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Southeastern Michigan Gas Enterprises Reports Second Quarter Results

PORT HURON, Mich., July 26 /PRNewswire/ -- William L. Johnson, President and Chief Executive Officer of Southeastern Michigan Gas Enterprises, Inc. (Nasdaq: SMGS), reported that net income was $89,000 ($.01 per share) for the second quarter of 1996. This compares to net income of $295,000 ($.02 per share) for the second quarter of 1995.

The addition of over 6,100 gas sales customers resulted in increased margin from the Company's gas distribution operations. The increase in gas sales margin was offset by nominal decreases in gas marketing margin, transportation revenues and other operating revenues and slightly higher operations and maintenance expenses.

For the six-month period ended June 30, 1996, net income increased to $8,831,000 ($.71 per share) from $7,752,000 ($.62 per share) for the same period in 1995. Colder weather in the first quarter of 1996 increased gas sales margin and also positively impacted gas marketing margins and volumes. Temperatures were approximately 5% colder in the first half of 1996 compared to the same period of 1995. Further detail is shown in the following tables (unaudited):

                                            Quarter Ended June 30,
                                             1996            1995
                                                 (unaudited)
    Financial Summary
      Total Operating Revenues           $82,390,000     $65,741,000
        Gas Distribution Margin          $12,784,000     $12,019,000
        Gas Marketing Margin             $   681,000     $   815,000
        Transportation Revenue           $ 2,821,000     $ 2,915,000
      Operating Income                   $ 2,696,000     $ 2,960,000
      Other Income (Loss), Net           $   (45,000)    $  (237,000)
      Net Income Available for Common    $    89,000     $   295,000
      Earnings Per Share*                $       .01     $       .02
      Dividends Per Share*               $       .19     $       .18
      Average Common Shares Outstanding*  12,388,000      12,440,000

    Operations Summary
      Volumes -- million cubic feet
        Gas Sold                               7,038           6,555
        Gas Marketed                          21,221          17,884
        Gas Transported                        4,674           5,459
      Gas Sales Customers - Average          228,040         221,883
      Degree Days - Percent of Normal            109%            114%
                  - Actual                       986           1,053


                                          Six Months Ended June 30,
                                            1996            1995
                                                 (unaudited)
    Financial Summary
      Total Operating Revenues          $258,518,000    $183,046,000
        Gas Distribution Margin         $ 39,222,000    $ 34,877,000
        Gas Marketing Margin            $  2,370,000    $  1,829,000
        Transportation Revenue          $  6,339,000    $  6,458,000
      Operating Income                  $ 14,555,000    $ 13,619,000
      Other Income (Loss), Net          $   (319,000)   $   (447,000)
      Net Income Available for Common   $  8,831,000    $  7,752,000
      Earnings Per Share*               $        .71    $        .62
      Dividends Per Share*              $        .38    $        .36
      Average Common Shares Outstanding*  12,391,000      12,447,000

    Operations Summary
      Volumes -- million cubic feet
        Gas Sold                              26,781          23,641
        Gas Marketed                          51,495          45,053
        Gas Transported                       10,621          12,944
      Gas Sales Customers - Average          227,564         221,552
      Degree Days - Percent of Normal            108%            103%
                  - Actual                     4,532           4,299


                                         Twelve Months Ended June 30,
                                            1996            1995
                                                 (unaudited)
    Financial Summary
      Total Operating Revenues          $411,010,000    $344,735,000
        Gas Distribution Margin         $ 67,750,000    $ 59,309,000
        Gas Marketing Margin            $  3,850,000    $  3,948,000
        Transportation Revenue          $ 12,329,000    $ 12,237,000
      Operating Income                  $ 23,362,000    $ 21,088,000
      Other Income (Loss), Net          $    (51,000)   $   (681,000)
      Net Income Available for Common   $ 12,410,000    $  9,012,000
      Earnings Per Share*               $       1.00    $        .73
      Dividends Per Share*              $        .76    $        .72
      Average Common Shares Outstanding*  12,396,000      12,389,000

    Operations Summary
      Volumes -- million cubic feet
        Gas Sold                              43,927          37,812
        Gas Marketed                          88,946          88,980
        Gas Transported                       21,526          23,523
      Gas Sales Customers - Average          225,482         219,111
      Degree Days - Percent of Normal            109%             97%
                  - Actual                     7,391           6,572

* Adjusted to give retroactive effect to 5% stock dividends in May 1996 and May 1995.
SOURCE Southeastern Michigan Gas Enterprises
CONTACT: Robert F. Caldwell, Executive Vice President and CFO of Southeastern Michigan Gas Enterprises, 810-987-2200

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SEMCO Energy's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

 
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