<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 March 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 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  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 May  13, 1998:  127,067,427


<PAGE>                               
                               
                PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements




                        EEX CORPORATION
  CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)


                                                 Three Months
                                                Ended March 31
                                          ---------------------------
                                              1998       1997
                                           --------   --------
                                            (In thousands except
                                             per share amounts)

[S]                                         [C]        [C]
Revenues
 Natural gas                                $45,538    $57,338
 Oil and condensate                          16,109     25,072
 Natural gas liquids                            321      1,699
 Cogeneration operations                      2,464      2,603
 Other                                           81         95
                                           --------   --------
    Total                                    64,513     86,807
                                           --------   --------

Costs and Expenses
 Production and operating                    11,087     12,625
 Exploration                                 12,323     19,998
 Depreciation and amortization               31,612     35,585
 Loss on sales of property,
     plant and equipment                      6,027
 Cogeneration operations                      2,015      2,391
 General, administrative and other            6,725      7,388
 Taxes, other than income                     3,893      4,612
                                           --------   --------
    Total                                    73,682     82,599
                                           --------   --------

Operating Income (Loss)                      (9,169)     4,208
Other Income (Expense) - Net                     41        (21)
Interest Income                                  91         52
Interest and Other Financing Costs           (5,225)    (7,744)
                                           --------   --------

(Loss) Before Income Taxes                  (14,262)    (3,505)
Income Taxes (Benefit)                        1,001     (1,304)
Minority Interest                            (3,764)
                                           --------   --------

Net (Loss)                                 $(19,027)   $(2,201)
                                           ========   ========

Basic and Diluted Net (Loss) Per Share       $ (.15)    $ (.02)
                                           ========   ========
Weighted Average Shares Outstanding         126,641    126,641
                                           ========   ========


See accompanying Notes.

<PAGE>

                        EEX CORPORATION
  CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)

                                             Three Months Ended
                                                  March 31
                                        ---------------------------
                                              1998       1997
                                           --------   --------
                                             (In Thousands)
[S]                                       [C]            [C]

OPERATING ACTIVITIES
 Net income (loss)                        $(19,027)      $(2,201)
 Impairment of undeveloped leasehold                      13,622
 Dry hole cost                               2,752           767
 Depreciation and amortization              31,612        35,585
 Deferred income tax expense (benefit)                    (6,293)
 Loss on sale of property,
     plant and equipment                     6,027
 Other                                      (5,426)        2,865
 Changes in current operating
     assets and liabilities
  Accounts receivable                       (4,578)       29,820
  Other current assets                      (4,581)        9,570
  Accounts payable                          (9,287)      (17,504)
  Other current liabilities                 (3,488)        4,602
                                           ---------     --------
  Net cash flows (used in)
     from operating activities              (5,996)       70,883
                                           ---------     --------

INVESTING ACTIVITIES
 Additions to property,
     plant and equipment                   (69,216)      (33,982)
 Proceeds from disposition of
     property, plant and equipment          20,353         2,187
 Other                                      (5,703)       (9,479)
                                          ---------      --------
  Net cash flows used in
     investing activities                  (54,566)      (41,274)
                                          ---------      --------

FINANCING ACTIVITIES
 Borrowings under bank revolving
     credit agreement                       95,000        20,000
 Repayment of borrowings under bank
     revolving credit agreement            (35,000)      (55,000)
 Borrowings under short term
     financing agreement                    77,500         7,000
 Repayment of borrowings under short
    term financing agreement               (69,500)
 Change in temporary advances with
     affiliated companies                                  5,517
 Payments of capital lease obligations      (7,299)       (1,173)
 Decrease in advances under
     leasing arrangements                                   (557)
 Issuance of common stock                                      2
                                           ---------     --------
  Net cash flows from (used in)
     financing activities                   60,701       (24,211)
                                           ---------     --------
Net Increase in Cash                           139         5,348
Cash at Beginning of Period                  3,790         1,358
                                           ---------     --------
Cash at End of Period                       $3,929        $6,706
                                           =========     ========


See accompanying Notes.

<PAGE>

                        EEX CORPORATION
             CONDENSED CONSOLIDATED BALANCE SHEETS
                  (March 31, 1998 Unaudited)

                                            March 31  December 31
                                             1998       1997
                                          -----------  ----------
                                               (In thousands)
[S]                                          [C]        [C]
ASSETS
Current Assets
 Cash and cash equivalent                    $3,929     $3,790
 Accounts receivable - trade                 62,503     57,925
 Other                                       16,126     11,545
                                          ---------  ---------
    Total current assets                     82,558     73,260
                                          ---------  ---------

Property, Plant and Equipment (at cost)
 Gas and oil properties
     (successful efforts method)          1,853,977  1,882,097
 Other                                       21,941     19,581
                                         ---------- ----------
    Total                                 1,875,918  1,901,678
 Less accumulated depreciation
     and amortization                     1,158,459  1,192,691
                                         ---------- ----------
    Net property, plant and equipment       717,459    708,987
                                         ---------- ----------
Deferred Income Tax Benefit                  20,238     20,238
Other Assets                                 11,374      5,304
                                         ---------- ----------
    Total                                  $831,629   $807,789
                                         ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
 Accounts payable - trade                   $93,626   $108,616
 Short term borrowings                       13,000      5,000
 Current portion of capital
     lease obligations                       10,316      8,418
 Other                                        6,543     10,031
                                         ---------- ----------
    Total current liabilities               123,485    132,065
                                         ---------- ----------
Bank Revolving Credit Agreement              85,000     25,000
                                         ---------- ----------
Capital Lease Obligations                   224,120    233,317
                                         ---------- ----------
Other Liabilities                            43,113     42,744
                                         ---------- ----------
Minority Interest In Preferred
     Securities of Subsidiary               100,000    100,000
                                         ---------- ----------
Common Shareholders' Equity
 Common stock (400,000 shares authorized;
  127,067 and 127,059 shares outstanding)     1,271      1,271
 Paid in capital                            570,817    570,493
 Accumulated deficit                       (312,799)  (293,772)
 Unamortized restricted stock
     compensation                            (3,378)    (2,877)
 Treasury stock                                           (452)
                                         ---------- ----------
    Common shareholders' equity             255,911    274,663
                                         ---------- ----------
    Total                                  $831,629   $807,789
                                         ========== ==========


See accompanying Notes.

<PAGE>

                        EEX CORPORATION
            Notes to Condensed Financial Statements


1.   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.

2.   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.

<PAGE>

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


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.  See "Forward
Looking Statements- Uncertainties and Risks".

RESULTS OF OPERATIONS

EEX  reported a 1998 net loss of $19 million ($.15 per share),
versus a restated net loss of $2.2 million ($.02 per share) in
1997.   Excluding the impacts from asset sales ($6.0  million)
and  costs  associated with the disposition of  properties  in
East   Texas  included  in  depreciation  this  quarter  ($5.2
million),  the Company incurred a $7.8 million net loss  ($.06
per share).

In  the  following comparisons of first quarter 1998 and  1997
results  of  operations, 1998 results have  been  adjusted  to
exclude the $11.2 million of costs associated with asset sales
described above.

Revenues  for 1998 were $65 million, $22 million  (26%)  lower
than  1997.  Natural gas revenues, 21% lower than  1997,  were
impacted  by both a 13% decrease in average prices and  an  8%
decrease  in  production due to sales of non-core  properties.
The  average natural gas sales price per thousand  cubic  feet
("Mcf")  was  $2.43  in  1998 compared  with  $2.81  in  1997.
Natural  gas  production for 1998 was 19  billion  cubic  feet
("Bcf"),  compared with 20 Bcf in 1997. Oil revenues decreased
$9 million (35%) due to sales of non-core properties and a 25%
decrease  in the average crude oil sales price per  barrel  to
$16.34 in 1998 from $21.86 in 1997.  Crude oil production  was
986  thousand barrels ("MBbls"), compared with 1,147 MBbls  in
1997.

Costs and expenses, excluding the $11 million associated  with
asset sales described above, were $62 million in 1998 compared
to  $83  million in 1997.  Operating expenses (production  and
operating,  general and administrative and  taxes  other  than
income  and payroll) were $21 million in 1998, 13% lower  than
1997,the  result of asset sales and the favorable impact  from
cost   cutting  measures  implemented  over  the  past   year.
Exploration  expenses decreased 38% due to the curtailment  of
the  onshore  exploration program during 1997, the  change  in
focus  to  offshore and international and the  impact  of  the
offshore  exploration joint venture with Enterprise  Oil  Plc.
Depreciation  and  amortization was $26 million,  $10  million
lower  than  1997  due  to lower production  volumes  and  the
significant asset write-downs in the third quarter of 1997.

Total  interest and other financing costs, including  minority
interest,  were $9.0 million in 1998, a $1.3 million  increase
from  1997.  A lower overall debt level in 1998 was more  than
offset  by  the higher dividends associated with the preferred

<PAGE>

securities  of a subsidiary.  In the second quarter  of  1998,
the  Company intends to redeem the preferred securities  of  a
subsidiary  and reduce other bank debt with the proceeds  from
the sale of the East Texas properties.


HEDGING ACTIVITIES

A  portion  of  the risk associated with fluctuations  in  the
price  of  oil and natural gas is managed through the  use  of
hedging  techniques  such as oil and gas  swaps,  collars  and
futures agreements.  EEX fixed the price on first quarter 1998
sales volumes of 13 Bcf of natural gas (68% of production)  at
an average price of $2.51 per Mcf and 720 MBbls of oil (73% of
production)  at an average price of $17.34 per Bbl.  In  total
oil  and  gas price hedging activities increased 1998 revenues
by $6.0 million and decreased 1997 revenues by $.5 million.

At  March  31,  1998  EEX had outstanding swaps,  collars  and
futures  agreements that were entered into as hedges extending
through December 31, 1998, to exchange payments on 20  Bcf  of
natural  gas  and 763 MBbls of oil. At March 31,  1998,  there
were  $3.6 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 months of 1998.


LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

Net  cash flows used for operating activities were $6  million
in  1998  compared to net cash flows from operating activities
of $71 million in 1997.  Lower net income in 1998 coupled with
higher non-cash charges included in 1997 income and changes in
current  operating  assets  and liabilities  account  for  the
change.  Net cash flows used for investing activities in  1998
were  $55 million, a $13 million increase from 1997.  Property
additions  were  $69 million in 1998, some $35 million  higher
than  1997  due  to  the  acquisition  of  an  additional  25%
participation   interest  in  the  Tuban  Production   Sharing
Contract  located  on  the island of  Java  in  Indonesia  for
approximately $40 million.  Proceeds from property  sales  and
retirements   increased  $18  million   in   1998,   partially
offsetting  the increase in property additions.   The  Company
increased  borrowings  under its credit  facilities  some  $61
million  in  1998 in order to fund operations and the  capital
program.

EEX  intends  to  utilize substantially all of its  internally
generated cash flows for growth of the business and expects to
have  sufficient  cash flow from operations  and  the  ongoing
monetization  of  non-core assets to  provide  funds  for  its
business plans.  Borrowings under EEX's credit facilities  may
be used to supplement temporary cash flow needs.

<PAGE>

Capital Structure

Debt  represented 57% of total capitalization, as  defined,  at
March  31,  1998  compared  to 50% of total  capitalization  at
December  31,  1997.  The Company intends to use proceeds  from
the  sale  of the East Texas properties to redeem the preferred
securities of a subsidiary and reduce outstanding bank debt.


RECENT DEVELOPMENTS

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 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 during the first
quarter 1998 attributable to the East Texas properties were:

     Revenues                          Millions  Sales Volume
        Natural gas                      $12.7    6,205 Mmcf
        Oil, condensate and liquids        1.2       86 MBbls

     Costs and Expenses
        Production                         1.1
        Depreciation and amortization     11.7
        Taxes, other than income           1.1


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

<PAGE>

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  selling its onshore producing properties  and
will  focus  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.

   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,

<PAGE>

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.

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

                                           Three Months Ended
                                                March 31
                                        -------------------------
                                             1998       1997
                                           -------    -------
[S]                                          [C]       [C]
Revenues (in millions)
 Natural gas                                 $45.5     $57.3
 Oil and condensate                           16.1      25.1
 Natural gas liquids                            .3       1.7
 Other                                          .1        .1
                                           -------    -------
   Total                                     $62.0     $84.2
                                           =======    =======
Sales Volumes
 Natural gas (MMcf)                         18,748    20,426
 Oil and condensate (MBbls)                    986     1,147
 Natural gas liquids (MBbls)                    44        96
 Total volumes (MMcfe) (a)                  24,928    27,884

Average Sales Price
 Natural gas (per Mcf)                       $2.43    $ 2.81
 Oil and condensate (per Bbl)                16.34     21.86
 Natural gas liquids (per Bbl)                7.30     17.70
   Total product revenue (per Mcfe) (a)       2.49      3.02

Cost and Expenses (per Mcfe) (a)(b)
 Production and operating (c)                $ .44    $  .45
 Exploration                                   .49       .72
 Depreciation and amortization                1.27      1.28
 General, administration and other             .26       .26
 Taxes, other than income                      .16       .17

Net Wells
 Drilled                                         9        16
 Productive                                      8        11


(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 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 January 16,  1998.
           (News   Release   dated  January  16,   1998:   (1)
           Acquisition  of  rig for deepening  and  appraising
           Llano  Discovery on Garden Banks Block 386 and  (2)
           Announcement  of intention to sell  or  trade  East
           Texas assets.)
           
           Current Report on Form 8-K dated February 10, 1998.
           (News Release dated February 10, 1998:  Results  of
           operations  for  fourth  quarter  and  year   ended
           December 31, 1997.)
           
           Current Report on Form 8-K dated February 25, 1998.
           (News Release dated February 25, 1998: Announcement
           of agreement to sell East Texas properties.)
           
           Current  Report Form 8-K dated February  27,  2998.
           (News Release dated February 27, 1998: Announcement
           of stock repurchase program.)

<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 May 14,1998        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