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BROOKLYN UNION GAS REPORTS FIRST QUARTER EARNINGS

 BROOKLYN UNION GAS REPORTS FIRST QUARTER EARNINGS
 BROOKLYN, N.Y., Jan. 22 /PRNewswire/ -- Brooklyn Union Gas


(NYSE: BU) today announced that consolidated income available for common stock for the first quarter of fiscal 1992 was $36.0 million, or $1.27 per share, compared to $32.3 million, or $1.29 per share, for the first quarter of last year. Earnings for the 12 months ended Dec. 31, 1991 were $61.6 million or $2.25 per share, compared to $55.3 million, or $2.24 per share, for the 12 months ended Dec. 31, 1990, which included a non-cash subsidiary write down of 29 cents per share related to a methane-recovery plant.
 Comparative quarterly earnings reflect gas sales growth primarily due to conversions to gas from oil for heating, and the 4.6 percent annual revenue increase, which became effective in mid-October. As a result, utility earnings of $1.25 per share for the first quarter of fiscal 1992 were 5 cents ahead of earnings for last year's first quarter. Utility earnings for the 12 months ended Dec. 31, 1991 were lower, reflecting the effects of one of the warmest heating seasons on record and a decrease in the allowed rate of return on utility equity applicable in the 12-month period. The persistence of unusually warm weather continues to adversely affect utility and subsidiary operating results.
 If gas prices at the wellhead continue to soften, the company may be required to record a non-cash impairment charge related to its gas properties in accordance with the Securities and Exchange Commission's ceiling-test limitations applicable to the full-cost accounting method.
 Sales
 Firm gas sales for the first quarter of fiscal 1992 were 34,865 MDTH, compared to 31,609 MDTH for the first quarter of last year. Weather in the first quarter of fiscal 1992 was approximately 9 percent warmer than normal, while in the first quarter of fiscal 1991 it was about 22 percent warmer than normal. In addition to the effect of weather, firm sales reflect growth, primarily from oil- to gas-heating conversions, which were especially strong in large-volume markets, including large apartment buildings, where service is provided under a volume-discount rate.
 Dividend Increase
 On Dec. 18, 1991 the board of directors approved an increase in the quarterly dividend to 48-1/2 cents per share from 47-1/2 cents per share. This is the 16th consecutive year in which the dividend has been increased and the 173rd consecutive quarter in which a common dividend has been paid. The annual dividend rate is now $1.94 per share. The new dividend is payable on Feb. 1, 1992 to shareholders of record on Jan. 2, 1992.
 BROOKLYN UNION GAS
 First Quarter 1992
 Consolidated Summary of Earnings
 (In thousands except per share data)
 Periods ended Three months 12 Months
 Dec. 31 1991 1990 1991 1990
 Operating revenues $311,117 $296,181 $1,005,445 $955,608
 Cost of gas 116,700 114,590 375,158 360,186
 Net revenues 194,417 181,591 630,287 595,422
 Operating and
 maintenance 81,954 78,781 319,314 302,774
 Depreciation and
 depletion 13,772 11,166 45,321 40,145
 Plant write-down,
 subsidiary -- -- -- 10,574
 General taxes 35,262 34,800 136,881 124,943
 Federal income tax 18,043 15,336 29,397 21,100
 Operating income 45,386 41,508 99,374 95,886
 Other income 1,219 2,485 5,509 7,537
 Income before
 interest charges 46,605 43,993 104,883 103,423
 Interest charges 9,681 10,726 39,417 44,221
 Net income 36,924 33,267 65,466 59,202
 Dividends on
 preferred stock 947 965 3,829 3,903
 Income available
 for common stock $35,977 $32,302 $61,637 $55,299
 Per share of
 common stock $1.27 $1.29 $2.25 $2.24
 This interim summary of earnings should not be taken as a prediction for the fiscal year. The company's business is influenced by seasonal weather conditions and the timing of approved base tariff rate changes.
 Other Information
 Periods ended Three months 12 Months
 Dec. 31 1991 1990 1991 1990
 Capital expenditures $46,835 $28,299 $166,281 $130,733
 Firm gas sales (10,000
 therms or MDTH) 34,865 31,609 111,950 105,829
 Degree Days 1,500 1,288 4,183 3,908
 Warmer than normal (pcts.) 8.6 22.4 14.3 20.2
 Average common
 shares (000s) 28,284 24,962 27,426 24,702
 -0- 1/22/92
 /CONTACT: Norma Y. Rodriguez of Brooklyn Union Gas, 718-403-3382/
 (BU) CO: Brooklyn Union Gas ST: New York IN: UTI SU: ERN FC-HM -- NY084 -- 2457 01/22/92 16:10 EST
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Date:Jan 22, 1992
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