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PANHANDLE EASTERN CORPORATION REPORTS 1991 EARNINGS

 PANHANDLE EASTERN CORPORATION REPORTS 1991 EARNINGS
 HOUSTON, Jan. 29 /PRNewswire/ -- Panhandle Eastern Corporation


(NYSE: PEL) today reported net income of $85.1 million, or $0.86 a share, for 1991, compared with a net loss in 1990 of $218.2 million, or $2.46 a share.
 "The company's improved earnings are a measure of the progress made during the year on a number of significant issues," said Dennis Hendrix, chairman and president. "Employees' efforts produced improved profitability through enhanced revenue and substantial cost reductions and resolved a number of major regulatory and operational problems."
 Consolidated operating income totaled $454.8 million for 1991. The year's operating improvement was led by the company's Texas Eastern Transmission Corporation (TETCO) subsidiary. TETCO's improved operating income included the effect of a Dec. 1, 1990, rate increase. All operating units implemented cost reduction programs during the year, which contributed to the improved results.
 Net income for the fourth quarter of 1991 was $30.3 million, or $0.28 per share, compared with a loss of $251.4 million, or $2.79 per share for the previous year. The loss in 1990 included year-end provisions of approximately $280 million after tax, including $215 million resulting from the write-down of the company's liquefied natural gas facilities.
 For the year, Panhandle Eastern Corporation's natural gas market- area deliveries were 1.8 trillion cubic feet, down slightly from 1990.
 he same period last year, primarily as a result of the issuance of 13.8 million shares of common stock in a public offering in July.
 Panhandle Eastern Corporation operates one of the nation's largest interstate natural gas pipeline systems, providing natural gas to the Midwest and Northeast markets.
 PANHANDLE EASTERN CORPORATION AND SUBSIDIARIES
 Financial Data
 (Unaudited -- In millions except per share data)
 Periods ended Three Months Twelve Months
 Dec. 31 1991 1990 1991 1990
 Operating Revenues $703.7 $865.6 $2,454.2 $2,988.3
 Operating Costs
 and Expenses 510.7 730.3 1,775.5 2,381.1
 Depreciation and
 Amortization 57.2 68.7 223.9 245.3
 Write-down, LNG Facilities -- 310.0 -- 310.0
 Operating Income (Loss) 135.8 (243.4)(A) 454.8 51.91
 Other Income, net 4.7 (10.3) 50.1 11.4
 Interest Expense 76.6 90.4 331.3 352.8
 Income (Loss) from
 Continuing Operations
 Before Income Tax 63.9 (344.1) 173.6 (289.5)
 Income Tax (Benefit) 33.6 (92.7) 88.5 (56.1)
 Income (Loss) from Continuing
 Operations 30.3 (251.4) 85.1 (233.4)
 Discontinued Operation -- -- -- 15.22
 Net Income (Loss) $30.3 $(251.4)(A) 85.1 $(218.2)(A)
 Average Shares
 Outstanding 107.7 90.2 98.9 88.9
 Earnings (Losses)
 Per Share $0.28 $(2.79) $0.86 $(2.46)
 Operating Income (Loss)
 by Business Group
 TETCO $72.2 $44.7 $262.8 $196.1
 Algonquin 11.4 9.0 42.2 38.8
 PEPL 19.2 (11.0) 37.3 30.2
 Trunkline 12.2 3.3 41.2 25.8
 Other 1.3 1.3 5.4 4.9
 Gas Transmission 116.3 47.3 388.9 295.8
 LNG Project 6.5 (301.8) 21.7 (280.4)
 Centana 10.7 11.9 34.9 26.1
 Parent, Other
 & Eliminations 2.3 (0.8) 9.3 10.4
 Consolidated Operating
 Income (Loss) 135.8 (243.4)(A) 454.8 51.91
 Capital Expenditures $88 $141 $239 $400
 Equity as a Percentage
 of Capitalization 35 29 35 29
 Common Stock Prices
 High $16-1/2 $15 $16-1/2 $29-3/4
 Low 12-1/2 10-3/8 9-7/8 10-3/8
 Quarterly Close 15-3/8 12-1/2 15-3/8 12-1/2
 Average Daily Volume,
 thousands of shares 321 400 292 425
 (A) Includes approximately $400 million ($280 million after-tax) in year-end charges. Operating income includes $385 million of these charges, including $310 million for the write-down of the LNG facilities.
 (2) Represents a gain on the sale of coal operations.
 PANHANDLE EASTERN CORPORATION AND SUBSIDIARIES
 Operating Data (unaudited)
 Periods ended Three Months Twelve Months
 Dec. 31 1991 1990 Percent 1991 1990 Percent
 Natural Gas Pipeline Change Change
 Volumes, Bcf
 Sales
 TETCO 67 113 (41) 196 363 (46)
 Algonquin 17 26 (35) 57 89 (36)
 PEPL 12 24 (50) 58 78 (26)
 Trunkline 24 24 -- 90 102 (12)
 Eliminations (10) (26) (62) (51) (81) (37)
 Total 110 161 (32) 350 551 (36)
 Market-area Transports(A)
 TETCO 162 141 15 624 537 16
 Algonquin 59 40 48 181 138 31
 PEPL 130 133 (2) 477 458 4
 Trunkline 114 105 9 360 341 6
 Eliminations (56) (56) -- (189) (172) 10
 Total 409 363 13 1,453 1,302 12
 Total Market Area 519 524 (1) 1,803 1,853 (3)
 Supply-area Transports(A)
 TETCO 53 38 39 154 140 10
 PEPL 21 16 31 55 60 (8)
 Trunkline 24 42 (43) 124 138 (10)
 Eliminations (1) (2) (50) (4) (9) (56)
 Total 97 94 3 329 329 --
 Total Deliveries 616 618 -- 2,132 2,182 (2)
 Northeast Degree Days
 Operating 1,914 1,738 5,390 5,283
 Normal 2,084 2,051 6,069 5,564
 Midwest Degree Days
 Operating 2,096 1,935 5,328 4,870
 Normal 2,116 2,116 5,591 5,622
 Natural Gas Sales Rates(B)
 TETCO 100% Load Factor Rate $3.11 $3.27 (5)
 Commodity Rate 2.69 2.86 (6)
 Purchased Gas Cost 2.26 2.46 (8)
 Algonquin 100% Load Factor Rate 3.12 3.84 (19)
 Commodity Rate 2.96 3.31 (11)
 Purchased Gas Cost 2.81 3.09 (9)
 PEPL 100% Load Factor Rate 3.65 3.71 (2)
 Commodity Rate 2.83 2.94 (4)
 Purchased Gas Cost 2.19 1.94 13
 Trunkline 100% Load Factor Rate 2.98 3.16 (6)
 Commodity Rate 2.48 2.64 (6)
 Purchased Gas Cost 2.22 2.37 (6)
 Market Transport Rates(B)
 TETCO $0.78 $0.82 (5)
 Algonquin 0.29 0.31 (6)
 PEPL 0.71 0.71 0
 Trunkline 0.37 0.42 (12)
 (A) Reflects adjustments in the prior periods to conform to the current reporting presentation.
 (B) Authorized rates per million British thermal unit pursuant to FERC tariffs.
 -0- 1/29/92
 /CONTACT: John P. Barnett, 713-627-4072, or Dorothy M. Ables, 713-627-4600, both of Panhandle Eastern/
 (PEL) CO: Panhandle Eastern Corporation ST: Texas IN: OIL SU: ERN SM -- NY070 -- 4913 01/29/92 16:43 EST
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