We show that nonclassical intensity correlations and quadrature entanglement can be generated by frequency doubling in a resonator with two output ports. We predict twin-beam intensity correlations
6dB below the coherent-state limit, and that the product of the inference variances of the quadrature fluctuations gives an Einstein-Podolsky-Rosen correlation coefficient of
VEPR=0.64<1, using the criterion of Reid [Phys. Rev. A 40, 913 (1989)]. Comparison with an entanglement source based on combining two frequency doublers with a beam splitter shows that the dual-ported resonator provides stronger entanglement at lower levels of individual beam squeezing. Calculations are performed using a self-consistent propagation method that does not invoke a mean-field approximation. Results are given for physically realistic parameters that account for the Gaussian shape of the intracavity beams, as well as intracavity losses.