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PENNZOIL REPORTS SECOND QUARTER RESULTS

 HOUSTON, July 21 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL) reported 1993 second quarter net income of $29.5 million, or $0.72 per share, compared to net income of $10.9 million, or $0.27 per share, for the same period in 1992. Revenues for the quarter were $685.2 million versus $588.7 million for the same period last year.
 Net income for the second quarter of 1993 includes an extraordinary charge of $4.7 million, or $0.12 per share, reflecting costs associated with the early retirement of high coupon debt.
 For the six month period ended June 30, 1993, the company reported net income of $51.0 million, or $1.25 per share. This compares to net income of $115.9 million, or $2.86 per share, for the 1992 period. Results for the six months ended June 30, 1992, included an increase in net income of $115.7 million, or $2.85 per share, related to the adoption of SFAS No. 109, "Accounting For Income Taxes."
 "The oil and gas segment more than doubled its operating income during the second quarter, primarily from increased crude oil, natural gas, and liquids production and higher natural gas prices, up $0.64 per Mcf," said James L. Pate, president and chief executive officer. "The increase in production resulted from the oil and gas properties acquired from Chevron Corp. in a stock exchange transaction last October."
 During the second quarter, operating income for the motor oil and automotive products segment increased as a result of higher motor oil and specialty product margins. Also contributing to improved operating income were higher volumes of consumer, specialty, and other products.
 "Franchise operations showed significant improvement over the same quarter a year ago, though a small loss in operating income was reported. The improved performance for Jiffy Lube was attributed to lower selling, general and administrative expenses and higher operating income from company-owned stores.
 "The sulphur segment reported a loss in operating income due to lower sulphur prices (down $15 per long ton from the same period a year ago) and lower sales volumes resulting from weakened demand for phosphate fertilizers world-wide. These factors were partially offset by lower production costs."
 The following are the unaudited results of operations for the quarter and six months ended June 30, 1993 compared with the same periods in 1992.
 Three months ended June 30, 1993 1992
 (Expressed in thousands except per share amounts)
 REVENUES
 Oil and Gas $ 232,127 $ 117,959
 Motor Oil & Automotive
 Products 403,169 395,303
 Franchise Operations 53,399 40,690
 Sulphur 17,467 45,197
 Other 18,372 28,532
 Intersegment Sales (39,357) (39,019)
 --------- ---------
 Total Revenues $ 685,177 $ 588,662
 OPERATING INCOME (LOSS)
 Oil and Gas $ 68,399 $ 26,280
 Motor Oil & Automotive
 Products 29,406 26,318
 Franchise Operations (174) (3,602)
 Sulphur (2,779) (1,615)
 Other 19,145 23,102
 --------- ---------
 Total Operating Income 113,997 73,713
 Corporate Administrative
 Expenses 16,933 16,379
 Interest Expenses, net 47,014 55,650
 Income (Loss) Before Income
 Tax 50,050 1,684
 Income Tax (Benefit) 15,811 (6,013)
 Income (Loss) From Continuing
 Operations 34,239 7,697
 Discontinued Operations
 Income from operations,
 net of taxes -- 3,176
 Income Before Extraordinary Item
 and Cumulative Effect of Change in
 Accounting Principle 34,239 10,873
 Extraordinary Item (4,724) --
 Cumulative Effect of Change in
 Accounting Principle -- --
 --------- ---------
 NET INCOME $ 29,515 $ 10,873
 EARNINGS (LOSS) PER SHARE
 Continuing Operations $ 0.84 $ 0.19
 Discontinued Operations -- 0.08
 Extraordinary Item (0.12) --
 Cumulative Effect of Change in
 Accounting Principle -- --
 TOTAL $ 0.72 $ 0.27
 AVERAGE SHARES OUTSTANDING 40,776 40,554
 NUMBER OF SHARES OUTSTANDING 40,796 40,581
 Six months ended June 30, 1993 1992
 (Expressed in thousands except per share amounts)
 REVENUES
 Oil and Gas $ 444,808 $ 229,745
 Motor Oil & Automotive
 Products 771,825 756,310
 Franchise Operations 105,602 77,010
 Sulphur 37,634 87,157
 Other 48,423 59,811
 Intersegment Sales (72,574) (73,515)
 --------- ---------
 Total Revenues $1,335,718 $1,136,518
 OPERATING INCOME (LOSS)
 Oil and Gas $ 119,278 $ 38,324
 Motor Oil & Automotive
 Products 48,494 40,946
 Franchise Operations 2,214 (6,896)
 Sulphur (5,626) 2,794
 Other 44,331 45,757
 --------- ---------
 Total Operating Income 208,691 120,925
 Corporate Administrative
 Expenses 32,881 32,863
 Interest Expenses, net 95,992 112,736
 Income (Loss) Before Income
 Tax 79,818 (24,674)
 Income Tax (Benefit) 24,054 (20,024)
 Income (Loss) From Continuing
 Operations 55,764 (4,650)
 Discontinued Operations
 Income from operations,
 net of taxes -- 4,829
 Income Before Extraordinary Item
 and Cumulative Effect of Change in
 Accounting Principle 55,764 179
 Extraordinary Item (4,724) --
 Cumulative Effect of Change in
 Accounting Principle -- 115,703
 NET INCOME $ 51,040 $ 115,882
 EARNINGS (LOSS) PER SHARE
 Continuing Operations $ 1.37 $ (0.11)
 Discontinued Operations -- 0.12
 Extraordinary Item (0.12) --
 Cumulative Effect of Change in
 Accounting Principle -- 2.85
 TOTAL $ 1.25 $ 2.86
 AVERAGE SHARES OUTSTANDING 40,756 40,522
 NUMBER OF SHARES OUTSTANDING 40,796 40,581
 PENNZOIL COMPANY
 OPERATING HIGHLIGHTS
 (Unaudited)
 Three Months Ended June 30, 1993 1992
 OPERATING DATA
 OIL AND GAS
 Net production
 Crude oil, condensate and natural
 gas liquids (barrels per day) 61,945 34,403
 Natural gas produced for sale
 (Mcf per day) 672,043 402,294
 Weighted average prices
 Crude oil, condensate and natural
 gas liquids (per barrel) $ 16.42 $ 17.14
 Natural gas (per Mcf) $ 2.16 $ 1.52
 MOTOR OIL & AUTOMOTIVE PRODUCTS
 Sales (barrels per day)
 Gasoline and naphtha 25,857 24,145
 Distillates and gas oils 31,450 29,299
 Lubricating oil and other
 specialty products 24,135 24,094
 Residual fuel oils 2,490 1,351
 ------- --------
 Total Sales (barrels per day) 83,932 78,889
 Raw materials processed
 (barrels per day) 63,336 59,862
 Refining capacity
 (barrels per day) 70,700 70,700
 FRANCHISE OPERATIONS
 Domestic system-wide sales (in thousands) $135,464 $ 127,425
 Centers open (U.S.) 1,058 1,042
 SULPHUR
 Sales (in thousands of long tons) 240 517
 Average posted Tampa price (A)
 (per long ton) $ 83.00 $ 98.00
 PENNZOIL COMPANY
 OPERATING HIGHLIGHTS
 (Unaudited)
 Six Months Ended June 30, 1993 1992
 OPERATING DATA
 OIL AND GAS
 Net production
 Crude oil, condensate and natural
 gas liquids (barrels per day) 63,293 34,349
 Natural gas produced for sale
 (Mcf per day) 676,810 417,591
 Weighted average prices
 Crude oil, condensate and natural
 gas liquids (per barrel) $ 16.31 $ 16.47
 Natural gas (per Mcf) $ 2.00 $ 1.48
 MOTOR OIL & AUTOMOTIVE PRODUCTS
 Sales (barrels per day)
 Gasoline and naphtha 25,678 23,293
 Distillates and gas oils 29,851 30,038
 Lubricating oil and other
 specialty products 23,235 23,622
 Residual fuel oils 2,303 1,595
 ------- --------
 Total Sales (barrels per day) 81,067 78,548
 Raw materials processed
 (barrels per day) 61,018 55,365
 Refining capacity
 (barrels per day) 70,700 70,700
 FRANCHISE OPERATIONS
 Domestic system-wide sales (in thousands) $258,277 $ 247,152
 Centers open (U.S.) 1,058 1,042
 SULPHUR
 Sales (in thousands of long tons) 505 983
 Average posted Tampa price (A)
 (per long ton) $ 85.00 $ 98.00


(A) This is a representative market price and does not necessarily effect 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- 7/21/93
 /CONTACT: Robert Harper of Pennzoil Co., 713-546-8536/
 (PZL)


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

SH -- NY084 -- 4078 07/21/93 15:20 EDT
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Date:Jul 21, 1993
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