WILKES-BARRE, Pa., Nov. 6 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today reported a seasonal net loss of $4.1 million,
including a $1.1 million extraordinary loss, for the quarter ended
September 30, 1996, compared to $4.2 million loss for the same period in 1995.
The loss per share of common stock was 86 cents for the 1996 third quarter
compared to 72 cents for the same period the year before.
    The reported 1996 third quarter results include two nonrecurring charges
totaling 25 cents per share.  Prior to reflecting these items, the seasonal
net loss decreased to $2.9 million in 1996, compared to a $4.2 million net
loss in 1995.  The loss per share decreased to 61 cents, compared to 72 cents,
respectively.
    In a continuation of its recapitalization strategy following the sale of
its water operations in February, PEI defeased the $28.7 million outstanding
principal amount of its 10.125% Senior Notes on September 30, 1996, and
recorded an extraordinary loss of $1.1 million, or 23 cents per share, net of
income taxes.  In addition, the Company continues to repurchase preferred
stock of its utility subsidiary, PG Energy.  The premium paid on these
repurchases increased the loss per share for the quarter by another 2 cents.
    The Company's gas utility operations, through PG Energy, remain strong.
Gas consumption by PG Energy's residential and commercial customers rose by
6.8% for the third quarter of 1996 largely due to customer growth and slightly
cooler weather during the period.  In addition, Company officials expect
further growth due to an anticipated acquisition.  On October 31, 1996,
PG Energy announced that it had signed a Purchase Agreement to acquire the
Honesdale Gas Company.  With the closing expected in early 1997, this purchase
will add approximately 3,200 customers to PG Energy's customer base as well as
open up new service areas in Pike and Wayne counties, the fastest growing
region of Pennsylvania.
    PEI is a holding company with regulated and non-regulated subsidiaries.
The regulated subsidiary is PG Energy which provides natural gas to
approximately 142,000 customers in ten counties in northeastern Pennsylvania.
The non-regulated group consists of Pennsylvania Energy Resources, Inc., its
subsidiary Keystone Pipeline Services, Inc., and Theta Land Corporation.

                        PENNSYLVANIA ENTERPRISES, INC.
                       Summary of Revenues and Earnings

                          Three Months Ended           Nine Months Ended
                             September 30,              September 30,

                            1996         1995          1996          1995

    OPERATING REVENUES:
    Gas sales and
     services          $16,208,000   $13,298,000 $115,956,000  $111,403,000
    Pipeline construction
     and services        3,095,000       155,000    7,634,000       220,000
    Other                   51,000        94,000      108,000       203,000
    Total operating
     revenues           19,354,000    13,547,000  123,698,000   111,826,000

    INCOME (LOSS) FROM CONTINUING
     OPERATIONS, NET OF SUBSIDIARY'S
     PREFERRED STOCK
     DIVIDENDS          (2,940,000)   (4,159,000)   3,942,000      (623,000)

    LOSS WITH RESPECT TO
     DISCONTINUED
     OPERATIONS                  0             0     (386,000)   (3,704,000)

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

    NET INCOME (LOSS)   (4,057,000)   (4,159,000)   2,439,000    (4,327,000)

    COMMON STOCK
     Earnings (loss) per share of common stock:
     Continuing
      operations            (0.61)        (0.72)         0.75        (0.11)
     Discontinued operations  0.00          0.00       (0.07)        (0.65)


     Net income (loss) before premium
      on repurchased/redemption of
      subsidiary's preferred
      stock and extraordinary
      loss                  (0.61)        (0.72)         0.68        (0.76)
     Premium on repurchase/redemption of
      subsidiary's preferred
      stock                 (0.02)          0.00       (0.27)          0.00
     Extraordinary loss     (0.23)          0.00       (0.21)          0.00

     Earnings (loss) per share of
      common stock          (0.86)        (0.72)         0.20        (0.76)

    Weighted average shares
     outstanding         4,810,518     5,754,607    5,214,001     5,715,294


                                     Twelve Months Ended
                                        September 30,
                                   1996                    1995

    OPERATING REVENUES:
    Gas sales and
     services                $165,261,000            $160,684,000
    Pipeline construction
     and services               8,392,000                 230,000
    Other                         163,000                 295,000
    Total operating
     revenues                 173,816,000             161,209,000

    INCOME (LOSS) FROM CONTINUING
     OPERATIONS, NET OF SUBSIDIARY'S
     PREFERRED STOCK
     DIVIDENDS                  7,687,000               1,485,000
    LOSS WITH RESPECT TO
     DISCONTINUED
     OPERATIONS                  (516,000)               (835,000)
    EXTRAORDINARY LOSS (NET OF TAX
     BENEFIT OF $575,000)      (1,117,000)                      0
    NET INCOME (LOSS)           6,054,000                 650,000
    COMMON STOCK
     Earnings (loss) per share of common stock:
     Continuing operations           1.44                    0.26
     Discontinued operations       (0.10)                  (0.15)
     Net income (loss) before premium
     on repurchased/redemption of
     subsidiary's preferred
     stock and extraordinary
     loss                            1.34                    0.11
     Premium on repurchase/redemption of
      subsidiary's preferred
      stock                        (0.26)                  (0.08)
     Extraordinary loss            (0.21)                    0.00

     Earnings (loss) per share of
      common stock                   0.87                    0.03
    Weighted average
     shares outstanding         5,351,398               5,670,835

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