<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
   ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1998.

                                       or

[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
   ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________ TO __________.


                      Commission file number: 333-29001-01



                          ENERGY CORPORATION OF AMERICA
             (Exact name of registrant as specified in its charter)



                            WEST VIRGINIA  84-1235822
         (State or other jurisdiction of incorporation or organization)
                        (IRS Employer Identification No.)

                      4643 SOUTH ULSTER STREET, SUITE 1100
                             DENVER, COLORADO 80237
              (Address of principal executive offices and zip code)

                                 (303) 694-2667
              (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
    the preceding 12 months (or for such shorter period that the registrant was
      required to file such reports) and (2) has been subject to such filing
                       requirements for the past 90 days.
                                 Yes [X]  No[ ]


The number of shares of the Registrant's common stock, par value $1.00 per
share, outstanding at December 31, 1998 was 658,965 shares.


<PAGE>   2

                          ENERGY CORPORATION OF AMERICA

                                TABLE OF CONTENTS

                                                                           PAGES
PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Consolidated Balance Sheets
         December 31, 1998 (unaudited) and June 30, 1998......................3

        Unaudited Condensed Consolidated Statements of Operations
         For the three and six months ended December 31, 1998 and 1997........5

        Unaudited Condensed Consolidated Statements of Cash Flows
         For the six months ended December 31, 1998 and 1997..................6

        Notes to Unaudited Condensed Consolidated Financial Statements........7

Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operation..................................................9


PART II  OTHER INFORMATION

Item 1. Legal Proceedings....................................................13

Item 2. Changes in Securities................................................13

Item 3. Defaults Upon Senior Securities......................................13

Item 4. Submission of Matters to a Vote of Security Holders..................13

Item 5. Other Information....................................................13

Item 6. Exhibits and Reports on Form 8-K.....................................13

Signatures...................................................................14

Exhibit Index................................................................15


<PAGE>   3

PART I  FINANCIAL INFORMATION
Item 1. Financial Statements

<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
-----------------------------------------------------------------------------------                    
<S>                                                          <C>           <C>
                                                             DECEMBER 31   JUNE 30
                                                                 1998        1998
                                                             (UNAUDITED)       *
 ASSETS

 CURRENT ASSETS
    Cash and cash equivalents                                $      5,525  $ 21,547
    Accounts receivable, net of allowance for doubtful
       accounts of $933 and $1,281                                 47,843    32,827
    Gas in storage, at average cost                                   447    13,249
    Income tax receivable                                           1,112     4,310
    Prepaid and other current assets                               23,045     5,840
                                                             ------------  --------
       Total current assets                                        77,972    77,773
                                                             ------------  --------

 Property, plant and equipment, net of accumulated
    depreciation and depletion of $114,905 and $105,350           325,815   318,547
                                                             ------------  --------

 OTHER ASSETS
    Deferred financing costs, net of accumulated
       amortization of $1,557 and $1,046                            9,034     9,545
    Notes receivable, less allowance for doubtful accounts
       of $400                                                      5,000     5,618
    Deferred utility charges                                       15,819    18,233
    Other                                                          10,680    10,229
                                                             ------------  --------
       Total other assets                                          40,533    43,625
                                                             ------------  --------

 TOTAL                                                       $    444,320  $439,945
                                                             ============  ========
<FN>
 *   Condensed  from  audited  financial  statements.

The  accompanying  notes  are  an  integral  part  of these condensed consolidated
financial  statements.
</TABLE>

<PAGE>   4

<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
-------------------------------------------------------------------------------------                     
<S>                                                           <C>            <C>
                                                              DECEMBER 31    JUNE 30
                                                                  1998         1998 
                                                              (UNAUDITED)        * 
 LIABILITIES AND STOCKHOLDERS' EQUITY

 CURRENT LIABILITIES
    Accounts payable                                          $     24,813   $ 38,883 
    Current portion of long-term debt                                  585        581 
    Short-term debt                                                 48,577     19,174 
    Funds held for future distribution                               4,877      5,716 
    Accrued taxes, other than income                                 8,817      8,472 
    Overrecovered gas costs                                          4,999      6,485 
    Other current liabilities                                        8,937     13,758 
                                                              -------------  ---------
       Total current liabilities                                   101,605     93,069 
 LONG-TERM OBLIGATIONS
    Long-term debt                                                 263,819    261,507 
    Gas delivery obligation and deferred trust revenue              14,988     16,127 
    Deferred income tax liability                                   26,894     24,552 
    Other long-term obligation                                      10,501     12,837 
                                                              -------------  ---------
       Total liabilities                                           417,807    408,092 
                                                              -------------  ---------

 COMMITMENTS AND CONTINGENCIES
 MINORITY INTEREST                                                       -      1,883 

 STOCKHOLDERS' EQUITY
    Common stock, par value $1.00; 2,000 shares authorized;
       720 shares issued                                               720        720 
    Class A stock, no par value; 100 shares authorized;
       26 and 0 shares issued                                        2,753 
    Additional paid in capital                                       4,510      4,510 
    Retained earnings                                               24,004     29,132 
    Treasury stock and notes receivable arising from the
       issuance of common stock                                     (5,410)    (4,082)
    Other                                                              (64)      (310)
                                                              -------------  ---------
       Total Stockholders' equity                                   26,513     29,970 
                                                              -------------  ---------

 TOTAL                                                        $    444,320   $439,945 
                                                              =============  =========
<FN>
 *   Condensed  from  audited  financial  statements.

The accompanying notes are an integral part of these condensed consolidated financial
statements.
</TABLE>

<PAGE>   5

<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED - AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

                                                         FOR THE THREE MONTHS ENDED    FOR THE SIX MONTHS ENDED
                                                                  DECEMBER 31,                DECEMBER 31,
                                                               1998         1997          1998          1997
<S>                                                        <C>          <C>           <C>           <C>
 REVENUES:
    Utility gas sales and transportation                   $   53,171   $    56,801   $    67,034   $    71,869
    Gas marketing and pipeline sales                           25,400        42,475        56,445        81,785
    Oil and gas sales                                           5,801         6,503        11,656        12,861
    Well operations and service revenues                        1,707         1,965         3,590         3,586
    Other revenue                                                 461           884           819         1,429
                                                           -----------  ------------  ------------  ------------
                                                               86,540       108,628       139,544       171,530
                                                           -----------  ------------  ------------  ------------ 
 COST AND EXPENSES:
    Utility gas purchased                                      25,323        30,679        32,741        40,486
    Gas marketing and pipeline cost                            24,326        43,591        54,430        83,231
    Field operating expenses                                    2,286         2,576         4,785         4,945
    Utility operations and maintenance                          4,995         4,966        10,578        10,188
    General and administrative                                  6,332         6,647        11,443        10,723
    Taxes, other than income                                    4,533         4,916         6,697         7,371
    Depletion and depreciation, oil and gas related             2,145         2,036         4,320         4,123
    Depreciation of pipelines and equipment                     4,039         3,286         5,988         4,870
    Exploration and impairment                                    765           548         2,895         1,513
                                                           -----------  ------------  ------------   -----------
                                                               74,744        99,245       133,877       167,450
                                                           -----------  ------------  ------------   -----------
    Income from operations                                     11,796         9,383         5,667         4,080
                                                           -----------  ------------  ------------   -----------
 OTHER (INCOME) EXPENSE
    Interest                                                    6,805         6,807        13,410        13,334
    Gain on sale of assets                                       (369)          (84)       (1,097)          (19)
    Other                                                        (413)         (679)         (846)         (919)
                                                           ------------  -----------  ------------   -----------
 Income (loss) before income taxes and
    minority interest                                           5,773         3,339        (5,800)       (8,316)
 Provision (benefit) for income taxes                           2,425         1,258        (1,326)       (3,145)
                                                           -----------  ------------  ------------   -----------
 Income (loss) before minority interest                         3,348         2,081        (4,474)       (5,171)
 Minority interest                                                  -            21             8            32
                                                           -----------  ------------  ------------   -----------

 NET INCOME (LOSS)                                         $    3,348   $     2,060   $    (4,482)   $   (5,203)
                                                           ===========  ============  ============   ===========

 Net income (loss) per common share,
    Basic and assuming dilution                            $     5.08   $      3.10   $     (6.79)   $    (7.83)
                                                           ===========  ============  ============   ===========
                                                    
<FN>

 The  accompanying  notes  are  an  integral  part  of  these  condensed  consolidated  financial  statements.

</TABLE>

<PAGE>   6

<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED - AMOUNTS IN THOUSANDS)
                                                                 FOR THE SIX MONTHS ENDED
                                                                       DECEMBER 31,
                                                                 1998               1997
<S>                                                         <C>               <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss                                                $        (4,482)  $       (5,203)
    Adjustment to reconcile net loss to net cash provided
    by operating activities:
       Minority interest                                                  8               32 
       Depletion, depreciation and amortization                      10,708            9,380 
       Gain on sale of assets                                        (1,097)             (19)
       Exploration and impairment                                     2,640            1,456 
       Other, net                                                   (10,264)         (13,827)
                                                            ----------------    -------------
                                                                     (2,487)          (8,181)
    Changes in assets and liabilities
       Accounts receivable                                           (2,655)          (6,635)
       Gas in storage                                                12,802           (5,669)
       Prepaid and other assets                                     (14,327)          10,002 
       Accounts payable                                             (14,435)           4,148 
       Funds held for future distributions                             (839)             471 
       Overrecovered gas costs                                       (1,486)          (1,478)
       Other                                                         (5,162)          (8,203)
                                                            ----------------     ------------
          Net cash used by operating activities                     (28,589)         (15,545)
                                                            ----------------     ------------
 CASH FLOWS FROM INVESTING ACTIVITIES
    Expenditures for property, plant and equipment                  (20,427)         (15,865)
    Proceeds from sale of assets                                      2,515              385 
    Notes receivable and other                                         (133)             135 
                                                            ----------------     ------------
          Net cash used by investing activities                     (18,045)         (15,345)
                                                            ----------------     ------------
 CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from long-term debt                                      2,500 
    Principal payment on long-term debt                                (184)             (23)
    Short-term borrowings, net                                       29,403           27,362 
    Purchase of treasury stock                                         (465)            (223)
    Dividends                                                          (642)            (255)
    Other financing and equity transactions                               -             (639)
                                                            ----------------     ------------
          Net cash provided by financing activities                  30,612           26,222 
                                                            ----------------     ------------
          Net decrease in cash and cash equivalents                 (16,022)          (4,668)
          Cash and cash equivalents, beginning of period             21,547           20,814 
                                                            ----------------     ------------
 Cash and cash equivalents, end of period                   $         5,525   $       16,146 
                                                            ================  ===============
<FN>

The accompanying notes are an integral part of these condensed consolidated financial statements.
</TABLE>


<PAGE>   7

                        ENERGY CORPORATION OF AMERICA
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             DECEMBER 31, 1998


1.     Nature  of  Organization

Energy  Corporation of America (the "Company) was formed in June 1993 through an
exchange  of  shares  with  the  common  stockholders of Eastern American Energy
Corporation.  The  Company  is  an  independent  integrated energy company that,
through  its  subsidiaries,  is  primarily  engaged  in  operating a natural gas
distribution  system  in the Mid-Atlantic area and oil and gas operations in the
Rocky  Mountain  and  Appalachian  Basins.  The  Company  also is engaged in the
exploration  and  production of oil and natural gas in other parts of the United
States  and  New  Zealand.  All  references  to  the  "Company"  include  Energy
Corporation  of  America  and  its  consolidated  subsidiaries.


2.     Accounting  Policies

Reference  is  hereby made to the Company's Annual Report on Form 10-K for 1998,
which contains a summary of major accounting policies followed in preparation of
its  consolidated  financial  statements.  These  policies were also followed in
preparing  the  quarterly  report  included  herein.

Management  of  the  Company  believes  that all adjustments (consisting of only
normal  recurring  accruals) necessary for a fair presentation of the results of
such  interim  periods,  included  herein,  have  been  made.  The  results  of
operations  for  the  six  months  ended  December  31, l998 are not necessarily
indicative  of  the  results  to  be  expected  for  the  full  year.


3.     Issuance  of  Class  A  Stock

In  August  1998,  the Company amended its articles of incorporation authorizing
the  issuance  of  up to 100,000 shares of Class A non-voting common stock.  The
Company  then offered to exchange its new Class A common stock for the remaining
outstanding  Class  A  stock  of  its  subsidiaries, owned by certain employees,
officers  and directors.  The minority interest carrying value prior to exchange
(reflecting the subsidiaries Class A shares) was utilized to record the issuance
of  the  Company's  new  Class  A  common  shares.


4.     Recently  Issued  Accounting  Pronouncements

In  June  1997,  the  Financial  Accounting  Standards Board issued Statement of
Financial  Accounting  Standards No. 130 "Reporting Comprehensive Income" ("SFAS
130").  SFAS  130  established  standards  for  reporting  and  display  of
comprehensive  income and its components (revenues, expenses, gains, and losses)
in  a  full set of general-purpose financial statements.  SFAS 130 requires that
all  items  that  are  required  to  be recognized under accounting standards as
components  of comprehensive income be reported in a financial statement that is
displayed  with  the same prominence as other financial statements.  The Company
adopted  SFAS  130  on  July  1,  1998.  The  Company's  components  of  other
comprehensive  income  for  the six months ended December 31, 1998 and 1997 were
nominal.

<PAGE>   8

5.     Earnings  per  Share

Basic  earnings  per  share  is  computed by dividing net earnings available for
common  stockholders by the weighted average number of common shares outstanding
for  the  year.  Diluted  earnings per share reflect the potential dilution that
could  occur if options to issue common stock were exercised.  Dilutive earnings
per  share  are computed based upon the weighted average number of common shares
and  dilutive  common  equivalent  shares  outstanding.

A reconciliation of the numerators and denominators of the basic and diluted per
share  computations  for  income  from  continuing  operations  is  as  follows:

<TABLE>
<CAPTION>
                              Income        Shares      Per Share       Income        Shares      Per Share
                             (Numerator) (Denominator)    Amount      (Numerator) (Denominator)     Amount  
                                  For the Three Months Ended                 For the Six Months Ended
<S>                          <C>            <C>           <C>       <C>              <C>           <C>
 December 31, 1998:
  Income (loss) available to
    common shareholders      $3,348,000     659,105       $5.08     $(4,482,000)     659,860       $(6.79)
                             ==========     =======       =====     ============     =======       =======

 December 31, 1997:
  Income (loss) available to
    common shareholders      $2,060,000     663,812       $3.10     $(5,203,000)     664,649       $(7.83)
                             ==========     =======       =====     ============     =======       =======
</TABLE>

6.     Contingencies

The  Company  is  involved  in  various  legal actions and claims arising in the
ordinary course of business.  Management does not expect these matters to have a
material  adverse  effect  on  the  Company's  financial  position.

<PAGE>   9

ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS

     Management's  discussion and analysis of changes in the Company's financial
condition,  including  results of operations and liquidity and capital resources
during  the  three  and  six month periods ended December 31, 1998 and 1997, are
presented  below.

COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1998
AND  1997

     The  Company's  operating  income  increased from a gain of $9.4 million at
December  31, 1997 to $11.8 million at December 31, 1998.  The Company's utility
operating  income increased $2.0 million from $10.2 million to $12.2 million for
the  quarters ended December 31, 1997 and 1998, respectively.  The Company's gas
marketing  and  pipeline  operations  improved  from  a  loss of $1.1 million at
December 31, 1997 to a gain of $1.1 million at December 31, 1998.  The Company's
oil  and  gas operating income decreased from a gain of $1.3 million at December
31,  1997  to a loss of $0.4 million at December 31, 1998, primarily as a result
of  exploratory  expenditures.

     NET  INCOME.  The Company recorded net income of $3.3 million for the three
months  ended  December 31, 1998, compared to net income of $2.1 million for the
same  period  in  1997.  The  increase  in  net  income  between  the periods is
primarily  attributable  to  a  $24.5  million  decrease  in operating costs and
expenses  partially  offset  by  a  $22.1  million  decrease  in  revenue.

     REVENUES.  Total  revenues  decreased  $22.1  million  or  20.3% during the
periods.  The  decrease  was  due  to  a  6.4% decrease in utility gas sales and
transportation, a 40.2% decrease in gas marketing and pipeline sales and a 10.8%
decrease  in  oil  and  gas  sales.

     Revenues  from  utility  gas  sales  and transportation decreased 6.4% from
$56.8 million during the quarter ended December 31, 1997 to $53.2 million in the
quarter  ended  December  31, 1998.  This decrease was caused primarily by lower
tariff  and  transportation  volumes sold.  Total system throughput was 16.7 Bcf
and  19.1  Bcf  for  the periods ended December 31, 1998 and 1997, respectively.
Tariff volumes decreased by approximately 10% from 8.6 Bcf in 1997 to 7.8 Bcf in
1998.  This  decline  was  primarily  caused by warmer weather conditions in the
service  areas  resulting  in  a 15.0% decline in the number of weighted average
degree-days  during  the  current  period.  Transportation  volumes  declined by
approximately  14%  from  10.5 Bcf in 1997 to 9.0 Bcf in 1998 principally due to
lower  volumes  transported  for  a  significant  industrial  customer.  These
decreases  were  partially offset by an increase, effective November 1, 1998, in
the  tariff  sales  rates.

     Revenues  from gas marketing and pipeline sales decreased 40.2% from $42.5
million  during  the  quarter  ended  December  31, 1997 to $25.4 million in the
quarter  ended  December 31, 1998.  The decrease in marketing and pipeline sales
was  a  result of a 30.9% decline in marketed gas volumes from 13.5 Bcfe for the
quarter  ended  December 31, 1997 to 9.3 Bcfe for the quarter ended December 31,
1998  and  a  17.8%  decline in the average sales price per mmbtu from $2.96 per
mmbtu  for  the  quarter  ended December 31, 1997 to $2.44 for the quarter ended
December 31, 1998.  The decline in volumes and average sales price was partially
attributable  to  the  termination of a long-term supply contract effective June
30,  1998  as  a result of the "Contract Settlement", as discussed in Note 17 to
the  Company's audited Consolidated Financial Statements for the year ended June
30, 1998 filed with the Securities and Exchange Commission on September 28, 1998
as  a part of the Company's Form 10-K.  For the quarter ended December 31, 1997,
this  contract  accounted  for  1.0 Bcfe of marketed volumes and $3.0 million of
marketing  sales.  There  were no sales related to this contract for the quarter
ended  December 31, 1998.  Additionally, a marketing contract with the Company's
utility  expired on October 31, 1998 and was not renewed.  For the quarter ended
December  31,  1997 this contract accounted for 1.5 Bcfe of marketed volumes and
$3.5 million of marketing sales.  For the quarter ended December 31, 1998, which
included  one  month  of  sales under this contract, it accounted for .6 Bcfe of
marketed  volumes  and  $1.3  million  of  marketing  sales.

<PAGE>  10

     Revenues  from  oil  and  gas  sales  decreased  10.8% from $6.5 million at
December 31, 1997 to $5.8 million at December 31, 1998.  The decrease in oil and
gas  sales  was  primarily attributable to a 51.0% decrease in the average sales
price  per  barrel of oil from $16.50 for the quarter ended December 31, 1997 to
$8.09  for  the  quarter  ended  December  31, 1998, and a 12.4% decrease in the
average  gas  sales price from $2.67 per mcf for the three months ended December
31,  1997  to $2.34 per mcf for the three months ended December 31, 1998.  These
price  declines  were  partially offset by an increase in oil and gas production
over  the  quarter  ended  December  31,  1997  of  21.1% and 9.5% respectively.

     COSTS  AND  EXPENSES.  The  Company's  costs  and expenses decreased $24.5
million  or  24.7%  during this period primarily as the result of a $5.4 million
decline  in the cost of utility gas purchased and a $19.3 million decline in gas
marketing  purchased  gas  costs.  General  and  administrative  expenses  and
impairment  and  exploratory  charges  remained relatively unchanged between the
period.

     The 17.5% decline in the cost of utility gas purchased was due primarily to
a  decline  in  tariff  volumes sold from 8.6 Bcf in 1997 to 7.8 Bcf in 1998 and
reduced  pipeline supplier demand charges as a result of a gas supply management
agreement  with  a  third  party,  which  went  into effect on November 1, 1998.

     The  44.2%  decline  in  gas  marketing  and  pipeline  costs was primarily
attributable  to a 30.7% decline in purchased gas volumes from 13.6 Bcfe for the
quarter  ended  December 31, 1997 to 9.4 Bcfe for the quarter ended December 31,
1998,  a  22.1%  decrease in the average price paid for gas purchased from $3.06
per  mmbtu  for  the  quarter ended December 31, 1997 to $2.38 per mmbtu for the
quarter ended December 31, 1998, and approximately $0.7 million of purchased gas
costs  charged  against  a  reserve  for  loss on future gas purchases primarily
relating  to  the  "Contract  Settlement"  discussed  above.

     INTEREST  EXPENSE.  Interest  expense remained relatively unchanged between
the  three  months  ended  December  31,  1998  and  1997.

     INCOME  TAX BENEFIT.  The provision for income taxes increased $1.3 million
primarily  as  a  result  of increased pretax income and a revised effective tax
rate.

COMPARISON  OF  RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1998
AND  1997

     The  Company's  operating  income  increased from a gain of $4.1 million at
December  31,  1997 to $5.7 million at December 31, 1998.  The Company's utility
operating  income  increased  $2.0 million from $5.4 million to $7.4 million for
the  six  months  ended December 31, 1997 and 1998, respectively.  The Company's
gas  marketing  and  pipeline operations improved from a loss of $1.4 million at
December 31, 1997 to a gain of $2.0 million at December 31, 1998.  The Company's
oil  and  gas operating income decreased from a gain of $1.7 million at December
31,  1997  to a loss of $1.6 million at December 31, 1998, primarily as a result
of  exploratory  expenditures.

     NET  INCOME.  The  Company recorded a net loss of $4.5 million for the six
months  ended  December 31, 1998, compared to a net loss of $5.2 million for the
same  period  in  1997.  The  decrease  in  the  net loss between the periods is
primarily  attributable  to  a  $33.6  million  decrease  in operating costs and
expenses,  which  is  partially  offset  by a $32.0 million decrease in revenue.

<PAGE>    11

     REVENUES.  Total  revenues  decreased  $32.0  million  or  18.7% during the
periods.  The  decrease  was  due  to  a  6.7% decrease in utility gas sales and
transportation,  a 31.0% decrease in gas marketing and pipeline sales and a 9.4%
decrease  in  oil  and  gas  sales.

     Revenues  from  utility  gas  sales and transportation decreased 6.7% from
$71.9 million during the six months ended December 31, 1997 to $67.0 million for
the  six  months ended December 31, 1998.  This decrease was caused primarily by
lower  sales and transportation volumes sold.  Total throughput was 26.2 Bcf and
30.0 Bcf for the periods ended December 31, 1998 and 1997, respectively.  Tariff
volumes decreased by approximately 10% from 10.2 Bcf in 1997 to 9.2 Bcf in 1998.
This  decline  was  primarily caused by warmer weather conditions in the service
areas resulting in a 17.7% decline in the number of weighted average degree-days
during the current period.  Transportation volumes declined by approximately 14%
from 19.9 Bcf in 1997 to 17.0 Bcf in 1998 primarily as a result of reduced usage
by  a significant industrial customer.  These decreases were partially offset by
an  increase,  effective  November  1,  1998,  in  the  tariff  sales  rates.

     Revenues  from  gas marketing and pipeline sales decreased 31.0% from $81.8
million  during  the six months ended December 31, 1997 to $56.4 million for the
six  months  ended  December  31,  1998.  The decrease in marketing and pipeline
sales was a result of a 22.2% decline in marketed gas volumes from 28.4 Bcfe for
the  six  months  ended  December 31, 1997 to 22.1 Bcfe for the six months ended
December  31, 1998 and a 15.1% decline in the average sales price per mmbtu from
$2.72  per mmbtu for the six months ended December 31, 1997 to $2.31 for the six
months  ended December 31, 1998.  The decline in volumes and average sales price
was  partially  attributable  to  the termination of a long-term supply contract
effective  June  30, 1998 as a result of the "Contract Settlement", as discussed
previously.  For the six months ended December 31, 1997, this contract accounted
for  1.9  Bcfe  of  marketed volumes and $5.7 million of marketing sales.  There
were  no  sales  related  to this contract for the six months ended December 31,
1998.  Additionally,  a marketing contract with the Company's utility expired on
October  31,  1998  and  was not renewed.  For the six months ended December 31,
1997  this  contract accounted for 4.3 Bcfe of marketed volumes and $9.5 million
of  marketing sales.  For the six months ended December 31, 1998, which included
four  months of sales under this contract, it accounted for 3.4 Bcfe of marketed
volumes  and  $7.1  million  of  marketing  sales.

     Revenues  from  oil  and  gas  sales  decreased  9.4% from $12.9 million at
December  31,  1997  to $11.7 million at December 31, 1998.  The decrease in oil
and  gas  sales  was  primarily  attributable to a 42.8% decrease in the average
sales  price  per  barrel  of  oil from $17.36 for the six months ended December
31,1997 to $9.93 for the six months ended December 31, 1998, and an 8.3% decline
in  the  average  sales price per mcf of gas from $2.56 for the six months ended
December  31,  1997  to $2.34 for the six months ended December 31, 1998.  These
price  declines  were  partially offset by an increase in oil and gas production
over  the  six  months  ended  December 31, 1997 of 28.2% and 3.7% respectively.

     COSTS  AND  EXPENSES.  The  Company's  costs  and  expenses decreased $33.6
million  or  20.1%  during this period primarily as the result of a $7.7 million
decline  in the cost of utility gas purchased and a $28.8 million decline in gas
marketing  purchased  gas  costs,  which  was partially offset by a $0.7 million
increase  in  general  and  administrative  expenses, a $1.3 million increase in
depreciation,  depletion  and amortization expenses, and a $1.4 million increase
in  impairment  and  exploratory  charges  in  the  current  period.

     The 19.1% decline in the cost of utility gas purchased was due to a decline
in  tariff  volumes  sold  from  10.2 Bcf in 1997 to 9.2 Bcf in 1998 and reduced
pipeline  supplier  demand  charges  as  a  result  of  a  gas supply management
agreement  with  a  third  party  that  went  into  effect  on November 1, 1998.

<PAGE>    12

     The  34.6%  decline  in  gas  marketing  and  pipeline  costs  is primarily
attributable  to  a  22% decline in purchased gas volumes from 28.6 Bcfe for the
six  months  ended  December  31,  1997  to  22.3  Bcfe for the six months ended
December  31,  1998, an 18% decrease in the average price paid for gas purchased
from  $2.77  per  mmbtu  for the six months ended December 31, 1997 to $2.28 per
mmbtu for the six months ended December 31, 1998, and approximately $1.5 million
of  purchased  gas  costs  charged  against  a  reserve  for  loss on future gas
purchases  primarily relating to the "Contract Settlement" discussed previously.
These decreases were partially offset by approximately $0.4 million of purchased
gas  costs  for the six months ended December 31, 1998 related to the operations
of  the  intrastate  pipeline gathering system that was purchased in March 1998.

     General and administrative expenses increased 6.7% for the six months ended
December 31, 1997 to 1998 primarily due to increased activities at the corporate
level,  recognition  of  credits which reduced expenses in the prior period, and
the  inclusion  of  MAPCOM  Systems,  Inc.  which was acquired in November 1997.

     Depreciation,  depletion  and  amortization costs increased 14.6% primarily
due  to  additions  to  the  utility  gas  plant  in  service.

     Impairment  and exploratory costs increased 91.3% for the current period as
a  result  of  two  exploratory  dry  holes in New Zealand and the expiration of
certain  leases.

     INTEREST  EXPENSE.  Interest  expense remained relatively unchanged between
the  six  months  ended  December  31,  1998  and  1997.

     INCOME TAX BENEFIT.  The benefit for income taxes decreased $1.8 million as
a  result  of  increased  pretax  income  and  a  revised  effective  tax  rate.

LIQUIDITY  AND  CAPITAL  RESOURCES

     CASH  FLOWS.  Net  cash  provided  by  operating  activities  is  primarily
affected  by  oil and gas prices, seasonality, heating degree-days, utility rate
regulation,  marketing margins and the Company's success in drilling activities.
The  Company's  net  decrease in cash flow from operations was $28.6 million for
the  six  month period ended December 31, 1998.  The major portion of the use of
cash is due to the seasonality of the Company's utility operations.  The Company
invested  approximately $11.7 million in oil and gas exploration and development
activities and $6.1 million in utility plant improvements.  The net cash used in
operations and invested in asset additions were funded primarily through cash on
hand and short-term borrowings.  The Company plans to continue to pursue capital
investment  opportunities  both  domestically  and  internationally.  Management
believes  that  the  Company has adequate capital resource to meet its operating
requirements  and  to  pursue  capital  investment  opportunities.

     CREDIT  FACILITIES.  The  Company and its operating subsidiaries have (i) a
$50  million  secured,  revolving  credit  facility under which $2.5 million was
outstanding  at December 31, 1998 and (ii) $66.0 million in unsecured, revolving
bank  lines of credit, under which $52.1 million was outstanding at December 31,
1998.

     OTHER  MATTERS.  The Company is currently assessing its computer systems to
determine  any  issues  it  may  have  regarding the year 2000.  The Company has
determined that the majority of the existing systems will be replaced, through a
capital  project,  with  new  technology.  The  remaining  legacy  systems  are
projected  to  be  in  compliance with Year 2000 issues prior to the end of this
fiscal  year.  The  Company does not expect there to be a material impact on the
Company's business, operations, cash flows or financial condition as a result of
Year  2000  issues.

<PAGE>    13

PART  II.  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

The Company is not a party to any legal actions that would materially affect the
Company's  operations  or  financial  statements.


ITEM  2.  CHANGES  IN  SECURITIES

None


ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

None


ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

On  August  10,  1998 a special meeting of the Company's common shareholders was
held.  There was a majority vote to adopt the proposal by the Board of Directors
to  amend  the  Company's  articles  of incorporation to issue nonvoting Class A
stock.  The  Company  has  been  authorized to issue 100,000 shares, without par
value, of Class A stock providing the issuance of said stock does not exceed 10%
of  the  total  ownership  of  the  corporation.


ITEM  5.  OTHER  INFORMATION

None


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)    3     Articles of Amendment to Articles of Incorporation
       10    Incentive Stock Purchase Agreement - Joseph Casabona 
       27    Financial  Data  Schedule

(b)     No reports on Form 8-K have been filed during the quarter ended December
31, 1998

<PAGE>    14

                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the under
signed thereunto, duly authorized, in the City of Denver, State of Colorado, on
the 16th day of February, 1999.



                                         ENERGY CORPORATION OF AMERICA



                                      By:       /s/John Mork
                                         ----------------------------------
                                         John Mork
                                         Chief Executive Officer and Director


                                      By:       /s/Isobel Allan
                                         ----------------------------------
                                         Isobel Allan
                                         Vice President of Finance




<PAGE>    15

                                  EXHIBIT INDEX

Exhibit
Number          Description
------          -----------

3               Articles of Amendment to Articles of Incorporation
10              Incentive Stock Purchase Agreement - Joseph Casabona
27              Financial Data Schedule