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EASTEX ANNOUNCES INCREASE IN FIRST QUARTER 1992 EARNINGS AND COMMENCEMENT OF HOUSTON HUB INTERCHANGE SERVICE

 EASTEX ANNOUNCES INCREASE IN FIRST QUARTER 1992 EARNINGS AND
 COMMENCEMENT OF HOUSTON HUB INTERCHANGE SERVICE
 HOUSTON, April 29 /PRNewswire/ -- Eastex Energy Inc. (NASDAQ-NMS: ETEX ) (Eastex) today announced unaudited net income of $389,000 or $0.08 per common share on revenues of $24.5 million for the quarter ended March 31, 1992, as compared to unaudited net income of $154,000 or $0.04 per common share on revenues of $32.3 million for the quarter ended March 31 1991.
 Commenting on this performance, Robert G. Phillips, president & CEO, stated, "Eastex is proud to post its sixth consecutive quarter of improved comparative period to period operating results. This improvement in operating performance, when compared to the same period last year, was accomplished despite a historic seasonal downturn in natural gas prices due to a continuing over-supply of gas, sluggish demand through most of the winter, and spot market volatility caused by fluctuating industry-wide storage inventories."
 Gross profits reported for the period ended March 31, 1992, increased by 31 percent to $1.7 million from $1.3 million in the first quarter of 1991. The improvement in gross profit was primarily the result of increased profitability from two of the company's growing business segments: (1) storage and related long-term contracts and services, and (2) risk management activities. The relative contribution to first quarter 1992 gross profit by each of the company's business segments was as follows: spot marketing - 54 percent, storage and related services - 31 percent, risk management - 10 percent, gathering and other - 5 percent. The decline in operating revenue in the first quarter of 1992 was attributable to reduced sales volumes of 16.7 Bcf (183 MMcf/d) compared to volumes of 19.6 Bcf (217 MMcf/d) in the same period last year and lower average gas sales prices of $1.45 per MMbtu as compared to $1.65 per MMBtu in the first quarters of 1992 and 1991, respectively.
 Additionally, Eastex announced today the official commencement of third party transportation and exchange services as the "Houston Hub" located at Eastex' Rotherwood Natural Gas Storage and Interchange Facility ("Rotherwood") in Harris County, Texas. Eastex seeks to establish the Houston Hub as a regional market center similar to the Henry Hub in Southern Louisiana. Final pipeline construction is nearing completion and the Houston Hub is expected to be fully operational for May 1992 business. Eastex, as operator of Rotherwood and the Houston Hub, is arranging fixed rate transportation fees to exchange gas with the Henry Hub through common pipelines interconnected with both facilities.
 The Houston Hub is comprised of mainline interconnections with Natural Gas Pipeline Company of America, Trunkline Gas Company, Tennessee Gas Pipeline Company, United Gas Pipeline Company and Enercorp Gas Transmission Systems Inc. Phillips further states, "The recent FERC Order 636 promotes the use of market centers or hubs to improve the competitive efficiency of the marketplace. Eastex is pleased to provide these new market services to assist in the trading and transportation of natural gas in The Texas Gulf Coast area. We think the Houston Hub offers a unique combination of pipelines and storage at Rotherwood to perform this value added service for the industry."
 EASTEX ENERGY INC.
 Selected Financial and Operating Information
 (000's omitted, except per share amounts)
 March 31, Dec. 31,
 1992 1991
 (unaudited)
 Balance Sheet Data:
 Total assets $ 34,990 $ 42,661
 Property and equipment, net 14,845 15,152
 Long-term debt, less current maturities 5,607 5,740
 Stockholders' equity 14,356 13,940
 Three Months Three Months
 Ended Ended
 March 31, March 31,
 1992 1991
 (unaudited) (unaudited)
 Income Statement Data:
 Operating revenues $ 24,457 $ 32,349
 Gross profit 1,729 1,300
 Net income 389 154
 Earnings per share 0.08 0.04
 Average common stock and common stock
 equivalents outstanding, exclusive
 of minority interest 4,642 4,332
 Net throughput (MMcf) 16,700 19,600
 Eastex Energy Inc., through its subsidiaries, is involved in the marketing, storage, gathering and transportation of natural gas.
 -0- 4/29/92
 /CONTACT: Robert G. Phillips, president & CEO of Eastex Energy Inc., 713-650-6255/
 (ETEX) CO: Eastex Energy Inc. ST: Texas IN: OIL SU: ERN


PS -- NY099 -- 4647 04/29/92 18:03 EDT
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Date:Apr 29, 1992
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