EXHIBIT 11-1 PENNSYLVANIA ENTERPRISES, INC. Statement Re Computation of Per Share Earnings for the Twelve Month Periods Ended December 31, 1996 and 1995 [CAPTION] Twelve Months Ended 1996 1995 [S] [C] [C] Income before subsidiary's preferred stock dividends $ 8,314,000 $ 2,050,000 Subsidiary's preferred stock dividends 1,730,000 2,763,000 Net income $ 6,584,000 $ (713,000) Earnings per share of common stock (1)(2) $ .51 $ (.06) Computations of additional common shares outstanding (1) Average shares of common stock 10,222,002 11,458,872 Incremental common shares applicable to options, based on the daily average market price 20,684 5,208 Average common shares as adjusted 10,242,686 11,464,080 Average shares of common stock 10,222,002 11,458,872 Incremental common shares applicable to options, based on the more dilutive of daily average or ending market price 17,634 8,190 Average common shares fully diluted 10,239,636 11,467,062 Earnings per share of common stock (1) Average common shares as adjusted $ .51 $ (.06) Average common shares fully diluted $ .51 $ (.06) (1) Restated to reflect the two-for-one split of the Company's common stock effective March 20, 1997. (2) Reflects the effect of premiums totaling $1,337,012 on the redemption of subsidiary's preferred stock in 1996 that were charged to retained earnings and not included in the determination of net income.