8-K

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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

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                                    FORM 8-K
                                 CURRENT REPORT

                   REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

      DATE OF REPORT (Date of earliest event reported)  November 25, 1996
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                               KCS Energy, Inc.
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               (Exact Name of Registrant as Specified in Charter)


            Delaware                    1-11698                   22-2889587
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(State or other jurisdiction          (Commission               (IRS Employer
     of Incorporation)                File Number)           Identification No.)



379 Thornall Street, Edison, New Jersey                            08837
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(Address of Principal Executive Offices)                         (Zip Code)


                                (908) 632-1770
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              Registrant's telephone number, including area code


                                NOT APPLICABLE
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         (Former Name or Former Address, if Changed Since Last Report)

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Item 5. Other Events.

        A verdict was reached by a jury in the District Court of Zapata, County
Texas unfavorable to the registrant in its previously disclosed litigation with
Tennessee Gas Pipeline Company ("TGT") concerning the alleged enrichment by
the registrant of natural gas produced from Company-operated wells in the Bob
West Field and sold to TGT. In its verdict, the jury awarded TGT $143.2 million
including approximately $114 million for punitive damages.

        The press release issued by the registrant is attached as an exhibit.

Item 7. Financial Statements and Exhibits.

        (a)  None

        (b)  None

        (c)  Exhibits

        99   Press Release dated November 25, 1996.


                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                KCS Energy, Inc.

                          By: /s/ Henry A. Jurand
                              ----------------------
                                  Henry A. Jurand
             Vice President, Chief Financial Officer and Secretary

Dated:  November 25, 1996

EX-99

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NEWS RELEASE                                           [KCS ENERGY, INC. LOGO]
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AT THE COMPANY:              AT THE FINANCIAL RELATIONS BOARD:
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Henry A. Jurand, VP & CFO    For General Info: Marianne Stewart (212) 661-8030
                             For Analyst Info: Christina Howard (212) 661-8030
                             For Media Info:   Judith Sylk-Siegel (212) 661-8030

FOR IMMEDIATE RELEASE
MONDAY, NOVEMBER 25, 1996


           KCS ENERGY, INC. ANNOUNCES UNFAVORABLE TEXAS JURY VERDICT

Edison, NJ, November 25, 1996 -- KCS Energy, Inc. (NYSE:KCS) today announced it
received the verdict of the jury in a civil trial concluded Friday, November
23, 1996, in the District Court of Zapata, County Texas in its previously
disclosed litigation with Tennessee Gas Pipeline Company ("TGT") concerning the
alleged enrichment by KCS of natural gas produced from Company-operated wells
in the Bob West Field and sold to TGT. The alleged enrichment occurred during
the period from November 1993 to November 1994.

        In its verdict, the jury awarded TGT $143.2 million including
approximately $114 million for punitive damages.

        KCS President and Chief Executive Officer, James W. Christmas said, "We
are shocked and very disappointed with the jury's verdict on this matter and
plan to file a motion to have the verdict set aside and, if necessary, to file
a motion for a new trial. If these motions are denied, we plan to file an
appeal with the Texas Court of Appeals and post the necessary supersedeas bond.
We believe that the jury's verdict was not supported by the facts and is
inconsistent with applicable law. We believe we acted fully within our rights
under the contract and that our gas met contract specifications."

        The jury's verdict in no way affects current or future sales of gas
from Company-operated and non-operated wells covered by the contract with TGT,
which runs through January 1999, and only sales made from Company-operated
wells during the period in question are affected. The terms of the contract
were upheld in previous judicial rulings favoring KCS.

        "As a result of the jury's verdict, the previously announced public
offering of common stock and the pending acquisition of the oil and gas
operations of MidAmerican Energy Company will be delayed and may possibly be
terminated," said Mr. Christmas.

        KCS is an independent energy company primarily engaged in the
acquisition, exploration, development and production of natural gas and crude
oil. The Company also operates natural gas transportation and marketing
businesses. 

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                     379 Thornall Street, Edison, NJ 08837