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MCN CORPORATION REPORTS HIGHER 1992 EARNINGS

 DETROIT, Jan. 27 /PRNewswire/ -- MCN Corporation (NYSE: MCN) today reported significantly higher 1992 earnings of $57.1 million or $2.11 per share, compared to $35.1 million or $1.42 per share in 1991. The $22 million increase is a result of higher gas sales and transportation deliveries due to colder weather and market expansion, as well as a significant turnaround in the profitability of the company's nonutility operations.
 "We're pleased to see improved earnings throughout our operations, particularly our nonutility businesses which contributed nearly 10 percent of total earnings per share," said Alfred R. Glancy III, MCN Chairman, President and Chief Executive Officer.
 Utility operations' earnings were $51.4 million or $1.90 per share compared to $37 million or $1.50 per share in 1991. Glancy attributed the improved earnings to an increase in residential and small commercial gas sales, primarily resulting from colder weather and higher transportation deliveries to large commercial and industrial customers. Gas deliveries to industrial customers were up approximately 10 percent, mainly due to the price competitiveness of natural gas with coal and other fuels during 1992.
 While colder weather helped boost 1992 earnings, the weather during the year was still warmer than normal, reducing earnings by approximately $9 million, or $.32 per share. On a weather-normalized basis, MCN's earnings per share in 1992 were $2.43 compared to $1.96 in 1991.
 Nonutility operations in 1992 contributed $5.7 million or $.21 per share compared to a loss of $1.9 million or $.08 per share in 1991.
 "We believe our nonutility operations have turned the corner in comparison to mixed results in 1991 and we look forward to further growth in the earnings of these businesses," said Glancy. "Increased margins in gas marketing activities and increased profitability in our computer services operations both contributed to the turnaround."
 Earnings for the fourth quarter were $13.7 million or $.48 per share, compared to $5.1 million or $0.19 per share for the same period in 1991. The increase was due to growth in gas markets and the timing of operating expenses which had reduced 1991 fourth quarter results.
 Although the weather was similar in the fourth quarter of 1992 in comparison to 1991, warmer than normal weather in late December reduced earnings per share for the 1992 quarter approximately $.06.
 Additionally, as anticipated, higher utility earnings triggered provisions of a rate incentive mechanism whereby a portion of MichCon's 1992 earnings will be shared with customers. A reserve established to reflect this sharing reduced earnings in the fourth quarter by $5.9 million or $.21 per share.
 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 gas services, computer operations services and natural gas technology businesses.
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS (Unaudited)
 Three Months Ended
 December 31,
 1992 1991
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $449,996 $393,551
 Operating Expenses ...................... 418,845 372,589
 Operating Income (Loss)
 Utility Services....................... 27,363 18,159
 Gas Services........................... 3,776 2,618
 Computer Operations Services .......... 776 1,031
 Other ................................. (764) (846)
 Total ............................. 31,151 20,962
 Other Income and (Deductions) ........... (11,757) (12,280)
 Income Before Income Taxes............... 19,394 8,682
 Income Tax Provision .................... 5,685 3,576
 Net Income .............................. $ 13,709 $ 5,106
 Earnings (Loss) Per Share
 Utility Services....................... $ .41 $ .14
 Nonutility Services.................... .07 .05
 Total ............................... $ .48 $ .19
 Average Common Shares Outstanding ....... 28,583 26,328
 Dividends Paid Per Share ................ $ .42 $ .41
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 96,833 87,160
 End User Transportation .............. 35,141 34,556
 Intermediate Transportation (2) ...... 60,163 32,561
 Total .............................. 192,137 154,277
 Nonutility Services:
 Gas Sales ............................ 8,606 3,351
 Transportation ....................... 5,942 6,172
 Total .............................. 14,548 9,523
 Total Utility and Nonutility ........... 206,685 163,800
 Less Intercompany Transactions ......... 10,682 3,335
 Total .................................. 196,003 160,465
 Effect of Weather
 Degree Days ............................ 2,317 2,271
 Percent Colder (Warmer) than Normal .... (2.3) (4.3)
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (1,980) (2,166)
 Net Income ............................ $ (1,707) $(1,765)
 Earnings Per Share .................... $ (.06) $ (.07)
 MMcf - million cubic feet
 Notes: (1) Gas sales by MCN's marketing subsidiaries transported directly to customers by MichCon are included as both sales and transportation volumes.
 (2) Intermediate Transportation represents gas delivery service for Michigan gas producers, brokerage companies and other gas companies who own the natural gas but are not the ultimate consumers.
 MCN CORPORATION AND SUBSIDIARIES
 NEWS RELEASE STATISTICS (Unaudited)
 Twelve Months Ended
 December 31,
 1992 1991
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $1,438,280 $1,276,279
 Operating Expenses ...................... 1,312,787 1,177,638
 Operating Income (Loss)
 Utility Services....................... 110,044 92,685
 Gas Services........................... 13,585 8,996
 Computer Operations Services .......... 4,749 1,887
 Other ................................. (2,885) (4,927)
 Total ............................. 125,493 98,641
 Other Income and (Deductions) ........... (39,296) (44,485)
 Income Before Income Taxes............... 86,197 54,156
 Income Tax Provision .................... 29,079 19,078
 Net Income .............................. $ 57,118 $ 35,078
 Earnings (Loss) Per Share
 Utility Services....................... $ 1.90 $ 1.50
 Nonutility Services.................... .21 (.08)
 Total ............................... $ 2.11 $ 1.42
 Average Common Shares Outstanding ....... 27,108 24,693
 Dividends Paid Per Share ................ $ 1.65 $ 1.64
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 312,398 275,264
 End User Transportation .............. 129,722 119,846
 Intermediate Transportation (2) ...... 183,978 105,496
 Total .............................. 626,098 500,606
 Nonutility Services:
 Gas Sales ............................ 14,771 14,252
 Transportation ....................... 25,382 25,335
 Total .............................. 40,153 39,587
 Total Utility and Nonutility ........... 666,251 540,193
 Less Intercompany Transactions ......... 18,612 7,287
 Total .................................. 647,639 532,906
 Effect of Weather
 Degree Days ............................ 6,607 6,092
 Percent Colder (Warmer) than Normal .... (3.7) (10.7)
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (10,218) (17,110)
 Net Income ............................ $ (8,728) $ (13,268)
 Earnings Per Share .................... $ (.32) $ (.54)
 MMcf - million cubic feet
 Notes: (1) Gas sales by MCN's marketing subsidiaries transported directly to customers by MichCon are included as both sales and transportation volumes.
 (2) Intermediate Transportation represents gas delivery service for Michigan gas producers, brokerage companies and other gas companies who own the natural gas but are not the ultimate consumers.
 -0- 1/27/93
 /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 OIL SU: ERN

KE-JG -- DE014 -- 9594 01/27/93 11:24 EST
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