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ENRON OIL & GAS COMPANY REPORTS NET INCOME INCREASE OF 54 PERCENT TO $20.6 MILLION OR $.27 PER SHARE FOR THIRD QUARTER OF 1992

 ENRON OIL & GAS COMPANY REPORTS NET INCOME INCREASE OF 54 PERCENT
 TO $20.6 MILLION OR $.27 PER SHARE FOR THIRD QUARTER OF 1992
 HOUSTON, Oct. 15 /PRNewswire/ -- Enron Oil & Gas Company (NYSE: EOG) today reported a net income increase of 54 percent over the previous year to $20.6 million or 27 cents per share for the third quarter of 1992. The company reported net income of $13.4 million, or 18 cents per share, for the same period a year ago. Net income in the third quarter of 1991 included $12.5 million from pretax gains on property sales. No property sale gains were realized in the current quarter. Discretionary cash flow continued very strong at $74.9 million in the third quarter of 1992, compared to $50.2 million a year ago.
 Net operating revenues were $111.9 million in the third quarter of 1992 compared to $84.0 million for the same period in 1991.
 "EOG had a very strong quarter with higher wellhead natural gas prices and volumes, increased recognition of tight gas sand tax credits and lower unit costs," said Forrest E. Hoglund, chairman, president and CEO of EOG. "We also completed a successful offering of an additional 4.1 million shares of EOG common stock, which were priced at $28.50 per share, resulting in net proceeds of approximately $112 million, and closed on the sale of a volumetric production payment generating proceeds of $326.8 million."
 EOG's wellhead natural gas sales volumes increased by 29 percent, averaging 548 million cubic feet per day (MMcf/d) in the third quarter of 1992, compared to 424 MMcf/d a year ago.
 Average wellhead natural gas sales prices increased 38 percent, averaging $1.61 per thousand cubic feet (Mcf) in the third quarter of 1992 compared to $1.17 per Mcf a year ago. Crude oil and condensate prices averaged $19.02 per barrel during the current quarter versus $19.57 per barrel for the comparable period in 1991.
 Net income for the third quarter of 1992 benefited from tight gas sand federal income tax credit utilization of approximately $6.4 million compared to $3.7 million in the third quarter of 1991.
 At the end of the third quarter, EOG tight gas sand sales were approximately 240 MMcf/d. The company plans to drill at least 350 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 and is anticipated to be in excess of $50 million in 1993. These tax benefits will be reinvested in the tight sand drilling program to provide more supplies in line with the intent of the credit, Hoglund noted.
 EOG reported net income of $57.5 million, or 75 cents per share, for the first nine months of 1992 compared to $32.6 million, or 43 cents per share, for the same period a year ago. Net income for the two periods included benefits from tight gas sand federal income tax credit utilization of $25.9 million and $8.3 million, respectively. Net operating revenues to date totaled $310.9 million compared to $267.8 million in 1991. Discretionary cash flow totaled $208.3 million versus $165.9 million in 1991.
 "In addition to EOG's excellent financial performance, the company also made significant strides in increasing its future financial capability," Hoglund said. "Between proceeds generated by the stock offering and the volumetric production payment sale, EOG is now essentially debt free. The cash and cash equivalents more than offset the remaining long-term debt, which places us in a very strong position for making future capital investments."
 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. Enron Oil & Gas is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG."
 -0- 10/15/92
 /CONTACT: Diane Bazelides of Enron Oil & Gas Company, 713-853-6285/
 (EOG) CO: Enron Oil & Gas Company ST: Texas IN: OIL SU: ERN


PS -- NY027 -- 0277 10/15/92 09:43 EDT
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Date:Oct 15, 1992
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