................ $ (2,825) $(7,947)
 Earnings Per Share .................... $ (.10) $ (.30)
 MMcf - million cubic feet
 Note: (1) Intermediate Transportation represents gas delivery service for Michigan gas producers, brokerage companies and other gas companies who own the natural gas but are not the ultimate consumers.
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS (Unaudited)
 Twelve Months Ended
 March 31,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $1,460,166 $1,291,867
 Operating Expenses ...................... 1,342,103 1,186,467
 Operating Income (Loss)
 Utility Services....................... 104,950 96,338
 Gas Services........................... 12,710 10,543
 Computer Operations Services .......... 3,839 3,162
 Other ................................. (3,436) (4,643)
 Total ............................. 118,063 105,400
 Other Income and (Deductions) ........... (37,599) (42,790)
 Income Before Income Taxes............... 80,464 62,610
 Income Tax Provision .................... 26,336 22,056
 Net Income .............................. $ 54,128 $ 40,554
 Earnings Per Share
 Utility Services....................... $ 1.77 $ 1.59
 Nonutility Services.................... .18 .01
 Total ............................... $ 1.95 $ 1.60
 Average Common Shares Outstanding ....... 27,780 25,319
 Dividends Paid Per Share ................ $ 1.66 $ 1.64
 Gas Markets (MMcf)
 Utility Services:
 Gas Sales ............................ 317,307 290,649
 End User Transportation .............. 131,444 124,153
 Intermediate Transportation (1) ...... 230,669 113,136
 Total .............................. 679,420 527,938
 Nonutility Services:
 Gas Sales ............................ 25,383 12,066
 Transportation ....................... 24,937 25,258
 Total .............................. 50,320 37,324
 Total Utility and Nonutility ........... 729,740 565,262
 Less Intercompany Transactions ......... 27,052 10,913
 Total .................................. 702,688 554,349
 Effect of Weather
 Degree Days ............................ 6,794 6,147
 Percent Colder (Warmer) than Normal .... (0.4) (10.3)
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (4,065) (17,906)
 Net Income ............................ $ (3,606) $ (14,537)
 Earnings Per Share .................... $ (.13) $ (.57)
 MMcf - million cubic feet
 Note: (1) Intermediate Transportation represents gas delivery service for Michigan gas producers, brokerage companies and other gas companies who own the natural gas but are not the ultimate consumers.
 -0- 4/23/93
 /CONTACT: (Media) Karen Fontanive, 313-256-5093, or (Analysts) Sebastian Coppola, 313-256-6324, both of MCN Corporation/
 (MCN)


CO: MCN Corporation ST: Michigan IN: UTI OIL SU: ERN

JG -- DE022 -- 0187 04/23/93 15:12 EDT
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