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WESTERN GAS RESOURCES ANNOUNCES FIRST QUARTER 1993 RESULTS

 DENVER, May 10 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) announced today that the company has once again set new first quarter records for revenues, net income and cash flow from operations for the quarter ended March 31, 1993. The company's first quarter earnings increased 26 percent to $10.1 million on revenues of $193.5 million, compared with first quarter 1992 earnings of $8.0 million on revenues of $125.1 million. Earnings per common share for the first quarter 1993 was 34 cents per share, 17 percent higher than the 29 cents per share reported for the first quarter 1992 (prior to a 1 cent per share increase for retroactive adoption of SFAS 109 in the first quarter 1992). Additionally, the first quarter 1993 reflects $798,000 deducted from earnings available to common stock for dividends on the Preferred Stock issued in November 1992. Operating cash flow increased 18 percent to $19.6 million, compared to $16.6 million in the first quarter 1992.
 Aggressive well connect activity from dedicated production and increased third party sales during the first quarter 1993 contributed to an increase in gas and liquids sales volumes. Average gas sales increased 29 percent to 554 MMcf/D in the first quarter 1993 compared to 431 MMcf/D in the first quarter 1992. Average liquids sales also increased 28 percent to 2,781 MGal/D in the first quarter 1993 compared to 2,169 MGal/D for the like period in 1992.
 The recent increase in natural gas and natural gas liquids prices positively impacted Western's results in the first quarter 1993. Average gas prices increased 34 percent to $1.93/Mcf compared to $1.44/Mcf in the first quarter 1992. Average liquids prices increased 17 percent to $.35/Gal compared to $.30/Gal for the like period in 1992. Price increases were somewhat offset by tighter profit margins on third party sales of both natural gas and natural gas liquids. Additionally, general and administrative costs were higher due to expenses related to staffing and preparation for the Katy Hub and Storage Facility. Construction of the Katy facility remains on schedule for completion in the third quarter 1993.
 Western has continued its growth trend through strategic acquisitions, consolidation and new projects in the first quarter 1993. The company announced the signing of an agreement to purchase Mountain Gas Resources Inc. for $130 million and assumption of existing debt. Included in the purchase are two gathering and processing facilities in the Green River Basin in southwestern Wyoming. These two facilities complement Western's existing operations in the basin, significantly increase the company's gas and liquids volumes in the area and are expected to benefit from a high volume of new well hookups over the next few years. The closing of the acquisition of Mountain Gas Resources has been delayed, pending approval of the transaction by the Federal Trade Commission. The company is in the process of responding to an information request from the Federal Trade Commission pursuant to the Hart-Scott-Rodino Antitrust Improvements Act. The company also announced an agreement to form a general partnership with a subsidiary of Panhandle Eastern Pipeline Co. to provide GTM services to producers in the Anadarko Basin in Oklahoma.
 Western owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids (NGLs). The company is actively pursuing new investment opportunities through both acquisitions and new construction to expand its area of operations and related markets toward its goal of increasing stockholder value.
 WESTERN GAS RESOURCES INC.
 1993 FIRST QUARTER EARNINGS
 Quarter Ended
 March 31, Percent
 1993 1992 Change
 Financial Statistics:
 ($000s except share and
 per share amounts)
 Revenues $193,478 $125,081 54.7
 Net Income 10,116 8,036(A) 25.9
 Earnings per Common Share .34 .29(A) 17.2
 Cash Flow from Operations 19,609 16,620(A) 18.0
 Weighted Average Shares
 Outstanding 25,567,150 25,404,672 ---
 Operating Statistics:
 Average Gas Sales (MMcf/D) 554 431 28.6
 Average NGL Sales (MGal/D) 2,781 2,169 28.2
 Average Gas Prices ($/Mcf) $1.93 $1.44 34.0
 Average NGL Prices ($/Gal) $.35 $.30 16.7
 (A) Reflects amounts as originally reported. First quarter 1992
 results have been restated to account for SFAS No. 109,
 "Accounting for Income Taxes" which the company adopted in the
 fourth quarter 1992 retroactive to Jan. 1, 1992. The
 restatement resulted in net income of $8,291, earnings per
 share of 30 cents and cash flow from operations of $16,875 in
 the first quarter 1992.
 -0- 5/10/93
 /CONTACT: Ron Wirth of Western Gas Resources, 303-933-5603/
 (WGR)


CO: Western Gas Resources Inc. ST: Colorado IN: OIL SU: ERN

MC -- DV005 -- 6256 05/10/93 07:32 EDT
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Date:May 10, 1993
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