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MCN CORPORATION REPORTS 1991 EARNINGS

 MCN CORPORATION REPORTS 1991 EARNINGS
 DETROIT, Feb. 6 /PRNewswire/ -- MCN Corporation (NYSE: MCN) today


reported 1991 earnings of $35.1 million or $1.42 per share, compared to $32.3 million or $1.38 per share in 1990. The $2.8 million increase in the annual earnings reflects a $6.5 million improvement in utility operations, partially offset by lower earnings in the company's non-utility operations.
 Slightly colder weather and gains in gas markets were the primary reasons for the improvement in utility earnings, according to MCN Chairman and CEO Alfred R. Glancy III. "However, weather in 1991 was still 11 percent warmer than normal, reducing earnings by about $13.3 million from normal weather levels. If weather had been normal, 1991 earnings would have been roughly $48 million or $1.95 per share," said Glancy.
 Added Glancy, "The strong earning power of our company remains intact. Although the weather has not cooperated in the last two years, we are continuing to aggressively market natural gas to new customers and businesses using coal and other fuels."
 Non-utility earnings were down mainly because of losses from gas marketing activities and two one-time income items which had boosted 1990 earnings for non-utility operations by about $3 million. This decline was partially offset by strong operating profits in the company's Saginaw Bay Pipeline unit which completed its first full year of operations in 1991.
 "With the restructuring of the company's natural gas technology business in the third quarter and continued growth in the energy services and computer processing businesses, non-utility operations should make a meaningful contribution to earnings in 1992," Glancy said.
 Earnings for the quarter ended Dec. 31, 1991, were $5.1 million or $0.19 per share, compared to $10.5 million or $0.44 per share for the same period in 1990.
 According to Glancy, "Fourth-quarter results were not truly indicative of a normal fourth quarter." He added, "The decrease in fourth-quarter earnings was primarily due to the difference in timing of utility operating expenses between the two fourth-quarter periods and to the one-time income items in 1990 non-utility operations."
 MCN Corporation is the holding company for Michigan Consolidated Gas Company, a natural gas distribution, transmission and storage company serving more than 1 million customers in 465 communities throughout Michigan; for Citizens Gas Fuel Company, a Michigan gas utility; and for MCN Investment Corporation, which owns subsidiaries in the energy services, computer processing services and natural gas technology businesses.
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS
 (Unaudited)
 Three Months Ended
 Dec. 31,
 1991 1990
 (Thousands Except Per-Share Amounts)
 Operating Revenues $393,551 $389,199
 Operating Expenses 372,589 367,079
 Operating Income 20,962 22,120
 Other Income and (Deductions) (12,280) (8,052)
 Income Before Income Taxes 8,682 14,068
 Income Taxes 3,576 3,593
 Net Income $5,106 $10,475
 Earnings Per Share $.19 $.44
 Average Common Shares Outstanding 26,328 23,930
 Dividends Declared Per Share $.41 $.41
 Gas Markets (MMcf)(1)(2)
 Utility Operations:
 Gas Sales 87,160 82,347
 Transportation - end users 34,556 31,370
 Transportation - other 32,561 17,974
 Total 154,277 131,691
 Non-utility Operations:
 Gas Sales 3,351 5,183
 Transportation - other 6,172 ---
 Total 9,523 5,183
 Total Utility and Non-utility 163,800 136,874
 Less Intercompany Transactions(3) 3,335 258
 Total 160,465 136,616
 Effect of Weather:
 Degree Days 2,271 2,134
 Percent Warmer Than Normal (4.3 pct) (10.0 pct)
 Decrease From Normal In:
 Gas Markets (MMcf) (2,166) (5,716)
 Net Income ($1,765) ($4,190)
 Earnings Per Share ($.07) ($.18)
 Twelve Months Ended
 Dec. 31,
 1991 1990
 (Thousands Except Per-Share Amounts)
 Operating Revenues $1,276,279 $1,209,339
 Operating Expenses 1,177,638 1,124,375
 Operating Income 98,641 84,964
 Other Income and (Deductions) (44,485) (34,886)
 Income Before Income Taxes 54,156 50,078
 Income Taxes 19,078 17,742
 Net Income $35,078 $32,336
 Earnings Per Share $1.42 $1.38
 Average Common Shares Outstanding 24,693 23,516
 Dividends Declared Per Share $1.64 $1.59125
 Gas Markets (MMcf)(1)(2)
 Utility Operations:
 Gas Sales 275,264 255,004
 Transportation - end users 119,846 111,373
 Transportation - other 105,496 73,330
 Total 500,606 439,707
 Non-utility Operations:
 Gas Sales 14,252 9,727
 Transportation - other 25,335 ---
 Total 39,587 9,727
 Total Utility and Non-utility 540,193 449,434
 Less Intercompany Transactions(3) 7,287 2,374
 Total 532,906 447,060
 Effect of Weather:
 Degree Days 6,092 5,967
 Percent Warmer Than Normal (10.7 pct) (12.5 pct)
 Decrease From Normal In:
 Gas Markets (MMcf) (17,110) (21,369)
 Net Income ($13,268) ($15,623)
 Earnings Per Share ($.54) ($.66)
 NOTES:
 MMcf -- million cubic feet.
 (1) -- Gas sales by MCN's marketing subsidiaries that are transported directly to customers by MichCon are included as both sales and transportation volumes.
 (2) -- Transportation volumes associated with transmission services to producers are included in Transportation-other.
 (3) -- Represents intercompany transactions which do not impact consolidated operating income.
 -0- 2/6/92
 /CONTACT: (Media) Karen Fontanive, 313-256-5093, or (Analysts) Sebastian Coppola, 313-256-6324, both of MCN Corporation/
 (MCN) CO: MCN Corporation ST: Michigan IN: UTI SU: ERN


JG-SM -- DE011 -- 7776 02/06/92 13:35 EST
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