WILKES-BARRE, Pa., Feb. 19 /PRNewswire/ -- The Board of Directors of
Pennsylvania Enterprises, Inc. (NYSE: PNT) (PEI) today declared a two-for-one
split of the Company's Common Stock.  On or about April 2, 1997, certificates
representing the additional shares of stock will be sent to all shareholders
of record on March 20, 1997.
    The Board of Directors believes that the split will provide a broader
market for the Company's Common Stock by making a larger number of shares
available and that a wider distribution of the Common Stock will be of benefit
to all shareowners and to the Company.  Also, the expected effect of the stock
split will be to lower the per share market price of the Common Stock.  With a
recent trading range of $40 to $45 per share, the reduction in price will put
the stock in a price range that will make it more affordable for investors,
and may thereby increase interest and activity in the stock.
    In conjunction with the stock split, the authorized shares of Common Stock
will be increased from 15,000,000 to 30,000,000 shares, and the stated value
per share will be reduced from $10.00 per share to $5.00 per share.
    PEI today also reported a $7.3 million increase in earnings for the year
ended December 31, 1996.  Net income rose from a loss of $713,000 for 1995 to
income of $6.6 million for 1996, after a $1.1 million extraordinary loss.
Reflecting the two-for-one stock split, earnings per share were $.51 for 1996
compared to a loss per share of $.06 for 1995.
    The reported 1996 results include two non-recurring charges totaling $.24
per share.  As part of its recapitalization strategy following the sale of its
water operations, in September 1996, PEI defeased the $28.7 million
outstanding principal amount of its 10.125% Senior Notes and recorded an
extraordinary loss of $1.1 million, or $.11 per share, net of income taxes.
In addition, during 1996 the Company's utility subsidiary, PG Energy Inc.,
repurchased a portion if its preferred stock.  The premium paid on these
repurchases resulted in a charge of $.13 per share.
    The Company's operating revenues rose 14% in 1996 as a result of increased
revenues from natural gas sales and service by PG Energy, pipeline
construction and service activities by Keystone Pipeline Services, Inc., which
was acquired in December 1995, and energy sales and services by Pennsylvania
Energy Resources, Inc., all subsidiaries of PEI.  Also contributing to the
higher level of earnings was a 37% reduction in dividends paid on PG Energy's
preferred stock and a 34% decrease in interest charges during 1996, a result
of the Company's recapitalization.
    PEI is a holding company with regulated and non-regulated subsidiaries.
The regulated group consists of PG Energy and its subsidiary, Honesdale Gas
Company (acquired in February 1997), which provide natural gas to
approximately 147,000 customers in twelve counties in northeastern
Pennsylvania.  The non-regulated group consists of Pennsylvania Energy
Resources, its subsidiary, Keystone Pipeline Services, and Theta Land
Corporation.

                        Pennsylvania Enterprises, Inc.
                       Summary of Revenues and Earnings
                            Three Months Ended         Twelve Months Ended
                                December 31                December 31
                            1996         1995         1996          1995
    OPERATING REVENUES:
      Gas sales
       and services    $57,666,000   $49,447,000 $173,622,000  $160,850,000
      Pipeline construction
       and services      3,099,000       606,000   10,733,000       826,000
      Other                 17,000        56,000      125,000       259,000
        Total operating
         revenues      $60,782,000   $50,109,000 $184,480,000  $161,935,000

    INCOME FROM CONTINUING
     OPERATIONS, NET OF
     SUBSIDIARY'S PREFERRED
     STOCK DIVIDENDS    $4,122,000    $3,744,000   $8,064,000    $3,121,000

    LOSS WITH RESPECT TO
     DISCONTINUED
     OPERATIONS             23,000      (130,000)    (363,000)   (3,834,000)

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

    NET INCOME (LOSS)   $4,145,000    $3,614,000   $6,584,000    ($713,000)

    COMMON STOCK (See Note)
      Earnings (loss) per share
       of common stock:
      Continuing operations $ 0.43        $ 0.32       $ 0.79          0.27
      Discontinued operations 0.00          0.01        (0.04)        (0.33)
      Net Income (loss) before
       premium on repurchase/
       redemption of
       subsidiary's preferred
       stock and extraordinary
       loss                   0.43        (0.31)         0.75         (0.06)
      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 (loss) per share
     of common stock         $0.43       $(0.31)       $ 0.51        $(0.06)

    Weighted average
     shares outstanding
     (See Note)          9,608,486    11,542,492   10,222,002    11,458,872

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

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