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ENRON OIL & GAS COMPANY REPORTS 100 PERCENT INCREASE IN NET INCOME TO $14.6 MILLION OR $.19 PER SHARE IN SECOND QUARTER OF 1992

 ENRON OIL & GAS COMPANY REPORTS 100 PERCENT INCREASE IN NET INCOME
 TO $14.6 MILLION OR $.19 PER SHARE IN SECOND QUARTER OF 1992
 HOUSTON, July 16 /PRNewswire/ -- Enron Oil & Gas Company (EOG) (NYSE: EOG) today reported net income of $14.6 million, up 100 percent over the previous year, or 19 cents per share for the second quarter of 1992. The company reported net income of $7.3 million, or 10 cents per share, for the same period a year ago. Discretionary cash flow continued very strong at $63.8 million in the second quarter of 1992, compared to $54.7 million a year ago.
 Net operating revenues were $100.5 million in the second quarter of 1992 compared to $88.0 million for the same period in 1991.
 EOG's wellhead natural gas sales volumes increased by 26 percent, averaging 551 million cubic feet per day (MMcf/d) in the second quarter of 1992, compared to 439 MMcf/d a year ago.
 "We are very pleased with these earnings, cash flow and wellhead natural gas sales volume increases and the benefits available to EOG associated with the ability to increase volumes when prices warrant," said Forrest E. Hoglund, chairman, president and CEO of EOG. "These results are particularly noteworthy considering that we curtailed sales as much as 15 percent due to lower than acceptable prices during portions of the quarter," he added.
 Average wellhead natural gas sales prices increased 9 percent, averaging $1.35 per thousand cubic feet (Mcf) in the second quarter of 1992 compared to $1.24 per Mcf a year ago. Wellhead crude oil and condensate prices averaged $18.00 per barrel during the current quarter versus $17.84 per barrel for the comparable period in 1991. Other marketing activities added $18.8 million to net operating revenues during the quarter compared to $23.1 million for the same period in 1991, reflecting higher average net gas purchase costs.
 Total operating expenses were $86.6 million for the second quarter of 1992 versus $75.1 million a year ago. Increased production volumes and the effects of expanded operations resulted in increases in lease and well expense, depreciation, depletion and amortization (DD&A) and production related taxes. Operating expenses per thousand cubic feet equivalent (Mcfe) continued to decline. The most important decline was reflected in DD&A, which averaged $.77 per Mcfe in the current quarter compared to $.86 per Mcfe a year ago. Earnings from the recent quarter include pretax gains from property sales of approximately $6.0 million.
 Net income for the second quarter of 1992 benefited significantly from tight gas sand tax credit utilization of approximately $6.7 million compared to $1.0 million in the second quarter of 1991.
 At the end of the second quarter, EOG had tight gas sand sales in excess of 215 MMcf/d. The company plans to drill at least 250 net tight gas sand wells in 1992. The federal income tax credit for tight gas sand volumes combined with a Texas severance tax exemption on tight gas sand revenues is estimated to generate an after-tax net income contribution in excess of $45 million for EOG in 1992.
 EOG reported net income of $36.9 million, or 49 cents per share, for the first six months of 1992 compared to $19.1 million, or 25 cents per share, for the same period a year ago. Net operating revenues to date totaled $199.1 million compared to $183.9 million in 1991. Discretionary cash flow totaled $133.4 million versus $115.7 million in 1991.
 Enron Oil & Gas Company is one of the largest independent (non- integrated) oil and gas companies in the United States in terms of domestic proved reserves. The company's reserve base is about 90 percent domestic and about 93 percent natural gas.
 -0- 7/16/92
 /CONTACT: Diane Bazelides of Enron Oil & Gas Company, 713-853-6285/
 (EOG) CO: Enron Oil & Gas Company ST: Texas IN: OIL SU: ERN


SH -- NY020 -- 9903 07/16/92 09:37 EDT
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Publication:PR Newswire
Date:Jul 16, 1992
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