WILKES-BARRE, Pa., Aug. 5 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today announced its strongest 2nd quarter earnings since
l987.  Earnings for this three month period ended June 30, 1997, were
$0.10 per share, including discounts on the repurchase of preferred stock by
PG Energy, PEI's principal subsidiary.  The $0.10 per share earnings compare
to an $0.18 per share loss for the second quarter of 1996 which included
premiums on the repurchase of PG Energy preferred stock.
    Net income rose to $151,000 from a loss of $476,000 for the second quarter
of 1996.  Operating revenues increased by 38% or $11.6 million due to the
addition of new gas customers, a 5.7% increase in gas consumption by PG
Energy's residential and commercial gas customers, and the effects of a
$7.5 million base rate increase that became effective earlier this year.
    Thomas F. Karam, President and CEO, stated, "The very strong results for
the second quarter reflect strength in all areas of our operations.  PG Energy
showed both cost controls and revenue growth, while our nonregulated
affiliates experienced excellent growth."
    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       Six Months        Twelve Months
                           Ended             Ended               Ended
                          June 30,          June 30,           June 30,
                        1997    1996     1997      1996     1997     1996
                         (Thousands        (Thousands         (Thousands
                        of Dollars)       of Dollars)         of Dollars)

    OPERATING REVENUES:
     Regulated       $33,210  $25,457 $113,149   $94,872 $178,871  $154,207
     Nonregulated-
      Gas sales
       and services    5,991    2,140   13,366     4,876   21,514     8,144
      Pipeline
       construction
       and services    2,627    2,641    4,780     4,539   10,977     5,454
      Other               36       19       60        57      129       205
      Total operating
       revenues      $41,864  $30,257 $131,355  $104,344 $211,491  $168,010

    INCOME (LOSS)
     FROM CONTINUING
     OPERATIONS, NET
     OF SUBSIDIARY'S
     PREFERRED STOCK
     DIVIDENDS          $151    $(455)  $8,203    $6,882   $9,383    $6,468

    INCOME (LOSS)
     WITH RESPECT
     TO DISCONTINUED
     OPERATIONS          ---      (21)     ---      (386)      25      (516)

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

    NET INCOME (LOSS)   $151    $(476)  $8,203    $6,496   $8,291    $5,952

    COMMON STOCK
     Earnings (loss)
      per common share:
       Continuing
        operations     $0.02   $(0.05)   $0.85     $0.64    $0.98     $0.58
        Discontinued
         operations      ---      ---      ---     (0.04)     ---     (0.05)
        Net income
        (loss)
         before
         premium on
         repurchase/
         redemption of
         subsidiary's
         preferred
         stock         $0.02   $(0.05)   $0.85     $0.60    $0.98     $0.53
       Discount
        (premium) on
        repurchase/
        redemption of
        subsidiary's
        preferred stock 0.08    (0.13)    0.09     (0.12)    0.09     (0.12)
       Extraordinary
        loss             ---      ---      ---       ---    (0.12)      ---
    Earnings (loss)
      per common share $0.10   $(0.18)   $0.94     $0.48    $0.95     $0.41

    Weighted average
     shares
     outstanding
     (in thousands)    9,644   10,088    9,630    10,825    9,622    11,151

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