<ARTICLE>                     5
<LEGEND>
This schedule  contains summary financial  information  extracted from Form 10-K
for the year ended December 31, 1998 for Hallwood  Energy  Partners,  L.P.and is
qualified in its entirety by reference to such Form 10-K.
</LEGEND>
<CIK>                         0000768172
<NAME>                        Hallwood Energy Partners, L.P.
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-END>                                   DEC-31-1998
<CASH>                                         11,874
<SECURITIES>                                   0
<RECEIVABLES>                                  10,070
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               23,518
<PP&E>                                         670,904
<DEPRECIATION>                                 565,899
<TOTAL-ASSETS>                                 139,091
<CURRENT-LIABILITIES>                          32,240
<BONDS>                                        0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     62,632
<TOTAL-LIABILITY-AND-EQUITY>                   139,091
<SALES>                                        43,177
<TOTAL-REVENUES>                               43,586
<CGS>                                          0
<TOTAL-COSTS>                                  12,673
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             2,797
<INCOME-PRETAX>                                (13,895)
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            (13,895)
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (13,895)
<EPS-PRIMARY>                                  (1.86)
<EPS-DILUTED>                                  (1.86)