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MITCHELL ENERGY & DEVELOPMENT REPLACING EXISTING SHARES WITH DUAL-CLASS STOCK

 MITCHELL ENERGY & DEVELOPMENT REPLACING EXISTING SHARES
 WITH DUAL-CLASS STOCK
 THE WOODLANDS, Texas, June 24 /PRNewswire/ -- Mitchell Energy & Development Corp. (NYSE: MND) will proceed immediately to replace its existing common shares with two new classes of stock, Chairman and President George P. Mitchell said today.
 Speaking at the annual meeting, Mitchell said trading in the dual- class shares will begin tomorrow on the New York Stock Exchange under the ticker symbols MND A and MND B. The new shares have been designated as Class A common stock, which is a voting stock, and Class B common stock, which has no voting rights except as otherwise provided by law. Each share of the company's existing stock is to be exchanged for one- half share of Class A stock and one-half share of Class B stock. Directors of the company already have disclosed their intention to pay a third-quarter dividend of 10 cents per share on the Class A stock and 10.5 cents per share on the Class B.
 The dual-class stock plan, which included raising the number of authorized shares from 100 million of the existing stock to 100 million of each of the new classes of stock, was approved by a substantial majority at today's meeting. Approximately 46.9 million shares of existing stock are currently outstanding.
 Mitchell said the dual-class stock is the latest step in a comprehensive plan to improve the company's competitiveness, cut costs, improve profitabilility and enhance shareholder value. He said the new arrangement will increase the company's flexibility in the use of stock for general financial purposes, acquisitions, corporate restructurings or other applications that may facilitate growth. There are no specific plans for such uses of the new stock at this time, he noted.
 Other recent actions by the company have included:
 --Restructuring the exploration and production division to focus its activities more on development drilling and acquisitions -- a process that involved closing district offices, personnel reductions and write-downs of certain drilling rigs and other non-strategic assets the company plans to sell;
 --Refinancing $250 million of 11-1/4 percent debt with $250 million of 9-1/4 percent debt;
 --Joining Conoco Inc. in a joint venture that plans to acquire Oryx Energy Company's interests in 14 natural gas processing plants -- a transaction that would add 10,000 barrels per day to Mitchell Energy's natural gas liquids production and place it among the top 10 U.S. producers;
 --Moving "downstream" via a partnership with Enterprise Products Company and units of Sun Company that is building a world-class plant to produce MTBE, an oxygenate component used to produce environmentally cleaner gasoline; and
 --Listing of the company's stock on the New York Stock Exchange.
 Mitchell said the charges for the restructuring program and debt refinancing were taken in the first quarter and that they will be recouped over the next two years. Meanwhile, he said, recent price improvements, particularly for natural gas liquids, and continued strong activity at The Woodlands have enhanced prospects for the company's energy and real estate operations during the remainder of the year.
 -0- 6/24/92
 /CONTACT: Charles Simpson or Tony Lentini, Mitchell Energy & Development Corp., 713-377-5650/
 (MND) CO: Mitchell Energy & Development Corp. ST: Texas IN: OIL SU:


TQ -- NY029 -- 3254 06/24/92 11:34 EDT
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Publication:PR Newswire
Date:Jun 24, 1992
Words:543
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