============= Page 1 of 24 ============= Interoffice Memorandum To: Distribution From: Richard A. Causey Department: Chief Accounting Officer Subject! 2nd Quarter Financial Review Date: July 25, 2001 Attached is a summary of 2"d quarter and YTD;Earnings, Cash Flow, and Capital Deployed, This report will be issued periodically and will include actuals' at the end of each qu arter and current estimates for non-quarter' periods, Distribution: Dave Delainey Jim Derrick Jim Falcon Andy Fastow Mark Frevert Kevin Hannon Stan Horton Steve Kean Mark Koenig John Lavorata_' Ken Lay Mike McConnell Jeff' McMahon Barry Pearce Ken Rice John Sheriff Jeff Skilling Greg Whalley Bob Butts Kent Castleman Wes Colwell Fernley Dyson Rod: Hayslett Mark Lindsey Brent Price Jeff Sommers Wade Stubblefield EC 001271260 EX-KEAN 20 EXH023-00127 Communication Excellence GOVERNMENT EXHIBIT 956 Crim. No. H-04-25 (S-2) ============= Page 2 of 24 ============= EXH023-00128 ============= Page 3 of 24 ============= n-~ C) 0 0 r N N N EXH023-00129 ============= Page 4 of 24 ============= EivRON EARNINGS RELEASE - EXTERNAL F ORMAT (Uihord or cakUm except as nme0) . 7O Second Quarter _ 2001 2000. 01 va 00 1st CE Update Actual - Actual. Growth - Transmission & Distribution En= Transportation Services S 76.7 $ 0.3 .$ 77 0 $ 77.3 . Portland General : 57:7 7.2 64 9 62.0 Total Transmission & DistrIbutlon 134.4 7.5 141_9 139 2% - Wholesak Energy Operations & Services Americas 959.5 279.6 1,239.1... 3312 Europe 98.0 (1,2) 96.8 64.5 CATS/Margaux - (43.1) (A3 1) - Global Markets 54.6 (20.5) 34.1 (3.5) Industrial Markets ,10 ,7 2.8 133 - Net works (3.8) (1 4) (5.2) (7.8) EEOS (4.8) 5.3 0,5 19.3 Global Assets 41.7 - 41.7 54.3 Retail Ri8I Management (8000) 104.2 (458 0) .(22.4) Other Wholesale (19.8): (35.5) rSE tt Subtotal. 536.3 290.0 826.3 435.6 Global Firunce ' 25.2 '. 6,3 33.5 23 e Global E&P. 13.8 1.7 t E.5 ..0 Prepays (35.01 (201 (sir) (17 5) Qtner. 3.4 56 134.4E Total Wholesale Energy Opt. & Services 501.1 ; .301.4 302_5, 414.5 94% Enron Energy Servicae _ 49.0 10.1 59.9 40.T 31'n Enron Broadband Services (15.0) (67.0) {102A1 8A) Corporate and Other Azudx (25.3) lE t i 3'. 4) (10.8) Enron Renewable Energy Corp 12.9 i5 4 Clean Fuels 2.7 8 0 11 7 9.0 - Enron Investment Partners 03.11.. (t.Si Q.a) (12) , .. Corporate & Other Expenses 195.9) 2 0 (93 1) (34.2) Swdured Transactions 4 2 (4.7) (7 [,) 42.4 Redass from/to wholesale - - - 11.71 Total Corporate & Other. SOLS (7-3) 106:61 16.9 _ Overview 160,0 160.0 INCOME BEFORE INT., M.1. & INC. TAXES 746.0 45.4 793.4 609A 30% Interest. Expense, Net 201.2 13,8 215.0 - la;.5 10% Dividends on Preferred Stock of Subsidiaries 16:2 - 18 2 20.6 Minority Interest ...40.4. 10.61 29.5 38.6 PRE-TAX INCOME 488-2' 42.5' 530.T 353.3 50% IncomeTax Expense 111.2 9.2 1264 84:4 NET INCOME - RECURRING S 371.0 5333 $ 404.3 5 '288.9 40% DILUTED EPS . Recurring 0.42. $ 0.03 $ 0.45 $ , 0.34 - 22% Non-recurring TOTAL DILUTED EPS $ o.42 S oo3 $ r n 6:u Avg shares oulstar Iang - Oluled 886 ,0 691.1 6621 Ertectlve Tax Rare - Recuirm9 Eamings 24.094.. . 23.8% 18.21E C 001271263 =XH023-00130 ============= Page 5 of 24 ============= ENRON EARNINGS RE LEASE -EXTERN AL FORMAT (MI« n o f Donars. except a $ noted Quarter Ended Quarter Ended Six Months Ended - March 31 - June. 30.: ;'..Jun. 30 'Plan 2001 Act - 2000 Act -'1st CE - - 2001 Act.' 2000 Act 1st CE- - 2001 Act 2000 Act Traps t)eslon & Distribution Enron Transportation Services $ 131.8 S 133.3 $ 127.8 S 78:7 $ 77.0 $ 77.3 $ 210.0 S 210.3 S 205.2 Portland General 100.0 60.0 1053 57.7 64.9 62.0 1177 124.9 .167.3 Total Transmission & Distribution .231.8 193.3 233.2 134.4 .141.9 139.3 327.7. 335.2 .372.5 Wholesale Energy Operations & Services Americas - 270.6 847.9 137.5 959.5 1,239.1 331.2 1,807.4 2,087.0 463.7 Europe 82.4 990 67.7 98.0 96.8 64.5 197.0 195.8' 1322 CATSfMargaux (12.1) - (43.1) - (12.1) (55.2) Global Markets 46.1 46,3 50.0 546 34.1 {3.5) 100.0 80.4 465 Industrial Markets 9.0 8.9 - 10.7 13.3 19.6 22.2 Net Works (3 5) (3.6) (14 2) (3.8) (5.2) (7.5) (7.4) (8.8) (22.0) - EEOS 9.2 8.1 3.4 (4.8) 0,5 19.3 3.3 13.5 22,7 GYo51 RSsets : 91.1 47,9 57.5 41.7 41.7 54.3 89.5. 89.6 -.121.8> Retail Risk Management - ;(230.4) 10.5 (600.0) (495.6) (22 4) 103D.4) . (726.2) (11.9} " Other Wholesale (0 8) (57-3) (19.6) --(55 -) - (76.8) 4 (112x) Subtotal 504.0 - 764.7 .322.4 536.3 026.3 433.6 1,291.0 1,501,0 758.0. Global F=inance 400 14.7 104.4 25.2 25.5 22.6 39.9' 48.2 126.2 :..Global E8P 5,1 ! 15.5 4.1 13:8 15.5 7.0 29.3 31.0 11.1 Prepays (35.1) .. (15.1) (22.9).. (35.0) (37.0) 117.5) (50.1). (52.1) (40.4) ' Other 97.5 (150) 21.2 '(39.2) (33 5) 134.41 (54.2) (50.8).' (13.2) Total Wholesale Energy Ops. & Services 611.5 754.8 ' 429.2 501.1 802.5 - 414.5 1,255.9 1,557.3' 643.7 Enron Energy Services 52.4 39.6 8.0 49,0 55.6 45-7 66.6: 99.4-. 61.7 Enron Broadhand Services (35.0) (35.0) (0.3) (15.0) (102.0) (8.0) (50.0) (137.0) (8.3) Corporate and Other Azura (17.1) (315) (6.0) (25.3) (314) (10.0) (56.8) (62.9) (165) Enron Renewable Energy Gorp (9,B) (15.8) 11.9. .. 129 7.S 134 (3.9) (9.3) 25.3 Clean Fuels (16.1) (17-1) (3.3) 2.7 1o.7 9.0 (14.4) (6.4) 5,7 Onion nyestrn,enl Partners -.(0.1) (1.4) '(0,4), (1.2) I. (1.5) (3.4) (18).. - Corporate & Other Expenses (82.2) (95.7) (35.7) '95 93 )931) (34.2) (19).6) (188.8) : ,. (69,9) Structures Transactions 4,0 4.8 6.8 4 2 (0 5) 424 9.0 4.3 49.2 Dtr.er (17.4) (1.7) (19.1) Total Corporate & Other (121.3) (157.7) _ (44.1) /101:5) (10fl e) 56,9 (2591) '. (266.6) 27.2) Overview '. 22,4 - 190.0 - - 1500 _ INCOME BEFORE tNT., M.I. & INC. TAXES 781.5 795.0 624.1 748.0 793.4 608,4 1,543,0 1,586.4 1,232.4 tntarest Expense, Net 193.2 201.0 151,1 201.2 218.0 1955 . 402.2 416,0 356.6 " D)vluends on Preferred Stock of Subsidaries ' 18A 18.0. 18;1 14.2 152 :C.6 38.2 36.2 389 Minority Interest 23.B 40.0 ' 35 C 404 2525 32 8 80.4 69.3 7313 PRE-TAX INCOME 526,4. 536.0` 409.8 488.2 530.7 355.3 1,0242 1,066.7 763.1 Income Tax Expense 126.4 130.0 72.2 117.2 121, 4 - c 4 4 247.2 2564 136.6 NET INCOME. RECURRING $ 400.0. S.. 406.0 55 337.6 $ 371,0 S 434.3 S 281.9 77 $ 81_ .3.3 5" 626.5 DILUTED EPS Recurring 5 0,45 5 047 5 040 $ 0.42 S C 45 S 0.34 '. $ 0.89 $ 0.92 3 0.74 Non-recurnn4 0.02 - - - 0.02 0.02 - - _ TOTAL DILUTED FPS S OAS $ 0.49 S 0.40 S 0 a2 S 0.c5 S ' 0 3d 5 0.91 0. 04 i S 0.74 Avq shares oalsisnds9 . DiIdled 885.0 870.1 5.51 9 .88&.0 091.1 8522 806.0 667.5 657.0 Eaective TaK Rate- Recxrrirg Ean5ri s,- 24.0% ?4.S is 170% 24. C% 2-1 e% 182% 24.1% 24.05 17.9% EC 001271264- =XH023-00131 ============= Page 6 of 24 ============= Transportation & Distribution 2nd Quarter' 2001 $ in millions ETS ACTUAL r' 1st Current NNG TIN Other Ops Total Estimate 2000 Act Revenues $ 107.9 $ 46.6 $ (3.7) $ 150.8 $ 125.6 $ : 165,7 Cost o€ Sales 29.6 0.1 29.7 (1.1 18.0 Gross Margin 78.3 46.6 (3.6) 121.1' 126.7 147.7 Operating Expenses 64.8 12.6 (5.4) 72.0 79.7 92.3 Operating Income 13.5 34.0 1.6 49,1 47.0 55.4 Equity Earnings Trailblazer, Overthrust 2.0 - 20 1.1 , 1.0 Citrus' 11.2 11.2 9.3 '' 9.0 Northern Border 2.2 2.2 1.9 1.7 EOTT 1.2 1.2 2.4 (1.8) Gains on Sales 0.6 - Q,8 1.4 - 1.0 Other Income 0.4 5 16 {0.1) 9 $ 33 9.6 (a) 26.6 $ 9.9 77.0 15.0 ' 76.7 11.0 77,3 IBIT . . (a) Partial reversal of EOTT distribution reserve ($9.OMM) EC aO12712~5 EXH023-00132 ============= Page 7 of 24 ============= Transportation & Distribution YTD Through June 30, 2001 $ In millions ETS ACTUAL 1st Current` NNG TW Other Ops Total Estimate 2000 Act Revenues $ 282.9 $ 105.2 $ 82 $ 396.3 $ 362.5 $ 371.6 Cost of Sales 32.3 - 0.1 32.4 20.5 22.8 Gross Margin 250.6 105.2 8.1 363.9 342.0 348.8 Operating Expenses 141.6 42.9 10.9 195.4 175.7 173.8 Operating Income 109.0 62.3 (2.8) 168.5 166.3< 175.0 Equity Earnings Trailblazer, Overthrust 3.2 - - 3.2 2.1 1.9 Citrus - 19.3 19.3 17.5 15.5 Northern Border - 4.0 4.0 3.7 3.4 EOTT - 3.6 3.6 4.8 (3.9) Gains on Sales 0.6 (0.1) 0.8 1.3 - 1.0 < Other tncorne 1.1 - 9,3 (a) 10.4 15.6 12.3 IBIT 113.9 62.2 "` 34.2 210.3 210.0'' $ 205.2 - (a) Partial reversal of EOTT distribution reserve ($9.0MM) EC 001271266 =XH023-00133 ============= Page 8 of 24 ============= Transportation & Distribution 2nd Quarter 2001 $ In millions Portland General 2nd Quarter YTD through June 30 2001 Act 1st` CE 2000 Act 2001 Act 1st CE 2000 Act Wholesale $ 460.0 $ 181.9 $ 657.7 $ 532.5 Retail 370.7 249.4 939.9 295.9 Total Revenues 830.7 684.0 431.3 1,597.6 1,451.2 828.4 Cost of Sales 624.1 502.0 251.4 1,205.8 1,084.4 453.9 Gross Margin 206.6 (a) 182.0 179.9 391.8 366.8 374.5 Operating Expenses (148.6) (b) (137.7) (122.8) (266:9) (255.6) (246.4) Other Income 6.9 13,4 4,9 - 6.5 39.2 IBIT 64.9 57.7 62.0 124.9 117.7 167.3 (a) Increase due to wholesale sales at higher prices offset by higher cost of sales and lowe- hydra generation (b) Increase due primarily to higher ma intenance costs of $3.0mm, $3.4mm term ination fee pad to GATX Capital Corp., increased amortization, and an adju stment for miscellaneous other taxes EC 001271267 :XH023-00134 ============= Page 9 of 24 ============= Wholesale Services 2nd Quarter 2001 $ In millions Americas 2nd Quarter YTD through June 30 2001 Act 1st CE 2000 Act 2001 Act 1st CE 2000 Act IBIT $ 1,239.1 $ 959.5 $ 331.2 $ 2,087.0 $ 1,807.4 $ 468.7 Detail of 2001 ]BIT (a) Significant originations: Peaker sales 412.2 Pastoria 40.4' Kern River 23.9 EC 001271268 =XH023-00135 ============= Page 10 of 24 ============= Wholesale Services 2nd Quarter 2001 $ in millions Europe 2nd Quarter YTD through June 30 2001 Act 1st CE 2000 Act 2001 Act lst CE 2000 Act IBIT $ 96.8 $ 98.0 $ 64.5 $ 195.8' $ 197.0 $ 132.2 Detail of 2001 IBIT (p) SlgrOtcant originaiions: (a) Significant originations: ETOL 3 35.0 - ETOL 2 & 3 58.0 Ra Portfolio 20.0 Ra Portfolio 20.0 Sainsbury 18.0 Sainsbury 18.0 l Aanx 10.5 EC 001271259 EXH023-00136 ============= Page 11 of 24 ============= Wholesale Services 2nd Quarter 2001 $ In millions Global Markets 2nd Quarter YTD through June 30 2001 Act 1st CE 2000 Act 2001 Act 1st CE 2000 Act IBIT $ 34.1 $ 54.6 $ (3. J $ 80.4 $ 100.9 $ 46.5 Detail of 2001 1131T (a) Significant onginations; MTBE transaction 124,0 Ciine put restructure 20,D Mitsui 6.8 EC 001271270 EXH023-00137 ============= Page 12 of 24 ============= Wholesale Services 2nd Quarter 2001 $ in millions Industrial Markets 2nd Quarter YTD through June 30 2001 Act 1st CE 2000 Act 2001 Act 1st CE' 2000 Act IBIT $ 13.3 $ 10.7 $ $ 22.2 $X19.6 Detail of 2001 [BIT (a) Significant originations: Sundance share sale 20.0 Huntco call option 10.9 Huntco investment mgnft. 7.5 EC 001271271 EXH023-00138 ============= Page 13 of 24 ============= Wholesale Services 2nd Quarter 2001 $ In millions Global Assets 2nd Quarter YTD through June 30 2001 Act 1 st CE - 2000 Act 2001 Act 1 st CE 2000 Act IBIT $ 41.7 $ 41.7 $ 54.3 $ 89.6 $ 89.6 $ 121.8 Detail of 2001 ]BIT ' EXH023-00139 ============= Page 14 of 24 ============= Retail Services 2nd Quarter 2001 $ in millions EES 2nd Quarter YTD through June 30 2001 Act 1st CE 2000 Act 1st CE 2001 Act 2000 Act Gross Revenues Gas and Power Sales $ 70.0' $ 113.8 $ 319.2 $ 175.7 Power MTM/Originations 156.6 100.6 ` 295.9 135.7 Facilities Services 187.2 137.1 363,4 270.3 Outsource & Other '' 27.5 4.0 39.3 8.5 International 116.1 65.3 232.2 144.2 Total Revenues 557.4 770.0 420.8 1,250.0 1,462.5 734.4 Cost of Sales Gas and Power Sales 69.3 113.0 319.8 174.3 Facilities Services 162,6 121.3 316.1 235.3 Outsource & Other 25.3 9.9 38.5 11.7 International 71.0 51.0 148.6 108.2 Total Cost of Sales 328.2 569.8 295.2 823.0 1,064.5 529.5 Gross Margin Gas and Power Sales 0.7 0.8 (0.6) 1.4 Power MTM/Originations> 156.6 10©.6 295.9 135.7 Facilities Services 24.6 15.6 47.3 35.0 Outsource & Other 2.2 (5.9) 0.8 (3.2) International 45.1 14.3 83.6 36.0 Total Gross Margin 229.2 200.2 125.6 427.0 398.0 204.9 Operating Expenses (178.7) (a) (157.2) (90.6) (351.3) (329.8) (165.9) New Power Co. Monetizations 20.0 20.0 25.0 50.0 50.0 45.0 Equity Losses (13..3) (14.0) (18.9) (28.2) (28.9) (17.0) Other Income 2.6 - 4.6 1.9 (0.7 4.7 [BIT $ 69.8 - 49.0 99.4' 88.6 (a) Operating expenses increased versus 2000 2Q primarily due to the foJiowing: Europe $9MM, IBM/IT services $13MM, bonus $10MM, commis sions $10MM, salary and severance costs $35MM EC 001271273 EXH023-00140 ============= Page 15 of 24 ============= Broadband Services 2nd Quarter 2001 $ in millions EBS 2nd Quarter YTD through Jun e 30 1st CE 2001 Act 2000 Act 1st CE' 2001 Act 2000 Act Gross Revenues Dark Fiber and Software Sales $ 2.2 $ 152.4 $; 2.7 $ 199.9 Content Services 0.1 0.2 58.7 0.4 Contract Originations - 2.1 3.8 2.1 Merchant Investments (0.6) (4.2) (6.2) 7.2 Trading 9.2 - 29.3 - Other 4.9 - 10.6 - Total Revenues 165.6 15.8 150.5 248.7 98.9 209.6 _' Cost of Sales Dark Fiber and Software Sales 4.6 70.4 4.7 78.2 Content Services 1.6 3.8 1.6 3.8 Trading 13.4 40.0 Other 2.4 0.4 4.6 0.4 Total Cost of Sales' 91.9 22.0 74.6 120.8 50.9 82.4 Gross Margin Dark Fiber and Software Sales (2.4) 82.0 (2.0) 121.7 Content Services (1.5) (3.6) 57.1 (3.4) Contract Originations - 2.1 3.8 2.1 Merchant Investments (0.6) (4.2) (6.2) 7.2 Trading (4.2) (10.7) - Other 2.5 (0.4) 6,0 (0.4) Total Gross Margin 73.7 (6.2) 75.9 127.9 48.0 127.2 Operating Expenses (88.7) (93.7) (85.2) (180.4) ' (185.4) (137.1) Other Income IBIT (15.0) (2.1) (102.0) 1.3 ~($.0) 2.5 (50.0 0.4 (137.0 1.6 $ (8.3) EC 001271274 EXH023-00141 ============= Page 16 of 24 ============= Corporate ataff Functions Corporate, Staff Costs Retained June YTD 2001 (In thousands of dollars) Total Year June YTD 2001 Plan Change `1st CE Plan Actuals Variance Executive 17,132 1,100 18,232 8,752 14,630 (5,878) (1 Legal 9,781 - 9,781 4,892 6,500 (1,608) Risk Assessment & Control 1,392 - 1,392 697 (1,488) 2,185 Accounting & Tax 30,307 - 30,307 15,156 15,985 (829) SAP ISG 9,264 - 9,264 4,632 5,491 (859) Strategic Sourcing 6,844 - 6,844 3,424 3,913 (489) Investor Relations' 3,035 - 3,036 1,518 1,810 (292) Corporate Development 3,485 - 3,485 1,743 2,134 (392) Human Resources 3,862 - 3,862 _ 2,864 6,666 (3,802) (2 Community Relations 7,232 7,232 3,617 3,743 (126) Benefits 119,226 9,000 128,226 59,613 44,270 15,343 (3 Analyst & Associates = 2,602 (2,602) (4 Public Affairs 38,515 - 38,515 19,258 16,769 2,489 (5 Administrative Services 2,236 2,236 1,118 (127)' 1,245 Risk Management 2,433 - 2,433 1,217 701 ' 515 Xcelerator 1,500 1,500 - 2,626 (2,626) Amortization & depreciation 78,218 78,218 39,109 34,829 4,280 (6 EBS transfers - 13,000 13,000 - 12,205 ; (12,205) Other 32,966 13,000 ' 45,966 15,170 15,593 423 Costs Retained at Corporate 365,929 37,600 403,529' 182,779 188,853 6,074) ' Pnmarliy relates to special payments to former employees and Azurix costs: 1) Variance is due to corporate aviation usage and special payments. 2) Primarily timing of Click@Home program, expenses were planned evenly over the year. Most of the costs were incurred in Feb - June. 3) Variance is primarily due to decrease in value of investments for calcu lating liability related to deferred compensation plan; 4) Due to fewer participants in the program, all of the program overhead costs have not been billed out. EC 001271275 5) Variance is primarily timing of payments for advertising. 6) Plan amortization was assume to be equal over the year. Variance is caused by timing of new projects, =XH023-00142 ============= Page 17 of 24 ============= EXH023-00143 ============= Page 18 of 24 ============= Enron Corp 2001 Cash Flow Estimate June YTD July thru Dec. Estimate' Estimate Full Year Funds Flow from Operations 1,520.5 1,479,5 7 3,000.D Changes in Working Capital (2,452.1) 1,2521 (1,400_0) Cash Flow from Operations (931.6) 2,531.6 1,600.0 Proceeds from Sale of Assets 1,473.5 393 9 1,8724 Capital Exp & Equity Investments (2,860.8) (917.3) (3,778.2) (1,387.4) (518.4) (1,905.8) Cash Flow (2,319.0) 2,013.2 (305.8) Cash Flow from Financing Increase/(Dec) in Debt 2,329.4 (1.,731.0) 598.4 Dividends Paid (285.6) (285.1) (570.7) Other Financing (56-6) 2.9 (53.7) 1,987.2 (2,013.2) (26.0) Increasel(Decrease) in Cash Balances (331.8) - (331.8) Balance Sheet Debt Opening Balance 10,229.5 12,7 22.1 10,229,5 Increase from Cash Flow 2,323.4 (1,731.2) 598.4 Other Changes 143.3 143.3 Ending Balance 12,702.1 10,971.1 10,971.1 ; ' Jan-May actual June estimate. EC 001271277 EXH023-00144 ============= Page 19 of 24 ============= Enron Corp Funds Flow from Operat ions 2001 Year-to-Date 1st Quarter 2nd Quarter June - Actual '., Estimate. Year-to-Date Transportation & Distribution Enron Transportation Services 83,8 63.7 147,5 Portland General Group 6.6 127.2 133.7 80.4 190.9- 281.2 Wholesale Enron North America , 615.2 920.4 1.535.6 (1) Enron Europe 192.4 (73:2) 19.2 Enron Global Markets (I 53.7) ($1 4) (235.1)'(2) Enron Global Assets 93.3 (1398) (46.5) (3) Global Expior & Prod 28.6 (34.8) (6.2) EEOS 1.9 (20 6) (18,7) Enron Net Works (105.5) 102.E Enron Global Finance 12.7 '126 11 16.4; Enron Industrial Markets (142.5) {2._4; (166 9; Wholesale - Other (457.9) 729.c 271.7 (4) Wholesale -EES (89.6) (42.8) (1324) Wholesale- Eiims (18.4) 4-E 0 27.5 EI Headquarters 7.0 _ 1 5 6 6- ('16.3) 1,253.9 1,237.6 Enron Broadband (19.0) 2y 1 10.1 Enron Energy Services 11,0 L2.93 (11.9) Enron Renewable Energy 0.6 D.3 1_C Corporate B Other 69.0 05.0) 2.5 Total 175.5 1,364.6 1,520.5 (1) ' includes gain on Peakers -$60X million, Prepays of 5222 rrolh or, 10 arc 5257 million 20, a:1d Sithe Transacton SW O rnlllion (2) Includes purchase of Crude & P roducts Options ($150) million and W eenier Derivatives of ($40) "lion (3) 2Q includes (5116) million reclass of Hainan ~~ 0 (4) IQ acthmy relates to growth in PRM Asset, 2Q reflects cash U-flow frorn G, edit Link Note of $950 million 01271278 =XH023-00145 ============= Page 20 of 24 ============= Enron' Corp Change` in Working Capital 2001 Year-to-Date - Yst Quarter- 2nd Quarter June Actual Estimate Year.to.Date Transportation & Distribution Enron Transportation Services (54.6) 756 21.0. Portland General Group (42.4) (30.2) (72.6) (97.0) 454 (51.6) Wholesale Enron North Amenca (421 9) (2,223.1) (1) Enron Europe 263.9 (212.6) 513 ' (2) Enron Global Markets 44.3 (1D 4) 34.0 (3) Enron Global Assets (17.8) (5 9) (48.8) Global Explor & Prod 5 6 4 7 10.3 EEOS (17.0) 17; e, 160.6' ('+) Enron Net Works (57.2) 13 ". (39.11 Enron Global Finance 25.7 1 5 2 7 , Enron Industrial Markets 4.9 ;u.9 .5c,.8 Wholesale - Other (6.B) 4.1 j26) Wholesale - EES 21.7 1L)5 5 127,2 Wholesale . Elims 18,13 (2b 5) (7,2) El Headquarters (1.5) (2.1) (3.8) (137.2) (1.718.5) (1,655.7) Enron Broadband (56.3) (30 7) (87.0) Enron Energy Services (65.7) 227 (43.0) Enron Renewable Energy (81.7) (31,11 (1126) (5) Corporate & Other (161.4) (140 6) (302,1) Total (599.3) 11,852,8) J2,452.1)- (1) Reflects net cash out-flow related to CTG'N- tNiEY martins & deposits (S2,3G0) mlll,cn EC 00127127 (2) 10 reteete sale of Metals inventory 53D0 milks,, 2d reflects bull- u-y of Invenlay (5144) mdkcm 9 (3) Includes increases in lnventorits (6174) million (4) Reduction In AR at NEPCO (5) Increase in Inventories and other reonoubaes related to projects of ($115) rriiion EXH023-00146 ============= Page 21 of 24 ============= Enron Corp Cash Flow from Investing Activities 2001 Year-to-Date Capital Equity Other Jun. 2001 Plan -. Expenditures Investments Investing Year-lo-Date Jung Y-T-D Transportation & Distribution _ Enron Transportation Services (90.1) 6.2 (83 8) (76.3) Portland General Group (103.0)... - 7.6 '..(95.4) (1) (193.1).... '. 13,17 (179.3) - (76-3) wholesale Enron North America (248.6) (7.5) (1.186.7) (1.442.8) (267.7) (2) Enron Europe' (166.3) - 0.9 >(1654) ) (8L0) (3) Enron Global Markets (7 6) - (66.8) (74 4) (39.0) Enron Global Assets (37.4) (57.6) (12.0) (107,0) (1303) Global Expbr & Prod (2,8) - (3.8 i (8.6) (1.6) EEOS (1.5) (1.5) (2.7) Enron Net Works (63.5) (63.5) (65.8) Enron Global Finance 1.8 1 E Enron Industrial Markets (1.0) (360.0) 127.` (23.4) (446.0) (4) Wholesale - Other Wholesale - EES Wholesale - Dims El Headquarters _ (3.1)„. - (311 (528.8) (428.1) (1,135.9) (2,095.8) 11,034.0) Enron Broadband (111,1) (1` 0 Enron Energy Services (28.5) -, (0 1) (34 5) (53.2) Enron Renewable Energy {10.1) (00) (0 1) (1 D 2 Corporate & Other (55.4) (325 G) (33 9) 1414 0; (1,136.7) (5) Total (928A) (768.8) (1,155.2) (2,860.8) (2,M.1) (1) Plan antidpated sale in 01 2001 (2) Includes investing activities related to Sithe of ($955) mm, Merlin ($71) mm O Includes CATS settlement in April of ($142) million (4) $200 mm payment to Sundance forunwnlnd of Fishtail (5) Planned reduction in Cap (6) Includes additional purchase of Azurtx ahe ea, Plan aasumod rep,rchaae of Rawt,ide. EC 001271280 EXH023-00147 ============= Page 22 of 24 ============= C~J G] N V `~ Capital Deployed EXH023-00148 ============= Page 23 of 24 ============= Enron Corp Total Capital Deployed 2001 May Year-to-Date As of May 31,'2001 As of Dec 31, 2000 May 2001 Off Balance Total Cap Deployed; Total Cap Deployed Capital Deployed Sheet Assets"* Incl. Off B/S Incl. Off B/S Transportation & Distribution Enron Transportation Sevices 2,723.3 2,723.3 2,897.0 Portland General Group 3,307.1 - - 3,307.1 3,180.6 6,030.4 - 6,030.4 5,877.6 Wholesale Americas 4,168.2 19.0 4,187.2 2,812.0 (1) Enron Global Markets 648.4 - 648.4 714.0 Enron Europe 1,447.1 361.0 1,808.1 1,655.5' Middle East (Europe) 57.1 57.1 49.6 Global Exploration & Production 419.3 419,3 449.0 Enron Global Finance 2,301.0 2,301.0 1,428.5 (2) Enron industrial Markets 545.5 545,5 (5d.0) EEOS 98.2 98.2 1580 Enron Global Assets 6,890.4 91.0 6,981 4 6,933 1 Enron Net Works 196.0 1960 (r 0) Wholesale - Other - - Wholesale - EES 675.1 675.1 - (3) Eliminations & Other 6.3 6.3 6,3 17,452.6 471.0 17,923.6 14,145.1 Enron Energy Services 713.5 102.0 815.5 1,732.0 Enron Broadband Services 1,002.1 92.0 1,094.1 938.0 Enron Renewable Energy Corp 657.8 657,8 544.0 Corporate & Other* 2,574.6 1,450.0 4,024.6 4,919.4 Total 213,431,0 2,115.0 30,546.0 28,156.0 Corporate & Other includes AZurlx, HP L Fair Value and Clean Fuels. -- Oft balance sheet capital includes contingent equity, FAS 1251140, corporate guarantees, and residual value guarante?s as of 12'31 100.' (1) Impact of margin activity. o d b E EG 001271282 (2) Includes t R from sale of JEDI shares p nr y n. reviousi+ owne k3) Included' in EES-Retail. EXH023-00149 ============= Page 24 of 24 ============= J Previously Marked and Attached: Brown Ex. 3 EXH023-00150