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MCN CORPORATION REPORTS IMPROVED THIRD QUARTER RESULTS

 DETROIT, Oct. 21 /PRNewswire/ -- MCN Corporation (NYSE: MCN) today reported a third quarter 1993 loss of $11.2 million or $.38 per share. In last year's third quarter, MCN had a loss of $15.2 million or $.57 per share.
 Chairman, President and Chief Executive Officer Alfred R. Glancy III said, "We typically experience a third quarter loss given the seasonal nature of our utility business. This year, lower utility operating expenses and higher earnings in our nonutility operations reduced this seasonal loss."
 For the nine months ended September 30, 1993, MCN earned $44.8 million or $1.53 a share, compared to $43.4 million or $1.63 a share for the same period in 1992. For the twelve months ended September 30, 1993, MCN's earnings were $58.5 million or $2.01 per share versus $48.5 million or $1.83 per share for the prior twelve-month period. Earnings per share figures for all current periods reported reflect a ten percent increase in common shares outstanding.
 Utility Services
 In discussing results of the company's major business segments, Glancy noted that utility services reported a loss of $13 million during the third quarter compared to a loss of $14.2 million during the third quarter 1992.
 Glancy stated the improvement was mostly attributable to lower operating costs as a result of reduced uncollectible gas accounts and lower labor expenses.
 For the current nine months ended September 30, utility services reported earnings of $41.9 million, $3.5 million higher than the $38.4 million reported during the same period in 1992. Increased gas sales from colder weather and lower operating costs both contributed to the improved performance.
 Nonutility Services
 Nonutility operations reported a turnaround with earnings of $1.8 million for the third quarter of 1993 compared to a loss of $1 million during the third quarter of 1992. The increase was primarily due to more profitable gas marketing operations and earnings from new gas exploration ventures. Increased profitability in computer services operations and income from the new Blue Lake storage field also contributed to the turnaround.
 For the first nine months of 1993, nonutility operations reported earnings of $2.9 million compared to $5.0 million during the first nine months of 1992. This drop was primarily due to lower profit margins in gas marketing activities during the first half of 1993.
 Outlook
 "The improvement in third quarter results is very encouraging," Glancy concluded. "Barring any major surprises with the weather the rest of this year, 1993 could very well set a new record for financial performance for MCN."
 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
 September 30,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $180,508 $184,938
 Operating Expenses ...................... 189,912 200,495
 Operating Income (Loss) (1)
 Utility Services....................... (12,498) (16,391)
 Gas Services........................... 3,189 702
 Computer Operations Services .......... 1,885 801
 Other ................................. (1,980) (669)
 Total ............................. (9,404) (15,557)
 Other Income and (Deductions) ........... (7,284) (9,008)
 Income (Loss) Before Income Taxes........ (16,688) (24,565)
 Income Tax Provision (Benefit)........... (5,468) (9,406)
 Net Income (Loss)........................ $ (11,220) $(15,159)
 Earnings (Loss) Per Share (1)
 Utility Services....................... $ (.44) $ (.53)
 Nonutility Services.................... .06 (.04)
 Total ............................... $ (.38) $ (.57)
 Average Common Shares Outstanding ....... 29,374 26,764
 Dividends Paid Per Share ................ $ .42 $ .41
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 16,139 16,090
 End User Transportation .............. 24,226 25,934
 Intermediate Transportation (2) ...... 70,278 54,293
 Total .............................. 110,643 96,317
 Nonutility Services:
 Gas Sales ............................ 22,144 22,191
 Transportation ....................... 5,584 6,481
 Total .............................. 27,728 28,672
 Total Utility and Nonutility ........... 138,371 124,989
 Less Intercompany Transactions ......... 4,425 66
 Total .................................. 133,946 124,923
 Effect of Weather
 Degree Days ............................ 202 171
 Percent Colder (Warmer) than Normal .... N/A N/A
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... 887 528
 Net Income ............................ $ 788 $ 435
 Earnings Per Share .................... $ .03 $ .02
 MMcf - million cubic feet
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS (Unaudited)
 Nine Months Ended
 September 30,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $1,024,772 $ 988,284
 Operating Expenses ...................... 936,542 893,942
 Operating Income (Loss) (1)
 Utility Services....................... 83,836 81,959
 Gas Services........................... 5,865 10,531
 Computer Operations Services .......... 3,073 3,973
 Other ................................. (4,544) (2,121)
 Total ............................. 88,230 94,342
 Other Income and (Deductions) ........... (20,293) (27,539)
 Income (Loss) Before Income Taxes........ 67,937 66,803
 Income Tax Provision (Benefit) .......... 23,175 23,394
 Net Income (Loss) ....................... $ 44,762 $ 43,409
 Earnings (Loss) Per Share (1)
 Utility Services....................... $ 1.43 $ 1.44
 Nonutility Services.................... .10 .19
 Total ............................... $ 1.53 $ 1.63
 Average Common Shares Outstanding ....... 29,277 26,612
 Dividends Paid Per Share ................ $ 1.26 $ 1.23
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 139,940 137,748
 End User Transportation .............. 92,590 94,581
 Intermediate Transportation (2) ...... 206,221 123,815
 Total .............................. 438,751 356,144
 Nonutility Services:
 Gas Sales ............................ 89,955 78,775
 Transportation ....................... 16,529 19,440
 Total .............................. 106,484 98,215
 Total Utility and Nonutility ........... 545,235 454,359
 Less Intercompany Transactions ......... 14,643 2,723
 Total .................................. 530,592 451,636
 Effect of Weather
 Degree Days ............................ 4,342 4,291
 Percent Colder (Warmer) than Normal .... (2.5) (4.3)
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (3,260) (8,238)
 Net Income ............................ $ (2,784) $(7,021)
 Earnings Per Share .................... $ (.10) $ (.26)
 MMcf - million cubic feet
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS (Unaudited)
 Twelve Months Ended
 September 30,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $1,474,768 $1,381,835
 Operating Expenses ...................... 1,355,387 1,266,531
 Operating Income (Los) (1)
 Utility Services....................... 109,799 106,415
 Gas Services........................... 11,041 6,852
 Computer Operations Services .......... 3,849 5,004
 Other ................................. (5,308) (2,967)
 Total ............................. 119,381 115,304
 Other Income and (Deductions) ........... (32,050) (39,819)
 Income (Loss) Before Income Taxes........ 87,331 75,485
 Income Tax Provision (Benefit)........... 28,860 26,970
 Net Income (Loss) ....................... $ 58,471 $ 48,515
 Earnings (Loss) Per Share (1)
 Utility Services....................... $ 1.82 $ 1.74
 Nonutility Services.................... .19 .09
 Total ............................... $ 2.01 $ 1.83
 Average Common Shares Outstanding ....... 29,102 26,541
 Dividends Paid Per Share ................ $ 1.68 $ 1.64
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 205,302 200,882
 End User Transportation .............. 127,731 129,137
 Intermediate Transportation (2) ...... 266,384 156,514
 Total .............................. 599,417 486,533
 Nonutility Services:
 Gas Sales ............................ 123,443 103,490
 Transportation ....................... 22,471 25,612
 Total .............................. 145,914 129,102
 Total Utility and Nonutility ........... 745,331 615,635
 Less Intercompany Transactions ......... 18,736 3,396
 Total .................................. 726,595 612,239
 Effect of Weather
 Degree Days ............................ 6,659 6,562
 Percent Colder (Warmer) than Normal .... (2.4) (4.3)
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (5,240) (10,404)
 Net Income ............................ $ (4,491) $ (8,782)
 Earnings Per Share .................... $ (.15) $ (.33)
 MMcf - million cubic feet
 Note: (1) In June 1993, MCN consolidated its gas marketing activities by transferring its utility gas brokering business to nonutility operations. Earnings and Gas Markets are presented as though the consolidated gas marketing business was part of nonutility operations throughout all periods presented.
 Note: (2) 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- 10/21/93
 /CONTACT: (Security Analysts) Sebastian Coppola, 313-256-6324, or (News Media) Karen Fontanive, 313-256-5093, both of MCN Corporation/
 (MCN)


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

JG -- DE025 -- 5190 10/21/93 12:03 EDT
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