<ARTICLE>                     5
<LEGEND>
This schedule  contains summary financial  information  extracted from Form 10-Q
for the quarter ended September 30, 1998 for Hallwood Energy Partners,  L.P. and
is qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK>                         0000768172
<NAME>                        Hallwood Energy Partners, L.P.
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-END>                                   SEP-30-1998
<CASH>                                         10,301
<SECURITIES>                                   0
<RECEIVABLES>                                  10,740
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               23,274
<PP&E>                                         659,637
<DEPRECIATION>                                 556,552
<TOTAL-ASSETS>                                 138,453
<CURRENT-LIABILITIES>                          27,676
<BONDS>                                        0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     71,864
<TOTAL-LIABILITY-AND-EQUITY>                   138,453
<SALES>                                        32,258
<TOTAL-REVENUES>                               32,825
<CGS>                                          0
<TOTAL-COSTS>                                  12,742
<OTHER-EXPENSES>                               4,807
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             1,927
<INCOME-PRETAX>                                (7,085)
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            (7,085)
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (7,085)
<EPS-PRIMARY>                                  (1.04)
<EPS-DILUTED>                                  (1.04)