WILKES-BARRE, Pa., Nov. 5 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today reported a seasonal net loss of $2.4 million or
24 cents per share for the quarter ended September 30, 1997, compared to a
loss of $4.1 million or 43 cents per share for the same period in 1996.  The
third quarter of 1996 included a $1.1 million (11 cents a share) extraordinary
charge from the defeasance of PEI's 10.125% Senior Notes and a 1 cent per
share premium on the repurchase of preferred stock by PG Energy, PEI's utility
subsidiary.
    The improvement in third quarter earnings was primarily the result of
increased gas operating revenues from both the regulated and nonregulated
subsidiaries of the Company and PG Energy's base rate increase that became
effective earlier this year.  The increased gas sales to residential and
commercial customers were due to the addition of over 4,200 new gas customers
and colder temperatures during the third quarter of 1997 compared to the same
period last year.
    Total operating revenues increased by $4.9 million to $24.2 million.
PG Energy and its subsidiary, Honesdale Gas Company, had combined operating
revenues of $16.3 million, a 16% increase over last year's third quarter.
PG Energy Services, a nonregulated subsidiary of PEI, contributed gas
operating revenues of $4.5 million, a 104% increase over the same period in
1996.
    In September, PG Energy Services announced a retail marketing alliance
with CNG Energy Services to market electricity in 26 counties in eastern
Pennsylvania.  CNG Energy Services is one of the nation's largest wholesale
power marketers and a subsidiary of Consolidated Natural Gas Company of
Pittsburgh.  The alliance, doing business as PG Energy PowerPlus, is competing
with other electric generation suppliers in the customer choice pilot programs
being offered to 5% of Pennsylvania's electric consumers.
    PEI recently signed an agreement to acquire an electric cogeneration
facility in Archbald, Pennsylvania.  A new subsidiary, named PEI Power
Corporation, will own the facility and oversee the conversion of the facility
from burning anthracite culm to burning natural gas.
    PEI is a holding company with regulated and non-regulated subsidiaries.
The regulated group consists of PG Energy and its subsidiary, Honesdale Gas
Company, which together provide natural gas to approximately 148,000 customers
in 13 counties in northeastern and central Pennsylvania.  The non-regulated
group consists of PEI Power Corporation, Theta Land Corporation and PG Energy
Services and its subsidiary, Keystone Pipeline Services, Inc.
    PEI news releases are available 24 hours a day by fax machine or by
visiting the Company website on http://www.pnt.com.  To receive a fax copy of
PEI's news releases call 1-800-758-5804 on a touch tone phone and use PEI's
ID No. 684209.  Follow the prompted instructions to receive a copy of PEI's
most recent news release or a menu of PEI's latest news releases.  Company
news will be faxed immediately without charge.

                        PENNSYLVANIA ENTERPRISES, INC.
                       SUMMARY OF REVENUES AND EARNINGS
                                      Three Months Ended    Nine Months Ended
                                         September 30          September 30
                                      1997       1996        1997       1996
                                     (in thousands, except per share amounts)
    OPERATING REVENUES:
     Regulated                     $16,276    $13,998    $129,425   $108,870
     Nonregulated-
      Gas sales and services         4,523      2,210      17,889      7,086
      Pipeline construction
       and services                  3,344      3,095       8,124      7,634
      Other                             66         51         126        108
       Total operating revenues    $24,209    $19,354    $155,564   $123,698

    INCOME (LOSS) FROM CONTINUING
     OPERATIONS NET OF SUBSIDIARY'S
     PREFERRED STOCK DIVIDENDS     $(2,367)   $(2,940)     $5,836     $3,942

    INCOME (LOSS) WITH RESPECT TO
     DISCONTINUED OPERATIONS           ---        ---         ---       (386)

    EXTRAORDINARY LOSS (NET OF TAX
     BENEFIT OF $575,000)              ---     (1,117)        ---     (1,117)

    NET INCOME (LOSS)              $(2,367)   $(4,057)     $5,836     $2,439

    COMMON STOCK (See note)
     EARNINGS (LOSS) PER SHARE OF COMMON STOCK:
      Continuing operations         $(0.24)    $(0.31)     $0.61       $0.38
      Discontinued operations          ---        ---         ---      (0.04)
      Net income (loss) before premium
       on repurchase/redemption of
       subsidiary's preferred stock
       and extraordinary loss        (0.24)     (0.31)      0.61        0.34
      Discount (premium) on
       repurchase/redemption of
       subsidiary's preferred stock    ---      (0.01)      0.08       (0.13)
      Extraordinary loss               ---      (0.11)       ---       (0.11)
      Earnings (loss) per
       share of common stock        $(0.24)    $(0.43)     $0.69       $0.10

    WEIGHTED AVERAGE NUMBER OF
     SHARES OUTSTANDING          9,669,614  9,621,126   9,643,088 10,428,032

                                                        Twelve Months Ended
                                                            September 30
                                                        1997           1996
                    (in thousands, except per share amounts)
    OPERATING REVENUES:
     Regulated                                      $181,149       $156,086
     Nonregulated-
      Gas sales and services                          23,827          9,175
      Pipeline construction and services              11,228          8,392
      Other                                              145            163
       Total operating revenues                     $216,349       $173,816

    INCOME (LOSS) FROM CONTINUING OPERATIONS NET OF
     SUBSIDIARY'S PREFERRED STOCK DIVIDENDS           $9,963         $7,687

    INCOME (LOSS) WITH RESPECT TO DISCONTINUED OPERATIONS 17           (516)

    EXTRAORDINARY LOSS (NET OF TAX BENEFIT OF $575,000)  ---         (1,117)

    NET INCOME (LOSS)                                  $9,98O        $6,054

    COMMON STOCK (See note)
     EARNINGS (LOSS) PER SHARE OF COMMON STOCK:
      Continuing operations                           $1.04          $0.72
      Discontinued operations                            ---         (0.05)
      Net income (loss) before premium on
       repurchase/redemption of subsidiary's
       preferred stock and extraordinary loss          1.04           0.67
      Discount (premium) on repurchase/redemption
       of subsidiary's preferred stock                 0.09          (0.13)
      Extraordinary loss                                 ---         (0.11)
      Earnings (loss) per share of common stock       $1.13          $0.43

    WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING  9,634,367     10,702,820

    Note:  All share data has been restated to reflect the two-for-one split
effective March 20, 1997.

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