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EL PASO NATURAL GAS COMPANY REPORTS 29 PERCENT INCREASE IN THIRD QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND

 EL PASO, Texas, Oct. 12 /PRNewswire/ -- El Paso Natural Gas Company (NYSE: EPG) reported third quarter 1993 net income of $18 million, or $0.49 per share, up 29 percent from $14 million, or $0.38 per share reported for the third quarter 1992.
 Third quarter 1993 operating income was $55 million compared with $40 million a year ago. The increase reflected higher net revenues from new rates, which became effective in 1993, and the consolidation of the Mojave Pipeline Company, which became wholly owned by EPG on June 1, 1993. EPG mainline throughput averaged 3.4 billion cubic feet per day for the quarter, while field throughput averaged 1.3 billion cubic feet per day.
 Nine Months Results
 Nine months 1993 net income totaled $70 million, or $1.87 per share. For the first nine months of 1992, the company reported net income of $60 million, or $1.67 per share. Assuming that the 5.75 million shares issued in EPG's March 1992 initial public offering were outstanding for the entire nine months of 1992, last year's comparable earnings would have been $1.61 per share.
 Capital expenditures during the nine months of 1993 totaled $108 million compared with $169 million in 1992. The decrease reflects the completion of EPG's mainline expansion in April 1992. Cash flow from operations was $233 million compared with $262 million a year ago. Last year's cash flow from operations included $94 million from the sale of EPG's direct bill take-or-pay receivables.
 Quarterly Dividend
 The board of directors of EPG today declared a quarterly dividend of 27.5 cents per share on the company's outstanding common stock, payable on Jan. 4, 1994, to shareholders of record on Dec. 10, 1993. Outstanding common stock as of Sept. 30, 1993 was 37,263,825 shares.
 El Paso Natural Gas Company owns and operates one of the nation's largest field and mainline gas transmission systems, connecting natural gas supply regions in New Mexico, Texas, Oklahoma and Colorado to markets in California, Nevada, Arizona, New Mexico, Texas and Mexico.
 EL PASO NATURAL GAS COMPANY
 Consolidated Statement Of Income
 (Unaudited, in thousands except per share amounts)
 Period ended Third Quarter Nine Months
 Sept. 30 1993 1992 1993 1992
 Revenues $245,056 $217,203 $676,579 $580,037
 Costs and expenses 189,569 177,542 500,511 439,553
 Operating income 55,487 39,661 176,068 140,484
 Interest expense (20,256) (16,618) (55,546) (51,850)
 Interest income from
 former parent --- --- --- 1,602
 Other income
 (expense)-- net (3,074) (367) (5,118) 6,632
 Inc. bef. inc. taxes 32,157 22,676 115,404 96,868
 Income taxes 13,792 8,667 45,516 37,142
 Net Income $ 18,365 $ 14,009 $ 69,888 $ 59,726
 Earnings per common
 share $ 0.49 $ 0.38 $ 1.87 $ 1.67
 Average common shares 37,340 37,301 37,281 35,738
 EL PASO NATURAL GAS COMPANY
 Consolidated Balance Sheet
 (Unaudited, in thousands)
 9/30/93(A) 12/31/92
 Assets:
 Current assets
 Cash and temporary cash investments $ 83,501 $ 48,638
 Accounts and notes receivable,
 net of allowance 140,922 157,584
 Inventories 37,248 47,647
 Take-or-pay buy-outs, buy-downs and
 prepayments 46,284 49,711
 Deferred income tax 66,056 35,180
 Other 42,327 25,562
 Total current assets 416,338 364,322
 Property, plant and equipment, net 1,752,989 1,450,328
 Take-or-pay buy-outs, buy-downs and
 prepayments 68,552 104,038
 Other regulatory assets 28,449 ---
 Other 91,954 132,041
 Total other assets 1,941,944 1,686,407
 Total assets $2,358,282 $2,050,729
 Liabilities And Stockholders' Equity
 Current liabilities
 Accounts payable $ 225,616 $ 240,486
 Take-or-pay financing liability 40,124 37,617
 Accrual for regulatory issues 91,252 33,582
 Current maturities of long-term debt 6,184 8
 Other current liabilities 51,298 61,508
 Total current liabilities 414,474 373,201
 Long-term debt 795,752 637,074
 Deferred income taxes, less current
 portion 338,860 201,997
 Take-or-pay financing liability, less
 current portion 46,683 78,204
 Deferred credits 19,105 61,829
 Other liabilities 33,148 29,432
 Total: 1,233,548 1,008,536
 Stockholders' equity
 Common stock 112,051 111,913
 Additional paid-in capital 455,458 454,480
 Retained earnings 145,897 108,025
 Less: Treasury stock (at cost) 3,146 5,426
 Total stockholders' equity 710,260 668,992
 Total liabilities and stockholders'
 equity $2,358,282 $2,050,729
 (A) Reflects consolidation of Mojave Pipeline Company, which became wholly owned by EPG during the second quarter.
 EL PASO NATURAL GAS COMPANY
 Consolidated Statement Of Cash Flows
 (Unaudited, in thousands)
 Nine months ended Sept. 30, 1993 1992
 Cash flows from operating activities
 Net income $ 69,888 $ 59,726
 Adjustments to reconcile net
 income to cash provided by
 operating activities
 Depreciation and amortization 45,036 55,758
 Deferred income taxes 27,569 (49,056)
 Other 90,418 196,048
 Net cash provided by operating
 activities 232,911 262,476
 Cash flows from investing activities
 Capital expenditures (107,465) (168,909)
 Other (38,151) 8,363
 Net cash used in investing
 activities (145,616) (160,546)
 Net cash used in financing
 activities (52,432) (335,965)
 Increase (Decrease) in cash and
 temporary cash investments 34,863 (234,035)
 Cash and temporary cash investments
 Beginning of period 48,638 324,771
 End of period $ 83,501 $ 90,736
 -0- 10/12/93
 /CONTACT: Norma F. Dunn, vice president, investor & public relations office of El Paso Natural Gas Company, 915-541-5443/
 (EPG)


CO: El Paso Natural Gas Company ST: Texas IN: OIL SU: ERN DIV

MP -- NY061 -- 1119 10/12/93 12:52 EDT
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Date:Oct 12, 1993
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