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MCN CORPORATION REPORTS SECOND QUARTER PROFIT

 DETROIT, July 22 /PRNewswire/ -- MCN Corporation (NYSE: MCN) today reported second quarter 1993 earnings of $1.9 million or $.07 per share. During last year's second quarter, MCN earned $1.5 million or $.06 per share. For the six months ended June 30, 1993, MCN's earnings were $56.0 million or $1.92 per share, compared to earnings of $58.6 million or $2.21 per share for the first half of 1992.
 MCN Chairman, President and Chief Executive Officer Alfred R. Glancy III said, "We're gratified with the modest increase in earnings for the quarter, despite warmer weather, which had the effect of lowering earnings approximately $1 million when comparing the two quarterly periods." He attributed the improvement in second quarter earnings to contributions from nonutility operations, particularly from the April 1993 start-up of the Blue Lake Storage field.
 Glancy noted that the $2.6 million year-to-date decrease in earnings was primarily due to lower profits in nonutility gas marketing operations. He added that earnings per share of the 1993 year-to-date period were also affected by the ten percent increase in common shares outstanding.
 Utility Services
 In discussing results of the company's major business segments, Glancy noted that utility services reported earnings of $1.6 million in 1993's second quarter, approximately the same as the previous year. While operating income declined due to lower sales, it was offset by lower interest costs and other income items.
 Year-to-date utility earnings of $54.9 million were up $2.3 million from the first six months of 1992. Glancy said that although operating income was down for the six month period, primarily due to the timing of expenses related to refund obligations for over-collection of gas supply realignment costs, these expenses were more than offset by higher sales from colder weather, lower interest costs and other income.
 Nonutility Services
 Nonutility operations had earnings of $.3 million for the second quarter of 1993 and $1.1 million through the first half of 1993, an increase of $.4 million and a decline of $4.9 million, respectively, from comparable periods last year.
 According to Glancy, the decline in nonutility earnings for the six months ended June 30 was mostly due to lower profits in gas marketing operations which were adversely affected by a sharp increase in spot market gas costs during the first half of the year.
 Lower profits in the computer services business, due to the loss of two customers in the later part of 1992, also contributed to the decline. Glancy added that since the beginning of 1993 the company has signed a number of new clients, accounting for more than $12 million in annual revenues, more than offsetting the lost revenue and setting the stage for increased profitability in the second half of 1993.
 For the 12 months ended June 30, 1993, MCN's earnings were $54.5 million, or $1.92 per share, versus $42.3 million, or $1.63 per share, for the prior 12-month period. The improvement is the result of higher sales and margins in utility operations and higher earnings from the nonutility group.
 Glancy noted that results of the two major business segments for all current and prior periods reflect the recently announced reorganization and consolidation of MCN's nonregulated gas marketing activities under the nonutility business group.
 Outlook
 "I am confident," Glancy said, "that results from our nonutility businesses will continue to improve as the year progresses. Barring any major surprises from the weather later in the year, we anticipate 1993 will be another strong, if not record, year."
 MCN Corporation is the holding company for Michigan Consolidated Gas Company, a natural gas distribution, transmission and storage company serving 1.1 million customers in more than 500 communities throughout Michigan; for Citizens Gas Fuel Company, a Michigan natural 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
 June 30,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $287,526 $268,494
 Operating Expenses ...................... 280,532 256,665
 Operating Income (Loss) (1)
 Utility Services....................... 7,306 10,865
 Gas Services........................... 102 (257)
 Computer Operations Services .......... 981 2,055
 Other ................................. (1,395) (834)
 Total ............................. 6,994 11,829
 Other Income and (Deductions) ........... (4,457) (8,282)
 Income Before Income Taxes............... 2,537 3,547
 Income Tax Provision .................... 599 2,013
 Net Income .............................. $ 1,938 $ 1,534
 Earnings Per Share (1)
 Utility Services....................... $ .06 $ .06
 Nonutility Services.................... .01 ---
 Total ............................... $ .07 $ .06
 Average Common Shares Outstanding ....... 29,280 26,614
 Dividends Paid Per Share ................ $ .42 $ .41
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 30,854 33,669
 End User Transportation .............. 27,230 29,235
 Intermediate Transportation (2) ...... 60,252 40,522
 Total .............................. 118,336 103,426
 Nonutility Services:
 Gas Sales ............................ 28,688 24,976
 Transportation ....................... 5,245 6,814
 Total .............................. 33,933 31,790
 Total Utility and Nonutility ........... 152,269 135,216
 Less Intercompany Transactions ......... 2,749 580
 Total .................................. 149,520 134,636
 Effect of Weather
 Degree Days ............................ 838 933
 Percent Colder (Warmer) than Normal .... (5.0) pct 6.5 pct
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (876) 658
 Net Income ............................ $ (802) $ 491
 Earnings Per Share .................... $ (.03) $ .02
 MMcf - million cubic feet
 Note: (1) In June 1993, MCN consolidated its gas marketing activities by transferring its utility gas brokering business to nonutility operations. Earnings and Gas Markets are presented as though the consolidated gas marketing business was part of nonutility operations throughout all periods presented.
 Note: (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)
 Six Months Ended
 June 30,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $844,264 $803,346
 Operating Expenses ...................... 746,630 693,447
 Operating Income (Loss) (1)
 Utility Services....................... 96,334 98,350
 Gas Services........................... 2,676 9,829
 Computer Operations Services .......... 1,188 3,172
 Other ................................. (2,564) (1,452)
 Total ............................. 97,634 109,899
 Other Income and (Deductions) ........... (13,009) (18,531)
 Income Before Income Taxes............... 84,625 91,368
 Income Tax Provision .................... 28,643 32,800
 Net Income .............................. $ 55,982 $ 58,568
 Earnings Per Share (1)
 Utility Services....................... $ 1.88 $ 1.98
 Nonutility Services.................... .04 .23
 Total ............................... $ 1.92 $ 2.21
 Average Common Shares Outstanding ....... 29,227 26,536
 Dividends Paid Per Share ................ $ .84 $ .82
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 123,801 121,658
 End User Transportation .............. 68,364 68,647
 Intermediate Transportation (2) ...... 135,943 69,522
 Total .............................. 328,108 259,827
 Nonutility Services:
 Gas Sales ............................ 67,811 56,584
 Transportation ....................... 10,945 12,959
 Total .............................. 78,756 69,543
 Total Utility and Nonutility ........... 406,864 329,370
 Less Intercompany Transactions ......... 10,218 2,657
 Total .................................. 396,646 326,713
 Effect of Weather
 Degree Days ............................ 4,131 4,040
 Percent Colder (Warmer) than Normal .... (3.8) pct (6.7) pct
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (4,147) (8,766)
 Net Income ............................ $ (3,627) $(7,456)
 Earnings Per Share .................... $ (.12) $ (.28)
 MMcf - million cubic feet
 Note: (1) In June 1993, MCN consolidated its gas marketing activities by transferring its utility gas brokering business to nonutility operations. Earnings and Gas Markets are presented as though the consolidated gas marketing business was part of nonutility operations throughout all periods presented.
 Note: (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
 June 30,
 1993 1992
 (Thousands Except
 Per Share Amounts)
 Operating Revenues ...................... $1,479,198 $1,349,301
 Operating Expenses ...................... 1,365,970 1,238,744
 Operating Income (Loss) (1)
 Utility Services....................... 105,906 102,217
 Gas Services........................... 8,554 6,034
 Computer Operations Services .......... 2,765 5,336
 Other ................................. (3,997) (3,030)
 Total ............................. 113,228 110,557
 Other Income and (Deductions) ........... (33,774) (41,761)
 Income Before Income Taxes............... 79,454 68,796
 Income Tax Provision .................... 24,922 26,540
 Net Income .............................. $ 54,532 $ 42,256
 Earnings Per Share (1)
 Utility Services....................... $ 1.82 $ 1.57
 Nonutility Services.................... .10 .06
 Total ............................... $ 1.92 $ 1.63
 Average Common Shares Outstanding ....... 28,444 25,957
 Dividends Paid Per Share ................ $ 1.67 $ 1.64
 Gas Markets (MMcf) (1)
 Utility Services:
 Gas Sales ............................ 205,253 199,366
 End User Transportation .............. 129,439 128,046
 Intermediate Transportation (2) ...... 250,399 135,624
 Total .............................. 585,091 463,036
 Nonutility Services:
 Gas Sales ............................ 123,490 103,317
 Transportation ....................... 23,368 24,954
 Total .............................. 146,858 128,271
 Total Utility and Nonutility ........... 731,949 591,307
 Less Intercompany Transactions ......... 14,377 3,359
 Total .................................. 717,572 587,948
 Effect of Weather
 Degree Days ............................ 6,698 6,497
 Percent Colder (Warmer) than Normal .... (1.9) pct (5.2) pct
 Increase (Decrease) from Normal in:
 Gas Markets (MMcf) .................... (5,599) (10,446)
 Net Income ............................ $ (4,899) $ (8,838)
 Earnings Per Share .................... $ (.17) $ (.34)
 MMcf - million cubic feet
 Note: (1) In June 1993, MCN consolidated its gas marketing activities by transferring its utility gas brokering business to nonutility operations. Earnings and Gas Markets are presented as though the consolidated gas marketing business was part of nonutility operations throughout all periods presented.
 Note: (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- 7/22/93
 /CONTACT: (Security Analysts) Sebastian Coppola, 313-256-6324, or (News Media) David Coulter, 313-256-5986, both of MCN Corporation/
 (MCN)


CO: MCN Corporation ST: Michigan IN: UTI OIL SU: ERN

SM-SB -- DE020 -- 4658 07/22/93 14:34 EDT
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