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MIDWEST RESOURCES ANNOUNCES RESULTS

 DES MOINES, Iowa, Feb. 1 /PRNewswire/ -- Midwest Resources Inc. (NYSE: MWR) today announced a decline in earnings for 1992. Earnings totalled $39.7 million, or 73 cents per average share, compared to 1991 earnings of $68.4 million, or $1.36 per average share.
 The biggest factor in the lower earnings was the decline in retail sales of electricity and natural gas due to the unusually mild weather during the first nine months of 1992 and the effects of conservation. Other factors include increased operations and maintenance costs at the Cooper Nuclear Station and asset write-offs.
 Retail sales of natural gas and electricity declined in 1992, compared to the previous year, despite an increase in the number of gas and electric customers served by Midwest Gas and Midwest Power. The combination of cool summer weather, a warm first quarter and energy efficiency programs, resulted in a 10 percent drop in electric use per residential customer and a 7 percent drop in gas use per residential customer. The estimated impact of these factors was a reduction of $18.4 million in earnings compared to 1991.
 "Electric and gas sales account for the major portion of our earnings, and sales of both fell substantially in 1992," said Russell E. Christiansen, chairman and chief executive officer. He noted that the utility operating results during the fourth quarter improved by $0.5 million over 1991 after excluding asset write-offs.
 The asset write-offs reduced 1992 net income of Midwest Capital Group by $6 million and the utility by $4 million. The Capital Group amounts were primarily related to revaluations of real estate and the utility write-offs were principally due to regulatory decisions. Earnings also reflect the discontinuance of all oil and gas exploration activities.
 Midwest Resources is a utility holding company headquartered in Des Moines. The utility subsidiary, Midwest Power Systems Inc., has two operating divisions: Midwest Power and Midwest Gas. Midwest Power provides electric service to 417,000 customers in Iowa and South Dakota. Midwest Gas served 370,000 customers in Iowa, Minnesota, Nebraska and South Dakota. Nonregulated investments are managed through Midwest Capital Group Inc.
 MIDWEST RESOURCES INC.
 (in thousands except earnings per share)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues $298,660 $268,723 $1,033,344 $1,022,188
 Net income from
 continuing operations $12,082 $16,826 $42,595 $71,702
 Loss from discontinued
 operations 2,759 3,343 2,855 3,258
 Net income 9,323 13,483 39,740 68,444
 Earnings/average common
 share (after
 discontinued
 operations) $0.17 $0.26 $0.73 $1.36
 Average shares
 outstanding 54,635 51,216 54,351 50,393
 Electric sales - mWh
 Retail 2,285 2,218 8,859 9,157
 Sales for Resale(a) 951 989 5,085 4,424
 Gas sales - MMBtu
 Retail 22,476 22,871 60,756 64,251
 Transportation 3,708 3,276 12,421 10,993
 Return on average
 common equity --- --- 5.90pct. 11.00pct.
 The following items reduced 1992 earnings compared to 1991:
 1992 Earnings Reduction
 Amount Per Share
 Reduced retail sales due
 to weather and conservation $18,441 $0.34
 Increased nuclear station operations
 and maintenance expenses 6,750 0.12
 Capital group asset write-offs
 and valuation adjustments 5,979 0.11
 Utility asset write-offs 3,982 0.07
 (a) Sales for resale are at a significantly lower margin.
 -0- 2/1/93
 /CONTACT: John McCarroll of Midwest Resources, 515-281-2785/
 (MWR)


CO: Midwest Resources Inc. ST: Iowa IN: UTI SU: ERN

BB -- DV001 -- 1322 02/01/93 11:20 EST
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Publication:PR Newswire
Date:Feb 1, 1993
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