THE COASTAL CORPORATION AND SUBSIDIARIES
                 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
                 (Millions of Dollars, Except Per Share Amounts,
                            and Thousands of Shares)


<TABLE>
<CAPTION>
                                                                    Three Months Ended         Six Months Ended
                                                                         June 30,                  June 30,
                                                                  ----------------------    ---------------------
                                                                     1999        1998         1999         1998
                                                                  ---------   ----------    ---------   ---------
                                                                        (Unaudited)               (Unaudited)
<S>                                                               <C>         <C>           <C>         <C>
BASIC EARNINGS PER SHARE
------------------------

   Net earnings...............................................    $    93.3   $     94.6    $   227.8   $   217.5
   Dividends on preferred stock...............................           .1          1.6           .2         5.9
                                                                  ---------   ----------    ---------   ---------
   Net earnings available to common stockholders..............    $    93.2   $     93.0    $   227.6   $   211.6
                                                                  =========   ==========    =========   =========

Average number of common shares outstanding...................      212,864      212,113      212,647     212,000
Average number of Class A common shares outstanding...........          350          360          351         362
                                                                  ---------   ----------    ---------   ---------
                                                                    213,214      212,473      212,998     212,362
                                                                  =========   ==========    =========   =========

Basic earnings per share:
   From continuing operations.................................    $     .44   $      .42    $    1.07   $     .99
   Discontinued operations....................................            -          .02            -         .01
                                                                  ---------   ----------    ---------   ---------
   Net basic earnings per share...............................    $     .44   $      .44    $    1.07   $    1.00
                                                                  =========   ==========    =========   =========


DILUTED EARNINGS PER SHARE
--------------------------

   Net earnings used in calculating basic earnings per share..    $    93.2   $     93.0    $   227.6   $   211.6
   Dividends applicable to dilutive preferred stock:
      Series A................................................            -            -            -           -
      Series B................................................           .1           .1           .1          .1
      Series C................................................            -            -           .1          .1
                                                                  ---------   ----------    ---------   ---------
   Income available to common shareholders plus
      assumed conversions.....................................    $    93.3   $     93.1    $   227.8   $   211.8
                                                                  =========   ==========    =========   =========

Average number of shares used in calculating basic earnings
   per share..................................................      213,214      212,473      212,998     212,362
Effect of dilutive securities:
   Options....................................................        2,693        2,484        2,368       2,300
   Series A, B and C preferred stock..........................        1,243        1,333        1,258       1,343
                                                                  ---------   ----------    ---------   ---------
                                                                    217,150      216,290      216,624     216,005
                                                                  =========   ==========    =========   =========

Diluted earnings per share:
   From continuing operations.................................    $     .43   $      .42    $    1.05   $     .98
   Discontinued operations....................................            -          .01            -           -
                                                                  ---------   ----------    ---------   ---------
   Net diluted earnings per share.............................    $     .43   $      .43    $    1.05   $     .98
                                                                  =========   ==========    =========   =========


<FN>
------------------------------------

     Convertible securities and options are not considered in the calculations
if the effect of the conversion is anti-dilutive.
</FN>
</TABLE>