Replacement engine 1989 SN 351

With your freeze plugs pushed out, it probably froze at some point.
With the oil filter blown off, that one is odd, I have seen it but usually in an engine that is started in very cold temps, below 20* and maybe the engine was revved high before the oil had any chance to warm up.
The engine will need to come out to determine its current value. Block may be fine or may be cracked. It will need to be inspected by a machine shop.
If it is shot you have the choice to rebuild an engine or find a good running used engine take out.   Your engine is probably a reverse rotation in a 1989 Nautique so keep that in mind when searching.   If someone has a 351W reverse rotation in good shape, maybe 500 hours it might be the cheapest replacement choice.
The engines are known to last 2,000 or more hours with good maintenance. Rebuilt engines are available from a few sources and there have been recent threads on this forum discussing those options if you do some searching.

TRBenj wrote: MrMcD wrote: Your engine is probably a reverse rotation in a 1989 Nautique . *probably not

Like Tim said ( in a lot fewer words), being an 89 it's most likely a reverse, reverse rotation engine otherwise known as standard LH automotive rotation hooked to a PCM 1.23 to 1 transmission.

89 was the first year for that setup

Look at your engine tag or post a picture here and also a picture of the transmission if you're unsure

It's really pretty easy to find a remanufactured long block if that ends up being what you want or need.

Around 2000 bucks for a good quality remanned long block, labor and labor charge provided by you or someone else

Rotation determining factor then, is it 1.23:1 or a 1:1 transmission.
I did not realize the 1.23:1 came out in 89.
1.23:1 = Standard Rotatation engine

1:1 = REVERSE ROTATION ENGINE