WILKES-BARRE, Pa., May 6 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today reported an increase of 40% in earnings per share for
the quarter ended March 31, 1997.  Earnings from continuing operations were
84 cents for this three-month period in 1997 compared to 60 cents in 1996.
Net income rose to $8.1 million compared to $7.0 million for the same period
in 1996.
    Operating revenues rose by $15.4 million or 21% for the three-month
reporting period.  In addition to the effects of higher gas costs, the
increase is the result of the base rate adjustment of $7.5 million annually in
PG Energy, PEI's regulated gas utility, and the significant revenue growth of
its nonregulated operations.
    Also contributing to the increased level of earnings was a 45% reduction
in dividends paid on PG Energy's preferred stock and a 27% decrease in
interest charges during 1997, as a result of the Company's recapitalization
following the sale of its water utility operations in February 1996.
    Thomas F. Karam, PEI President and Chief Executive Officer, said, "We are
extremely pleased with our first quarter results particularly in light of the
warmer than normal temperatures.  The expansion of our nonregulated activities
is on track and we are experiencing rapid growth with lower than anticipated
start up costs.  The performance of our utility operations exceeded
expectations as a result of stringent cost controls and the $7.5 million base
gas rate increase which became effective January 15th of this year."
    PEI is a holding company with regulated and nonregulated subsidiaries.
The Company, through its regulated utilities, PG Energy and Honesdale Gas
Company (acquired in February 1997), provides natural gas to approximately
148,000 customers in twelve counties in northeastern Pennsylvania.  The
nonregulated group consists of Theta Land Corporation and PG Energy Services
(formerly Pennsylvania Energy Resources, Inc.) and its subsidiary, Keystone
Pipeline Services.

                        PENNSYLVANIA ENTERPRISES, INC.
                       Summary of Revenues and Earnings

                                Three Months Ended    Twelve Months Ended
                                     March 31               March 31
                                 1997       1996        1997        1996
    OPERATING REVENUES:
     Regulated               $79,939,000$69,415,000$171,119,000 $153,934,000
     Nonregulated              9,552,000  4,672,000  28,767,000   11,206,000
      Total Operating
       revenues              $89,491,000$74,087,000$199,886,000 $165,140,000

    INCOME FROM CONTINUING
     OPERATIONS, NET OF
     SUBSIDIARY'S PREFERRED
     STOCK DIVIDENDS          $8,052,000 $7,337,000  $8,779,000   $4,788,000

    LOSS WITH RESPECT TO
     DISCONTINUED OPERATIONS           0  (365,000)       2,000    (494,000)

    EXTRAORDINARY LOSS (NET OF
     TAX BENEFIT OF $575,000)          0          0 (1,117,000)            0

    NET INCOME                $8,052,000 $6,972,000  $7,664,000   $4,294,000

    COMMON STOCK (See Note)
     Earnings (loss) per
      share of common stock:
      Continuing operations        $0.84      $0.63       $0.90        $0.42
      Discontinued operations       0.00     (0.03)        0.00       (0.05)

      Net income before premium
       on repurchase/redemption of
       subsidiary's preferred stock
       and extraordinary loss       0.84       0.60        0.90         0.37
      Premium on repurchase/
       redemption of subsidiary's
       preferred stock              0.00       0.00      (0.13)         0.00
      Extraordinary loss            0.00       0.00      (0.11)         0.00
     Earnings per share of
      common stock                 $0.84      $0.60       $0.66        $0.37

    WEIGHTED AVERAGE SHARES
     OUTSTANDING (See Note)    9,615,414 11,581,624   9,728,094   11,526,982

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

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