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ENRON OIL & GAS REPORTS 87 PERCENT EARNINGS INCREASE TO $22.3 MILLION OR $.29 PER SHARE IN FIRST QUARTER OF 1992

 ENRON OIL & GAS REPORTS 87 PERCENT EARNINGS INCREASE TO
 $22.3 MILLION OR $.29 PER SHARE IN FIRST QUARTER OF 1992
 HOUSTON, April 14 /PRNewswire/ -- Enron Oil & Gas Company (EOG) (NYSE: EOG) today reported net income of $22.3 million, up 87 percent over the previous year, or 29 cents per share for the first quarter of 1992. The company reported net income of $11.9 million, or 16 cents per share, for the same period a year ago. Discretionary cash flow continued very strong at $69.6 million in the first quarter of 1992, compared to $61.0 million a year ago.
 "We are very pleased with these earnings and cash flow increases even though average wellhead natural gas prices were significantly lower," said Forrest E. Hoglund, chairman, president and CEO of Enron Oil & Gas. "Net operating revenues were $98.6 million in the first quarter of 1992 compared to $95.9 million for the same period in 1991."
 EOG's wellhead natural gas sales volumes averaged 535 million cubic feet per day (MMcf/d) in the first quarter of 1992, a 10 percent increase compared to 486 MMcf/d a year ago.
 "The wellhead natural gas sales volumes are particularly noteworthy considering that we curtailed sales as much as 25 percent due to lower than acceptable prices during portions of the quarter," Hoglund said.
 Average wellhead natural gas sales prices declined 12 percent, averaging $1.23 per thousand cubic feet (Mcf) in the first quarter of 1992 compared to $1.39 per Mcf a year ago. Wellhead crude oil and condensate prices averaged $16.17 per barrel during the current quarter versus $19.51 per barrel for the comparable period in 1991, a decline of 17 percent.
 "Our portfolio of other marketing activities, including sales and purchases of natural gas under both long-term and short-term arrangements and the use of natural gas and crude oil futures transactions, continues to provide an effective balance in managing the company's exposure to price risks in the energy market," Hoglund noted. "During the quarter, these activities added $24.5 million to net operating revenues compared to $18.9 million for the same period in 1991."
 Total operating expenses of $77.7 million for the first quarter of 1992 were essentially flat with the $76.8 million incurred in the first quarter of 1991. Included in the first quarter of 1992 are certain costs associated with the company's decision to discontinue exploration activities in certain areas outside of North America, including Egypt and Syria. The increased costs associated with international exploration activities were partially offset by reductions in compensation accruals.
 "We are continuing to achieve significant improvement on a per equivalent unit of production basis in our cost of operations, excluding exploration related items," Hoglund added. "For the first quarter of 1992, these costs were down $.18/Mcfe compared to the full year 1991, for a total reduction in comparable costs of $.58/Mcfe since 1989. Depreciation, depletion and amortization expense was $.74/Mcfe in the first quarter of 1992 compared to an average of $.81/Mcfe in full year 1991."
 Interest expense of $6.2 million decreased about 30 percent during the first quarter from $8.8 million for the same period in 1991. With interest rate swaps effective in January, EOG locked in interest rates for the year at 4.9 percent for the equivalent of $225 million of its floating rate debt.
 Net income for the first quarter of 1992 benefited significantly from the recognition of a $12.8 million portion of total tight gas sand federal income tax credits estimated to be realized during the year. The first quarter of 1991 included a benefit of approximately $5.3 million associated with net operating loss and tight gas sand federal income tax credit utilization.
 At the end of the first quarter, EOG had tight gas sand sales in excess of 180 MMcf/d. The company is currently on schedule with plans to drill at least 170 net tight gas sand wells in 1992, which should result in average tight gas sand sales this year of approximately 200 MMcf/d. The federal income tax credit on 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 of more than $40 million for EOG in 1992.
 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- 4/14/92
 /CONTACT: Diane Bazelides of Enron Oil & Gas, 713-853-6285/
 (EOG) CO: Enron Oil & Gas Company ST: Texas IN: OIL SU: ERN


SH -- NY012 -- 8068 04/14/92 08:46 EDT
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Date:Apr 14, 1992
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