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SONAT REPORTS THIRD QUARTER RESULTS,DECLARES DIVIDEND

 BIRMINGHAM, Ala., Oct. 28 /PRNewswire/ -- Ronald L. Kuehn, Jr., chairman, president and chief executive officer of Sonat Inc. (NYSE: SNT), today announced that, excluding non-recurring items, the company's earnings from continuing operations for the three months ended September 30, 1993, were $27.5 million, or $.32 per share, compared with $18.3 million, or $.21 per share, for the same period in 1992. Non- recurring items for the third quarter of 1993 include recognition of the recent increase in the federal tax rate as well as various tax adjustments that together reduced earnings by $7.2 million, or $.09 per share. In the third quarter of 1992, the company had various non- recurring items that increased earnings by $3.0 million, or $.04 per share.
 For the first nine months of 1993, the company's earnings from continuing operations were $211.3 million, or $2.44 per share. After excluding non-recurring items, the company earned $101.7 million, or $1.17 per share, which compares with $60.0 million, or $.70 per share, for the first nine months of 1992.
 Kuehn also announced that a regular quarterly dividend of $.27 per share has been declared for Sonat's common stock. The dividend, payable on December 14, 1993, to stockholders of record on November 30, 1993, is the 219th consecutive quarterly dividend paid on the company's common stock.
 Sonat, headquartered in Birmingham, is a diversified energy company involved in natural gas transmission and marketing, oil and gas exploration and production, and has significant investments in the oil field services industry.
 SONAT INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 3 Months 9 Months
 Periods Ended
 September 30, 1993 1992 1993 1992
 (In Thousands, Except
 Per-Share Amounts)
 Revenues $324,546 $299,662 $1,177,951 $1,015,225
 Costs and
 Operating
 Expenses 280,273 248,137 1,006,894 869,754
 Operating
 Income 44,273 51,525 171,057 145,471
 Other Income
 (Expense), Net (368) 5,488 171,729 14,265
 Interest Income
 (Expense), Net (16,209) (23,230) (34,883) (76,407)
 Income from
 Continuing
 Operations
 Before
 Extraordinary
 Item and
 Income
 Taxes 27,696 33,783 307,903 83,329
 Income
 Taxes 7,402 12,531 92,821 23,298
 Income from
 Continuing
 Operations
 before
 Extraordinary
 Item 20,294 21,252 215,082 60,031
 Income from
 Discontinued
 Operations (1) --- --- --- 112,207
 Extraordinary
 Item (2) --- --- (3,829) ---
 Net Income
 (3)(4)
 (5)(6) $ 20,294 $ 21,252 $ 211,253 $ 172,238
 Primary Earnings Per
 Share of Common Stock: (7)
 Earnings from
 continuing operations
 before
 extraordinary
 item $ .23 $ .25 $ 2.48 $ .70
 Earnings from
 discontinued
 operations --- --- --- 1.30
 Loss from
 extraordinary
 item --- --- (.04) ---
 Earnings
 Per
 Share $ .23 $ .25 $ 2.44 $ 2.00
 Cash Dividends
 Paid Per
 Common
 Share $ .27 $ .25 $ .77 $ .75
 SONAT INC. AND SUBSIDIARIES
 BUSINESS SEGMENT DATA
 (Unaudited)
 3 Months 9 Months
 Periods Ended
 September 30, 1993 1992 1993 1992
 (In Thousands)
 Revenues:
 Natural gas
 transmission and
 marketing $280,738 $190,635 $930,904 $701,542
 Exploration
 and
 production 84,562 69,375 249,263 195,495
 Offshore
 drilling --- 55,386 108,244 159,982
 Other 1,487 2,890 3,874 9,843
 Intersegment
 revenue (42,241) (18,624) (114,334) (51,637)
 $324,546 $299,662 $1,177,951 $1,015,225
 Operating Income:
 Natural gas
 transmission and
 marketing $ 26,937 $ 29,062 $ 105,275 $ 111,168
 Exploration
 and
 production 16,391 13,995 61,914 26,617
 Offshore
 drilling (87) 8,895 2,351 9,324
 Other, net of
 corporate
 expenses 1,032 (427) 1,517 (1,638)
 Operating
 Income $ 44,273 $ 51,525 $171,057 $145,471
 (1) Discontinued operations represents the operations
 of Teleco Oilfield Services which was sold in
 April 1992.
 (2) In March 1993 the Company recognized a $4 million
 loss or $.04 per share, net of taxes of
 $2 million, on the redemption of the Company's
 7-1/4 Percent Zero Coupon, Subordinated Convertible
 Notes which were due September 6, 2005.
 (3) Net income for the third quarter of 1993 inu?des
 a loss of $12 million, or $.14 per share, due to
 the Omnibus Budget Reconciliation Act of 1993,
 which increased the corporate and personal income
 tax rates. Net income also included favorable
 income tax adjustments of $4 million, or $.05 per
 share.
 (4) Net income for the 1993 nine-month period
 includes a net gain of $21 million, or $.24 per
 share, related to the settlement of an
 examination of the Company's federal income tax
 returns for the years 1983 through 1985 and other
 tax issues.
 (5) Net income for the 1993 nine-month period
 includes a gain of $99.7 million, or $1.15 per
 share, from the June 4 closing of the initial
 public offering of Sonat Offshore Drilling Inc.
 common stock, of which Sonat continues to own a
 40 percent interest.
 (6) Net income for both 1992 periods includes
 favorable adjustments of $6 million related to a
 settlement regarding Southern Energy Company's
 idle liquefied natural gas facilities and a loss
 for the Company's share of Citrus Corp.'s
 recognition of natural gas purchase contract
 settlement costs of $3 million, for a total
 favorable impact of $.04 per share.
 (7) All earnings per share amounts and dividend
 amounts reflect a two-for-one stock split
 effective September 14, 1993.
 -0- 10/28/93
 /CONTACT: Bruce L. Connery, 205-325-3898 or Thomas W. Barker, Jr., 205-325-3586, both of Sonat Inc./
 (SNT)


CO: Sonat Inc. ST: Alabama IN: OIL SU: ERN DIV

BR-ST -- AT004 -- 7783 10/28/93 10:13 EDT
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Publication:PR Newswire
Date:Oct 28, 1993
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