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Summary #'s

EXH027-00001

GOVERNMENT
EXHIBIT
  1351
  Crim. No. H-04-25 (S-2)


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LJM Investments
LJM Cayman - Benefit Summary			
Funds Flow ($ in millions)		Earnings ($ in millions)	
Direct Indirect Total	Direct	indirect	Total
LJMCayman
Cuiaba $12.3 $0.0 $12.3	
$0.0	
$20.0	
$20.0
RhythmsNet Derivative 0.0 255.5 255.5	0.0	222.0	222.0
Osprey 15.0 1,485.0 1,500.0	0.0	0.0	0.0
FIVE Promissory Note 64.0 0.0 64.0	$	.0	- 1.8
Subtotal 7JMCayman $91.3 $1,740.5 $1,831.8	$1.8	$242.0	$243.8

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LJM Investments
LJM2 Benefit Summary

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Funds Flow 1S in millions)		Earnings	fS in millions)	
Direct Indirect	Total	Direct	Indirect	Total
LJM2				
SEAcquisitions"' $0.0 $0.0	$0.0	$2.2	$0.0	$2.2
Nown Saryzna 30.0 7.9	37.9	16.0	4.0	20.0
Reacts (TBD] 0.0	0.0	20.0	0.0	20.0
FNACLO Equity 6.3 0.0	6.3	0.0	19.0'°'	19.0
ENACLO Debt 11.2 156.7	167.9"'	0.0	0.0	0.0
EEX 3.3 101.7	105.0	5.0	0.0	5.0
Coyote Springs R 0.0 39.0	39.0	0.0	3.0	3.0
Pluto 0.8 24.0	24.8	2.5	0.0	2.5
Yosemite 33.8 766.2	800.0	0.0	0.0	0.0
Raptor 0.0 0.0	0.0	74.9	443.0 -	517.9
Rawhide" 0.0 750.0	750.0	0.0	0.0	0.0
Backbone 30.0 69.0	99.0	55.0	21.7	76.71-1
Bargeco 0.0 28.0	28.0	2.0	12.0	14.0 1O
EE&CC Turbines 0.0 - 0.0	0.0	0.0	1.5	1.5
Raptor/TNI'C 0.0 0.0	0.0	0.0	196.0	196.0
NetWorks 8.0 200.0	208.0	0.0	100.0	100.0
Avid 1.1 34.6	35.7	0.0	0.0	0.0
Catalytica 1.8 58.2	60.0	0.0	0.0	0.0
TNPC - 0.0 0.0	0.0	0.0	0.0	0.0
Osprey 26.0 1,134.0	1,160.0	0.0	- 0.0	0.0
Margaux 10. _ 115.0	125.0	0.0	0.0	
Subtotal LJM2 $162.3 $3,484.3	$3,646.6	$177.6	$800.2	$977.8
(a) Facilitated LJM2's ability to purchase the following assets from Enron atyear-end 1999: Nowa Sarzyna,	ENA CLO debt and equity. EEX and Pluto.	
(b) Instituting a sharing ratio for earnings in excess ofa 30% return on LJM's capital allowed the business unit to show no loss on the Merlin transaction. Without
the sharing ratio, the business unit would have suffered a $19 million	loss.			
(c) $174.2 million is the total fund flow for the Merlin transaction (including debt and equity), which was made feasible by LJM2's p	urchase afthe equity and	the
bridge piece.				
(d) LJM2's purchase ofHarch Capital's equity investment facilitated the	extension of the Rawhide structure.			
(e) Earnings to Enron include $SS million gain on sale, $2.7 million of interest received on seller-financing,	and $21.7 million of upside sharing when the fibers were
sold and LJM2 received its agreed upon return.				
(f) Merrill Lynch purchased Bargeco from Enron with the understanding that they would betaken out within six months. LJM2 purchased Merrill's interest	
preserving the relationship and as an alternative to Enron buying it back and reversing $12.0 milliop of earnings and $28.0 million offundsfiow taken on	the
original transaction with Merrill in 1999. $2.0 million ofearnings w	ere interest earned on sellerfinancing.		

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LJM Investments
Overall - Benefit Summary				
Funds Flow ($ in millions)			Earnings ($ in millions)	
Direct Indirect	- Total	Direct	Indirect	Total
LIM Cayman $91.3 $1,740.5	$1,831.8	$1.8	$242.0	$243.8
LJM2 162.3 - 3.484.3	3.646.6	177.6	800.2 -	977.8
Total $253.6 $5,224.8	$5,478.4	$179.4	$1,042.2	$1,221.6

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C

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Definitions

Direct Funds Flow- Usually the direct investment made by LJM. For example, LJM
invested $30 million of equity in the Backbone fibers or LJM purchased the Catalytica
125 equity for $1.8 million.

Indirect Funds Flow- Any other funds flow that resulted from LJM's direct investment.
For example, LJM's Catalytica 125 equity was joined with $58.2 million of debt so
Enron received proceeds (total funds flow) of $60 million, but only a portion of that is
directly attributable to LJM.

Direct Earnings- Direct earnings to Enron including: gain on sale, interest income
received on seller financing, etc. For example, Backbone generated a gain on sale of $55
million. The seller financing produced $2.7 million of interest income. For Raptor, direct
earnings is from swaps that have settled.

Indirect Earnings- Usually earnings taken in previous periods that Enron would not
have to reverse because a transaction with LJM preserved them. Also includes Enron's
participation in upside sharing when the asset is sold by LJM. For example, the sale by
LJM of the Backbone fibers to a 3`s party generated $21.7 million of upside for Enron
(the value above and beyond LJM's agreed upon return). For Raptor, indirect earnings
are from unsettled swaps.

  ASF_CW 000703

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Bullet Points

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UM Investments

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Deal Benefit Summary - Alphabetical

Avici
• Speed of execution (two weeks)
• No other 3rd party would purchase 125 equity on a public security (capped upside, all downside)
Backbone
  Created funds flow
  Generated earnings to reach EBS's earnings target
• Provided upside to EBS on ultimate sale to 3rd party
BargeCo
• Preserved Merrill Lynch relationship by taking them out
• Unless Enron could find another 3rd party buyer for Nigerian barges, Enron would have reveresed earnings from sale to Merrill
Catalytica
• Speed of execution (two weeks)
• No other 3rd party would purchase 125 equity on a public security (capped upside, all downside)
Coyote Springs II
• Facilitated Enron's deal to sell a turbine and development project to Avista
• Brought forward earnings to time of sale rather than overtime

Culaba
• Deconsolidated the power plant and generated mark-to-market earnings on the gas supply contract t
• LJM agreed to an extension without a step-up in return, saving ESA money and allowing more time for ESA to sell Cuiaba #
EE&CC Turbines
• Kept a turbine off Enron's balance sheet and allowed Enron the optionality to buy it back
• LJM extended the option exercise period to give Enron further flexibility even though the turbine's value was decreasing

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LJM Investments
Deal Benefit Summary - Alphabetical

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EEX (Bob West Treasure)
  Allowed ENA to mark-to-market gains on gas prepay
• Provided time to refinance the debt and generate further gains
ENA CLO Debt & Equity (Merlin)
• LJM was "the plug" for the BB notes that couldn't be sold
• LJM shared the upside on the equity tranche with ENA, allowing ENA to avoid an earnings loss on the transaction
LJM Cayman Formation
  Funds flow from the promissory note and unlocking of increased value of Enron shares
Margaux
• Deconsolidated Sarlux, Trakya, Nowa Sarzyna
NetWorks
• Deconsolidated the pulp & paper business
• Generated $100 million of earnings
Nowa Sarzyna
• Deconsolidated the power plant until Margaux closed
Osprey
• LJM provided ease and certainty of execution while marketing continued with other 3rd parties
Pluto (MEGS)
• Allowed ENA to mark-to-market earnings on the gas gathering contract
• No other 3rd party would take the Mariner exposure in the timeframe that LJM did


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LJMInvestments

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Deal Benefit Summary - Alphabetical
Raptors (1,2,4)
  • Avoided realized losses of $75 million and unrealized losses of $443 million on Enron's volatile investments
• LJM extremely accomodating on derivative approval

  Raptor 3 (TNPC)
  • Avoided unrealized losses of $196 million on Enron's total return swap exposure in Hawaii 125-0
Rawhide
  . LJM purchased Harch's equity, facilitating Rawhide's extension (Harch needed out and would not agree to extension)
Resco
  • Deconsolidated EES's residential business while it gained critical mass
  • Avoided consolidation of negative earnings onto Enron's income statement
RhythmsNet
  Generated $222 million of earnings on Enron's income statement
  • LJM was the only counterparty available for guaranteed execution and confidentiality
SE Acquisition Loan
  • Provided additional liquidity to LJM to make Enron investments and generated interest income for Enron
TNPC
  • LJM provided capital prior to the IPO
  • LJM brought in additional capital by bringing in co-investors
Yosemite
  • Speed of execution (deal that had to close by year-end)
  • Provided additional time to find permanent 3rd party buyer for the equity

EXH027-00010