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MITCHELL ENERGY SAYS WALL STREET SIGNALS APPROVAL OF CORPORATE STRATEGIC MOVES

 THE WOODLANDS, Texas, June 30 /PRNewswire/ -- Strategic initiatives undertaken by Mitchell Energy & Development Corp. (NYSE: MND) over the past 14 months have been favorably received on Wall Street, Chairman and President George P. Mitchell told stockholders today.
 Speaking at the annual meeting here, Mitchell said the success of his company's recent Class B stock offering and subsequent market strength of both classes of common stock show that investors are reacting positively to the strategic moves, which include:
 -- An interest rate swap on $250 million in senior notes, bringing the rate down two points and saving approximately $5 million annually;
 -- Restructuring the company's Exploration and Production Division, including regional office consolidations, staff reductions and the sale of non-strategic assets;
 -- Moving to the New York Stock Exchange from the American exchange;
 -- Implementation of a dual-class stock plan to increase financial flexibility for acquisitions, restructurings or other corporate purposes;
 -- Acquisition of Oryx Energy gas processing plant interests in Oklahoma and Texas, boosting the company's natural gas liquids production by some 8,700 barrels per day;
 -- Start-up of the company's first major salt dome natural gas storage facility;
 -- Beginning construction of Mitchell Energy's first large "downstream" venture, a 12,500-barrel-per-day MTBE plant at Mont Belvieu, Texas, along with partners Sun Company, Inc., and Enterprise Products Company;
 -- Start of construction on a million-square-foot regional mall in The Woodlands, providing a catalyst for enhanced land values in the company's largest real estate project; and
 -- The successful public offering of 5.9 million shares of Class B common stock, which improved liquidity, and the subsequent acquisition of the company's development drilling partnership.
 George Mitchell also said that the company received $19.5 million in cash from a series of transactions involving a Mont Belvieu natural gas liquids fractionator in which Mitchell Energy is a partner. The transactions included refinancing the facility, financing a 40,000- barrel-per-day expansion of the plant, and the sale of a part interest in the partnership.
 "As a result of these initiatives, we're a much stronger company than we were a year and a half ago," Mitchell said. "We took one-time charges to implement some of the changes, but the financial impact on the company has been very positive, and investors recognize this." He said the company's performance has improved as a result of the initiatives and rising natural gas prices. Mitchell noted that yesterday's closing prices for the company's Class A and Class B common stock were 83 percent and 95 percent higher, respectively, than the 52- week lows of exactly one year ago.
 During the annual meeting, shareholders approved the nomination of George Mitchell's son J. Todd Mitchell to the company's board of directors. The new director is a geologist and is president of The Discovery Bay Company, a petroleum industry software developer. His election increases the number of board members to 13, nine of whom are neither company employees nor members of the Mitchell family.
 Mitchell Energy & Development Corp. is a large petroleum independent with sizable real estate interests in the Houston-Galveston area. Its shares are traded on the New York Stock Exchange under the MND A and MND B ticker symbols.
 -0- 6/30/93
 /CONTACT: Tony Lentini, 713-377-5654 or Charles Simpson, 713-377-5660, both of Mitchell Energy & Development Corp./
 (MND)


CO: Mitchell Energy & Development Corp. ST: Texax IN: OIL SU:

WB -- NY041 -- 7151 06/30/93 12:16 EDT
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Publication:PR Newswire
Date:Jun 30, 1993
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