PANHANDLE <PEL> TRIMS TAKE-OR-PAY EXPOSURE
Panhandle Eastern Corp said it had made
steady progress in reducing its natural gas take-or-pay
exposure from 4.9 billion dlrs to 1.7 billion dlrs worth of
potential claims.
    Panhandle Eastern chairman R.L. O'Shields said settlement
payments of 247 mln dlrs plus releases and waivers of gas
purchase obligations since 1982 had reduced the company's
take-or-pay exposure.
    "While substantial, we believe the unresolved take-or-pay
exposure will remain manageable," he said in a letter to
shareholders that appeared in the company's new annual report.
    Panhandle Eastern also said it had budgeted 78 mln dlrs for
its 1987 capital spending program, an increase from 65 mln dlrs
spent last year. The company said its primary focus of 1987
spending would be to modernize and automate its pipelines for
greater efficiency.
    Houston-based Panhandle Eastern earned 133.5 mln in 1986 on
revenues of 2.0 billion, compared to net income of 113.1 mln on
sales of 2.5 billion in 1985.
 Reuter
