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ENDEVCO, INC. REPORTS FINANCIAL EARNINGS

 ENDEVCO, INC. REPORTS FINANCIAL EARNINGS
 DALLAS, March 13 /PRNewswire/ -- ENDEVCO, Inc. (AMEX: EI) today


reported higher revenues and no significant change in gross margin (sales less cost of sales) for the year ended Dec. 31, 1991, compared to the prior year. Net loss applicable to common stock was $3,482,000 ($.46 per share) for 1991 compared to a net loss for 1990 of $2,238,000 ($.29 per share).
 Gross margin from the company's gas processing and refining segment increased $3,674,000 (40 percent) in 1991 compared to 1990. This increase was primarily due to the acquisition of the Claiborne facilities, the acquisition of the remaining 10 percent of the Dubach facilities and increased product sales from the Dubach facilities. Gross margin on the company's gas transportation segment declined by $3,852,000 (21 percent) in 1991 compared to 1990. This decline was primarily due to lower throughput and lower per unit margins. Lower throughput was caused in part by lower prices which has in turn, produced some natural gas curtailments and limited drilling. Gross margin on the company's largest pipeline system was also negatively affected by a rate structure change. This change by a major interstate pipeline significantly reduced the volume and margin on gas moved through that pipeline.
 In the third quarter of 1991, the company recorded a pre-tax gain of $3.7 million from the sale of the stock of Endevco Industrial Gas Sales Company, a 50 percent owner of the Hattiesburg Gas Storage facilities. However, in the fourth quarter the company recorded a $2.1 million loss on the sale and leaseback of three pipeline systems and the abandonment of two pipelines that gathered gas from wells which have been plugged and abandoned. The company also wrote off $1.6 million of assets which were no longer expected to provide future economic benefit.
 The company's operating expenses increased $1.9 million in 1991 compared to 1990. This increase was primarily due to the operating expenses related to the acquisition of the Claiborne facilities and the operating expenses of the Hattiesburg Gas Storage facilities. Without these expenses, operating expenses would have actually declined approximately $970,000 compared to 1990. Also, the company's general and administrative (G&A) expense increased $1.5 million in 1991, primarily due to the write-off of project development costs. Without this write-off, G&A would have actually declined approximately $270,000.
 The company is currently operating under a standstill agreement whereby all its senior and subordinate lenders have agreed to forego scheduled payments and waive certain covenant defaults under applicable loan documents through May 31, 1992. Endevco and its lenders are working towards a formal restructuring of the company's obligations. Endevco anticipates the restructuring will be completed by May 31, 1992.
 Endevco is a gas transportation and processing company. Our gas transportation segment includes gathering, transmission, marketing and storage of natural gas. Our processing segment includes gas liquids recovery, gas treating and petroleum refining.
 ENDEVCO INC.
 Selected Financial Highlights
 (In thousands, except per share amounts)
 Twelve months
 ended Dec. 31 1991 1990
 Revenues $210,549 $201,371
 Cost of sales 181,316 173,097
 Operating expenses 13,820 11,942
 Depreciation & amortization 8,383 7,123
 G&A & project development 5,738 4,264
 Total 209,257 196,426
 Operating earnings 1,292 4,945
 Other expense (3,538) (5,339)
 Income tax benefits 664 56
 Loss from continuing
 operations (1,582) (338)
 Preferred stock requirement (1,900) (1,900)
 Net loss applicable to common
 stock (3,482) (2,238)
 Net loss per share (.46) (.29)
 Gas transportation gross
 margin 14,580 18,432
 Gas processing & refining gross
 margin 12,902 9,228
 -0- 3/13/92
 /CONTACT: James W. Bryant, chairman of the board, or Jack W. Young, executive vice president, of Endevco, Inc., 214-691-5536/
 (EI) CO: ENDEVCO, Inc. ST: Texas IN: OIL SU: ERN


AH -- NY066 -- 8002 03/13/92 18:14 EST
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Date:Mar 13, 1992
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