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EASTEX ANNOUNCES SIGNIFICANT IMPROVEMENT IN ITS PRELIMINARY FOURTH QUARTER AND YEAR END 1991 RESULTS

 EASTEX ANNOUNCES SIGNIFICANT IMPROVEMENT IN ITS
 PRELIMINARY FOURTH QUARTER AND YEAR END 1991 RESULTS
 HOUSTON, Jan. 16 /PRNewswire/ -- Eastex Energy Inc. (NASDAQ-NMS: ETEX) (Eastex) today announced preliminary, unaudited net income of $607,000 or $.14 per common share on operating revenues of approximately $38.0 million for the three months ended Dec. 31, 1991, as compared to net income of $35,000 or $.01 per share on revenues of approximately $30.4 million for the quarter ended Dec. 31, 1990. For the fiscal year ended Dec. 31, 1991, the company announced preliminary, unaudited net income of $1,368,000 or $.32 per common share on operating revenues of approximately $134.1 million, compared to a net loss of $1,197,000 or $.25 per common share on operating revenues of approximately $133 million for the year ended Dec. 31, 1990.
 The results reported for 1991 are preliminary and unaudited and are therefore subject to adjustment at such time as the audit is completed. Because of the magnitude of the comparative changes in results, the company believed a preliminary release was appropriate at this time. The company is not currently aware of any year end adjustments which would significantly affect these results but investors are advised that the audit for 1991 is not complete, therefore no assurances can be given that there will not be some unanticipated adjustment.
 The improvements in net income for the three and 12 months ended Dec. 31, 1991 are primarily a result of increased volumetric throughput and higher gross profits. Net income for the 12 months ended Dec. 31, 1991 was further improved by reduced general and administrative expenses and operating costs as compared to the same period in 1990.
 "We are proud to successfully complete the 1991 fiscal year with a significant turnaround in operating performance," stated Eastex Chairman Robert G. Phillips. "Eastex benefited during the fourth quarter 1991 from improved spot marketing, higher levels of term contract sales, trading activity in the natural gas futures market, and increased profitability from the sale of storage and prepaid inventories. Entering 1992, the company is pleased with the improvements in its financial condition, with working capital increasing to $4.6 million at Dec. 31, 1991 from $2.6 million at Dec. 31, 1990."
 As previously reported, the company continues to evaluate acquisitions of gathering, processing and production assets to increase the size and scope of operations in its nonmarketing activities. In furtherance of this acquisition policy, the company previously announced on Nov. 26, 1991, that it had entered into an agreement in principle to acquire Service Pipeline Company, Houston, and its subsidiaries ("Servco") in a business combination expected to be accomplished as a merger between Servco and a newly formed subsidiary of Eastex. Eastex and Servco have recently entered into an agreement to extend the anticipated date of closing from Dec. 31, 1991 to Feb. 15, 1992 to provide Eastex a more thorough opportunity for due diligence and analysis. Meanwhile, as part of the closing extension, Eastex and Servco have entered into an interim agreement whereby Eastex will assume the management and operations of Servco until such time as the business combination is completed or Eastex or Servco terminates the arrangement. The parties anticipate that the combination can be accomplished on or before Feb. 15, 1992.
 Eastex Energy Inc., through its various subsidiaries, is involved in the marketing, storage, gathering and transportation of natural gas.
 EASTEX ENERGY INC.
 Selected Financial and Operating Information
 (000's omitted, except earnings per share and operating data)
 Balance Sheet Data
 12/31/91 12/31/90
 (Unaudited)
 Total assets $42,460 $46,666
 Property and equipment, net 15,152 16,249
 Long-term debt, less current
 maturities 5,740 6,055
 Stockholders' equity 13,943 12,878
 Income Statement and Operational Data
 Periods ended: Three months Twelve months
 Dec. 31: 1991 1990 1991 1990
 (Unaudited) (Unaudited)
 Operating revenues $38,009 $30,371 $134,070 $132,963
 Gross profit 2,137 1,103 6,916 3,205
 Genl. & admin. expense 780 638 2,891 3,392
 Depreciation, depletion
 and amortization 348 387 1,371 1,498
 Operating income (loss) 1,009 78 2,654 (1,685)
 Other income
 (expense), net (132) (127) (488) (355)
 Net income (loss)
 before federal and
 state income taxes
 and minority interest 877 (49) 2,166 (2,040)
 Net income (loss) 607 35 1,368 (1,197)
 Earnings (loss) per share $0.14 $0.01 $0.32 $(0.25)
 Volumetric throughput (Bcf) 20.2 14.9 87.1 75.1
 Average daily volumetric
 throughput (Mmbtu/d) 220 162 239 206
 NOTE: All 1991 amounts are preliminary and unaudited.
 -0- 1/16/92
 /CONTACT: Robert G. Phillips, president and CEO of Eastex Energy, 713-650-6255/
 (ETEX) CO: Eastex Energy Inc. ST: Texas IN: OIL SU: ERN


TS -- NY056 -- 0529 01/16/92 12:45 EST
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Date:Jan 16, 1992
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