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PENNZOIL REPORTS FIRST QUARTER RESULTS -- FIRST QUARTER OPERATING SHARE $0.53 VS. LOSS $0.30 -

 HOUSTON, April 28 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL) reported 1993 first quarter net income of $21.5 million, or $0.53 per share, compared to net income of $105 million, or $2.59 per share, for the same period in 1992.
 For the first quarter of 1992, Pennzoil recognized a loss from continuing operations of $12.4 million, or $0.30 per share. Items affecting first quarter 1992 results included gains of $115.7 million, or $2.85 per share, related to the adoption of FASB Statement 109 and $1.7 million, or $0.04 per share, related to discontinued operations.
 Revenues for the first quarter of 1993 were $651 million, up from 1992 first quarter revenues of $548 million.
 James L. Pate, president and chief executive officer of Pennzoil, said some of the actions taken by the company during the past year are beginning to have a positive impact on operating performance. "We have sold non-core assets, reduced or refinanced large portions of our debt, and virtually doubled the size of our oil and gas business," he said. "The combined effect of these and other efforts is beginning to improve the financial performance of Pennzoil."
 The oil and gas segment increased its operating income four-fold to $50.9 million, a result of higher natural gas prices and a substantial increase in crude oil, natural gas, and liquids production. Prices for natural gas were $0.40 higher on average than first quarter 1992 prices. The increase in production stemmed from the oil and gas properties which Pennzoil acquired from Chevron in a tax-free exchange last October.
 Operating income for the motor oil and automotive products segment also increased as a result of higher refinery and motor oil margins, increased refinery throughput, and higher volumes of motor oil sold internationally.
 Franchise operations recorded a positive quarter chiefly due to the continued improvement in company-owned store operations. This is the first quarter that positive operating results have been posted by the segment since Pennzoil completed its acquisition of all of Jiffy Lube International's common stock and initiated efforts to turnaround the fast oil change operation.
 The sulphur segment reported a loss in operating income as sulphur prices continued to drop to their lowest levels in over a decade. The price decline is attributable to reduced demand for phosphate fertilizers worldwide. Pennzoil has addressed the depressed market conditions by continuing to cut costs and improve operating efficiencies.
 The following are the unaudited results of operations for the quarter ended March 31, 1993 compared with the same period in 1992.
 PENNZOIL CO.
 (In thousands except per share amounts)
 Three months ended March 31 1993 1992
 REVENUES
 Oil and Gas $ 212681 $ 111786
 Motor Oil & Automotive Products 368656 361007
 Franchise Operations 52203 36320
 Sulphur 20167 41960
 Other 30051 31279
 Intersegment Sales (33217) (34496)
 Total Revenues $ 650541 $ 547856
 OPERATING INCOME (LOSS)
 Oil and Gas $ 50879 $ 12044
 Motor Oil & Automotive Products 19088 14628
 Franchise Operations 2388 (3294)
 Sulphur (2847) 1179
 Other 25186 22655
 Total Operating Income 94694 47212
 Corporate Administrative Expenses 15948 16484
 Interest Expenses, net 48978 57086
 Income (Loss) Before Income Tax 29768 (26358)
 Income Tax (Benefit) 8243 (14011)
 Income (Loss) From Continuing
 Operations 21525 (12347)
 Discontinued Operations
 Income from operations, net of taxes -- 1653
 Income (Loss) Before Cumulative
 Effect of Change In Accounting
 Principle 21525 (10694)
 Cumulative Effect of Change in
 Accounting Principle -- 115703
 NET INCOME 21525 105009
 EARNINGS (LOSS) PER SHARE
 Continuing Operations 0.53 (0.30)
 Discontinued Operations -- 0.04
 Cumulative Effect of Change in
 Accounting Principle -- 2.85
 TOTAL $ 0.53 $ 2.59
 AVERAGE SHARES OUTSTANDING 40736 40491
 NUMBER OF SHARES OUTSTANDING 40757 40526
 PENNZOIL COMPANY
 Operating Highlights
 Three months ended March 31 1993 1992
 OPERATING DATA
 OIL AND GAS
 Net production
 Crude oil, condensate and natural
 gas liquids (barrels per day) 64656 34294
 Natural gas produced for sale
 (Mcf per day) 681630 432889
 Weighted average prices
 Crude oil, condensate and natural
 gas liquids (per barrel) 16.20 15.80
 Natural gas (per Mcf) 1.84 1.44
 MOTOR OIL & AUTOMOTIVE PRODUCTS
 Sales (barrels per day)
 Gasoline and naphtha 25497 22442
 Distillates and gas oils 28234 30777
 Lubricating oil and other
 specialty products 22324 23149
 Residual fuel oils 2115 1838
 Total Sales (barrels per day) 78170 78206
 Raw materials processed
 (barrels per day) 58675 50868
 Refining capacity
 (barrels per day) 70700 70700
 FRANCHISE OPERATIONS
 Domestic system-wide sales (in thousands) 122813 119727
 Centers open (U.S.) 1048 1042
 SULPHUR
 Sales (in thousands of long tons) 265 466
 Average posted Tampa price (A)
 (per long ton) 86.76 98.00
 (A) -- This is a representative market price and does not necessarily reflect what is received by Pennzoil. Pennzoil's management considers the posted Tampa price to be a more consistent measure of value than other price measurements, which fluctuate with changes in delivery terms and freight rates as well as commodity values.
 -0- 4/28/93
 /CONTACT: Robert Harper of Pennzoil Co, 713-546-8536/
 (PZL)


CO: Pennzoil Co. ST: Texas IN: OIL SU: ERN

SM -- NY110 -- 2307 04/28/93 17:29 EDT
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Date:Apr 28, 1993
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