<PAGE>

                         UNITED STATES
              SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549
                               

                           FORM 10-Q

(Mark One)

[X]  QUARTERLY  REPORT  UNDER SECTION  13  OR  15  (d)  OF  THE
     SECURITIES EXCHANGE ACT OF 1934

     For the Quarterly Period Ended June 30, 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 No. 1-12905


                        EEX CORPORATION
    (Exact name of Registrant as specified in its charter)

                             Texas
(State or other jurisdiction of incorporation or organization)

                          75-2421863
             (I.R.S. Employer Identification No.)

     2500 CityWest Blvd., Suite 1400, Houston, Texas 77042
      (Address of principal executive office) (Zip Code)

                        (713) 243-3100
     (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
twelve  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

Number  of shares of Common Stock of Registrant outstanding  as
of August 4, 1998:  127,134,427

<PAGE>

                PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements


[CAPTION]

                            EEX CORPORATION
       CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)

                                     Three Months Ended   Six Months Ended
                                          June 30             June 30
                                    -------------------   ---------------

                                        1998    1997     1998     1997
                                      ------- -------    ------- -------
                                   (In thousands except per share amounts)
[S]                                  [C]     [C]      [C]       [C]
Revenues
 Natural gas                         $ 32,319$ 46,313  $ 77,857 $103,651
 Oil and condensate                    21,743  24,292    37,852   49,364
 Natural gas liquids                      724   1,092     1,045    2,791
 Cogeneration operations                3,500   2,872     5,964    5,475
 Other                                    275     688       356      783
                                     --------- ------- --------   ------
   Total                               58,561  75,257   123,074  162,064
                                     --------- ------- --------   ------
Costs and Expenses
 Production and operating              12,467  12,425    23,554   25,050
 Exploration                           13,932  20,023    26,255   40,021
 Depreciation and amortization         24,032  38,164    55,644   73,749
  Loss (gain)on sales of property,
     plant & equipment                 (1,761)            4,266   
 Cogeneration  operations               2,785   2,767     4,800    5,158
 General, administrative and other      6,092   9,266    12,817   16,654
 Taxes, other than income               3,498   4,342     7,391    8,954
                                     --------- -------   ------- --------
   Total                               61,045  86,987   134,727  169,586
                                     --------- -------  -------- --------
Operating (Loss)                       (2,484)(11,730)  (11,653)  (7,522)
Other (Expense) - Net                     (55)    (50)      (14)     (71)
Interest Income                           271      34       362       86
Interest and Other Financing Costs     (4,799) (8,954)  (10,024) (16,698)
                                     --------- -------  -------- --------
(Loss) Before Income Taxes             (7,067)(20,700)  (21,329) (24,205)
Income Taxes (Benefit)                    571  (7,171)    1,572   (8,475)
Minority Interest                      (2,768)           (6,532)
                                     --------- -------  -------- --------
Net (Loss)                           $(10,406)$(13,529)$(29,433)$(15,730)
                                     ========= ======== ======== =======
Basic and Diluted Net (Loss)
     Per Share                         $ (.08) $  (.11)   $(.23)  $ (.13)
                                     ========= ======== ========  =======

Weighted  Average Shares
     Outstanding                      126,641  126,641  126,641  126,641
                                     ========  ======== ======== ========


See accompanying Notes.


<PAGE>

[CAPTION]

                        EEX CORPORATION
  CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


                                                     Six Months Ended
                                                          June 30
                                                ---------------------------
                                                     1998       1997
                                                    --------   --------
                                                      (In thousands)
[S]                                                [C]         [C]
OPERATING ACTIVITIES
 Net (loss)                                        $(29,433)   $(15,730)
 Impairment of undeveloped leasehold                             27,244
 Dry hole cost                                       10,316       1,534
 Depreciation and amortization                       55,644      73,761
 Deferred income tax (benefit)                                  (10,354)
 Loss on sales of property, plant and equipment       4,266
 Other                                                  302      (1,279)
 Changes in current operating assets
     and liabilities
  Accounts receivable                                (1,058)     30,588
  Other current assets                               (2,975)     11,218
  Accounts payable                                  (51,035)    (24,440)
  Other current liabilities                          (3,507)        457
                                                   ---------   ---------
     Net cash flows from(used in)
       operating activities                         (17,480)     92,999
                                                   ---------  ---------

INVESTING ACTIVITIES
 Additions to property, 
     plant and equipment                            (96,134)    (74,628)
 Proceeds from disposition of 
     property, plant and equipment                  236,481       2,212
 Changes in property, plant
     and equipment accruals                           8,542     (10,868)
                                                   ---------   ---------
 Net cash flows from (used in)
       investing activities                         148,889     (83,284)
                                                   ---------   ---------

FINANCING ACTIVITIES
 Borrowings under bank revolving 
    credit agreement                                138,000      40,000
   Repayment of borrowings under bank
    revolving credit agreement                     (155,000)    (65,000)
 Borrowings under short term
    financing agreement                             101,500      81,400
   Repayments under short term 
    financing agreement                            (106,500)    (76,400)
 Redemption of minority interest in preferred
    securities of subsidiary                       (100,000)
 Change in temporary advances with
    affiliated companies                                         15,764
 Change in advances under leasing arrangements                     (697)
 Payments of capital lease obligations               (7,667)     (2,551)
 Issuance of common stock                                             2
                                                   ---------   ---------
  Net cash flows used in financing activities      (129,667)     (7,482)
                                                   ---------   ---------
Net Increase in Cash and Cash Equivalents             1,742       2,233
Cash and Cash Equivalents at Beginning of Period      3,790       1,358
                                                   ---------   ---------
Cash and Cash Equivalents at End of Period         $  5,532    $  3,591
                                                   =========   =========


See accompanying Notes.


<PAGE>


[CAPTION]

                        EEX CORPORATION
             CONDENSED CONSOLIDATED BALANCE SHEETS
                   (June 30, 1998 Unaudited)

                                                 June 30     December 31
                                                   1998           1997
                                               ----------     -----------
                                                    (In thousands)
[S]                                           [C]            [C]           
ASSETS
Current Assets
 Cash and cash equivalents                    $    5,532     $    3,790
 Accounts receivable - trade                      58,983         57,925
 Other                                            14,520         11,545
                                               ----------      ---------
    Total current assets                          79,035         73,260
                                               ----------      ---------
Property, Plant and Equipment (at cost)
 Oil and gas properties
     (successful  efforts method)              1,226,490      1,882,097
 Other                                            19,958         19,581
                                              ----------     ----------
    Total                                      1,246,448      1,901,678
 Less accumulated depreciation
     and amortization                            748,034      1,192,691
                                              ----------     ----------
    Net property, plant and equipment            498,414        708,987
                                              ----------     ----------
Deferred Income Tax Benefit                       20,238         20,238
                                              ----------     ----------

Other Assets                                      15,251          5,304
                                              ----------     ----------
    Total                                     $  612,938     $  807,789
                                              ==========     ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
 Accounts payable - trade                     $   66,123     $  108,616
 Short term borrowings                                            5,000
 Current portion of capital
     lease obligations                            10,753          8,418
 Other                                             6,524         10,031
                                               ----------     ----------
    Total current liabilities                     83,400        132,065
                                               ----------     ----------
Bank Revolving Credit Agreement                    8,000         25,000
                                               ----------     ----------
Capital Lease Obligations                        223,315        233,317
                                               ----------     ----------
Other Liabilities                                 52,372         42,744
                                               ----------     ----------
Minority Interest in Preferred 
    Securities of Subsidiary                                    100,000
                                               ----------     ----------
Common Shareholders' Equity
 Common stock (400,000 shares authorized;
  127,134 and 127,059 shares outstanding)          1,271          1,271
 Paid in capital                                 571,363        570,493
 Accumulated deficit                            (323,205)      (293,772)
 Unamortized restricted stock compensation        (3,578)        (2,877)
 Treasury stock                                                    (452)
                                               ----------     ----------
    Common shareholders' equity                  245,851        274,663
                                               ----------     ----------
    Total                                      $ 612,938      $ 807,789
                                               ==========     ==========

See accompanying Notes.

<PAGE>


                               
                        EEX CORPORATION
     Notes to Condensed Consolidated Financial Statements

1.    In the opinion of management, all adjustments (consisting
      only  of  normal  recurring accruals) necessary  for  a  fair
      presentation of the financial position, results of operations
      and  cash flows for the interim periods included herein  have
      been   made.   Certain  items  in  prior  periods  have  been
      reclassified to be consistent with the current presentation.

2.    Basic net income (loss) per share is based on the weighted
      average number of common shares outstanding during the period.
      Diluted  net income (loss) per common share is based  on  the
      weighted  average  number of common shares and  all  dilutive
      potential common shares outstanding during the period.

3.    In the second quarter of 1998, EEX redeemed at par value,
      all of the outstanding preferred securities of a subsidiary.

4.    EEX  has been named a defendant in two lawsuits filed  on
      August 3, 1998, in Federal Court for the Northern and Southern
      Districts  of Texas.  According to information in notices  of
      class action published by plaintiff's counsel, the suits are on
      behalf of certain EEX shareholders and are based upon alleged
      misrepresentations made prior to August 4, 1997, concerning the
      value of the Company's assets and reserves.  The notices name
      Enserch  Corporation,  Texas Utilities  Company,  Degolyer  &
      MacNaughton  and  certain  present and  former  officers  and
      directors  of EEX as defendants.  EEX has not been served  in
      either  of the lawsuits.  No assessment of the claims can  be
      made  at  this time.  EEX intends to vigorously defend  these
      suits.


<PAGE>


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

Certain statements in this report, including statements of EEX
Corporation's ("EEX" or the "Company") and management's
expectations, intentions, plans and beliefs, are "forward-
looking statements," within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, that are subject
to certain events, risks and uncertainties that may be outside
EEX's control.  See "Forward Looking Statements- Uncertainties
and Risks" below.

RESULTS OF OPERATIONS

EEX  reported  a second quarter 1998 net loss of  $10  million
($.08  per share), versus a net loss of $14 million ($.11  per
share)  for  the  same  period in 1997.  Second  quarter  1998
results  included  non-recurring amounts for  gains  on  asset
sales   of   $1.8  million  and  costs  associated  with   the
disposition   of   properties  in  East  Texas   included   in
depreciation and amortization of $1.5 million. Excluding these
non-recurring  items, second quarter 1998  net  loss  was  $11
million  ($.08 per share). For the first six months  of  1998,
EEX  had  a net loss of $29 million ($.23 per share), compared
to  a  net  loss  of  $16 million ($.13 per  share)  in  1997.
Excluding  non-recurring amounts for  losses  on  asset  sales
($4.3  million)  and costs associated with the disposition  of
properties   in  East  Texas  included  in  depreciation   and
amortization ($6.7 million), net loss for the six months ended
June 30, 1998 was $18 million ($.15 per share).

In  the  following comparisons of results of operations,  1998
results have been adjusted to exclude the non-recurring  items
described above.

QUARTERS  ENDED  JUNE 30, 1998 AND 1997  -  Revenues  for  the
second  quarter of 1998 were $59 million, a 22% decrease  from
1997  primarily  due  to decreased production  resulting  from
sales  of  non-core properties. Natural gas revenues decreased
$14  million  (30%) resulting from lower second  quarter  1998
production  ($16 million), partially offset by  higher  second
quarter  1998 prices ($1.6 million). The average  natural  gas
sales price per thousand cubic feet ("Mcf") was $2.24 in  1998
compared with $2.13 in 1997.  Natural gas production for  1998
was  14.4  billion cubic feet ("Bcf"), down from 21.7  Bcf  in
1997. Oil revenues decreased $2.5 million (10%), reflecting  a
31%  decrease in the average sales price per barrel to $13.07,
which  was  mostly  offset  by a 30%  increase  in  production
primarily  due to production from the Mudi field in Indonesia.
Crude  oil production was 1,663 thousand barrels ("Mbbls")  in
1998  compared to 1,282 MBbls in 1997. EEX net production from
the Mudi field for the second quarter of 1998 was 722 Mbbls.

Costs  and expenses from recurring operations were $61 million
in  1998,  compared to $87 million in 1997,  a  29%  decrease.
Operating  expenses  (production and  operating,  general  and
administrative and taxes other than income) were  $22  million
in  1998, 15% lower than 1997, resulting from asset sales  and
the  favorable impact from restructuring measures  implemented
over  the  last year. Production and operating costs for  1998
included $2.8 million for oil production from the Mudi  field.
Exploration expenses for 1998 decreased 30% from 1997  due  to
curtailment  of  the  onshore exploration program,  change  in
focus  to offshore and international areas and impact  of 

<PAGE>
the offshore exploration joint venture with Enterprise Oil Plc.
Exploration  expense for the second quarter of  1998  includes
$7.6  million for dry holes in both offshore and international
drilling  activities.  Depreciation and amortization  was  $23
million  in  1998, $16 million lower than 1997  due  to  lower
production volumes and the impairment to producing oil and gas
properties recognized in 1997.

Total  interest and other financing costs, including  minority
interest,  were $7.6 million in 1998, a $1.4 million reduction
from 1997, due to the reduction in debt with proceeds of asset
sales.

SIX  MONTHS ENDED JUNE 30, 1998 AND 1997 - Revenues  for  1998
were  $123  million, a 24% decrease from  1997  due  to  lower
production   resulting  from  sales  of  non-core  properties.
Natural  gas  revenues decreased $26 million (25%),  resulting
from  both  lower  production ($22 million) and  sales  prices
($3.6 million) The average natural gas sales price per Mcf was
$2.35  in  1998  compared with $2.46  in  1997.   Natural  gas
production for 1998 was 33.1 Bcf, down from 42.2 Bcf in  1997.
Oil  revenues  decreased $12 million (23%), reflecting  a  27%
decrease  in  the  average sales price per barrel  to  $14.29,
which  was  partially  offset by a 9% increase  in  production
primarily from the Mudi field. Crude oil production  for  1998
was  2,649  Mbbls compared to 2,429 Mbbls in 1997.  Production
from the Mudi field was 810 Mbbls.

Costs and expenses from recurring operations were $124 million
in  1998, compared to $170 million in 1997. Operating expenses
(as  defined above) were $44 million in 1998, 14%  lower  than
1997  for  the reasons listed above. Production and  operating
costs  for  1998 included $3.7 millon for oil production  from
the  Mudi  field. Exploration expenses for 1998 decreased  34%
from  1997 due to reasons described above. Exploration expense
for  1998 includes $10 million for dry holes. Depreciation and
amortization was $49 million in 1998, $25 million  lower  than
1997  due  to  lower production volumes and the impairment  to
producing oil and gas properties recognized in 1997.

Total  interest and other financing costs, including  minority
interest,  were  $17 million, unchanged from  1997.   A  lower
overall  debt level in 1998 was offset by the higher dividends
and  fees  associated  with  the  preferred  securities  of  a
subsidiary.  These preferred securities were redeemed  in  the
second quarter of 1998.

HEDGING ACTIVITIES

A  portion  of  the risk associated with fluctuations  in  the
price  of  natural gas and oil is managed through the  use  of
hedging  techniques  such as oil and gas  swaps,  collars  and
futures  agreements.  EEX fixed the price  on  second  quarter
1998  production  volumes of 5.7 Bcf of natural  gas  (40%  of
production) at an average price of $2.27 per Mcf and 228 MBbls
of  oil (14% of production) at an average price of $17.09  per
Bbl.  For the first six months of 1998, EEX fixed the price on
19  Bcf of natural gas (57% of production) at an average price
of  $2.47 per Mcf and 964 MBbls of oil (36% of production)  at
an  average  price of $19.01 per Bbl.  In total  oil  and  gas
price   hedging  activities  decreased  second  quarter   1998
revenues  by  $.1 million, but increased second  quarter  1997
revenues by $2.1 million. For the first six months of 1998 and
1997,  oil  and gas hedging activities increased  revenues  by
$5.8 million and $1.6 million, respectively. At June 30, 1998,
EEX had outstanding swaps, collars and futures agreements that

<PAGE>
were  entered  into as hedges extending through  December  31,
1999,  to exchange payments on 2.2 Bcf of natural gas and  782
MBbls  of  oil.  At June 30, 1998, there were $1.2 million  of
net  unrealized and unrecognized hedging losses based  on  the
difference  between  the  strike  price  and  the   New   York
Mercantile  Exchange futures price for the applicable  trading
month.  In addition, there were $.4 million of realized losses
on  hedging activities which were deferred and will be applied
as  a decrease in revenues in the third quarter of 1998 in the
applicable month of physical sale of production.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

For   the  first six months  of 1998, EEX generated sufficient
cash  flows from asset sales to fund its capital requirements,
reduce  financings  by $30 million, redeem  all  of  the  $100
million  of  preferred securities of a subsidiary and  provide
funds  required by operations.  Operating activities  for  the
first  six months of 1998 required cash flows of $17  million,
compared to $93 million of cash flows provided from operations
in  1997.  The requirement in 1998 was a result of changes  in
current operating assets and liabilities.

The  Company  intends to continue to make substantial  capital
expenditures  for  the  exploration  and  development  of  its
properties,  primarily in the Gulf of Mexico. At present,  EEX
plans   to  finance  its  business  plans  through  internally
generated cash flows, the sale of additional non-core  assets,
borrowings  under existing credit facilities,  alliances  with
contractors  to assume early capital expenditure  requirements
and/or  offerings in public or private equity or debt markets.
Borrowings under EEX's credit facilities may also be  used  to
supplement temporary cash flow needs.  EEX does not anticipate
paying cash dividends in the foreseeable future.

Capital Structure

In the second quarter of 1998, EEX redeemed, at par value, all
the  outstanding  preferred securities of  a  subsidiary.  The
dividend rate on these preferred securities was based on LIBOR
plus  a spread of 4% for the quarter ended March 31, 1998,  5%
for the quarter ended June 30, 1998 and was to increase by  1%
quarterly  through December 31, 1998. At June 30,  1998,  debt
represented  50% of total capitalization, as defined  in  loan
agreements, the same as the level at December 31, 1997.

YEAR 2000 ISSUE

EEX is continuing its efforts towards addressing the Year 2000
issue  as  it relates to any potential impact on the Company's
operations.   Evaluations of the Company's  internal  systems,
primarily   focused  on  the  financial  systems,  have   been
initiated and will be complete by the end of 1998.   To  date,
preliminary studies have yielded potential problem areas  with
some

<PAGE>
applications.  Most of these applications which have potential
Year  2000 deficiencies are third party applications  provided
by  outside  vendors,  and in each case the  deficiencies  are
being   addressed  by  the  software  vendor.   Any   in-house
applications developed by EEX will be modified before the  end
of  1998  and reviewed by an independent entity with expertise
in  this  area.  In all cases the cost of Year 2000 compliance
is considered immaterial.

During  1998  the  Company will be conducting  an  independent
review   of   operational  (field)  systems  which   are   the
responsibility  of third party companies doing  business  with
EEX.   This  Year  2000  review will include  any  operational
system on which any EEX-sanctioned work is performed, and will
include  both  hardware  and software subsystems.   Any  third
party  companies  doing business with  EEX  found  not  to  be
adequately  addressing the Year 2000 issue will be  identified
in  the  review,  along  with the  potential  impact  of  non-
compliance by the vendor.  As such, the Company at this  time,
cannot  adequately assess the extent to which further  actions
will  be required, and cannot at this time make any statements
as  to  whether or not this issue will have a material  effect
upon future operations.

RECENT EVENTS

Sale of East Texas Properties

On  April 24, 1998, EEX completed the previously announced sale
of East Texas producing oil and gas properties to Cross Timbers
Oil  Company  for  $235 million.  These properties  represented
approximately 220 billion cubic feet of gas equivalent.   As  a
part  of the sale, EEX retained a volumetric production payment
to satisfy an obligation existing under agreements with Encogen
One  Partners, Ltd.  The effective date of the sale was January
1, 1998.

Revenues, costs and expenses and sales volumes from January  1,
1998  through the closing date attributable to the  East  Texas
properties were:

     Revenues                       Millions  Sales Volume
        Natural gas                   $17.3      8.2 Bcf
        Oil, condensate and liquids     1.5      103 MBbls

     Costs and Expenses
        Production                      1.6
        Depreciation and amortization  15.2
        Taxes, other than income        1.6

Second  quarter 1998 amounts included above were:  natural  gas
revenues of $4.1 million (2.0 Bcf); oil and liquids revenue  of
$.3  million  (22  MBbls);  and  production,  depreciation  and
amortization and taxes, other than income of $.5 million,  $3.6
million and $.4 million, respectively.

Exploration Activities

EEX  has  completed  drilling, logging and  evaluation  of  the
discovery  well on the Llano prospect located on  Garden  Banks
Block  386  in  the Gulf of Mexico.  Analysis of the  logs  and
other   data   obtained  indicates  the  presence  of   several
hydrocarbon-bearing  sands in the Lower  Pliocene  and  Miocene
aged  sections.  EEX plans to begin appraisal drilling on  this
prospect  in  the  second  half  of  1998,  and  has  initiated
development planning studies.

<PAGE>

EEX  has two other deepwater prospects drilling and expects  to
have an additional prospect drilling in the third quarter.  The
Sheba  prospect,  located on Green Canyon Block  341,  and  the
Elvis  prospect, located on Mississippi Canyon Block  580,  are
currently  drilling.  The Gamera prospect, located  in  Atwater
Valley  on  Blocks  118, 119, 162 and 163,  is  expected  begin
drilling during the third quarter.

In  EEX's international operations, an exploratory well at  the
Karang Anyar Prospect (located South of the Mudi Field) on  the
Tuban    Block    in   Indonesia   encountered   non-commercial
accumulations  of  natural gas and was plugged  and  abandoned.
EEX  had  a  50% interest in this non-operated well.   EEX  and
block operator, Santa Fe Energy Resources Java, have identified
another exploration prospect in the Tuban Block and are in  the
process  of  finalizing  offset  owner  support  to  allow  the
drilling of this prospect in 1999.  This prospect is located to
the  southwest  of  the  Mudi Field and  if  successful,  could
utilize  some portion of the Mudi Field facilities  to  achieve
early production.

Trade for Shallow Water Properties

On  August  5,  1998,  EEX announced it  has  agreed  to  trade
substantially all of its Permian Basin properties in West Texas
and Eastern New Mexico for the shallow water properties located
off  the  coast  of  Texas and Louisiana of  Energen  Resources
Corporation, the oil and gas subsidiary of Energen Corporation.
In  addition  to  the shelf properties, EEX will  receive  $9.0
million in cash.
                               
In addition to cash, EEX will receive interests in 24 producing
blocks  and  30  exploratory  blocks.   Current  average  daily
production  from  the 24 producing blocks is  approximately  21
million  cubic feet equivalent and proved reserves  approximate
38  billion  cubic  feet equivalent (Bcfe).   Energen  will  be
receiving  properties  with  an  average  daily  production  of
approximately  three  thousand barrels  equivalent  and  proved
reserves of approximately 58 Bcfe.  The transaction is expected
to  close  by September 30, 1998 and has an effective  date  of
January 1, 1998.

Legal Proceedings

EEX has been named a defendant in two lawsuits filed on August
3,  1998,  in  Federal  Court for the  Northern  and  Southern
Districts  of Texas.  According to information in  notices  of
class  action published by plaintiff's counsel, the suits  are
on  behalf  of  certain EEX shareholders and  are  based  upon
alleged  misrepresentations made  prior  to  August  4,  1997,
concerning  the  value of the Company's assets  and  reserves.
The notices name Enserch Corporation, Texas Utilities Company,
Degolyer & MacNaughton and certain present and former officers
and  directors of EEX as defendants.  EEX has not been  served
in either of the lawsuits.  No assessment of the claims can be
made  at  this  time.  EEX intends to vigorously defend  these
suits.

<PAGE>

Forward Looking Statements -Uncertainties and Risks

Certain  statements  in  this report, including  statements  of
EEX's  and  management's expectations,  intentions,  plans  and
beliefs,  are "forward-looking statements," within the  meaning
of  Section  21E  of the Securities Exchange Act  of  1934,  as
amended,  that  are  subject  to  certain  events,  risks   and
uncertainties that may be outside EEX's control.  These forward-
looking statements include statements of management's plans and
objectives for EEX's future operations and statements of future
economic performance; information regarding drilling schedules,
expected  or  planned production, future production  levels  of
international  and  domestic fields, EEX's capital  budget  and
future  capital requirements, EEX's meeting its future  capital
needs, the level of future expenditures for environmental costs
and  the outcome of regulatory and litigation matters; and  the
assumptions  described in this report underlying such  forward-
looking  statements.  Actual  results  and  developments  could
differ  materially from those expressed in or implied  by  such
statements  due  to  a  number of factors,  including,  without
limitation,  those described in the context  of  such  forward-
looking  statements and the risk factors set  forth  below  and
described  from  time  to  time in EEX's  other  documents  and
reports filed with the Securities and Exchange Commission.

   Exploration  Risk.   Exploration for  oil  and  gas  in  the
deepwater  Gulf  of Mexico and unexplored frontier  areas  have
inherent  and  historically high risk.  As  described  in  this
report,  EEX  is  focusing  on  exploration  opportunities   in
offshore and international areas which will increase associated
risk.    Future  reserve  increases  and  production  will   be
dependent on EEX's success in these exploration efforts and  no
assurances can be given of such success.

  Estimating Reserves and Future Net Cash Flows.  Uncertainties
are  inherent in estimating quantities and values  of  reserves
and  in  projecting rates of production, net revenues  and  the
timing of development expenditures.  The reserve data represent
estimates only of the recovery of hydrocarbons from underground
accumulations  and  are  often different  from  the  quantities
ultimately  recovered.   Any  downward  adjustment  in  reserve
estimates could adversely affect EEX.

   Operational Risks and Hazards.  EEX's operations are subject
to   the  risks  and  uncertainties  associated  with  finding,
acquiring and developing oil and gas properties, and producing,
transporting  and  selling  oil  and  gas.  Operations  may  be
materially  curtailed,  delayed or  canceled  as  a  result  of
numerous   factors,  such  as  accidents,  weather  conditions,
compliance  with  governmental requirements  and  shortages  or
delays  in  the  delivery of equipment.  Drilling  may  involve
unprofitable efforts, not only with respect to dry  wells,  but
also  with  respect  to wells that are productive  but  do  not
produce  sufficient  net  revenues to  return  a  profit  after
drilling,  operating and other costs.  Various field  operating
hazards   such  as  fires,  explosions,  blow-outs,   equipment
failures,  abnormally  pressured formations  and  environmental
accidents  may  adversely  affect  production  from  successful
wells.   EEX's  ability to sell its oil and gas  production  is
dependent   on  the  availability  and  capacity  of  gathering
systems, pipelines and other forms of transportation.

   Offshore Risks.  EEX's offshore Gulf of Mexico oil  and  gas
reserves include properties located in water depths of 20 to in
excess of 7,000 feet where operations are by their nature  more
difficult  than  drilling  operations  conducted  on  land   in
established producing areas.  Deepwater drilling and operations
require  the  application  of more advanced  technologies  that
involve  a higher risk of mechanical failure and can result  in
significantly    higher   drilling   and    operating    costs.
Furthermore,  offshore operations require a significant  amount
of  time between the time of discovery and the time the gas  or
oil  is  actually marketed, increasing the market risk involved
with such operations.

<PAGE>

   Volatility  of  Oil and Gas Markets.  EEX's  operations  are
highly  dependent upon the prices of, and demand for,  oil  and
gas.  These prices have been, and are likely to continue to be,
volatile.  Prices are subject to fluctuations in response to  a
variety of factors that are beyond the control of EEX, such  as
worldwide  economic  and political conditions  as  they  affect
actions  of OPEC and Middle East and other producing countries,
and  the  price and availability of alternative  fuels.   EEX's
hedging  activities with respect to some of its  projected  oil
and gas production, which are designed to protect against price
declines, may prevent EEX from realizing the benefits of  price
increases  above the levels of the hedges and protect  it  from
incurring the detriments of price decreases below the level  of
hedges.   Because the majority of EEX's reserve base is natural
gas  on  an  energy equivalent basis, it is more  sensitive  to
fluctuations in the price of natural gas.

   Capital Funding. EEX's access to public or private equity or
debt markets may be limited by general conditions in or volatility
of the markets. No assurances can be given that the Company will
be able to secure funds in these markets, or that such funds will 
be obtained on terms favorable to the Company.

   Government Regulation.  EEX's business is subject to certain
federal, state and local laws and regulations relating  to  the
drilling  for  the  production of  oil  and  gas,  as  well  as
environmental  and  safety matters.  See "Business  -Government
Regulation "in EEX's Annual Report on Form 10-K.

   International  Operations.  EEX's  interests  in  countries
outside  the  United States are subject to the  various  risks
inherent  in  foreign operations.  These  risks  may  include,
among  other  things, currency restrictions and exchange  rate
fluctuations,  loss of revenue, property and  equipment  as  a
result  of  expropriation, nationalization, war,  insurrection
and  other  political risks, risks of increases in  taxes  and
governmental  royalties,  renegotiations  of  contracts   with
governmental entities, changes in laws and policies  governing
operations  of foreign-based companies and other uncertainties
arising  out  of  foreign  government  sovereignty  over   the
Company's    international    operations.     The    Company's
international  operations may also be  adversely  affected  by
laws  and  policies  of  the United States  affecting  foreign
trade, taxation and investment.  In addition, in the event  of
a  dispute arising from foreign operations, the Company may be
subject to the exclusive jurisdiction of foreign courts or may
not  be  successful  in  subjecting  foreign  persons  to  the
jurisdiction of the courts of the United States.

<PAGE>

[CAPTION]

                        EEX CORPORATION
SUMMARY OF SELECTED OPERATING DATA FOR OIL & GAS PRODUCING ACTIVITIES
                          (UNAUDITED)

                                     Three Months Ended  Six Months Ended
                                          June 30            June 30
                                    -------------------  ----------------

                                        1998    1997        1998   1997
                                       ------  ------      ------ ------
[S]                                   [C]      [C]        [C]     [C]
Sales Volumes
 Natural gas (MMcf)                   14,396   21,725     33,144  42,151
 Oil and condensate (MBbls)            1,663    1,282      2,649   2,429
 Natural gas liquids (MBbls)              58       90        102     186
   Total volumes (MMcfe) (a)          24,722   29,957     49,650  57,841

Average Sales Price
 Natural gas (per Mcf)               $  2.24   $ 2.13    $  2.35 $  2.46
 Oil and condensate (per Bbl)          13.07    18.95      14.29   20.32
 Natural gas liquids (per Bbl)         12.48    12.13      10.25   15.01
   Total product revenue 
    (per Mcfe) (a)                      2.22     2.39       2.35    2.69

Cost and Expenses (per Mcfe) (a) (b)
 Production and operating (c)        $   .50   $  .41     $  .47 $   .43
 Exploration                             .56      .67        .53     .69
 Depreciation and amortization           .97     1.27       1.12    1.28
 General, administration and other       .25      .24        .26     .25
 Taxes, other than income                .14      .14        .15     .15

Net Wells
 Drilled                                   5       13         14      29
 Productive                                3       13         11      24


(a) Oil and natural gas liquids have been converted to Mcf
    equivalents (Mcfe) on the basis of one barrel equals 6.0 Mcfe.
(b) Excludes unusual and non-recurring expenses.
(c) Excludes related production, severance and ad valorem taxes.


<PAGE>



                  PART II - OTHER INFORMATION


Item 1. Legal Proceedings

       EEX has been named a defendant in two lawsuits filed on
       August  3, 1998, in Federal Court for the Northern  and
       Southern  Districts of Texas.  According to information
       in  notices  of  class action published by  plaintiff's
       counsel,  the  suits  are  on  behalf  of  certain  EEX
       shareholders    and    are    based    upon     alleged
       misrepresentations  made  prior  to  August  4,   1997,
       concerning  the  value  of  the  Company's  assets  and
       reserves.  The notices name Enserch Corporation,  Texas
       Utilities  Company, Degolyer & MacNaughton and  certain
       present  and former officers and directors  of  EEX  as
       defendants.  EEX has not been served in either  of  the
       lawsuits.  No assessment of the claims can be  made  at
       this  time.   EEX  intends to vigorously  defend  these
       suits.
       
Item  4.  Submission of Matters to a Vote of Security Holders

       At  the annual meeting of shareholders held on May  12,
       1998, the shareholders elected a board of directors  of
       five  persons and approved the appointment of  Ernst  &
       Young LLP as Independent Auditors for fiscal year 1998.
       Listed below is the result of the vote.
       
       
                                            Election of Director
                                    -----------------------------------------
                                                 Withheld     Abstentions and
       Name                           For       From  Vote    Broker Nonvotes
                                    ----------  ----------       ----------     
       F. S. Addy(1)                96,275,420   756,439              0
       B. A. Bridgewater, Jr.(2)    96,234,543   797,316              0
       Michael P. Mallardi(2)       96,303,430   728,429              0
       Thomas M  Hamilton(3)        96,180,710   851,149              0
       Frederick M. Lowther(3)      96,307,436   724,423              0
       ________________________
       (1)Term expiring 1999
       (2)Term expiring 2000
       (3)Term expiring 2001
       
                                 Appointment of Ernst & Young LLP as
                                        Independent Auditor
                            --------------------------------------------
                                                   Abstentions and
                               For       Against   Broker Nonvotes
                            ----------   -------      -------- 
                            96,665,974   243,956      1,660
       
<PAGE>


Item 6.  Exhibits and Reports on Form 8-K

       (a)       Exhibits

           EXHIBIT (27) - Financial Data Schedule

       (b)       Reports on Form 8-K

           Current  Report on Form 8-K  dated April  24,  1998.
           Items   2  and  7  concerning  sale  of  East  Texas
           properties.
           
           Current  Report  on Form 8-K  dated June  22,  1998.
           (News  release dated June 22, 1998:  (1)  Completion
           of  sidetrack drilling operations at Llano  and  (2)
           Deepwater and International drilling activities.)


<PAGE>




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  undersigned  thereunto   duly
authorized.

                                      EEX CORPORATION
                                             (Registrant)






Dated August 4, 1998     By         /s/R. S. Langdon
                          -------------------------------------

                                      R. S. Langdon
                                      Executive Vice President,
                                      Finance and Administration,
                                      and Chief Financial Officer

                                      
                                      
                                      The above officer of
                                      registrant has signed
                                      this report as its duly
                                      authorized representative
                                      and as its principal
                                      financial officer