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 DENVER, Aug. 10 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) today announced that it has set new records for revenues, net income and cash flow from operations (working capital provided by operations) for the second quarter and six months ended June 30, 1993. Net income rose 30 percent over second quarter 1992 to $8.5 million, or $.27 per common share. Revenues increased 38 percent over the same period in 1992 to $173.8 million and cash flow from operations increased 22 percent to $17.9 million.
 For the six months ended June 30, 1993, net income increased 26 percent over the same period in 1992 to $18.6 million, or $.61 per common share. Revenues increased 46 percent over the same period in 1992 to $367.3 million and cash flow from operations increased 20 percent to $37.5 million.
 Average gas sales volumes increased 12 percent over second quarter 1992 to 456 MMcf/D. Average liquids sales increased 17 percent over second quarter 1992 to 2,669 MGal/D. Average gas and liquids sales for the six months ended June 30, 1993, were 505 MMcf/D and 2,725 MGal/D, respectively.
 Gas prices continued an upward trend in recent months due to tighter supply levels and increased demand. And, despite the recent decline in oil prices, liquids prices remained firm. Average gas prices increased 38 percent over second quarter 1992 to $2.02/Mcf. Average liquids prices increased 7 percent to $.33/Gal. Average gas and liquids prices for the six months ended June 30, 1993, were $1.97/Mcf and $.34 MGal, respectively.
 Western has announced several significant events in the past few months which will contribute to future profitability through expanded system throughput and consolidation of assets:
 -- The company completed the purchase of Mountain Gas Resources Inc. on July 29, 1993. The acquisition complements Western's presence in the Green River Basin and will significantly increase the company's gas and NGL production volumes.
 -- The company announced a definitive agreement to purchase a 68.9 percent working interest in the Black Lake gas processing plant and related production. The closing is expected to occur on Sept. 1, 1993, with an effective date of Jan. 1, 1993. The purchase price is approximately $156 million less an adjustment for the cash flow provided by operations between the effective date and the closing date. The purchase is subject to customary approvals required by the Hart-Scott- Rodino Act and certain preferential rights.
 -- The Katy Hub and Gas Storage Facility is near completion with operations expected to begin in the fourth quarter 1993. In conjunction with the Katy facility, the company announced the purchase of the assets of Citizens National Gas Co., a gas marketing firm with established East Coast marketing strength and Gulf Coast supplies. This acquisition expands Western's gas marketing volumes to approximately 1 BCF/day and will contribute to the overall potential of the Katy facility.
 -- In addition, Westana Gathering Co., the general partnership formed between Western and an affiliate of Panhandle Eastern to seek new business opportunities in the Anadarko Basin began operations on Aug. 1.
 Western owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids. The company is actively pursuing new investment opportunities through both acquisitions and new construction to expand its area of operations and related markets toward its goal of increasing stockholder value.
 1993 Second Quarter Earnings
 ($000s except share and per share amounts)
 Quarter Ended Six Months Ended
 June 30, Pct. June 30, Pct.
 1993 1992 change 1993 1992 change
 Revenues $173,846 $126,330 37.6 $367,324 $251,411 46.1
 Net income 8,464 6,519(a) 29.8 18,580 14,810(a) 25.5
 Earnings per
 common share .27 .23(a) 17.4 .61 .53(a) 15.1
 Cash flow from
 operations 17,890 14,700(a) 21.7 37,499 31,320(a) 19.7
 Weighted average
 common shares
 outstanding 25,603,045 25,438,906 25,585,097 25,421,789
 Average gas sales
 (MMcf/D) 456 407 12.0 505 419 20.5
 Average NGL sales
 (MGal/D) 2,669 2,279 17.1 2,725 2,224 22.5
 Average gas prices
 ($/Mcf) $2.02 $1.46 38.4 $1.97 $1.45 35.9
 Average NGL prices
 ($/Gal) $.33 $.31 6.5 $.34 $.31 9.7
 (a) The six months ended June 30, 1992, and the second quarter 1992 net income, earnings per share and cash flow from operations have been restated to account for SFAS No. 109, "Accounting for Income Taxes" which the company adopted in the fourth quarter 1992 retroactive to Jan. 1, 1992. The overall impact of this restatement was immaterial to the company's results of operations.
 -0- 8/10/93
 /CONTACT: Ron Wirth of Western Gas Resources, 800-933-5603/

CO: Western Gas Resources Inc. ST: Colorado IN: OIL SU: ERN

LM-JL -- LA012 -- 0990 08/10/93 07:30 EDT
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Publication:PR Newswire
Date:Aug 10, 1993

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