The metabolic effects of glucagon and glucagon plus insulin on the isolated rat livers perfused with 10 mM sodium L-lactate as substrate were studied. Glucagon stimulated gluconeogenesis, ketogenesis and ureogenesis at the concentration used of 2.1 nM. The addition of insulin to give a glucagon-to-insulin ratio of 0.2 reversed all the glucagon effects.The glucagon enhancement of gluconeogenesis was accompanied by a rise in the cytosolic and mitochondrial state of reduction of the NAD system and a fall in the [ATP]/[ADP] ratio. The analysis of the intermediary metabolite concentrations suggested, as possible sites of glucagon action, the steps between pyruvate and phosphoenolpyruvate as well as the reactions catalyzed by phosphofructokinase and/or fructose bisphosphatase. All the changes in metabolite contents were abolished when insulin was present.Glucagon increased the intramitochondrial concentration of all the metabolites, whose intracellular distribution was calculated. The finding of a significant rise in the calculated intramitochondrial concentration of oxaloacetate points to pyruvate carboxylation as an important site of glucagon interaction with the gluconeogenic pathway. A primary event in the glucagon action redistributing intracellular metabolites seems to be the mitochondrial entry of malate. The possibility is discussed that the changes in metabolite cellular distribution were brought about by the increased cellular state of reduction caused by the hormone.Since an early study, in which the role of glucagon on hepatic gluconeogenesis was postulated [l -41, a considerable amount of information has been accumulated regarding its mechanism of action. However, the efforts do not seem to have been succesful, since as yet no satisfactory explanation has been found to elucidate the mechanism leading to the enhancement of the hepatic gluconeogenic flux under the different situations in which the hormone is known to be active.Recent work has pointed to the activation of some metabolic event between pyruvate and phosphoenolpyruvate as the cause for the observed effect of glucagon stimulation of the gluconeogenic flux from subEnzymes. Aconitate hydratase (EC 4.2