============= Page 1 of 62 ============= =XH066-00154 Enron Corp Earnings Release Details 3rd Quarter 1999 1 Nonrecurring Items 2 Wholesale Significant Variances 3 Wholesale Buckets Summary 4 Wholesale Buckets Detail 5 Business Unit Variance Schedules 6 Calculation of EPS 7 Effective Tax Rate Reconciliation 8 Other Income 9 Interest Expense 10 Minority Interests 11 Earnings Release Support Pages 12 Statistical Supplement Pages EC06419B0100128 GOVERNMENT EXHIBIT 4253 Crim. No. H-04-25 (S-2) ============= Page 2 of 62 ============= Enron Corp Non-recurring items 3rd Qtr 1999 (in millions) Pre-tax Tax Benefit After tax Gain (Loss) (Expense) Gain (Loss) EOG Exchange (in Corporate) Proceeds - value of MI portion of India/China 903.3 Book basis of EOG shares exchanged (510.6) 392.7 (85.3) 307.4 Increased value of remaining EOG shares over book basis (following loss of control) 238.0 (87.7) 150.3 Expenses related to the transaction Total EOG transaction MTBE Writedown (in Clean Fuels) FAS 121 Impairment of plant following purchase of plant out of lease Total non-recurring (176.3) 63.5 (112.8) 454.4 (109.5) 344.9 (441.0) 163.0 (278.0) 13.4 53.5 66.9 EC0641980100729 nonrecurring.xls 10/11/99, 10:26 PM EXH066-00155 ============= Page 3 of 62 ============= Enron Wholesale Significant Variances (In Millions) Commodity Gas trading Power trading Equity trading (index) Interest & FX books Global liquids Weather, paper, coal, S02 Credit release Prudency release Cuiaba origination Genco power sales (1999 peakers) Peoples origination WAPA origination WNP (BPA) origination Other (including expenses) Total Commodity Assets and Investments Asset management (a) Asset selldowns and 125s (b) Fair value income (c) Construction and development cost writeoffs Project Tomas Other (including allocated expense) Total Assets and Investments Total Unallocated Expense Total Wholesale sumsumvar.xls, wholesum EXH066-00156 3rd Qtr 3rd Qtr 1999 1998 Dill 146 160 (14) 60 67 (7) 11 1 10 43 23 20 35 (1) 36 20 - 20 40 - 40 - (14) 14 45 - 45 15 - 15 10 - 10 - 10 (10) - 47 (47) (253) (141) (112) 172 152 20 44 31 13 85 94 (9) 140 19 121 (2) (29) 27 - 64 (64) (27) (19) (8) 240 160 80 (34) (35) 1 378 277 101 ECO6419BO100730 10/12/99, 12:31 AM ============= Page 4 of 62 ============= 3rd Qtr 3rd Qtr 1999 1998 Diff (a) Asset Operations: Centragas CIESA DPC Phase I Elektro JEDI management fee Teesside Transredes Other (including expenses) (b) Asset selldowns and 125s: Pittsburgh plant Project Rock Wind River Construction fees on Sutton Bridge, Teeside Churchill (Puerto Rico) Riverside (Teesside) Other (including expenses) (c) Fair value income: Rhythms First World EOG (after share exchange) Quanta ECI compensation expense reversal Hedge performance EOG hedge basket Heartland Steel Palladin Promigas Repap Other on B/S investments Equity earnings - JEDI, JEDI II and others sumsumvar.xls, wholesum EXH066-00157 4 4 - 11 8 3 7 - 7 7 - 7 5 5 - - 17 (17) 2 - 2 8 (3) 11 44 31 13 27 - 27 20 - 20 17 - 17 15 - 15 - 83 (83) - 27 (27) 6 (16) 22 85 94 (9) 37 - 37 41 - 41 43 - 43 (12) - (12) 7 - 7 (6) 33 (39) - 10 (10) - 7 (7) - (6) 6 - (11) 11 - (7) 7 21 10 11 9 (17) 26 140 19 121 EC06419BO100731 10/12/99, 12:31 AM ============= Page 5 of 62 ============= Enron Corp Wholesale Buckets Variation Analysis by Segment Nine Months Ended Sept 30 Third Quarter Six Months Ended June 30 Second Quarter First Quarter 1999 1998 Incr(Deer) 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) Commodity ECT-NA 283.5 244.8 ECT-EUR 153.0 60.9 El 40.2 (1.4) EGEP - - ECM - - ECI - - 476.7 304.3 38.7 88.4 114.1 (25.7) 195.1 130.7 64.4 60.8 40.1 2u./ 92.1 40.1 39.4 0.7 112.9 21.5 91.4 22.6 (17.6) 40.2 41.6 43.0 (0.8) 43.8 (2.8) (0.6) (2.2) (1.7) (0.4) (1.3) 172.4 171.5 152.7 18.8 305.2 151.6 153.6 81.7 22.1 59.6 134.3 90.3 (1.1) 90.6 39.1 (0.2) 43.7 51.2 (0.9) 223.5 129.5 94.0 Assets & Investments ECT-NA 248.3 110.9 137.4 88.0 (0.7) 88.7 160.3 111.6 48.7 134.2 82.1 52.1 26.1. 29.5 (3.4) ECT-EUR (6.1) 102.5 (108.6) (12.8) 29.4 (42.2) 6.7 73.1 (66.4) 26.0 43.3 (17.3) (19.3) 29.8 (49.1) El 257.8 186.6 71.2 56.2 47.8 8.4 201.6 138.8 62.8 98.8 95.7 3.1 102.8 43.1 59.7 EGEP 6.7 - 6.7 6.7 - 6.7 - - - - - - - - - ECM 138.0 168.7 (30.7) 64.1 84.1 (20.0) 73.9 84.6 (10.7) 46.3 36.2 10.1 27.6 48.4 (20.8) ECI 324.6 - 324.6 36.7 - 36.7 287.9 - 287.9 287.9 - 287.9 - - - Transfers within Wholesale (267.5) - (267.5) 1.8 (1.0) 2.8 (269.3) 1.0 (270.3) (269.3) 1.0 (270.3) - - - 701 8 568 7 133 1 240.7 159.6 81.1 461.1 409.1 52.0 323.9 258.3 65.6 137.2 150.8 (13.6) . . . Unallocated Expenses ECT-NA (98.4) (82.8) (15.6) (25.5) (26.1) 0.6 (72.9) (56.7) (16.2) (38.4) (29.8) (8.6) (34.5) (26.9) (7.6) ECT-EUR (26.2) (22.8) (3.4) (8.6) (8.4) (0.2) (17.6) (14.4) (3.2) (11.7) (10.2) (1.5) (5.9) (4.2) (1.7) (124 6) (105 6) (19 0) (34.1) (34.5) 0.4 (90.5) (71.1) (19.4) (50.1) (40.0) (10.1) (40.4) (31.1) (9.3) . . . 1 053.9 767.4 286.5 378.1 277.8 100.3 675.8 489.6 186.2 355.5 240.4 115.1 320.3 249.2 71.1 , IBIT ECT-NA 433.4 272.9 150.9 87.3 63.6 282.5 185.6 156.6 92.4 64.2 125.9 93.2 32.7 ECT-EUR 120.7 140.6 18.7 60.4 (41.7) 102.0 80.2 36.9 15.5 21.4 65.1 64.7 0.4 El 298.0 185.2 99.2 47.0 52.2 198.8 138.2 97.1 95.3 1.8 101.7 42.9 58.8 EGEP 6.7 - 6.7 - 6.7 - - - - - - - - ECM 138.0 168.7 64.1 84.1 (20.0) 73.9 84.6 46.3 36.2 10.1 27.6 48.4 (20.8) ECI 324.6 - 36.7 - 36.7 287.9 - 287.9 - 287.9 - - - Transfers within Wholesale (267.5) - 1.8 (1.0) 2.8 (269.3) 1.0 (269.3) 1.0 (270.3) - - - 1,053.9 767.4 378.1 277.8 100.3 675.8 489.6 355.5 240.4 115.1 320.3 249.2 71.1 Buckets Summary.xls,Monday pm EC06419B0100732 10/11/99,10:40 PIyl EXH066-00158 ============= Page 6 of 62 ============= Enron Corp Wholesale Buckets Detailed Variati on Analysis 3rd Quarter 9 mo Ended Sept 30 T hird Quarter 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 Incr (Deer) 1999 1998 Incr (Deer) 1999 1998 Incr (Deer) 1999 1998 Incr (Deer) 1999 1998 Incr (Deer) Commodity ECT-NA Canada - Trading margin 74.9 40.9 34.0 4.8 10.7 (5.9) 70.1 30.2 39.9 18.3 18.7 (0.4) 51.8 11.5 40.3 ECT-NA Credit Reserve (Blue Range) (32.0) - (32.0) - - - (32.0) - (32.0) (32.0) - (32.0) - - - EUR Gas Trading (1.7) - (1.7) (9.6) 23.4 (33.0) 7.9 (23.4) 31.3 (1.6) (13.7) 12.1 9.5 (9.7) 19.2 EUR Gas Transportation Revenues 6.9 - 6.9 2.2 - 2.2 4.7 - 4.7 2.3 - 2.3 2.4 - 2.4 ECT-NA Long-term Trading margin 89.4 108.7 (19.3) 55.2 52.2 3.0 34.2 56.5 (22.3) 29.0 31.2 (2.2) 5.2 25.3 (20.1) ECT-NA Short-term Trading margin 0.1 9.6 (9.5) 5.0 (5.6) 10.6 (4.9) 15.2 (20.1) (9.0) 7.5 (16.5) 4.1 7.7 (3.6) Gas Trading 137,6 159.2 (21.6) 57.6 80.7 (23.1) 80.0 78.5 1.5 7.0 43.7 (36.7) 73.0 34.8 38.2 ECT-NA Power margin- east 96.1 102.9 (6.8) 6.3 9.2 (2.9) 89.8 93.7 (3.9) 24.0 62.8 (38.8) 65.8 30.9 34.9 ECT-NA Power margin- west (PGE) 35.9 44.5 (8.6) 21.1 4.3 16.8 14.8 40.2 (25.4) 12.1 13.3 (1.2) 2.7 26.9 (24.2) EUR Power Trading 102.8 78.8 24.0 33.9 46.0 (12.1) 68.9 32.8 36.1 (1.7) 8.9 (10.6) 70.6 23.9 46.7 ECT-NA Other 4.2 13.9 (9.7) 1.0 5.9 (4.9) 3.2 8.0 (4.8) 0.1 6.5 (6.4) 3.1 1.5 1.6 Power Trading 239.0 240.1 (1.1) 62.3 65.4 (3.1) 176.7 174.7 2.0 34.5 91.5 (57.0) 142.2 83.2 59.0 EUR Balance Sheet Clean-up - 2.9. (2.9) - (3.6) 3.6 - 6.5 (6.5) - 6.5 (6.5) - - - ECT-NA Coal Trading 21.0 - 21.0 9.4 - 9.4 11.6 - 11.6 3.9 - 3.9 7.7 - 7.7 EUR Credit Release (general) 65.0 - 65.0 40.0 - 40.0 25.0 - 25.0 - - - 25.0 - 25.0 ECT-NA Credit Reserve Adjustment (general) 49.5 28.3 21.2 14.0 - 14.0 35.5 28.3 7.2 - - - 35.5 28.3 7.2 EUR Crude Oil Prepayments - - - - - - - - - 60 - 6.0 (6.0) - (6.0) ECT-NA Domestic Assets (HPULRC) (27.8) (39.3) 11.5 (9.6) (9.7) 0.1 (18.2) (29.6) 11.4 (9.8) (17.4) 7.6 (8.4) (12.2) 3.8 ECT-NA Equity Trading 38.3 - 38.3 11.1 - 11.1 27.2 - 27.2 27.2 - 27.2 - x - - ECT-NA Expenses (direct and allocated indirect) (129.4) (166.9) 37.5 (48.6) (95.2) 46.6 (80.8) (71.7) (9.1) (38.3) (49.6) 11.3 (42.5) (22.1) (20.4) ECT-NA Interest & Foreign Curt Books 67.9 54.2 13.7 24.6 21.4 3.2 43.3 32.8 10.5 21.2 18.3 2.9 22.1 14.5 7.6 EUR Interest & FX books 21.2 - 21.2 18.8 1.6 17.2 2.4 (1.6) 4.0 (5.1) 0.1 (5.2) 7.5 (1.7) 9.2 ECT-NA Other (2.3) (1.6) (0.7) (2.3) 5.5 (7.8) - (7.1) 7.1 - 2.6 (2.6) - (9.7) 9.7 EUR Other (3.7) 3.3 (7.0) (1.7) (0.5) (1.2) (2.0) 3.8 (5.8) 0.6 4.4 (3.8) (2.6) (0.6) (2.0) EUR Other Trading 5.0 - 5.0 0.1 (2.9) 3.0 4.9 2.9 2.0 5.7 (9.8) 15.5 (0.8) 12.7 (13.5) ECT-NA Paper Trading 20.9 - 20.9 8.5 - 8.5 12.4 12.4 8.6 - 8.6 3.8 - 3.8 EUR Prudency - 40.5 (40.5) - (13.7) 13.7 - 54.2 (54.2) - 19.5 (19.5) - 34.7 (34.7) ECT-NA S02 Trading (2.8) - (2.8) (3.4) - (3.4) 0.6 - 0.6 (0.2) - (0.2) 0.8 - 0.8 EUR Spread Options 19.9 - 19.9 9.6 - 9.6 10.3 - 10.3 4.1 - 4.1 6.2 - 6.2 EUR Sutton Bridge (4.0) - (4.0) (1.3) - (1.3) (2.7) - (2.7) 2.0 - 2.0 (4.7) - (4.7) EUR Teesside Utilities (14.2) - (14.2) (11.8) - (11.8) (2.4) - (2.4) (10.5) - (10.5) 8.1 - 8.1 ECT-NA Weather Trading 10.8 - 10.8 4.6 - 4.6 6.2 - 6.2 1.5 - 1.5 4.7 - 4.7 EUR Global Expenses (indirect) (21.6) - (21.6) (4.5) 13.2 (17.7) (17.1) (13.2) (3.9) (7.9) (6.5) (1.4) (9.2) (6.7) (2.5) EUR Global Trading 55.3 18.4 36.9 35.0 (1.1) 36.1 20.3 19.5 0.8 (8.6) (0.3) (8.3) 28.9 19.8 9.1 EUR Global Trading Expenses (direct) (17.2) - (17.2) (8.8) - (8.8) (8.4) - (8.4) (4.5) - (4.5) (3.9) - (3.9) EUR Prepay Expenses (25.5) (25.5) (13.1) (13.1) (12.4) - (12.4) (6.4) (6.4) (6.0) - (6.0) Other Trading 126.3 (60.2) 186.5 70.6 (85.0) 155.6 55.7 24.8 30.9 (10.5) (32.2) 21.7 66.2 57.0 9.2 ECT-NA APEA 5.0 - 5.0 5.0 - 5.0 - - - - - - - - - ECT-NA BPA 7.0 4.9 2.1 - - - 7.0 4.9 2.1 - - - 7.0 4.9 2.1 ECT-NA Calpine - 6.5 (6.5) - - - - 6.5 (6.5) - - - - 6.5 (6.5) ECT-NA Canada 10.3 - 10.3 1.7 - 1.7 8.6 - 8.6 3.2 - 3.2 5.4 - 5.4 ECT-NA Citrus Annuity - 10.0 (10.0) - - - - 10.0 (10.0) - - - - 10.0 (10.0) El Cuiaba Fuel Supply Contract 40.8 40.8 40.8 - 40.8 - - - - - - - - - El Cuiaba Options (Fuel Contract) 4.6 4.6 4.6 - 4.6 - - - - - - - - - ECT-NA DePere - 11.5 (11.5) - 11.5 (11.5) - - - - - - - - - EUR Eastern I Tilt II - 7.0 (7.0) - - - - 7.0 (7.0) - - - - 7.0 (7.0) EUR Eastern Transportation 96.3 - 96.3 - - - 96.3 - 96.3 96.3 - 96.3 - - ECT-NA Entex 10.1 1.0 9.1 - - - 10.1 1.0 9.1 4.1 1.0 3.1 6.0 - 6.0 EUR Euro Cash - (2.3) 2.3 - - - - (2.3) 2.3 - - - - (2.3) 2.3 ECT-NA Expenses (direct and allocated indirect) (62.6) (68.4) 5.8 (23.0) (31.7) 8.7 (39.6) (36.7) (2.9) (22.3) (19.0) (3.3) (17.3) (17.7) 0.4 EUR Expenses (indirect) (20.5) (7.0) (13.5) (6.5) - (6.5) (14.0) (7.0) (7.0) (7.4) - (7.4) (6.6) (7.0) 0.4 ECT-NA FP&L 11.3 - 11.3 (2.2) - (2.2) 13.5 - 13.5 13.5 - 13.5 - - - ECT-NA Genco 18.4 - 18.4 15.3 - 15.3 3.1 - 3.1 3.1 - 3.1 - - - ECT-NA Hinson Power/Columbia Falls - 2.7 (2.7) - - - - 2.7 (2.7) - - - 2.7 (2.7) ECT-NA Middle Market 7.9 - 7.9 3.0 - 3.0 4.9 - 4.9 2.0 (2.7) 4.7 2.9 2.7 0.2 ECT-NA MSCPA - 3.1 (3.1) - - - - 3.1 (3.1) - - - - 3.1 (3.1) ECT-NA Palm Springs/S. San Francisco 8.0 - 8.0 - - - 8.0 - 8.0 - - - 8.0 - 8.0 ECT-NA Peoples 10.0 - 10.0 10.0 - 10.0 - - - - - - - - - - ECT-NA Qualitech 6.9 - 6.9 6.9 - 6.9 - - - - - - - - - ECT-NA Southern Union - 1.0 (1.0) - - - - 1.0 (1.0) - 1.0 (1.0) - - - ECT-NA TECO 3.0 - 3.0 - - - 3.0 - 3.0 3.0 - 3.0 - - - ECT-NA Walton EMC 7.9 - 7.9 - - - 7.9 - 7.9 7.9 - 7.9 - - - ECT-NA WAPA - 29.9 (29.9) - 10.5 (10.5) - 19.4 (19.4) - 19.4 (19.4) - - - ECT-NA WNP (BPA) 47.4 (47.4) 47.4 (47.4) - - - - - - - Origination (Commodity) 164.4 47.3 117.1 55.6 37.7 17.9 108.8 9.6 99.2 103.4 (0.3) 103.7 5.4 9.9 (4.5) M F- - C=31 O T C C0 T C C-, W Wh,,rkatc'7nPAxlc mnnrtav11th11nm 10/11/99, 11:16 PM EXH066-00159 ============= Page 7 of 62 ============= Enron Corp Wholesale Buckets Detailed Variatio n Analysis 3rd Quarter 9 mo Ended Sept 30 Third Quarter 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Ducr) El Argentina/Australia (1.9) (1.9) (1.9) (1.9) - - - 1.1 0.2 0.9 (1.1) (0.2) (0.9) EI Expenses (3.4) (1.4) (2.0) (2.3) (0.8) (1.5) (1.1) (0.6) (0.5) (1.1) (0.6) (0.5) - - - ECT-NA Expenses (direct and allocated indirect) (50.8) - (50.8) (21.4) 53.6 (75.0) (29.4) (53.6) 24.2 (2.4) (41.0) 38.6 (27.0) (12.6) (14.4) EUR Gas Trading Expenses (6.2) - (6.2) (3.3) - (3.3) (2.9) - (2.9) (2.2) - (2.2) (0.7) - (0.7) EUR Indirect Expense (99.2) (80.7) (18.5) (36.2) (23.0) (13.2) (63.0) (57.7) (5.3) (31.8) (26.7) (5.1) (31.2) (31.0) (0.2) ECT-NA Expenses (direct and allocated indirect) (23.6) - (23.6) (8.6) 24.1 (32.7) (15.0) (24.1) 91 (7.9) (12.5) 4.6 (7.1) (11.6) 4.5 EUR Power Trading Expenses (5.6) - (5.6) (2.7) - (2.7) (2.9) - (2.9) (1.7) - (1.7) (1.2) - (1.2) El SC Trading Liquidations 0.1 0.1 1.8 - - - 1.8 (1.7) - - - (1.7) - (1.7) (5.0) - - (1.7) (5.0) - 5.0 - 5.0 EUR Commodity Commodity Expenses - (190.6) . (82.1) - (108.5) (74.6) 53.9 (128.5) (116.0) (136.0) 20.0 (52.7) (80.6) 27.9 (63.3) (55.4) (7.9) Total Commodity 476.7 304.3 172.4 171.5 152.7 18.8 305.2 151.6 153.6 81.7 22.1 59.6 223.5 129.5 94.0 Assets & Investments El Asset Management 118.9 68.9 50.0 47.4 16.2 31.2 71.5 52.7 18.8 34.1 32.5 1.6 37.4 20.2 17.2 EUR Assets (2.3) (2.9) 0.6 (1.8) (1.1) (0.7) (0.5) (1.8) 1.3 (1.2) 0.2 (1.4) 0.7 (2.0) 2.7 ECI Dark Fiber Sales & Software Sales 43.0 - 43.0 32.2 - 32.2 10.8 - 10.8 10.8 - 10.8 - - - El East Asia/SE Asia-Australia (7.1) - (7.1) (4.2) - (4.2) (2.9) - (2.9) (6.6) - (6.6) 3.7 - 3.7 El Elektro 78.7 - 78.7 6.7 - 6.7 72.0 - 72.0 37.0 - 37.0 35.0 - 35.0 EUR Enrici losses (5.8) - (5.8) (1.7) (123) 10.6 (4.1) 12.3 (16.4) (6.4) 11.2 (17.6) 2.3 1.1 1.2 EUR Equity Earnings 3.2 17.0 (13.8) 1.3 17.0 (15.7) 1.9 - 1.9 1.5 (5.0) 6.5 0.4 ' 5.0 (4.6) ECI Expenses- ECI (60.2) - (60.2) (32.4) - (32.4) (27.8) - (27.8) (27.8) - (27.8) - - - ECM Jedi Mgmt Fee 15.5 18.2 (2.7) 5.3 5.4 (0.1) 10.2 12.8 (2.6) 5.1 5.5 (0.4) 5.1 7.3 (2.2) EUR Management Fees 7.0 7.8 (0.8) 4.0 4.0 - 3.0 3.8 (0.8) 1.5 1.8 (0.3) 1.5 2.0 (0.5) ECM El Other Other- Includes HQ Allocation - (45.2) 0.1 5.8 (0.1) (51.0) - (10.5) 0.1 3.8 (0.1) (14.3) - (34.7) 2.0 - (36.7) - (21.1) - 2.0 - (23.1) - (13.6) - - (13.6) El San Juan (6.7) (4.0) (2.7) (2.5) (2.3) (0.2) (4.2) (1.7) (2.5) (2.3) (0.7) (1.6) (1.9) (1.0) (0.9) Asset Operations 139.0 110.9 28.1 43.8 30.8 13.0 95.2 80.1 15.1 24.6 47.5 (22.9) 70.6 32.6 38.0 EUR Riverside 3/4 - 85.1 (85.1) - 27.3 (27.3) - 57.8 (57.8) - 57.8 (57.8) - - - EUR Riverside 5 2.0 - 2.0 - - - 2.0 - 2.0 - - - 2.0 - 2.0 EUR Sutton Bridge III - 21.4 (21.4) - (0.1) 0.1 - 21.5 (21.5) - - - - 21.5 (21.5) EUR Sutton Bridge IV 39.0 - 39.0 0.3 - 0.3 38.7 - 38.7 38.7 - 38.7 - - - ECT-NA Bammel Monetization (Looper) 10.0 - 10.0 - - - 10.0 - 10.0 - - - 10.0 - 10.0 El Cuiaba Selldown (1.6) - (1.6) (1.6) - (1.6) - - - - - - - - El Expenses- FAS 125 Transactions - (32.7) 32.7 - (16.7) 16.7 - (16.0) 16.0 - (11.9) 11.9 (4.1) 4.1 - ECM Repap Write Down - - - - - - - - 18 5 - - - 18 5 - - - - - - - 18.5 - - 18.5 El Guam 18.5 - 18.5 - - - . . El Italy/Turkey 102.4 - 102.4 6.6 - 6.6 95.8 - 95.8 84.2 - 84.2 11.6 - 11.6 ECM Northern Border - 49.0 (49.0) - 0.5 (0.5) - 48.5 (48.5) - 22.0 (22.0) - 26.5 (26.5) ECT-NA PDEF (Pittsburgh) 27.0 - 27.0 27.0 - 27.0 - - - - - - - - - ECT-NA Powder River 16.6 - 16.6 - - - 16.6 - 16.6 11.8 - 11.8 4.8 - 4.8 ECT-NA Project Cyclone - Mid Texas - 40.0 (40.0) - - - - 40.0 (40.0) - 40.0 (40.0) - - - ECT-NA Project Rock 20.5 - 20.5 20.5 - 20.5 - - - - - - - - - El Puerto Rico fees (Churchill Project) - 166.6 (166.6) - 83.3 (83.3) - 83.3 (83.3) - 83.3 (83.3) - - El Sutton Bridge 11.7 - 11.7 11.7 - 11.7 - - - - - - - - - El Teesside - 3.4 - 3.4 3.4 - 3.4 - - - - - - - - - ECT-NA Wind River 16.9 - 16.9 16.9 - 16.9 - - - - - - - - FAS125Transactions/seltdowns 266.4 329.4 (63.0) 84.8 94.3 (9.5) 181.6 235.1 (53.5) 134.7 191.2 (56.5) 46.9 43.9 3.0 El Adrian Resources FV - (0.8) 0.8 - - - - (0.8) 0.8 - - - (0.8) 0.8 ECT-NA Bilbo (fair value) - 4.5 (4.5) - - - 4.5 (4.5) - 4.5 (4.5) - - - ECT-NA Bilbo Equity - 6.2 (6.2) - - - - 6.2 (6.2) - - - - 6.2 (6.2) ECT-NA Black Mountain 4.3 - 4.3 4.3 - 4.3 - - - - - - - - - ECT-NA Canada - (2.2) 2.2 - (2.2) 2.2 - - - - - - - - - ECT-NA CanFibre Riverside IPC (2.2) - (2.2) - - - (2.2) - (2.2) (2.2) - (2.2) - - - ECT-NA Carizzo (5.6) - (5.6) - - - (5.6) - (5.6) (5.6) - (5.6) - - - ECT-NA Catalytica 8.5 - 8.5 - - - 8.5 - 8.5 2.0 - 2.0 6.5 - 6.5 ECT-NA Other Originations 4.5 (4.5) - 4.5 (4.5) - - 5 5 - 5 5 - - - 1 0 - 0) (1 - - - 4 5 - (4 5) ECT-NA City Forest - 5.5 (5.5) - - - - . ( . ) . . . . ECT-NA Cook Inlet - 2.3 (2.3) - 2.3 (2.3) - - - - - - - ECT-NA Costilla (8.0) (3.0) (5.0) - (3.0) 3.0 (8.0) - (8.0) (5.1) - (5.1) (2.9) - (2.9) ECT-NA Cypress Exploration (5.0) - (5.0) - - - (5.0) - (5.0) (5.0) - - (5.0) - - - ECT-NA East Coast Power LLC 4.4 - 4.4 - - - 4.4 - 4.4 - - - 4.4 - 4.4 ECM ECM Portion of JEDI equity earnings/stk swap 80.6 - 80.6 12.2 - 12.2 68.4 - 68.4 31.5 - 31.5 36.9 - 36.9 ECT-NA Ecogas 10.8 - 10.8 10.8 - 10.8 - - - - - - - - - ECM ECT Investments - 6.3 (6.3) - 6.3 (6.3) - - - - - - - - ECM EOG Hedge Basket - 10.4 (10.4) - 10.4 (10.4) - - - - - - - - ECM EOG FV (after exchange) 43.0 - 43.0 43.0 - 43.0 - - - - - - - - .... _ __ .... ,. 10/11/99. 11 16 PM EXH066-00160 M C O T C CID C7! T sY Ra C= C-, W ============= Page 8 of 62 ============= Enron Corp Wholesale Buckets , Detailed Variation Analysis 3rd Quarter 9 mo Ended Sept 30 Third Quarter 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) 1999 1998 Incr(Decr) ECT-NA First World 92.8 - 92.8 41.4 - 41.4 51.4 - 51.4 38.4 - 38.4 13.0 - 13.0 ECT-NA Heartland Steel 6.7 11.6 (4.9) - 6.6 (6.6) 6.7 5.0 1.7 - 5.0 (5.0) 6.7 - 6.7 ECT-NA Hedge Performance (109.9) 44.4 (154.3) (5.7) 33.0 (38.7) (104.2) 11.4 (115.6) (68.2) 11.4 (79.6) (36.0) - (36.0) ECM JEDI Puts (1.1) (1.1) - - (1.1) 1.1 (1.1) - (1.1) - - - (1.1) - (1.1) ECT-NA Kafus 52.3 9.2 43.1 - - - 52.3 9.2 43.1 38.9 (4.7) 43.6 13.4 13.9 (0.5) ECT-NA Keathley Canyon - - - - - - - - - (2.1) - (2.1) 2.1 - 2.1 ECM Latin American Basket - 0.3 (0.3) - 0.3 (0.3) - - - - - - - - - ECM Mariner (9.0) - (9.0) - - - (9.0) - (9.0) - - - (9.0) - (9.0) ECT-NA Mariner 14.7 - 143 - - - 14.7 - 14.7 (2.7) - (2.7) 17.4 - 17.4 El Mariner FV - 17.2 (17.2) - 3.4 (3.4) - 13.8 (13.8) - 13.3 (13.3) 0.5 (0.5) ECT-NA NSM (10.6) - (10.6) - - - (10.6) - (10.6) (8.2) - (8.2) (2.4) - (2.4) El NSM FV (4.4) - (4.4) - - - (4.4) - (4.4) - - - (4.4) - (4.4) ECT-NA Oconto Falls (2.7) - (2.7) - - - (2.7) - (2.7) (2.7) - (2.7) - - ECT-NA Other -FV (1.5) 2.6 (4.1) (2.7) 1.7 (4.4) 1.2 0.9 0.3 (0.8) (1.5) 0.7 2.0 2.4 (0.4) EUR Paladin (3.8) (6.3) 2.5 2.0 (6.3) 8.3 (5.8) - (5.8) 1.0 - 1.0 (6.8) - (6.8) ECT-NA Papier Masson 6.1 - 6.1 - - - 6.1 - 6.1 - - - 6.1 - 6.1 El Promigas FV - (2.8) 2.8 - (11.4) 11.4 - 8.6 (8.6) - 8.6 (8.6) - - ECT-NA Qualitech (67.7) - (67.7) - - - (67.7) - (67.7) (42.6) - (42.6) (25.1) - (25.1) ECT-NA Quanta 5.4 - 5.4 (11.6) - (11.6) 17.0 17.0 14.3 - 14.3 2.7 2.7 ECT-NA Recon/Kafus (4.8) (0.1) (4.7) - (1.8) 1.8 (4.8) 1.7 (6.5) (2.2) 1.7 (3.9) (2.6) - (2.6) ECT-NA Repap - (7.1) 7.1 - (7.1) 7.1 - - - - - - - - - ECT-NA Rhythms 136.0 - 136.0 - - - 136.0 - 136.0 136.0 - 136.0 - + - - ECI Rhythms FV 341.8 - 341.8 36.9 - 36.9 304.9 - 304.9 304.9 - 304.9 - - - ECM S&P Hedge (10.6) - (10.6) - - - (10.6) - (10.6) - - - (10.6) - (10.6) ECT-NA Structured Credit - MTM (78) - (7.8) - - - (7.8) - (7.8) (7.8) - (7.8) - - - EUR Techboard (14.3) 0.1 (14.4) 0.5 0.1 0.4 (14.8) - (14.8) (1.8) - (1.8) (13.0) - (13.0) ECT-NA Venoco 1.2 1.2 1.2 1.2 1.2 1.2 Fair Value Income 539.6 101.7 437.9 131.1 35.7 95.4 408.5 66.0 342.5 410.0 39.3 370.7 (1.5) 26.7 (28.2) ECT-NA EnSerCo 0.6 - 0.6 1.9 - 1.9 (1.3) - (1.3) (1.3) - (1.3) - - - ECT-NA JEDI 34.6 - 34.6 17.9 - 17.9 16.7 - 16.7 (3.6) - (3.6) 20.3 - 20.3 ECT-NA JEDI II 88.3 - 88.3 (10.9) - (10.9) 99.2 - 99.2 86.9 - 86.9 12.3 - 12.3 ECT-NA JEDI/JILP/JEDI II - (11.2) 11.2 - (27.6) 27.6 - 16.4 (16.4) - 8.9 (8.9) - 7.5 (7.5) ECT-NA Other 1.5 5.1 (3.6) - 10.1 (10.1) 1.5 (5.0) 6.5 (0.6) (5.0) 4.4 2.1 - 2.1 ECT-NA Rawhide 2.5 (2.5) 2.5 (2.5) 2.5 (2.5) - - Equity Earnings - FV Invest 125.0 (3.6) 128.6 8.9 (17.5) 26.4 116.1 13.9 102.2 81.4 6.4 75.0 34.7 7.5 27.2 El Accro-EE&CC 2.9 - 2.9 2.9 - 2.9 - - - - - - - - - El BLM Fuel Management Fee 1.1 - 1.1 (0.1) - (0.1) 1.2 - 1.2 1.2 - 1.2 - - - El CEG/Rio Gas/Gaspart 3.0 0.4 2.6 (2.1) 0.2 (2.3) 5.1 0.2 4.9 5.1 (2.2) 7.3 - 2.4 (2.4) El CESP Fx Gain (Loss) 1.0 - 1.0 1.0 - 1.0 - - - - - - - - - El Cuiaba-Brazil - 480MW CC - - - (0.7) - (0.7) 0.7 - 0.7 - - - 0.7 - 0.7 El Cuiaba - EE&CC 3.4 - 3.4 2.2 - 2.2 1.2 - 1.2 1.2 - 1.2 - - - El Demar-EE&CC 4.7 - 4.7 4.7 - 4.7 - - - - - - - - - El Guam- EE&CC 1.9 2.7 (0.8) 0.6 1.6 (1.0) 1.3 1.1 0.2 0.4 0.8 (0.4) 0.9 0.3 0.6 El India Phase II - LNG Regas & Marine 0.5 - 0.5 (0.5) - (0.5) 1.0 - 1.0 - - - 1.0 - 1.0 El Interest income 2.9 6.3 (3.4) (1.8) 2.0 (3.8) 4.7 4.3 0.4 4.7 2.4 2.3 - 1.9 (1.9) El LNG Shipping JV - 4.3 - 4.3 - - - 4.3 - 4.3 (0.2) - (0.2) 4.5 - 4.5 El Nepco-EE&CC 4.3 3.1 1.2 (0.7) (2.2) 1.5 5.0 5.3 (0.3) 2.4 2.6 (0.2) 2.6 2.7 (0.1) El NGPLTrailblazer - EE&CC - 0.3 (0.3) - - - - 0.3 (0.3) - 0.3 (0.3) - - - El Nicaragua Power Barge 0.9 - 0.9 0.2 - 0.2 0.7 - 0.7 0.7 - 0.7 - - - El Other- EE&CC 3.4 1.0 2.4 1.8 (0.9) 2.7 1.6 1.9 (0.3) 1.8 2.2 (0.4) (0.2) (0.3) 0.1 El Other Development- Incl. HQ Allocation (36.2) 0.4 (36.6) (13.5) 0.3 (13.8) (22.7) 0.1 (22.8) (15.1) 0.1 (15.2) (7.6) - (7.6) El Other Development Expenses (32.7) (21.0) (11.7) 3.7 (8.5) 12.2 (36.4) (12.5) (23.9) (23.3) (6.4) (16.9) (13.1) (6.1) (7.0) El Poland - EE&CC 2.1 - 2.1 0.4 - 0.4 1.7 - 1.7 1.7 - 1.7 - - - El PQPC Repowering Fee 0.3 - 0.3 (0.1) - (0.1) 0.4 - 0.4 0.4 - 0.4 - - - El Project Cost Write-off (8.2) (89.4) 81.2 6.7 (39.4) 46.1 (14.9) (50.0) 35.1 (14.9) (50.0) 35.1 - - El Puerto Rico- EE&CC 8.7 13.5 (4.8) (2.9) 9.3 (12.2) 11.6 4.2 7.4 1.7 2.8 (1.1) 9.9 1.4 8.5 El Rio Hondo Guarantee Fee 1.3 - 1.3 0.2 - 0.2 1.1 - 1.1 1.1 - 1.1 - - - El Sutton Bridge- EE&CC 5.3 14.5 (9.2) (3.8) - (3.8) 9.1 14.5 (5.4) - 4.5 (4.5) 9.1 10.0 (0.9) El Teesside- Def. Construct. Rev. - EE&CC - 13.3 (13.3) - 8.3 (8.3) - 5.0 (5.0) - 5.0 (5.0) - - EI Turkey (Construction)- EE&CC (1.1) 1.6 (2.7) - - - (1.1) 1.6 (2.7) (4.0) 1.2 (5.2) 2.9 0.4 2.5 El Venezuela Accroven Development Fees 2.0 - 2.0 - - - 2.0 - 2.0 - - - 2.0 - 2.0 El Westinghouse Settlement- EE&CC 3.0 3.0 3.0 3.0 3.0 - 3.0 Development and Construction (21.2) (53.3) 32.1 (1.8) (29.3) 27.5 (19.4) (24.0) 4.6 (32.1) (36.7) 4.6 12.7 12.7 ECM 97 & 98 Flash to Adj Income 9.0 - 9.0 - - - 9.0 - 9.0 3.4 - 3.4 5.6 - 5.6 ECT-NA Accrual income on merchant investments 33.1 - 33.1 1.4 - 1.4 31.7 - 31.7 12.5 - 12.5 19.2 EUR Allocated Expenses (31.1) (29.8) (1.3) (16.8) (11.1) (5.7) (14.3) (18.7) 4.4 (7.7) (17.9) 10.2 (6.6) (0.8) (5.8) ECM CASH I & 2 Amortization (0.6) - (0.6) (0.2) - (0.2) (0.4) - (0.4) (0.2) - (0.2) (0.2) - (0.2) - -- "" '• 10/11/99, 11:16 PM EXH066-00161 C I- C= Q 'r- C= Ca tip O C? W ============= Page 9 of 62 ============= Enron Corp ' Wholesale Buckets Detailed Variat ion Analysis 3rd Quarter 9 mo Ended Sept 30 Th ird Quarter 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 I r Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) nc ( ECM CASHCo's Interest Income 2.2 - 2.2 0.7 - 0.7 1.5 - 1.5 0.3 - 0.3 1.2 - 1.2 ECM Chewbacca - 31.4 (31.4) - 1.9 (1.9) 29.5 (29.5) - 1.9 (1.9) - 27.6 (27.6) ECT-NA Chewco 46.0 (46.0) - - - - 46.0 (46.0) - 46.0 (46.0) - - - ECM ECT Coal - Earnings 1.1 - 1.1 0.4 - 0.4 0.7 - 0.7 0.7 - 0.7 - 1 9 - - 9 1 ECT-NA ECT Investments 9.1 - 9.1 - - - 9.1 9.1 . 0 5 - . 0 5 ECT-NA EES Reimb of Facility Costs 0.5 - 0.5 7 80 - - - - - 0.5 (80 7) - - 0.5 (80.7) - (31.5) - - - (31.5) . (49.2) - . (49.2) ECT-NA ENE Stock Puts (2Q) (80.7) - ) . ( - . 4 0 0 2 - 0 2 0.2 - 0.2 ECM ENSERCO Debt Income 0.4 - 0.4 - - - 0.4 - . . . ECT-NA Equity Earnings - Off B/S facilities (11.2) 11.2 - (11.2) 112 - 7 1 - 1) (17 (6 6) - (6 6) (10.5) - (10.5) ECM Expenses - ECM (21.8) (5.7) (16.1) (4.7) 23 9 (5.7) 13 9 1.0 (10 0) . ) (1 8) (39 - (50 8) . 11 0 . (19.2) (39.8) . 20.6 (20.6) (11.0) (9.6) ECT-NA Expenses-NA (63.7) (64.7) 1.0 ( . ) . ) ( . . . . 6 2 - 6 2 ECT-NA Facilities Costs 5.4 5.4 8 5 2.8 1 2 - 4 4 2.8 (5 6) 2.6 0 1 - 13 0 2.6 (12.9) . 0.1 14.0 . (13.9) - (1.0) 1.0 ECT-NA Finance Originations (1.1) 17.4 (1 . ) . ) ( . . . . 4 8 3 1 - 1 3 1 7 El Finance Origination 4.8 4.8 - - - 4.8 - . . . . EUR Finance Originations - - - - (0.2) 0.2 - 0.2 (0.2) - 02 (0.2) - - " - ECT-NA Funding Income 0.7 (0.7) - 0.7 (0.7) - - - - - - - 6 3 (6 3) ECT-NA Hanover Compressor Sale - 6.3 (6.3) - - - - 6.3 (6.3) - - 0 2 . - . 0 2 ECM HV Marine 0.2 - 0.2 - - - 0.2 - 0.2 - - - . 7 0 - . 0 7 ECT-NA JEDI ENE stock/puts sharing agreement 7.0 - 7.0 - - - 0 5) 7.0 (1 4) - - 7.0 (1 4) (0.9) - - - (0.9) . (0.5) - . (0.5) ECM JEDI It EES Equity Earnings (1.9) - (1.9) 25 9 (0.5) 4 9 - - . ( (4 9) . 0) (21 - . (21.0) (21.0) - (21.0) - - ECM JEDI NPI Writedown (25.9) - . ) ( 1 8 ( . ) 0 6 - . (0 6) . (1 2) - (1.2) (0.6) - (0.6) (0.6) + - (0.6) ECM JEDI Restructuring & JEDI Bond Settlement (1.8) - . ) ( . ( ) . . 3 0) (1 5) - (1 5) (1.5) - (1.5) ECM JILP Amortization (4.5) (1.5) (3.0) (1.5) (1.5) - (3.0) - . ( . . ECT-NA Kafus Dividend Income - 2.5 (2.5) - - - - 2.5 (2.5) 1 1 - 2.5 1 1 (2.5) (1 1) - - - - - - ECT-NA Mariner Energy - 1.1 (1.1) 7 2 - - - 2) (7 1.1 - . ) ( (7.2) - (0.1') . - . (0.1) (7.1) - (7.1) ECM NSM Debt Write Down (7.2) - . ) ( - - . - EGEP Other 6.7 - - - 6.7 - 6.7 - - 0 2 6.7 (2.0) - - - (2.0) - 2.0 - 0.0 - - - 0.0 (0.0) (2.0) 2.0 El ECM Other Other- ECM 2.3 6.2 (3.9) 1.9 . 2.4 (0.5) 0.4 3.8 (3.4) 0.4 0.8 (0.4) - 3.0 - (3.0) ECT-NA Other FV 0 7 0.7 (9 9) (0.7) 10 6 - (1.5) 0.7 1.4 (0.7) (2.9) 2.2 - (11.3) - 13.5 - 0.9 - (5.5) - 6.4 - 1.3 (5.8) 7.1 ECT-NA Other- Non . - . - . - - 4) (3 3.4 - 3.4 (3.4) - 3.4 (3.4) - - El EUR Other (Flash to Actual) Other (flash to actual) - 10.1 (10.1) (0.6) . 12.1 (12.7) 0.6 (2.0) 2.6 0.4 (5.0) 5.4 0.2 3.0 (2.8) ECM Poland - 6.0 (6.0) - - - - 6.0 (6.0) - 6.0 (6.0) - - ECM Poland - (6.0) 6.0 - - - - (6.0) 6.0 - (6.0) 6.0 - - - 16 0 - (16 0) El Poland Fees - 16.0 (16.0) - - - - 16.0 (16.0) - - 1 0 0 2 . - . 0 2 ECM Ponderosa Assets Int Income 0.3 - 0.3 - 0 13 - - 13 0 0.3 0) (13 - - 0.3 (13.0) 0.1 (13.0) - - . (13.0) . - - . - ECM Portfolio adjustments - - - . . . - ECM Project Tomas - 64.2 (64.2) - 64.2 (64.2) - - - - - ECM Promigas - COP - 5 6 0.9 5 7 (0.9) (0 1) - 1 0 0.9 2.2 (0.9) (1.2) 4.6 - 3.5 - 1.1 - 2.5 - 1.9 - 0.6 2.1 1.6 0.5 EI ECT-NA Promigas Dividends Qualitech . - . 0.7 . (0.7) . - 0.7 (0.7) - - - - - - - - 6 5 (6 5) ECT-NA Queen Sands - 6.5 (6.5) 0 - - - - - 6.5 (10 0) (6.5) 10.0 - - - 6.0 (6.0) - . (16.0) . 16.0 ECM Reclass to El (Poland) - 4 6 (10.0) - 10. 4 6 - 0 6 - - 0.6 4.0 . - 4.0 1.2 - 1.2 2.8 2.8 ECT-NA Structuring Income . . . 6 0 - 0 6 - - - 0.6 0.6 ECM Wessex- FX gain 0.6 - 0.6 - - - . 33 2 - . 33 2 2 33 - 33.2 - - - ECM Wessex - Swap Income from Corp. 33.2 - 33.2 - - - . . 34 0 . 15 3 - 15 3 18 7 - 18.7 ECM Transfers within Wholesale 34.0 - 34.0 - - - 34.0 - . . . . 267 5 (267 5) 1 8 0) (1 8 2 (269.3) 1.0 (270.3) (269.3) 1.0 (270.3) - - - Assets & Invesln Transfers within Wholesale . ) ( - . . . . 5 9 294 7 10 6 (305 3) (26 2) 27 4 (74.5) Other Portfolio Related (347.0) 83.6 (430.6) (26.1) 45.6 (71.7) (320.9) 38.0 ) (3 8. . ) ( . . . . 01 8 7 568 133 1 240 7 159 6 81 1 461 1 409.1 52.0 323.9 258.3 65.6 137.2 150.8 (34.5) Total Assets & Investments . 7 . . . . . . ECT-NA Unallocated Expenses -ECT-NA (98.4) (82.8) (15.6) (25.5) (26.1) 0.6 (72.9) (56.7) (16.2) (38.4) (29.8) (8.6) (34.5) (26.9) (7.6) EUR Unallocated Expenses- Europe (26.2) (22.8) (3.4) (8.6) (8.4) (0.2) (17.6) (14.4) (3.2) (11.7) (10.2) (1.5) (5.9) (4.2) (1.7) d E (124 6) (105 6) (19 0) (34 1) (34.5) 0.4 (90.5) (71.1) (19.4) (50.1) (40.0) (10.1) (40.4) (31.1) (9.3) xpenses Total Unallocate . . . . 053 9 1 4 767 286 5 378 1 277.8 100.3 675.8 489.6 186.2 355.5 240.4 115.1 320.3 249.2 50.2 TOTAL IBIT . , . . . ECO6419BO100736 10/11/99, 11.16 PM Wbuckets3g99.xls. monday 11th 11pm EXH066-00162 ============= Page 10 of 62 ============= Enron North America Third Quarter Highlights ~O (in Millions) Third Quarter 1999 1998 Variance IBIT increased $63 million as,a result of improved earnings from asset monetizations & selldowns. Commodity Sales & Services earnings were down as a result of decreased earnings from origination activities. Gas trading results increased 11 % to $152MM. 152 137 15 Earnings from power trading more than doubled to $28MM for the quarter. 27 13 14 Trading of new businesses increased (equity up $10 million, coal up $10 million, paper up $11 million) 64 17 47 Origination based earnings fell $46MM from the 3rd quarter of 1999. Last year results were 29 75 (46) exceptionally strong, the result of $42MM in earnings booked for WAPA. Expenses were $48 million higher in the 3rd quarter of 1999 than last year. (175) (128) (47) Prepay expenses were $XX million over last year. 97 114 (17) Assets & Investments earnings increased $92 million due to sales of assets. The sale of the Pittsburgh, CA power plant to Calpine generated earnings of $27 million in 3Q99. The sale of gas metering equipment (Project Rock) generated earnings of $20 million in 3Q99. 54 54 The FAS 125 selldown of Wind River gas gathering system generated earnings of $16 million in 3Q99. 16 - 16 Portfolio related income increased $23MM from last year, primarily the result of $40 million in 38 15 23 fair value earnings recognized on an investment in First World. Expenses related to assets and investments were flat. (16) (14) (2) 92 1 91 Unallocated expenses were up due to amortization of legacy expenses which are not allocated to teams. (38) (27) (11) IBIT 151 88 63 ECT-NA 3Q99 Highlights.xls, NA EXH066-00163 EC06419B0100737 10/11/99, 10:29 PM ============= Page 11 of 62 ============= 4'f O Enron North America Operating Results (in Millions) 6 mo 9 mo Total 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4t 2ndQtrgg 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 irciudes E32m credit reserve Commodity s1 Qlr 99 includes E43m $27 interest uit trading e 45 57 102 57 159 279 438 Gas Trading 126 .102 228 14 37 y . q ate and FX and $36m 58 76 134 13 147 43 190 Power Trading 68 36 104 26 130 (130) pimencyreservereiease 4 25 17 42 25 67 Other Trading 73 52 125 70 0 26 185 96 (185) (96) IndudesBPAE7m. 21 32 25 57 75 132 52 184 Gas Ori inations g 33 37 Pa m Sp i gs Eem - - Power Originations - - - - - - and FPBL E14m (65) (122) (187) (48) (235) (342) (577) Direct and Indirect Expenses (167) (165) (332) (171) (503) 503 - 91 40 131 114 245 57 302 Total 133 62 195 85 280 (280) - Bammel EIOm and Powder River $17m Assets & Investments Asset Operations - - - - - - - Asset Selldowns - - - 16 16 (16) - Monetizations 15 12 27 53 80 80 naudes seam related FV Income 60 155 215 4 (256) earnings (pimariy from o,EOl ll ~uilr Development & Construction - - - - - - - East cease Power). First World ESIm and Kafus Other Portfolio Related (28) (14) (42) (42) 42 - $53m Direct and Indirect Expenses (21) (19) (40) (17) (57) 57 Total 26 134 160 93 (253) Primarily 11 5m 3 . taken portfolio wrieoHs Unallocated Expenses (34) (38) (72) (37) (109) 109 - against the Rhythms FV gain - 40 40 - 40 56 96 35 69 104 (30) 74 (21) 53 6 13 19 45 64 30 94 (11) (40) (51) (14) (65) (34) (99) 30 82 112 1 113 31 144 (27) (30) (57) (27) (84) (40) (124) Total IBIT 125 158 283 141 424 (424) - 94 92 186 88 274 48 322 Capital Costs 7 24 31 45 76 (76) - 7 6 13 13 26 19 45 Minority Interests Earnings before taxes 118 134 - 252 96 - 348 - (348) - 87 86 173 75 248 29 277 Taxes 45 54 99 34 133 (133) - 33 34 67 29 96 15 111 Net Income 73 80 153 62 215 (215) - 54 52 106 46 152 14 166 Effective tax rate 38.1% 40.3% 39.3% 35.4% 38.2% 38.2% #DIV/0! 37.9% 39.6% 38.7% 38.7% 38.7% 51.7% 40.1% 2,864 Net Capital Deployed 3,568 3,719 3,719 - - - - Pretax earnings before financing 11 2% divided by net capital deployet 14.0% 17.0% 15.2% #DIV/0! #DIV/0! #DIV/0! #DIV/0! . Aftertax earnings before financing 6 7% divided by net capital deployet 8.7% 10.1% 9.2% #DIV/0! #DIV/0! #DIV/O! #DIV/0! . ECO6419B0100738 ECT-NA 3Q99 Op Results.xls, North America 10/11/99, 10:29 PM EXH066-00164 ============= Page 12 of 62 ============= 49o IBIT decreased $25 million from 3Q98 due mainly to decreased gas and power trading results, higher expenses and Riverside 4 in 1998 which did not recur in 1999 Commodity Sales & Services earnings were up $28 million due to liquids trading and credit release Enron Europe Third Quarter Highlights (in Millions) Third Quarter 1999 1998 Variance Gas trading was down (6) 23 (29) Power trading was down 29 55 (26) Global trading was up 35 (1) 36 Credit release occurred as a result of analysis on the embedded reserves 40 - 40 Other trading was up, specific increases being Interest & FX books and spread options 34 (6) Power originations were flat 5 - 5 Expenses related to commodity sales and services were up due to increased headcount and trading (77) (14) (63) activity on the continent which has started to contribute significantly to the gross margin 60 57 (37) Assets & Investments earnings decreased $21 million due to a lack of monetisations in Q399 as compared with Q398. Asset operations were relatively flat The Riverside 4 deal in 1998 brought earnings of $28 million. No monetisations occurred in Q399 Fair value income increased $9 million due to favourable movement in the Paladin share price Portfolio related activities were flat Expenses related to assets and investments were flat. Unallocated expenses were up due to early accrual of bonus provision which was not done in 1998 ($13.8 million) IBIT 3 8 (5) - 28 (28) 3 (6) 9 (1) (10) (11) 2 (4) 17 (22) (25) (9) (16) 32 .65 (75) ECO6419BO100739 EUR 3Q99 Highlights.xls, EEL =XH066-00165 10/11/99, 10:30 PM ============= Page 13 of 62 ============= ti11~O Enron Europe Operating Results (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 Includes tosses on Global Trading E15m and Interest Commodity rale/FX trading Gas Trading 11 (6) 5 (5) ^ Power Trading 71 3 74 29 103 (103) Other Trading 62 (23) 109 148 (148) Ps qaa e Gas Originations - - - - - - - Power Originations (6) 97 91 ~ 5 96 (96) - re ease In-release, of $25m of E25 Direct and Indirect Expenses (40) (49) x(8) (77) (166) 166 -_ Total 98 28 126 60 187 (187) - Eastern Contract ' revaluation of EBem Assets & Investments Asset Operations 6 (6) - 3 3 (3) suit nendge lv of E39m Asset Selldowns - - - - Monetizations 2 39 41 (0) 41 (41) FV Income (20) (1) - (24 3 (18) 18 wnledownof~aueof Development & Construction - - - - - - - Techbnerd and Paladin Other Portfolio Related - - - Indirect Expenses (8) (6) (14) (10) (24) 24 - Total (20) 26 6 (4) 2 (2) - Unallocated Expenses (6) (12) (18) (25) (43) 43 - Total IBIT 72 42 114 32 146 (146) - Capital Costs 12 (3) 9 4 14 (14) - Minority Interests - - - - - Earnings before Taxes 60 45 105 27 132 (132) - Taxes 14 11 25 6 31 (31) - Net Income before prepays 46 34 80 21 101 (101) - Prepay expense (6) (6) (12) (13) (26) 26 - Prepay income 6 6 12 13 26 (26) - Net Income 46 34 80 21 101 (101) - Effective tax rate 23.3% 24.4% 23.8% 23.6% 23.8% 23.8% #DIV/0! Net Capital Deployed 1,281 596 596 - - - - Pretax earnings before financing divided by net capital deployed 22.5% 28.5% 38.4% #DIV/0! #DIV/O! #DIV/0! #DIV/0! Aftertax earnings before financing divided by net capital deployed 17.2% 21.5% 29.2% #DIV/0! #DIV/O! #DIV/O! #DIV/O! EUR 3Q99 Op Results.xls, Europe EXH066-00166 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 (10) (13) (23) 23 - 112 112 24 9 33 55 88 (88) - 58 5 14 72 5 (7) 65 5 11 (5) 64 76 64 Inct des Global earnings of (38) (27) (65) (14) (79) (51) (130) $28m and Prud-y 39 (17) 22 57 79 43 122 release of E37m 6 8 14 8 22 (9) 13 22 57 79 28 107 (1) 106 (6) (6) 6 - 2 (1) 1 (1) - - - (19) (19) (11) (30) (6) (36) 30 46 76 17 93 (10) 83 (4) (10) (14) (9) (23) (5) (28) 65 19 84 65 149 28 177 19 10 29 22 51 11 62 46 9 55 43 98 17 115 17 8 25 16 41 (13) 28 29 1 30 27 57 30 87 (9) (9) (1) (10) 9 9 1 10 29 1 30 27 57 _ 30 87 37.0% 93.0% 45.8% 36.9% 41.8% -76.5% 24.3% 994 17.8% 13.5% ECO6419BO100740 10/11/99, 10:30 PM ============= Page 14 of 62 ============= International Operations Third Quarter Highlights ,QO (in Millions) Based on 10/1/99 Summary Variances-Not updated for Flash IBIT for third quarter 1999 was $95 million compared with $49 in the prior year quarter, an increase of $46 million Commodity Sales & Services earnings increased as a result of increased activity in Australia and the startup of South America tradaing. Power trading was flat Assets & Investments earnings increased from $50 million in third quarter 1998 to $91 million in the current quarter, an increase of $41 million FV - Mariner and Promigas. Mariner is now fully included in North America and Promigas has been sold to Condor Cuiaba selldown of 13% ownership and the MTM gain on the fuel supply contract Elektro - due to increased ownership and FX gains Monetizations - amortization of Turkey/Italy guarantees in 1999, Puerto Rico selldown in 1998 Project writeoffs (net) Flash to actual adjustments All other - asset operations, development and construction Bonus accrual adjustment IBIT G:\CORPRPTG\EARNINGS\1999\3gtr99\Income Pages\Group Pages\[EI 3Q99 Highlights.xls]Sheet1 Third Quarter 1999 1998 Variance 4 (1) 5 $ 4 $ (1) $ 5 - (8) 8 45 - 45 7 - 7 7 83 (76) 7 (39) 46 10 (3) 13 10 17 (7) 5 - 5 91 50 41 95 49 46 EC06419BO100741 EXH066-00167 ============= Page 15 of 62 ============= yP0 Commodity Gas Trading Power Trading Other Trading Gas Originations Power Originations Expenses Total Assets & Investments Asset Operations Asset Selldowns Monetizations FV Income Development & Construction Other Portfolio Related Expenses Total Unallocated Expenses Total IBIT Capital Costs * Minority Interests Earnings before Taxes Taxes Net Income Effective tax rate - actual Effective tax rate - annualized Enron International Regions Operating Results (in millions) 6 mo 9 mo Total 1 st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 (1) (2) (3) 4 1 (1) - _ - _ _ - - - I ncludes Eleklro e amirgs o/ §72m - - - - - a nd TGS earnings o f §15m 1 2 3 4 1 1 - Includes TurkeyAlaly of §87m and 60 27 87 112 199) Guam of §iem 30 84 114 7 121 (121) Includes (4) - (4) - - Development Cost 32 46 27 27 wile-offs of §41 13 ) ( ) ( partially offset by 4 20 24 71 95 (95) - Puerto Rico - - - (145) (145) 145 - and Sutton and Sutt of §1 Bridge 103 99 202 91 293 (293) - of $9m 102 97 199 95 294 (294) - 48 46 94 55 149 (149) - 12 10 22 9 31 (31) - 42 41 83 31 114 (114) - 7 (17) (10) (30) (40) 40 - 35 58 93 61 154 (154) - 16.7% -41.5% -12.0% -96.8% -35.1% -35.1% #DIV/0! -4.2% -4.2% -4.2% -4.2% -4.2% -4.2% -4.2% Net Capital Deployed 5,838 5,801 5,764 2,882 Pretax earnings before financing divided by net capital deployed 7.0% 6.7% 6.9% 13.2% #DIV/0! #DIV/0! #DIV/0! Aftertax earnings before financing divided by net capital deployed 7.3% 7.0% 7.2% 13.7% #DIV/0! #DIV/0! #DIV/0! Capital Costs include Interest Expense and Dividends on Preferred Stock of Subsidiary Companies El 3099 Op Results.xls, Intl regions 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 (1) (1) (1) (2) (3) (1) (1) (1) (2) (3) 19 32 51 14 65 (14) 51 (4) 71 67 67 134 232 366 - 22 22 (8) 14 (22) (8) 13 (37) (24) (29) (53) (38) (91) 16 5 21 5 26 (29) (3) (1) 1 - - - - - 43 94 137 49 186 129 315 43 93 136 49 185 127 312 14 8 22 27 49 19 68 29 85 114 22 136 108 244 10 (9) 1 (29) (28) 45 17 19 94 113 51 164 63 227 34.5% -10.6% 0.9% -131.8% -20.6% 41.7% 7.0% -4.2% -4.2% -4.2% -4.2% -4.2% -4.2% -4.2% 4,227 7.4% 6.9% EC06419BO100742 10/11/99, 10:30 PM EXH066-00168 ============= Page 16 of 62 ============= Enron Capital Management (ECMGR4) y Third Quarter Highlights ~O (in Millions) Third Quarter 1999 1998 Variance IBIT increased $43.0 in 3Q99 to $64.0 from $21.0 in 3Q98. Changes in the components of IBIT are detailed below: Assets & Investments JEDI Puts - MTM gain JEDI MTM Income - Transfer to ECT Reserve Reversal MTM - EOG Stock ECT Investment income EOG Hedge Basket income Chewbacca income JEDI Management Fee Expenses Other 20 - 20 (8) - (8) 8 - 8 43 - 43 6 (6) 10 (10) 2 (2) 5 5 - (5) (6) 1 1 3 (2) 64 21 44 EC06419B0100143 -0020689.xls, ECMGR4 10/11/99, 11:05 PM EXH066-00169 ============= Page 17 of 62 ============= Assets & Investments Asset Operations - JEDI mgt fees Asset Selldowns Monetizations FV Income Development & Construction Other Portfolio Related Expenses Total Unallocated Expenses Total IBIT Capital Costs Minority Interests Earnings before Taxes Taxes Net Income Effective tax rate - actual Effective tax rate - annualized Net Capital Deployed Pretax earnings before financing divided by net capital deployed Aftertax earnings before financing divided by net capital deployed Enron Capital Management Operating Results (in millions) 6 mo 9 mo Total 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 ECM portion of.IEDI amings E46m, FX gai E33m, SW hedge bzs 571m, NSM and rinerwriedowns M 5 5 0 5 15 (15) a a20m 7 6 13 5 18 5 23 26 22 48 1 49 - 49 - - 16 16 1 17 15 66 81 66 147 (147) - 15 8 23 63 86 11 97 (11) (6) (17) (7) (24) 24 - - - - (64) (64) 44 (20) 9 65 74 64 138 (138) - 48 36 84 21 105 61 166 9 65 74 64 138 (138) - (13) (18) (31) (19) (50) 50 - 14 13 27 12 39 (39) - 8 70 78 71 149 (149) - 3 25 28 26 54 (54) - 5 45 50 45 95 (95) - 37.5% 35.7% 35.9% 36.6% 36.2% 36.2% #DIV/0! 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 136 152 152 - - - - 48 36 84 21 105 61 166 1 1 2 3 1 4 48 35 83 19 102 60 162 9 4 13 5 18 12 30 39 31 70 14 84 48 132 18.8% 11.4% 15.7% 26.3% 17.6% 20.0% 18.5% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 326 26.5% 171.1% 97.4% #DIV/01 #DIV/0! #DIV/0! #DIV/0! 17.2% 111.2% 63.3% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 50. 33.1% ECO6419BO100744 ECM-W 3Q99 Op Results.xls, ECM 10/11/99, 11:05 PM EXH066-00170 ============= Page 18 of 62 ============= O Third Quarter 1999 1998 Variance IBIT increased $34.5 million as a result of recognition of revenue from the Rythms Investment of approximately 37 million offset by a reduction in equity earnings from FTV Communications of approximately 4.2 million. Communications revenue were up due to Rythms Investment recognition Rythms Investment Fiber Sales Enron Communications, Inc. Third Quarter Highlights (in Millions) Expenses related to communications increased due to increased activity and employee count 37 31 37 27 (32) (3) (29) 36 1 35 EC06419BO100745 ECI 3Q99 Highlights.xls, ECI 10/11/99, 10:33 PM EXH066-00171 ============= Page 19 of 62 ============= Enron Communications Operating Results ~0 (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 Assets & Investments Asset Operations - Dark fiber and software sales 1 10 11 32 43 (43) - FV Income - Rhythms 19 286 305 37 342 (342) - Primarily Expenses (O&M and depreciation) (6) (22) (28) (32) (60) - employee Total 14 274 288 37 325 (325) - expenses Total IBIT 14 274 288 37 325 (325) - Capital Costs 2 1 3 5 8 (8) - Minority Interests - - - - - - Earnings before Taxes Taxes Net Income Effective tax rate - actual Effective tax rate - annualized Net Capital Deployed 12 273 285 32 317 (317) - 5 108 113 11 124 (124) - 7 165 172 21 193 (193) - 41.7% 39.6% 39.6% 34.4% 39.1% 39.1% #DIV/0! 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 200 492 492 - - - - 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 14 14 14 14 14 14 3 3 - - - - - 11 11 8 8 3 3 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 72.7% 72.7% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 114 Pretax earnings before financing divided by net capital deployed 28.0% 222.8% 117.1% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 12.3% Aftertax earnings before financing divided by net capital deployed 16.8% 133.7% 70.2% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 3.3% ECI 3099 Op Results.xls, ECI EXH066-00172 ECO6419BO100746 10/11/99, 10:33 PM ============= Page 20 of 62 ============= Enron Corp. Recap of EOG and EGEP Results (In Millions) 3rd Qtr 1st Qtr 2nd Qtr 6 mo 99 7/1-8/16 8/17-9/30 9 mo 99 Reported in Exploration & Production IBIT before adjustments - EOGR 19.1 37.3 56.4 27.4 - 83.8 - EGEP (1.7) 9.7 8.0 5.3 - 13.3 17.4 47.0 64.4 32.7 - 97.1 Back out gain on EOG options (28.0) (31.6) (59.6) - - (59.6) Corporate hedge 22.8 4.2 27.0 - - 27.0 IBIT as adjusted 12.2 19.6 31.8 32.7 - 64.5 Reported in Wholesale IBIT-EGEP - - - - 67 6.7 Memo - EGEP total (1.7) 9.7 8.0 5.3 6.7 20.0 ECO6419BO100747 EXH066-00173 ============= Page 21 of 62 ============= ti0 Enron Global Exploration & Production Inc. Third Quarter Highlights (in Millions) Third Quarter 1999 1998 Variance IBIT increased from $7 million in 3Q98 to $12 million in 3Q99, due mainly to increased Crude and Gas production in India (Panna/Mukta and Tapti fields). The production increase reflects the successful development drilling program which continues today with two active drilling rigs under contract. Revenues (net of royalty, process & transport fees) Natural Gas (Tapti and Panna/Mukta) 13 12 1 Crude Oil (Panna/Mukta) 11 6 5 Depreciation, Depletion & Amortization Based on production (higher throughput 3Q99) (4) (2) (2) On excess value - EGEP purchase (8/16/99) (1) • - (1) Operating, General and Administrative and Other Cost decreases (7) (9) 2 IBIT 12 7 5 To ~ P 5"1C p '7 iti lo kote5aLe ECO641980100748 EGEP 3Q99 Highlights.xls, EGEP 10/11/99, 10:25 PM EXH066-00174 ============= Page 22 of 62 ============= Enron Global Exploration & Production y Operating Results ~0 (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 Assets & Investments Asset Operations (2) . 10 8 12 20 (20) - Asset Selldowns - - - - - - - Monetizations - - - - - - FV Income - - - - - - - Development & Construction - - - - - - - Other Portfolio Related - - - - - - - Expenses - - - - - - - Total Unallocated Expenses Total WIT Capital Costs * Minority Interests Earnings before Taxes Taxes Net Income Effective tax rate - actual Effective tax rate - annualized Net Capital Deployed (2) 10 8 12 20 (20) - (2) 10 8 12 20 (20) - 3 2 5 (5) - - - (5) 8 3 17 20 (20) - (2) 4 2 8 10 (10) - (3) 4 1 9 10 (10) - 40.0% -4.2% 2,824 50.0% -4.2% 2,823 66.7% -4.2% 2,821 47.1% -4.2% 1,411 50.0% -4.2% - 50.0% #DIV/0! -4.2% -4.2% - - 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 7 9 16 7 23 (23) - 7 9 16 7 23 (23) - 7 9 16 7 23 (23) - 3 4 7 2 9 3 12 4 5 9 5 14 (26) (12) 2 3 5 - 5 3 8 2 2 4 5 9 (29) (20) 50.0% 60.0% 55.6% 0.0% 35.7% -11.5% -66.7% -4.2% -4.2% -4.2% -4.2% -4.2% -4.2% -4.2% 2,787 Pretax earnings before financing divided by net capital deployed -0.3% 1.4% 0.6% 0.03403 #DIV/0! #DIV/0! #DIV/0! 0.0` 4ftertax earnings before financing divided by net capital deployed -0.3% 1.5% 0.6% 0.03546 #DIV/0! #DIV/0! #DIV/0! 0.0` Capital Costs include Interest Expense and Dividends on Preferred Stock of Subsidiary Companies EGEP 3Q99 Op Results.xls, EGEP EXH066-00175 EC064190100749 10/11/1999, 5:14 PM ============= Page 23 of 62 ============= Enron Oil & Gas y Operating Results ~0 (in millions) (includes EGEP through August 16, 1999) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 Revenues: EOG 181 200 381 118 499 (499) - Corp Hedge 23 4 27 - 27 (27) - Total 204 204 408 118 526 (526) - Cost of gas & other prod (22) (12) (34) (7) (41) 41 - Netrevenues 182 192 374 111 485 (485) - Operating expenses (48) (50) (98) (28) (126) 126 - O&G exploration expenses (25) (21) (46) (1) (47) 47 - DD&A (82) (89) (171) (42) (213) 213 - Taxes, other (14) (12) (26) (7) (33) 33 - Other Income, net (A) (1) - (1) (1) (2) 2 - Total IBIT 12 20 32 32 64 (64) - Capital Costs 14 15 29 8 37 (37) - Minority Interests - - - - - - - Earnings before Taxes (2) 5 3 24 27 (27) - Taxes (A) (9) (2) (11) 7 (4) 4 - Net Income 7 7 14 17 31 (31) - Effective tax rate 450.0% -40.0% -366.7% 29.2% -14.8% -14.8% #DIV/0! 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 225 6 207 (3) 432 3 213 7 645 10 (645) - (10) - 231 204 435 220 655 (655) - (25) (24) (49) (21) (70) 70 - 206 180 386 199 585 (585) - (42) (34) (72) (14) (1) (38) (26) (73) (14) - (80) (60) (145) (28) (1) (40) (34), (84) (14) (2) (120) (94) (229) (42) (3) 120 - 94 - 229 - 42 - 3 - 43 29 72 25 97 (97) - 9 10 19 14 33 (33) - 34 19 53 11 64 (64) - 1 9 10 (2) 8 (8) - 33 10 43 13 56 (56) - 2.9% 47.4% 18.9% -18.2% 12.5% 12.5% #DIV/Ol (A) Gain on ENE Options and respective taxes ($28 mm in 1st Qtr.99 and $31.7 mm in 2nd Qtr.99) has been eliminated in consolidation. ECO6419B0100750 Greg - IS rpt.xls, EOG 10/11/1999, 11:11 PM EXH066-00176 ============= Page 24 of 62 ============= ti~ O Enron Energy Services Third Quarter Highlights (in Millions) Outsourcing caused Gross Margin to increase by $22 million from in the third quarter'99 from the third quarter'98. This was primarily due to signing the Owens Corning deal and recognizing MTM earnings. Commercial Desk (Gas and Power) gross margin increased in the third quarter'99 from the third quarter'98, as more deals are signed. Facility Services gross margin decreased $10 million in the third quarter'99 from the third quarter '98, due to recording six months of revenue in the third quarter '98 vs. three months of revenue in the third quarter of '99. Other items, primarily flash to actual adjustments, effecting gross margin were relatively flat in the third quarter '99 from the third quarter'98. Business Support caused EBIT to decrease by $7 million in the third quarter'99 from the third quarter'98. This was due to phantom expense of $5 million recorded in 30'99 and Accounting, Legal, HR and Tax made up the remainder of the increase in support costs. IBIT EES 3Q99 Highlights.xls, EES Third Quarter 1999 1998 Variance 22 22 11 10 1 20 30 (10) 10 10 - (81) (73) (8) (18) (23) 5 ECO6419BO100751 10/11/99, 10:29 PM EXH066-00177 ============= Page 25 of 62 ============= Enron Energy Services Operating Results yi~O (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 Gross margin: Gas 4 7 11 4 15 (15) - Power 21 7 28 7 35 (35) - Facility Services 15 17 32 20 52 (52) - Artemis Total Return Swap 2 4 6 - 6 (6) - Outsourcing 1 5 6 22 28 (28) - Other 2 (7) (5) 11 6 (6) - 45 33 78 63 141 (141) - Expenses: O & M (70) (59) (129) (72) (201) 201 - Depreciation (6) (4) (10) (9) (19) 19 - Other income: Minority interests 1 (1) - - - - - Other (3) 3 - - - - - Total IBIT (33) (28) (61) (19) (80) 80 - Capital Costs 2 3 5 1 6 (6) - Earnings before Taxes (35) (31) (66) (20) (86) 86 - Taxes (10) (9) (19) (5) (24) 24 - Net Income (25) (22) (47) (15) (62) 62 - Effective tax rate 28.6% 29.0% 28.8% 26.5% 28.3% 28.3% #DIV/0! Net Capital Deployed 644 575 575 - - - - 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 4 (1) 4 6 9 12 21 (1) 3 2 5 7 6 13 - - - 30 30 21 51 15 - 15 - 15 11 26 2 1 3 10 13 (6) 7 20 4 24 50 74 44 118 (42) (39) (81) (62) (143) (63) (206) (5) (9) (14) (8) (22) (9) (31) (3) (3) (5) (8) 1 (7) (27) (47) (74) (25) (100) (27) (126) 1 1 (1) 4 - 4 (27) (48) (75) (24) (104) (27) (130) (8) (14) (22) 22 (31) (8) (39) (19) (34) (53) (46) (73) (19) (91) 29.6% 29.0% 29.2% -90.9% 30.0% 30.0% 30.0% 601 Pretax earnings before financing divided by net capital deployed -20.5% -19.5% -21.2% #DIV/0! #DIV/O! #DIV/0! #DIV/0! -21.0 °i Aftertax earnings before financing divided by net capital deployed -14.6% -13.8% -15.1% #DIV/0! #DIV/0! #DIV/0! #DIV/0! -14,70, ECO6419BO100752 EES 3Q99 Op Resufts.xls, EES 10/11/99, 10:29 PM EXH066-00178 ============= Page 26 of 62 ============= Enron Corp Retail Energy Services (RETAIL4) Detailed Variation Analysis 2nd Quarter IBIT Gross revenues Gas sales Power sales Power MTM Services Capital Omicron total return swap Bentley/Omnicomp sales Pierce Mechanical Total Gross revenues Cost of sales Gas Power Services Bentley/Omnicomp Pierce Mechanical Total cost of sales Gross margin Gas sales Power sales Power MTM Services Capital Omicron total return swap Bentley/Omnicomp sales Pierce Mechanical Total Gross margin Operating expenses Deprec & amort Taxes, other Other income, net IBIT before Min. Int. Minority Interest in Omnicron Minority Interest in EES IBIT Interest Expense Int on 3rd party debt Other trade interest Capitalized interest Int exp - trade Interco interest (inc)/exp 9 mo Ended Sept 30 1999 1998 Incr (Decr) 480.3 453.3 27.0 339.4 43.7 295.7 51.7 3.8 47.9 352.8 218.2 134.6 3.6 - 3.6 5.0 15.0 (10.0) 16.3 16.5 (0.2) 2.7 2.7 1,251.8 750.5 501.3 (471.2) (435.5) (35.7) (323.6) (40.8) (282.8) (301.7) (188.4) (113.3) (13.4) (11.9) (1.5) (1.6) - (1.6) (1,111.5) (676.6) (434.9) 9.1 17.8 (8.7) 15.8 2.9 12.9 51.7 3.8 47.9 51.1 29.8 21.3 3.6 - 3.6 5.0 15.0 (10.0) 2.9 4.6 (1.7) 1.1 - 1.1 140.3 73.9 66.4 (198.3) (143.4) (54.9) (19.4) (21.6) 2.2 (4.2) (4.1) (0.1) 2.0 (2.6) 4.6 (79.6) (97.8) 18.2 5.4 4.8 0.6 (74.2) (93.0) 18.8 (4.6) 4.2 (8.8) (4.6) 4.2 (8.8) (4.6) 4.2 (8.8) Third Quarter 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 154.1 137.4 16.7 249.5 31.8 217.7 21.7 3.8 17.9 110.2 218.2 (108.0) 3.6 - 3.6 1.9 9.2 (7.3) 1.2 1.2 542.2 400.4 141.8 326.2 315.9 10.3 89.9 11.9 78.0 30.0 - 30.0 242.6 - 242.6 5.0 15.0 (10.0) 14.4 7.3 7.1 1.5 1.5 709.6 350.1 359.5 135.6 129.8 5.8 52.4 10.8 41.6 10.0 - 10.0 131.3 - 131.3 (0.1) - (0.1) 4.1 - 4.1 5.2 3.5 1.7 1.5 1.5 340.0 144.1 195.9 190.6 186.1 4.5 37.5 1.1 36.4 20.0 - 20.0 111.3 - 111.3 0.1 - 0.1 0.9 15.0 (14.1) 9.2 3.8 5.4 369.6 206.0 163.6 (151.8) (123.2) (28.6) (235.5) (31.1) (204.4) (90.4) (188.4) 98.0 (1.7) (7.9) 6.2 (0.7) - (0.7) (480.1) (350.6) (129.5) 2.3 14.2 (11.9) 14.0 0.7 13.3 21.7 3.8 17.9 19.8 29.8 (10.0) 3.6 - 3.6 0.2 1.3 (1 1) 0.5 - 0.5 62.1 49.8 12.3 (72.3) (64.3) (8.0) (9.4) (7.6) (1.8) (0.9) (2.1) 1.2 1.8 (0.3) 2.1 (18.7) (24.5) 5.8 1.3 1.4 (0.1) (17.4) (23.1) 5.7 4.2 (4.2) 4.2 (4.2) (0.5) 0.5 3.7 (3.7) (319.4) (312.3) (7.1) (88.1) (9.7) (78.4) (211.3) - (211.3) (11.7) (4.0) (7.7) (0.9) - (0.9) (631.4) (326.0) (305.4) 6.8 3.6 3.2 1.8 2.2 (0.4) 30.0 - 30.0 31.3 - 31.3 5.0 15.0 (10.0) 2.7 3.3 (0.6) 0.6 - 0.6 78.2 24.1 54.1 (126.0) (79.1) (46.9) (10.0) (14.0) 4.0 (3.3) (2.0) (1.3) 0.8 (2.3) 3.1 (60.3) (73.3) 13.0 4.1 3.4 0.7- (56.2) (69.9) 13.7 (4.6) - (4.6) (4.6) - (4.6) - 0.5 (0.5) (4.6) 0.5 (5.1) (137.0) (130.3) (6.7) (48.3) (7.6) (40.7) (115.4) - (115.4) (4.9) (2.0) (2.9) (0.9) - (0.9) (306.5) (139.9) (166.6) (1.4) (0.5) (0.9) 4.1 3.2 0.9 10.0 - 10.0 15.9 - 15.9 (0.1) - (0.1) 4.1 - 4.1 0.3 1.5 (1.2) 0.6 - 0.6 33.5 4.2 29.3 (182.4) (182.0) (0.4) (39.8) (2.1) (37.7) (95.9) ' - (95.9) (6.8) (2.0) (4.8) (324.9) (186.1) (138.8) 8.2 4.1 4.1 (2.3) (1.0) (1.3) 20.0 - 20.0 15.4 - 15.4 0.1 - 0.1 0.9 15.0 (14.1) 2.4 1.8 0.6 44.7 19.9 24.8 (56.7) (39.1) (17.6) (69.3) (40.0) (29.3) (3.8) (9.4) 5.6 (6.2) (4.6) (1.6) (2.9) (0.3) (2.6) (0.4) (1.7) 1.3 1.8 (1.2) 3.0 (1.6) (1.1) (0.5) (28.1) (45.8) 17.7 (32.8) (27.5) (5.3) 2.0 3.2 (1.2) 2.1 0.2 1.9 (26.1) (42.6) 16.5 (30.7) (27.3) (3.4) (2.7) 0.1 (2.8) (1.9) (0.1) (1.8) (2.7) 0.1 (2.8) (1.9) (0.1) (1.8) - 1.4 (1.4) - (0.9) 0.9 (2.7) 1.5 (4.2) (1.9) . (1.0) (0.9) ECO641980100753 EES 3Q99 Det Var.xls, EES 10/11/99, 10:31 PM EXH066-00179 ============= Page 27 of 62 ============= Enron Gas Pipeline Group y Third Quarter Highlights ~O (in Millions) IBIT increased $16 million to $86 million, from $69 million in 3Q99, due mainly to $6 million equity earnings and $5 million interest income from EOTT. GPG 3Q99 Highlights.xls, North America ECO6419BO100754 10/11/99. 9:37 PM EXH066-00180 ============= Page 28 of 62 ============= O Enron Gas Pipeline Group Operating Results (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 No mal dec ease due to warmer Operating income: weather NNG 78 25 103 41 144 (144) - TW 23 20 43 20 63 (63) - Other 2 (3) (1) 2 1 (1) - Total 103 42 145 63 208 (208) - Equity income: Includes: Citrus 6 5 11 6 17 (17) EOTT interest income Slim, Northern Border 2 2 4 g (6) Sale of interest rate EOTT (5) 5 - 6 6 (6) derrivatwe contract $9m Other 1 1 1 (1) Conoco Litigation reserve reversal $9m Total 3 13 11116 14 30 (30) _ Transoenade Payment 59m Other income 20 17 37 9 46 (46) - Total [BIT 126 72 198 86 284 (284) - Capital Costs (15) (16) (31) (12) (43) 43 - Minority Interests - - - - - - _ Earnings before Taxes 141 88 229 98 327 (327) - Taxes 48 31 79 36 115 (115) - Net Income 93 57 150 62 212 (212) - Effective tax rate 34.0% 35.2% 34.5% 36.8% 35.2% 35.2% #DIV/0! Net Capital Deployed 3,149 3,105 3,105 - - - - 6 mo 9 mot Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 82 25 107 35 142 59 201 23 22 45 20 65 22 87 2 5 7 4 11 (4) 7 107 52 159 59 218 77 295 8 7 15 6 21 2 23 2 - 2 - 2 2 4 (3) (3) 1 2 3 2 5 3 8 11 9 20 8 28 4 32 8 11 19 1 20 5 25 126 72 198 68 266 86 352 (14) (19) (33) (18) (51) (17) (68) 140 91 231 86 317 103 420 70 33 103 25 128 41 169 70 58 128 61 189 62 251 50.0% 36.3% 44.6% 29.1% 40.4% 39.8% 40.2% 3,084 'retax earnings before financing divided by net capital deployed 16.0% 9.3% 12.8% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 11.4 4ftertax earnings before financing divided by net capital deployed 10.6% 6.0% 8.4% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 6.89 ECO6419BO100755 GPG 3qtr Op Results.xls, GPG 10/11/99, 9:37 PM EXH066-00181 ============= Page 29 of 62 ============= Enron Corp Gas Pipeline Group (EGPG4) Detailed Variation Analysis 3rd Quarter 9 mo Ended Sept 30 1999 1998 Incr (Decr) Revenues NNG 352.5 359.2 (6.7) A TW 115.9 116.9 (1.0) Other Ops 3.7 6.8 (3.1) 472.1 482.9 (10.8) Cost of Sales NNG 15.0 4.7 10.3 D TW 6.8 5.2 1.6 Other Ops - 0.1 (0.1) 21.8 10.0 11.8 Gross Margin NNG 337.5 354.5 (17.0) TW 109.1 111.7 (2.6) Other P/L Ops 3.6 6.7 (3.1) 450.2 472.9 (22.7) Operating Expenses (incl taxes) NNG 155.7 176.9 (21.2) F TW 32.1 34.1 (2.0) EOTT Other Ops 1.8 (6.1) 7.9 NNG - depreciation 37.5 35.3 2.2 I TW-depreciation 13.8 13.2 0.6 Other Ops - depreciation 0.3 1.9 (1.6) 241.2 255.3 (14.1) Operating Income 209.0 217.6 (8.6) Equity Earnings NNG (Trailblazer, Overthrust) 1.7 4.6 (2.9) J Citrus 17.3 21.3 (4.0) Northern Border 5.8 2.3 3.5 Enron Liquids Pipeline - - EOTT 5.1 - 5.1 Other TOTAL 29.9 28.2 1.7 Gains on Sales Black Marlin Sale 0.4 - 0.4 Trailblazer Monetization - - - Custer County Assets - - - NNG(Tejas/Champlin) 0.7 - 0.7 TW(Burton Flats) 2.0 2.0 3.1 - 3.1 Other Income Interest Income 17.4 1.3 16.1 Interest Income (NNG) 0.2 0.6 (0.4) Interest Lock (NNG) 9.0 1.5 7.5 K Conoco (NNG) 9.0 2.5 6.5 L KMI (NNG) (2.8) 2.4 (5.2) M NP(Reimbursement of Transcanada Paymt) 9.0 Other(NNG - Bear Paw(.6), other (-.1)) 0.5 - 0.5 Other (0.5) 12.5 (13.0) TOTAL 41.8 20.8 12.0 IBIT 283.8 266.6 8.2 Third Quarter 1999 1998 Incr (Decr) 121.4 39.3 1.2 106.3 41.2 2.0 15.1 B (1.9) C (0.8) 161.9 149.5 12.4 12.4 1.3 11.1 E 3.8 4.6 (0.8) 16.2 5.9 10.3 109.0 105.0 4.0 35.5 36.6 (1.1) 1.1 2.0 (0.9) 145.6 143.6 2.0 54.8 57.8 (3.0) G 10.4 12.5 (2.1) H (0.8) (3.0) 2.2 13.3 12.3 1.0 4.6 4.5 0.1 0.1 0.6 (0.5) 82.4 84.7 (2.3) 63.2 58.9 4.3 0.9 1.8 (0.9) 5.7 6.3 (0.6) 1.7 0.4 1.3 5.4 - 5.4 13.7 8.5 5.2 0.1 - 0.1 2.0 - 2.0 2.1 - 2.1 6.1 0.5 5.6 0.2 0.5 (0.3) 0.9 (0.9) 0.2 - 0.2 (0.7) (0.7) 0.0 5.8 1.2 4.6 84.8 68.6 16.2 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 Incr (Decr) 1999 1998 Incr (Deer) 1999 1998 Incr (Decr) 231.1 252.9 (21.8) 1 89.7 102.2 (12.5) 2 141.4 150.7 (9.3) 76.6 75.7 0.9 37.5 40.5 (3.0) 3 39.1 35.2 3.9 2.5 4.8 (2.3) 0.8 2.2 (1.4) 1.7 2.6 (0.9) 310.2 333.4 (23.2) 128.0 144.9 (16.9) 182.2 188.5 (6.3) 2.6 3.4 (0.8) 2.1 3.7 (1.6) 0.5 (0.3) 0.8 3.0 0.6 2.4 4 2.0 3.6 (1.6) 5 1.0 (3.0) 4.0 0.1 (0.1) 0.1 (0.1) 5.6 4.1 1.5 4.1 7.4 (3.3) 1.5 (3.3) 4.8 228.5 249.5 (21.0) 87.6 98.5 (10.9) 140.9 151.0 (10.1) 73.6 75.1 (1.5) 35.5 36.9 (1.4) 38.1 38.2 (0.1) 2.5 4.7 (2.2) 0.8 2.1 (1.3) 1.7 2.6 (0.9) 304.6 329.3 (24.7) 123.9 137.5 (13.6)' 180.7 191.8 (11.1) 100.9 119.1 (18.2) 6 50.1 60.8 (10.7) 7 50.8 58.3 (7.5) 21.7 21.6 0.1 10.8 11.6 (0.8) 10.9 10.0 0.9 0.5 - 0.5 0.5 - 0.5 2.6 (3.1) 5.7 8 2.9 (3.3) 6.2 9 (0.3) 0.2 (0.5) 24.2 23.0 1.2 12.3 11.7 0.6 11.9 11.3 0.6 9.2 8.7 0.5 4.6 4.3 0.3 4.6 4.4 0.2 0.2 1.3 (1.1) - 0.7 (0.7) 0.2 0.6 (0.4) 159.3 170.6 (11.3) 81.2 85.8 (4.6) 78.1 84.8 (6.7) 145.3 158.7 (13.4) 42.7 51.7 (9.0) 102.6 107.0 (4.4) 0.8 2.8 (2.0) 0.8 1.5 (0.7) - 1.3 (1.3) 11.6 15.0 (3.4) 5.3 7.3 (2.0) 6.3 7.7 (1.4) 4.1 1.9 2.2 2.3 0.3 2.0 1.8 1.6 0.2 (0.3) - (0.3) (0.3) - (0.3) 16.2 19.7 (3.5) 8.1 9.1 (1.0) 8.1 10.6 (2.5) 0.3 - 0.3 0.3 - 0.3 - - - 0.7 - 0.7 - - - 0.7 0.7 1.0 1.0 0.3 0.3 0.7 0.7 11.3 0.8 10.5 11.3 0.6 10.7 - 0.2 0.2) 0.1 (0.1) - - - - - - 9.0 1.5 7.5 - - - 9.0 1.5 7.5 9.0 1.6 7.4 - (0.3) 0.3 9.0 1.9 '.1 (2.8) 2.4 (5.2) - - - (2.8) 2.4 (b.2) 9.0 9.0 9.0 - 9.0 - - - 0.3 - 0.3 0.3 - 0.3 - - - 0.2 13.2 (13.0) 10 0.8 10.9 (10.1) 11 (0.6) 2.3 (2.9) 36.0 19.6 16.4 21.4 11.2 10.2 14.6 8.3 63 198.5 198.0 0.5 72.5 72.0 0.5 126.0 125.9 0.1 GPG 3Q99 Det Var.xls, GPG ECO6419BO100756 10111/99,941 PM EXH066-00182 ============= Page 30 of 62 ============= Enron Corp Gas Pipeline Group (EGPG4) Detailed Variation Analysis 3rd Quarter 9 mo Ended Sept 30 1999 1998 Incr (Decr) 162.5 158.8 3.7 65.3 65.2 0.1 17.3 21.2 (3.9) 22.4 16.3 21.4 (5.1) 283.8 266.6 (5.2) 28.8 29.7 (0.9) 11.2 2.7 8.5 (1.3) (3.1) 1.8 38.7 29.3 9.4 (82.1) (66.1) (16.0) (43.4) (36.8) (6.6) (A)-Primarily GSR'98 & reverse auctions'98 Base Gas sale'99 Other (D)-Base Gas sale'99 Other (F)-'98 FAS 106 deferrals, '98 Regulatory Amort. & '98 TC&S(surcharge offset) Other (I)-Storage Depreciation Adjust'98 (J)-Trailblazer Partnership Income (Trailblazer Monetization first 5 mos of'99) (K)'99 Interest Lock (9.0)/ '98 KN Deposit (1.5) (L)299 Conoco (9.0)/'98 Tax Refund (1.6) (M)-'99 KMI (-2.8) / '98 Vehicle Sales (2.4) Third Quarter 1999 1998 Incr(Decr) 42.1 38.6 3.5 22.6 19.6 3.0 5.7 6.3 (0.6) 11.4 - 11.4 3.5 4.1 (0.6) 85.3 68.6 16.7 8.8 9.9 (1.1) 3.8 1.0 2.8 (0.2) (0.7) 0.5 12.4 10.2 2.2 (25.4) (13.6) (11.8) (13.0) (3.4) (9.6) (B)- Base Gas sale'99 (34.9) GSR & Reverse Auctions'98 33.8 Rate Case Reserve'99 (5.6) Other (6.7) 11.2 (C)-Margins (Primarily decrease (0.8) in East Demand Stretch) 10.4 (E)-Base Gas sale'99 3.5 (16.8) (G)-98 Regulatory Amort. (15.1) '98 TC&S(surcharge offset) 7.2 '98 FAS 106 Deferrals (21.2) '99 O&M '99 Other 2.2 (2.9) (H)-Fuel used in operations 7.5 6.5 (5.2) (11) Plains reimbursement from Corp(1998) (5.0) Liquids(1998) (2.5) Other (2.8) (10.3) ECO641980100757 NNG TW Citrus EOTT Other Ops TOTAL IBIT (Interest Expense Int on 3rd party debt Other trade interest Capitalized interest Int exp - trade Interco interest (inc)lexp 6 Mo Ended June 30 1999 1998 Incr(Decr) 120.4 120.2 0.2 42.7 45.6 (2.9) 11.6 14.9 (3.3) 11.0 12.8 17.3 (4.5) 198.5 198.0 0.5 20.0 19.8 0.2 7.4 1.7 5.7 (1.1) (2.4) 1.3 26.3 19.1 7.2 (56.7) (52.5) (4.2) (30.4) (33.4) 3.0 Second Quarter 1999 1998 Incr (Decr) 26.3 30.8 (4.5) 20.1 21.5 (1.4) 5.3 7.2 (1.9) 11.0 - 11.0 9.8 12.6 (2.8) 72.5 72.1 0.4 10.2 9.9 0.3 3.8 0.9 2.9 (0.4) (2.4) 2.0 13.6 8.4 5.2 (28.6) (28.1) (0.5) (15.0) (19.7) 4.7 33.8 (1) Primarily GSR'98 & (12.4) reverse auctions'98 (4.2) (2.1) (3) Primarily Ignacio margins 15.1 (2.0) (5) 2 Mos. Gas Purchses vs 3 mos. '98 11.2 (4.9) (5.6) (7) '98 FAS 106 deferrals 0.9 Regulatory Amort. 4.0 TC&S(surcharge offset) 2.6 Other (3.0) (2.1) (9) 1998 Corp Credit McKinsey costs Other (2) Primarily GSR'98 & (21.8) reverse auctions'98 (3.0) (4) '98 linepack revaluation (6) '98 FAS 106 deferrals (1.6) Regulatory Amort. TC&S(surcharge offset) Other 2.8 (8) 1998 Corp Credit (6.4) 1999 McKinsey costs (6.6) Other (0.5) (10.7) 4.0 (10) Plains reimbursement 1.0 from Corp(1998) 1.2 Liquids(1998) 6.2 WGR(Liquids) Other First Quarter 1999 1998 Incr(Decr) 94.1 89.4 4.7 22.6 24.1 (1.5) 6.3 7.7 (1.4) 3.0 4.7 (1.7) 126.0 125.9 0.1 9.8 9.9 (0.1) 3.6 0.8 2.8 (0.7) - (0.7) 12.7 10.7 2.0 (28.1) (24.4) (3.7) (15.4) (13.7) (1.7) (12.5) 2.4 9.7 (13.4) (13.2) (1.3) (18.2) 4.0 1.0 0.7 5.7 (5.0) (4.8) (0.9) (2.5) (13.2) GPG 3Q99 Det Var.xls, GPG 1 nn 1 /o0 0'n i oee EXH066-00183 ============= Page 31 of 62 ============= y9 0 Portland General Third Quarter Highlights (in Millions) Third Quarter [BIT decreased $9 million in 3Q99, due mainly to a reduction in gross margin and because 3Q98 included $1.5 million for ECI. Gross margin declined due to power cost price increases. Market conditions turned unfavorable because PGE and its power suppliers are now competing for gas now available to a wider customer base through new pipelines. Revenues increased [$113] million due to higher wholesale sales, the return of customers from the Choice pilot and normal load growth. Power costs increased [$118] million to serve the higher retail and wholesale load, coupled with significantly higher prices, noted above. Other Revenue Gross Margin O&M expense decreased $4 million in 3Q99 due to a YTD true up of depreciation expense. Depreciation expense was estimated through June and trued up to actual in July. Equity earnings and other income decreased by $5 million in 3Q99 due to ECI no longer being part of PGG reporting group. Interest expense decreased by $2 million. $1 million interest was incurred by ECI in 98 and PGE interest is lower by $1 million due to LT debt retired and replaced by ST debt at lower interest rate in 99. 1999 1998 Variance 408 296 111 (242) (124) (118) 3 (3) 166 176 (10) (117) (123) 6 3 8 (5) IBIT 52 61 (9) ECO6419BO100758 PGE 3Q99 Highlights.xls, PGE EXH066-00184 10/11/99, 9:38 PM ============= Page 32 of 62 ============= 4 > 119 Gross margin Expenses Equity earnings Other income Total [BIT Capital Costs Minority Interests Earnings before Taxes Taxes Net Income Effective tax rate Net Capital Deployed Portland General Operating Results (in millions) 1st Qtr 2nd Qtr 6 mo 1999 3rd Qtr 9 mo 1999 Total 4th Qtr 1999 199 (117) 6 4 177 (126) 3 2 376 (243) 9 6 166 (118) 2 2 542 (361) 11 8 (542) - 361 - (11) - (8) - 92 56 148 52 200 (200) - 19 16 35 16 51 (51) - 73 40 113 36 149 (149) - 32 19 51 18 69 (69) - 41 21 62 18 80 (80) - 43.8% 3,494 47.5% 3,525 45.1% 3,525 50.0% - 46.3% - 46.3% #DIV/0! - - 6 mo 9 mo Total list Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 196 175 371 176 547 198 745 (120) (123) (243) (123) (366) (112) (478) 1 8 9 4 13 (12) 1 1 3 4 4 8 10 18 78 63 141 61 202 84 286 18 18 36 19 55 17 72 60 45 105 42 .147 67 214 29 23 52 22 74 23 97 31 22 53 20 73 44 117 48.3% 51.1% 49.5% 52.4% 50.3% 34.3% 45.3% 3,496 'retax earnings before financing divided by net capital deployed 10.5% 6.4% 8.4% #DIV/0! #DIV/O! #DIV/O! #DIV/O! 8.2° 4ftertax earnings before financing divided by net capital deployed 5.9% 3.3% 4.6% #DIV/0! #DIV/O! #DIV/0! #DIV/O! 4.5` EC06419B0100759 PGE 3Q99 Op Results.xls, PGE 10/11/99, 9:38 PM r:ywnFF-nn1 R5 ============= Page 33 of 62 ============= Enron Corp Portland General Group (PGG) Variation Analysis 3rd Quarter 9 mo Ended Sept 30 1999 Third Quarter 6 Mo Ended June 30 Second Quarter First Quarter 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Decr) 1999 1998 Incr (Deer) IBIT Gross revenues 1,002.1 869.2 132.9 407.4 280.2 127.2 594.7 589.0 5.7 295.8 269.2 26.6 298.9 319.8 (20.9) Costofsales (460.3) (322.4) (137.9) (241.1) (104.3) (136.8) (219.2) (218.1) (1.1) (119.4) (94.4) (25.0) (99.8) (123.7) 23.9 Gross margin 542.1 546.8 (5.0) 166.3 175.9 (9.6) A 375.5 370.9 4.6 176.4 174.8 1.6 199.1 196 1 3 0 . . Operating expenses (176.9) (185.6) 8.7 (59.0) (60.8) 1.8 B (117.9) (124.8) 6.9 (64.6) (64.6) 0.0 (53.3) (60.2) 6.9 DD&A (incl fair value) (137.0) (136.3) (0.7) (43.4) (46.9) 3.5 C (93.6) (89.4) (4.2) (47.1) (45.3) (1.8) (46.5) (44.1) (2.4) Taxes, other (46.7) (43.6) (3.1) (15.2) (14.1) (1.1) D (31.5) (29.5 (2.0) (14.5) (13.7) (0.8) (17.0) (15.8) (1.2) Other income, net 18.6 20.5 (2.0) 3.3 7.2 (3.9) E 15.3 13.3 2.0 6.0 10.6 (4.6) 9.2 2.7 6.5 IBIT 200.0 201.8 (2.0) 52.0 61.3 (9.3) 147.8 140.5 7.3 56.3 61.8 (5.5) 91.6 78 7 12 9 . . Interest Expense In( on 3rd party debt 49.7 52.7 (3.0) 16.1 17.6 (1.5) F 33.6 35.1 (1.5) 15.5 17.4 (1.9) 18.1 17.7 0.4 Other trade interest 0.8 2.3 (1.5) 0.4 3.0 (2.6) G 0.4 (0.7) 1.1 0.2 (1.2) 1.4 0.2 0.5 (0.3) Capitalized interest (1.2) (1.0) (0.2) (0.4) (0.5) 0.1 (0.7) (0.5) (0.2 (0.4) (0.2) (0.2) (0.4) (0.3) (0.1) Int exp - trade 49.4 54.0 (4.6) 16.1 20.1 (4.0) 33.3 33.9 (0.6) 15.4 16.0 (0.6) 17.9 17.9 0.0 Interco interest (inc)/exp (0.1) (1.1) 1.0 (0.0) (1.4) 1.4 H (0.0) 0.3 (0.3) (0.0) - (0.0) (0.0) 0.3 (0.3) 49.3 52.9 (3.6) 16.1 18.7 (2.6) 33.2 34.2 (1.0) 15.3 16.0 (0.7) 17.9 18.2 (0.3) A Gross margin declined mainly due to power cost increases. Power prices to serve our wholesale & retail load were higher than the prior year due to increases in the short-term firm power market. Higher gas and slightly higher coal prices increased the cost of our thermal generation plants. Gross revenues increased $96 million due to a higher level of wholesale trading activity. In addition, retail revenues increased $37 million due to the return of customers from the choice pilot, plus a tariff adjustment was finalized for $2.3 million (SAVE filling). Cost of sales are higher due to the increases noted under gross revenues and higher market prices. Also, the lease portfolio was transferred to Seneca partnership in Sept 1998. Partnership income is recorded in Other Income B Decrease relates to the merger credit amortization that began September 1998. C Depreciation reflects a true-up of $4 million. Previous months were recorded at a budgeted rate. This was partially offset by current year additions. D Taxes Other than Income Taxes are higher due to increases in payroll taxes, property taxes and franchise fees. E 1998 included $4.2 million contributed by ECI. Other income & deductions also includes amortization of Y2K offsetting lease income noted under item A. F The long-term debt balance is significantly lower than the prior year, as long-term debt was retired and only partially replaced by short-term debt issued at a more favorable rate than in 1998. G 1998 other trade interest is due to $250 million short-term notes receivable to Toronto Dominion offset by interest income on a $250 million loan to Enron Corp. in connection with Project Tomas. H See explanation at G ECO6419BO100760 g:\report\enron\eamings\PGE 3Q99 Det Var.xls 10/11/999:41 Pit EXH066-00186 ============= Page 34 of 62 ============= Enron Corp Corporate and Other Recap (In Millions) Third Quarter 1999 1998 Recurring IBIT Corporate (25) (47) ECM 7 38 Resco (4) - EEDC - - EOTT - 2 (22) (7) EREC 2 2 Clean Fuels (3) 1 (23) (4) corprecap.xls EC06419BO100761 10/11/99, 9:47 PM EXH066-00187 ============= Page 35 of 62 ============= y9 0 Corporate and Other Third Quarter Highlights (in Millions) Third Quarter 1999 1998 Variance Corporate IBIT decreased $15 million in 3Q99, due mainly to decreased MTM income from ECM, partially offset by decreased expenses at Corporate Revenues increased $6 million due to a loss of $4 million in 1998 from closed EOG hedges 2 (4) 6 O&M expense decreased $24 million in 3Q99 due to cummulative FICA adjustment related to stock options of $5 million and a $7 million adjustment to 2Q99 benefit accrual, decreased advertising expenses of $4 million and timing and allocation of SAP related expenses (1998 included $6 million) (28) (45) 17 Other income was $12 million higher in 1999 because of income related to 1999 debt buybacks at a significant discount, ' 1998 loss adjustment of $2 million related to Smith St. Land Co and 1998 EOG hedge amortization of $1 million 1 2 (1) Corporate IBIT (25) (47) 22 Mark-to-Market Revenues EOG ACEs - 29 (29) EOG Other - (6) 6 ENE - Other - 13 (13) Project Steele 6 5 1 Other 2 (2) 4 Operating Expense (1) (1) - ECM IBIT 7 38 (31) Resco IBIT EOTT [BIT (4) - (4) 2 (2) Total Corporate and Other IBIT (22) (7) (15) ECO641980100762 Corp 3Q99 Highlights.xls, Corp EXH066-00188 10/11/99, 9:47 PM ============= Page 36 of 62 ============= 49 *41 Enron Renewable Energy Third Quarter Highlights (in Millions) Third Quarter 1999 1998 Variance Operating Income increased $7 million to $4 million in 3Q99, from $(3) million in 3Q98, due mainly to German subsidiary (Tacke) turbine sales. 4 (3) Revenues increased $29 million from 3Q98 due mainly to Tacke turbine sales. Cost of sales increased ($9) million from 3Q98 due mainly to Tacke turbine sales. O&M increased ($4) million due to New Business development, ($2) million due to Tacke ramp up costs, ($2) million due to an award for legal costs in 3Q98 with nothing similar in 3Q99 and ($4) million due to new project warranty costs. Other income decreased $6 million from 3Q98 due to QF Asset income booked in 3Q98. (2) 4 (6) IBIT 2 1 1 ECO6419B0100763 EREC 3Q99 Highlights.xls, North America 10/11/99, 9:36 PM EXH066-00189 ============= Page 37 of 62 ============= Enron Renewable Energy Operating Results *-*,0 (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 Operating income 3 30 33 4 37 (37) - Other income: Gain on Solar P/S sale 10 - 10 - 10 (10) - Interest income 1 1 2 - 2 (2) - Other (1) - (1) (2) (3) 3 - 10 1 11 (2) 9 (9) - Total IBIT 13 31 44 2 46 (46) - Capital Costs 1 2 3 2 5 (5) - Minority Interests - - - - - - - Earnings before Taxes 12 29 41 - 41 (41) - Taxes 5 13 18 - 18 (18) - Net Income 7 16 23 - 23 (23) - Effective tax rate 41.7% 44.8% 43.9% #DIV/0! 43.9% 43.9% #DIV/0! Net Capital Deployed 572 484 484 - - - - Pretax earnings before financing divided by net capital deployed 9.1% 25.6% 18.2% #DIV/0! #DIV/0! #DIV/0! #DIV/0! Aftertax earnings before financing divided by net capital deployed 5.3% 14.1% 10.2% #DIV/0! #DIV/0! #DIV/0! #DIV/0! EREC 3Q99 Op Results.xls, EREC FXHFF-19 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 (7) (8) (15) (3) (18) 20 2 2 2 4 4 8 (4) 4 2 2 4 4 8 (4) 4 (5) (6) (11) 1 ,(10) 16 6 2 3 5 2 7 2 9 (7) (9) (16) (1) (17) 14 (3) (2) (2) ' (4) - (4) 3 (1) (5) (7) (12) (1) (13) 11 (2) 28.6% 22.2% 25.0% 0.0% 23.5% 21.4% 33.3% 343 1.7% 1 ECO6419BO100764 10/11/99, 9:37 PM ============= Page 38 of 62 ============= Enron Renewable Energy Corp. Detailed Variation Analysis 2nd Quarter 9 Mo Ended Sept 30 _ 1999 1998 Incr(Decr) EREC EREC+ERECMIN Revenues 393.8 58.4 335.4 Cost of Sales (308.1) (48.9) (259.2) Op Costs & Expenses (48.6) (27.7) (20.9) Equity in Unconsol Subs (2.7) 7.4 (10.1) Other income (exct Min Int) 11.5 1.0 10.5 IBIT-EREC 45.9 (9.8) 55.7 EREC - Minority Interest _ (2.2) 2.7 (4.9) 43.7 (7.1) 50.8 Third Quarter 6 Mo Ended June 30 Second Quarter 1999 1998 ncr(Decr) 1999 1998 ncr(Decr) 1999 1998 nor (Decr) 61.4 32.6 28.8 (38.2) (29.2) (9.0) (18.6) (6.7) (11.9) (1.3) 4.8 (6.1) (0.7) 0.3 (1.0) 2.6 1.8 0.8 (0.1) (0.2) 0.1 2.5 1.6 0.9 332.4 25.8 306.6 (269.9) (19.7) (250.2) (30.0) (21.0) (9.0) (1.4) 2.6 (4.0) 12.2 0.7 11.5 43.3 (11.6) 54.9 (2.1) 2.6 (4.7) 41.2 (9.0) 50.2 216.0 12.3 203.7 (169.1) (9.8) (159.3) (17.0) (10.3) (6.7) (0.7) 1.0 (1.7) 0.7 0.3 0.4 29.9 (6.5) 36.4 (3.4) 1.6 (5.0) 26.5 (4.9) 31.4 Revenues increase due to 1999 project sales - Storm Lake I and 11 ($172.3mm & 5103.0mm) and Delaware Mountain (530.4mm), and increased turbine sales in Germany ($27.6mm) COS increase due to 1999 projects - Storm Lake I and 11 (5123.2mm & $89.1 mm) and Delaware Mountain (529.2mm), and increased turbine sales in Germany (514.0mm) O&M increase due to wind G&A for increased development & manufacturing activity ($15.6mm). solar employee settlements (51.3mm), cost offset for an award for Wind Corp related legal costs in 1998 ($1.7mm) with nothing similar in 1999, and EREC sales expenses ($1.2mm) in 1999. Equity in Unconsol Subs decreased due to OF income of 57.4mm in 1998. none in 1999; wind partnership losses from new investments (54.0mm) and solar partnership losses of ($1.8mm) in 1998. none in 1999. Other increase due to AES Partnership sale for $10.8mm. Erec Holding Revenues - - Cost of Sales - - Op Costs & Expenses (2.1) (0.6) (1.5) Equity in Unconsol Subs - Other income (ind Min Int) 0.3 0.5 (0.2) IBIT- EREC Holding (1.8) (0.1) (1.7) Enron Solar Energy, Inc. Revenues - - Cost of Sales - - Op Costs & Expenses (1.4) - (1.4) Equity in Unconsol Subs - (1.8) 1.8 Other income (incl Min Int) 10.7 10.7 IBIT - ESEI 9.3 (1.8) 11.1 Enron Wind Corp. Revenues 393.8 58.4 335.4 Cost of Sales (308.1) (48.9) (259.2) Op Costs & Expenses (45.1) (27.0) (18.1) Equity in Unconsol Subs (2.7) 9.1 (11.8) Other income (ind Min Int) 0.5 0.5 IBIT - EWC 38.4 (7.9) 46.3 (0.5) (0.2) (0.3) 0.1 0.2 (0.1) (0.4) (0.4) - (1.1) 1.1 61.4 32.6 28.8 (38.2) (29.2) (9.0) (18.1) (6.4) (11.7) (1.3) 5.8 (7.1) (0.8) 0.1 (0.9) 3.0 2.9 0.1 (1.6) (0.4) (1.2) 0.2 0.3 (0.1) (1.4) (0.1) (1.3) (1.4) - (1.4) - (0.7) 0.7 10.7 10.7 9.3 (0.7) 10.0 332.4 25.8 306.6 (269.9) (19.7) (250.2) (27.0) (20.6) (6.4) (1.4) 3.3 (4.7) 1.3 0.4 0.9 35.4 (10.8) 46.2 (1.6) 0.1 (1.7) 0.2 (0.2) (1.6) 0.3 (1.9) (1.4) - (1.4) - (0.1) 0.1 0.2 0.2 (1.2) (0.1) (1.1) 216.0 12.3 203.7 (169.1) (9.8) (159.3) (14.0) (10.4) (3.6) (0.7) 1.1 (1.8) 0.5 0.1 0.4 32.7 (6.7) 39.4 First Quarter 1999 1998 ncr(Deal 116.4 13.5 102.9 (100.8) (9.9) (90.9) (13.0) (10.7) (2.3) (0.7) 1.6 (2.3) 11.5 0.4 11.1 13.4 (5.1) 18.5 1.3 1.0 0.3 14.7 (4.1) 18.8 (0.5) 0.5 0.2 0.1 0.1 0.2 (0.4) 0.6 - (0.6) 0.6 10.5 10.5 10.5 (0.6) 11.1 116.4 13.5 102.9 (100.8) (9.9) (90.9) (13.0) (10.2) (2.8) (0.7) 2.2 (2.9) 0.8 0.3 0.5 2.7 (4.1) 6.8 Storm Lake I Storm Lake II Delaware Mountain Power Tacks Total Turbine Sales Other Total Revenues Cost of Sales: Storm Lake I Storm Lake 11 Delaware Mountain Power Tacke Total Turbine Cost of Sales Other Total Cost of Sales 172.3 - 172.3 103.0 - 103.0 30.4 - 30.4 72.5 44.9 27.6 378.2 44.9 333.3 15.6 13.5 2.1 393.8 58.4 335.4 (123.2) (123.2) (89.1) (89.1) (29.2) (29.2) (53.6) (39.6) (14.0) (295.1) (39.6) (255.5) (13.0) (9.3) (3.7) (308.1) (48.9) (259.2) 13.6 - 13.6 39.1 28.0. 11.1 52.7 28.0 24.7 8.7 4.6 4.1 61.4 32.6 28.8 (6.6) - (6.6) (0.4) - (0.4) (26.2) (25.0) (1.2) (33.2) (25.0) (8.2) (5.0) (4.2) (0.8) (38.2) (29.2) (9.0) 158.7 - 158.7 103.0 - 103.0 30.4 - 30.4 33.4 16.9 16.5 325.5 16.9 308.6 6.9 8.9 (2.0) 332.4 25.8 306.6 (116.6) (116.6) (89.1) (89.1) (28.8) (28.8) (27.4) (14.6) (12.8) (261.9) (14.6) (247.3) (8.0) (5.1) (2.9) (269.9) (19.7) (2502) 158.7 - 158.7 2.8 - 2.8 30.4 - 30.4 21.0 7.7 13.3 212.9 7.7 205.2 3.1 4.6 (1.5) 216.0 12.3 203.7 (116.6) - (116.6) (2.1) - (2.1) (28.8) - (28.8) (16.3) (6.8) (9.5) (163.8) (6.8) (157.0) _ (5.3). (3.0) (2.3) (169.1) (9.8) (159.3) 100.2 - 100.2 12.4 9.2 3.2 112.6 9.2 103.4 3.8 4.3 (0.5)' (87.0) ECO6419BO100765 EREC 3099 Det Var.xts, CORP 10/11199, 9:40 PM EXH066-00191 ============= Page 39 of 62 ============= d ENRON CLEAN FUELS Third Quarter Highlights (in Millions) Third Quarter 1999 1998 Variance IBIT decreased $445 million from 3Q98 to $(445 million) in 3Q99 due mainly to a $441 million write-down of the MTBE facility's assets. Excluding the write-down, IBIT was down $4 million, due primarily to higher reserve reversal activity in 1998. Methanol revenues were up $6 million as 1998 production was curtailed due to poor economics in the third quarter, and due to higher prices in 1999. MTBE revenues were up $3 million due to higher prices and volumes in 1999. Costs of Sales, net of Other Revenues were higher in 3Q99 due to lower reserve reversals, higher volumes and higher feedstock prices. Operating Costs and expenses had no significant variance Nonrecurring Write-down of MTBE assets in 1999 Total Recurring 12 5 7 37 35 2 (25) (27) (12) ' (13) (27) - (3) 1 (4) (441) - (441) (444) 1 (445) EC06419B0100766 Clean Fuels 3Q99 Highlights.xls, Clean Fuels 10/11/99, 10:26 PM EXH066-00192 ============= Page 40 of 62 ============= tiP, Operating income Other income: Interest income Other Total [BIT Capital Costs Minority Interests Earnings before Taxes Taxes Net Income Effective tax rate Net Capital Deployed Clean Fuels Operating Results (in millions) 6 mo 9 mo Total 1st Qtr 2nd Qtr 1999 3rd Qtr 1999 4th Qtr 1999 (11) (6) (17) (444) (461) 461 - 6 mo 9 mo Total 1st Qtr 2nd Qtr 1998 3rd Qtr 1998 4th Qtr 1998 6 - 6 - 6 (61) (55) - 1 1 (1) - - - - 1 1 (1) - - - (11) (5) (16) (445) (461) 461 - 1 1 - 1 (1) - (11) (6) (17) (445) (462) 462 - (4) (2) (6) (156) (162) 162 - (7) (4) (11) (289) (300) 300 36.4% 33.3% 35.3% 35.1% 35.1% 35.1% #DIV/0! 119 118 118 - - - - (6) - (6) 1 (5) (1) (6) (6) - (6) 1 (5) (1) (6) - - - 1 1 (62) (61) 1 1 2 1 3 - 3 (1) (1) (2) - (2) (62) (64) (1) (1) - (1) (22) (23) (1) - (1) - (1) (40) (41) 0.0% 100.0% 50.0% #DIV/0! 50.0% 35.5% 35.9% 115 Pretax earnings before financing divided by net capital deployed -37.0% -16.9% -27.1% #DIV/0! #DIV/0! #DIV/0! #DIV/0! -53.0% Aftertax earnings before financing divided by net capital deployed -23.5% -11.3% -17.5% #DIV/0! #DIV/0! #DIV/0! #DIV/0! -34.0% Clean Fuels 3Q99 Op Results.xls, Clean Fuels EXH066-00193 ECO641980100767 10/11/99, 9:57 PM ============= Page 41 of 62 ============= Enron Corp Corporate and Other Detailed Variation Analysis 3rd Quarter Clean Fuels EVCORP-EOTT-23Q Revenues Cost of Sales FAS 121 Impairment Op Costs & Expenses Equity in Unconsol Subs Other income (incl Min Int) IBIT - CF 9 Mo Ended Sept 30 1999 1998 Incr (Decr) 129.1 132.5 (3.4) (64.2) (41.0) (23.2) (441.0) (441.0) (85.3) (85.2) (0.1) Third Quarter 1999 1998 Incr (Decr) 45.5 38.3 7.2 A. (21.4) (10.9) (10.5) B. (441.0) - (441.0) C. (27.8) (27.5) (0.3) 6 Mo Ended June 30 1999 1998 Incr (Decr) 83.6 94.2 (10.6) (42.8) (30.1) (12.7) (57.5) (57.7) 0.2 0.3 (5.9) 6.2 (0.1) 0.6 (0.7) 0.4 (6.5) 6.9 (461.1) 0.4 (461.5) (444.8) 0.5 (445.3) (16.3) (0.1) (16.2) A. Higher MTBE and Methanol prices in 1999. Methanol volumes were curtailed in 1998 due to economics. B. Lower reserve reversals (5.1) in 1999. Also, higher feedstock prices and methanol volumes in 1999. C. Due to the write-down of MTBE assets in 1999. ECO6419B0100768 Clean Fuels 3Q99 Det Var.xls, CORP 10/11/99, 10:41 PM EXH066-00194 ============= Page 42 of 62 ============= Enron Corp. Basic and Diluted Earnings Per Share 3 - months ended September 30, 1999 1998 Numerator: Basic Income before cumulative effect of accounting changes $ 290.0 $ 168 Preferred stock dividends: Second preferred stock (4.5) (4) Series A Junior Voting Convertible Pref. Stock (14.8) - Series B Junior Voting Convertible Pref. Stock (1.1) - Income available to common shareholders before cumulative effect of accounting changes 269.6 164 Cumulative effect of accounting changes - - Income available to common shareholders $ 269.6 $ 164 Diluted Income available to common shareholders S 269.6 $ 164 Effect of assumed conversion of dilutive securities: Second preferred stock 4.5 4 Junior Voting Convertible Pref. Stock - - Income before cumulative effect of accounting changes 274.1 168 Cumulative effect of accounting changes - - Income available to common shareholders after assumed conversions $ 274.1 $ 168 Denominator: Denominator for basic earnings per share - weighted-average shares Effect of assumed conversion of dilutive securities: Preferred stock Stock options Dilutive potential common shares Denominator for diluted earnings per share - adjusted weighted-average shares and assumed conversions Basic earnings per share: Before cumulative effect of accounting changes Cumulative effect of accounting changes Basic earnings per share Diluted earnings per share: Before cumulative effect of accounting changes Cumulative effect of accounting changes Diluted earnings per share Recurring (incl. Pref div) Non-recurring: EOG gain Clean Fuels impairment Cumulative effect of accounting changes Numerator for diluted EPS Recurring Non-recurring EOG gain Clean Fuels impairment Cumulative effect of accounting changes 714.1 658.0 9 - months ended September 30, 1999 1998 $ 765.0 $ 527.0 (13.5) (13.0) (28.8) - (1.1) - 721.6 514.0 (131.0) - $ 590.6 $ 514.0 $ 721.6 $ 514.0 13.5 13.0 735.1 527.0 (131.0) - S 604.1 $ 527.0 701.9 636 35.7 36.0 35.8 36.0 31.2 18.0 27.9 16.0 66.9 54.0 63.7 52.0 781.1 712.0 765.7 688.0 $ 0.38 $ 0.25 $ 1.03 $ 0.81 - - (0.19) - $ 0.38 $ 0.25 $ 0.84 $ 0.81 $ 0.35 $ 0.24 $ 0.96 $ 0.77 (0.17) - $ 0.35 $ 0.24 $ 0.79 $ 0.77 $ 208.1 $ 168.0 $ 669.1 $ 527.0 344.0 - 344 - (278.0) - (278) - (131) - $ 274.1 $ 168.0 $ .604.1 $ 527.0 $ 0.27 $ 0.24 $ 0.87 S 0.77 0.44 - (0.36) - $ 0.35 $ 0.24 0.45 - (0.36) - (0.17) - $ 0.79 $ 0.77 ECO641980100769 Epsfn, Sheet 1 10/11/99, 11:14 PM EXH066-00195 ============= Page 43 of 62 ============= ENRON CORP AND SUBSIDIARIES 1999 EFFECTIVE TAX RATE - 3RD QUARTER EARNINGS RELEASE STATUTORY TO EFFECTIVE TAX RATE RECON STATUTORY FEDERAL INCOME TAX PROVISION NET STATE INCOME TAXES TIGHT SANDS GAS TAX CREDIT EQUITY EARNINGS MINORITY INTEREST ASSETS AND STOCK SALE DIFFERENCES CASH VALUE IN LIFE INSURANCE GOODWILL AMORTIZATION OTHER TOTAL TAX RATE/EXPENSE ITEMS OUTSIDE EFFECTIVE TAX RATE: MIPS AUDIT SETTLEMENT/STATE AUDIT SAVINGS TAX/RATE EXCLUDING ITEMS OUTSIDE THE RATE PRETAX INCOME NET INCOME AFTER TAX Recurring Non Recurring 35.0% 399,000 35.0% 5,000 1.5% 17,000 -53.8% (7,000) -0.5% (6,000) 0.0% - -4.2% (48,000) 1) 0.0% - 0.0% - 2) 0.0% - -7.2% (82,000) 3) -400.0% (52,000) 3) -0.8% (9,000) 0.0% - 1.6% 18,000 0.0% - -9.6% (108,000) 4) 0.0% - 4) 15.8% 181,000 -418.8% (54,000) 2.3% 26,000 6) 0.0% 0 18.2% 207,000 -418.8% (54,000) 1,141,000 13,000 960,000 67,000 2.3% 26,000 13.2% 153,000 1,154,000 1,027,000 Explanations of Changes: 1) Equity Earnings - Decrease from 2nd Qtr Earnings Release due primarily to a decrease in equity earnings from Azurix. 2) Minority Interest - Change in 3rd Qtr Earnings Release due to EOG transaction. 3) Assets and Stock Sale Differences - Change due to revised estimates of tax benefits related to various tax planning projects 5) 3) 4) Amount Amount Amount Project Teresa (30,000) 0 (30,000) Project Cochise (29,000) 0 (29,000) Project Apache (11,000) 0 (11,000) Project Condor (9,000) 0 (9,000) Other (3,000) 0 (3,000) Exchange/Sale of EOG Shares 0 (52,000) (52,000) Total (82,000) (52,000) (134,000) 4) Other - Change due to increase in Electro NOL. 0, Amount (L~ `~0 Amount Amount Electro NOL (73,000) W X V ' 0 (73,000) Foreign Tax Rate Differential 25,000 & 0 25,000 Reversal of taxes due to MIPS audit settlement (20,000) 0 (20,000) Tax. Benefits from Estimated Planning Projects (30,000) 0 (30,000) Other (10,000) 0 (10,000) Total (108,000) 0 (108,000) 5) State Income Taxes - Decrease due to benefits recorded from EOG/MTBE transactions. 6) Items Outside Effective Tax Rate - Increase due to rollout of state audit savings. Total Year 35.0% 404;000 0.9% 10,000 -0.5% (6,000) -4.2% (48,000) 0.0% - -11.6% (134,000) -0.8% (9,000) 1.6% 18,000 -9.5% (108.000) 10.9% 127,000 EC06419BO100770 EXH066-00196 ============= Page 44 of 62 ============= Enron Corp. Other Income 9/30/99 Earnings Release YTD 1999 3rd Quarter 1999 Equity Gains on Interest Other Equity Gains on Interest Other in Affiliates Sales Income Income Total in Affiliates Sales Income Income Total 1676 1566 & Int Inc 1690.1775,1675,1677 1676 1566 & Int Inc 1690,1775,1675,1677 EOG - - 0.5 7.6 8.1 - - 0.1 2.8 2.9 GPG: Northern 1.6 0.7 0.1 14.7 17.1 0.9 - 0.1 0.3 1.3 Transwestern - 1.9 - 0.1 2.0 - 1.9 - 0.1 2.0 Citrus 17.4 - - - 17.4 5.7 - - - 5.7 Other Pipeline Operations 5.8 0.3 - 9.0 15.1 1.8 - - - 1.8 ' EOTT 5.1 - 17.5 0.7 23.3 5.3 - 6.2 0.3 11.8 Liquids - - - (0.5) (0.5) - - - 0.3 0.3 Other - 0.1 - 1.0 1.1 - 0.1 - (0.7) (0.6) 29.9 3.0 17.6 25.0 75.5 13.7 2.0 6.3 0.3 22.3 PGE 11.0 0.4 0.7 6.4 18.5 1.6 - 0.3 1.3 3.2 Wholesale: North America 122.8 (0.6) 41.3 10.5 174.0 6.6 (15.1) 22.2 3.8 17.5 Europe 3.8 - 3.1 (6.2) 0.7 1.9 - 0.9 (4.2) (1.4) International 95.7 (1.6) 27.1 36.5 157.7 38.7 (1.5) 15.3 10.2 62.7 ECM (23.3) - 2.7 3.2 (17.4) (25.6) - 0.6 - (25.0) Enron Communications (6.6) - 0.5 0.2 (5.9) 4.6 - - 0.1 4.7 Eliminations - - - 0.2 0.2 - - - 0.2 0.2 192.4 (2.2) 74.7 44.4 309.3 26.2 (16.6) 39.0 10.1 58.7 EES - - 2.5 (0.4) 2.1 1.3 0.5 1.8 Corporate 38.8 315.7 17.1 170.6 542.2 (2.2) 304.9 A 4.7 167.4 A 474.8 Total Consolidated 272.1 316.9 113.1 253.6 955.7 39.3 290.3 51.7 182.4 563.7 Check per I/S 272.1 316.9 113.0 253.3 955.3 39.3 290.4 51.7 182.4 563.8 diff - - 0.1 0.3 0.4 - (0.1) - - (0.1) A Other Income - Corp 167.4 Gain on Sales - Corp 304.9 472.3 Gain on Sale of EOG Stock 454.0 Other 18.3 472.3 ECO641980100771 EXH066-00197 ============= Page 45 of 62 ============= Enron Corp. Interest Expense (Millions of Dollars) Interest on third party debt Go 99 only Interest on long-term debt Interest on short-term debt Other interest Interest rate swaps EOG GPG - NNG debt GPG - TW debt GPG - other GPG PGG ECT - North America (incl Whole elims) ECT - Europe El ECM (Wholesale) EGEPG (Wholesale) ECI EES Corp & Elims (excluding Co 99) EREC Clean Fuels ECM (Corp) Total 3rd Party Capitalized Interest EOG GPG PGG ECT - North America (incl Whole elims) El ECI EES EREC Clean Fuels ECM Total Capitalized Interest Amort of debt discount Discount on assigned receivables Intercompany Interest EOG GPG PGG ECT - North America (incl Whole elims) ECT - Europe El ECM (Wholesale) EGEPG (Wholesale) EES Corp & Elims EREC ECI Clean Fuels ECM (Corp) Total Intercompany Interest Total Interest Expense Intexp3g99.xls, actual EXH066-00198 1998 Actuals 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 63.3 62.3 69.8 70.5 265.9 12.5 14.4 26.0 40.7 93.6 0.8 0.9 0.7 3.1 5.5 (1.0) (1.0) (1.2) (1.4) (4.6) 75.6 76.6 95.3 112.9 360.4 12.3 13.6 16.8 18.0 60.7 6.7 6.8 9.4 10.8 33.7 3.0 3.1 3.0 3.0 12.1 0.8 0.9 (1.7) - 0.0 10.5 10.8 10.7 13.8 45.8 17.1 15.2 19.7 18.8 70.8 2.3 1.0 6.0 0.6 9.9 10.3 8.7 8.3 9.5 36.8 0.9 1.1 4.2 4.7 10.9 - 0.5 0.2 - 0.7 - - 0.1 0.8 0.9 4.7 9.8 (12.1) 0.4 2.8 0.9 0.7 0.7 0.7 3.0 0.2 (0.6) (0.8) (0.7) (1.9) 134.8 137.4 149.1 179.5 600.8 (3.3) (3.3) (3.3) (2.8) (12.7) (0.1) (2.3) (0.7) (0.6) (3.7) (0.3) (0.4) (0.3) (0.4) (1.4) (0.1) (0.1) (0.2) (7.4) (7.8) (2.5) (2.9) (12.7) (16.9) (35.0) - - - (0.2) (0.2) (5.4) (5.4) (0.1) - (0.2) - (0.3) (6.4) (9.0) (17.4) (33.7) (66.5) 2.7 2.6 2.1 3.2 10.6 1.4 0.4 0.3 3.5 5.6 0.1 0.1 0.2 0.2 0.6 (1.8) (6.3) (6.0) (10.1) (24.2) 0.4 0.6 1.3 2.2 4.5 1.8 6.2 15.0 25.6 48.6 6.0 (5.4) 4.6 (1.9) 3.3 5.3 2.5 19.9 22.8 50.5 - 0.6 1.2 6.5 8.3 - 0.5 3.7 (2.1) 2.1 (12.4) (2.8) (41.6) (50.2) (107.0) 0.6 2.5 1.7 7.0 11.8 - 1.5 - - 1.5 0.0 - 0.0 (0.0) 0.0 132.5 131.4 134.1 152.5 550.5 132.5 131.4 134.1 152.5 550.5 1999 Actuals 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 79.5 80.4 98.9 258.8 11.9 13.1 - 25.0 2.0 2.7 0.9 5.6 (3.0) (3.2) (4.5) (10.7) 90.4 93.0 95.3 - 278.7 17.3 17.9 9.3 44.5 10.4 10.7 10.0 31.1 3.0 3.0 3.0 9.0 13.4 13.7 13.0 40.1 18.1 15.6 16.7 50.4 1.5 0.8 6.4 8.7 10.2 (2.0) 4.6 12.8 29.4 34.3 44.2 107.9 - 0.8 0.8 1.1 2.6 (3.7) - 1.9 2.7 1.6 6.2 0.2 3.8 9.4 13.4 0.6 0.3 0.4 1.3 - - 0.1 0.1 (0.4) (0.5) (0.7) (1.6) 183.7 182.2 197.4 - 563.3 (3.2) (3.1) (1.5) (7.8) (0.7) (0.3) (0.2) (1.2) (0.4) (0.4) (0.4) (1.2) (4.0) (6.2) (5.3) (15.5) (1.0) (0.7) (4.3) (6.0) (0.1) (0.1) (4.4) (4.3) (3.6) (12.3) (0.2) (0.3) (0.2) (0.7) (13.9) (15.3) (15.6) - (44.8) 1.5 2.6 4.2 8.3 3.3 5.7 0.5 9.5 0.1 - 0.4 0.5 (28.1) (28.6) (25.5) (82.2) 0.4 (0.2) (0.2) - 9.3 24.1 51.4 84.8 (4.0) (6.8) (11.0) (21.8) 18.0 10.2 27.3 55.5 (13.1) (18.3) (18.1) (49.5) (4.0) (4.0) 0.1 (0.1) - - 12.7 17.9 (31.2) (0.6) 5.3 5.4 5.0 15.7 1.0 (1.0) 7.7 7.7 0.5 0.5 0.6 1.6 (2.2) (3.1) (2.4) (7.7) - (0.0) - - 0.0 174.6 175.2 186.5 536.3 174.6 175.2 186.5 3rd Qtr Variance 29.1 (26.0) 0.2 (3.3) (0.0) (7.5) 0.6 1.7 2.3 (3.0) 0.4 (3.7) 40.0 (0.2) 0.8 (3.7) 1.5 21.5 (0.3) 0.1 0.1 48.3 1.8 0.5 (0.1) (5.1) 8.4 (0.1) (3.6) 1.8 2.1 0.2 0.2 (19.5) (1.5) 36.4 (15.6) 7.4 (19.3) (4.0) (3.7) 10.4- 3.3 7.7 0.6 (2.4) 52.4 EC06419BO100772 10/11/99, 5:06 PM ============= Page 46 of 62 ============= Enron Corp Minority Interest (I/S) In millions 1 Q99 2Q99 6mo 99 3Q99 9mo 99 4Q99 99Yr EOG (6) - (6) 8 2 Elektro 12 10 22 8 30 Whitewing 13 - 13 - 13 Rawhide 14 13 27 12 39 Cherokee 10 Total 33 23 56 28 94 - - , 33 23 56 28 94 1 Q98 2Q98 6mo 98 3Q98 9mo 98 4Q98 98 Yr EOG 12 6 18 2 20 4 24 Elektro - - - - - - - Whitewing 13 13 26 14 40 13 53 Rawhide - - - - - - - Total 25 19 44 16 60 17 77 25 19 44 16 60 17 77 EC06419B0100773 minint3q99.xls 10/11/99, 11:28 PM- EXH066-00199 ============= Page 47 of 62 ============= ENRON CORP. Table I - Earnings Summary (Unaudited: in milliions except per share data) Revenues Transportation and Distribution Gas Pipeline Group $ 162 $ 150 Portland General 407 280 Wholesale Energy Operations and Services 11,062 10,341 Retail Energy Services 542 400 Exploration and Production (a) 119 220 Corporate and Other (including intercompany eliminations) (457) (71) Total Revenues $ 11,835 $ 11,320 Quarter Ended September 30, 1999 1998 Nine Months Ended September 30, 1999 1998 $ 472 $ 483 1,002 869 26,351 21,107 1,252 750 526 654 (464) (305) $ 29,139 $ 23,558 After tax results Core Businesses Retail Energy Services Net Income Excluding Nonrecurring Items Nonrecurring Items Gain on sale of EOG stock Charge to reflect impairment of MTBE asset Cumulative effect of accounting changes Net income $ 238 $ 186 (15) (18) 223 168 345 - (278) - $ 290 $ 168 $ 756 $ 593 (58) (66) 698 527 345 - (278) - (131) - $ 634 $ 527 Earnings (loss) per share (diluted) (b) Core Businesses Retail Energy Services EPS (diluted) excluding nonrecurring items Nonrecurring items Gain on sale of EOG stock Charge to reflect impairment of MTBE asset Cumulative effect of accounting changes EPS (diluted) $ 0.29 $ 0.26 (0.02) (0.02) 0.27 0.24 0.44 - (0.36) - $ 0.35 $ 0.24 $ 0.95 $ 0.86 (0.08) (0.09) 0.87 0.77 0.45 - (0.36) - (0.17) - $ 0.79 $ 0.77 Average shares outstanding (diluted) (b) 781.1 712.6 765.7 688.3 (a) Reflects results of Enron Oil & Gas through August 16, 1999, date of share exchange transaction. (b) Shares outstanding and EPS amounts have been restated to reflect the two-for-one common stock split that was effective August 13, 1999. ECO6419BO100774 EXH066-00200 ============= Page 48 of 62 ============= Third Quarter 1999 ENRON CORP. Table 2a - Results by Segment (Unaudited: in millions, except per share amounts) Retail Core Energy Businesses Services IBIT: Transportation and Distribution: Non- Recurring Total Gas Pipeline Group $ 85 $ - $ - $ 85 Portland General 52 - - 52 Wholesale Energy Operations and Services 378 - - 378 Retail Energy Services - (18) - (18) Exploration and Production (a) 33 - - 33 Corporate and Other (23) - 13 (10) IBIT 525 (18) 13 520 Interest and Related Charges, net 185 2 - 187 Dividends on Preferred Securities of Subsidiaries 19 - - 19 Minority Interests 38 - - 38 Income Tax Provision (Benefit) 45 (5) (54) (14) Net Income (Loss) 238 (15) 67 290 Preferred Dividends Second preferred stock 4 - - 4 Series A Junior Voting Convertible Preferred Stock (b) 15 - - 15 Earnings (Loss) on Common Stock $ 219 $ (15) $ 67 $ 271 Average Number of Shares Used: (c) Basic 714.1 Diluted 781.1 781.1 781.1 781.1 Earnings (Loss) per Common Share: (c) Basic $ 0.38 Diluted $ 0.29 $ (0.02) $ 0.08 $ 0.35 (a) Reflects results of Enron Oil & Gas through August 16, 1999, date of share exchange transaction. (b) The Series A Junior Voting Convertible Preferred Stock is antidilutive and therefore has been excluded from the calculation of diluted earnings per share. (c) Shares outstanding and EPS amounts have been restated to reflect the two-for-one common stock split that was effective August 13, 1999. ECO6419BO100775 EXH066-00201 ============= Page 49 of 62 ============= Third Quarter 1998 ENRON CORP. Table 2b - Results by Segment (Unaudited: in millions, except per share amounts) Retail Core Energy Non- Businesses Services Recurring Total IBIT: Transportation and Distribution: Gas Pipeline Group Portland General Wholesale Energy Operations and Service Retail Energy Services Exploration and Production Corporate and Other IBIT Interest and Related Charges, net Dividends on Preferred Securities of Subsidiaries Minority Interests Income Tax Provision (Benefit) Net Income (Loss) Preferred Dividends - Second preferred stock Earnings (Loss) on Common Stock Average Number of Shares Used: Basic Diluted Earnings (Loss) per Common Share: Basic Diluted $ 69 $ - $ - $ 69 61 - - 61 277 - - 277 - (23) - (23) 25 - - 25 (4) - - (4) 428 (23) - 405 130 4 - 134 19 - - 19 16 - - 16 77 (9) - 68 186 (18) - 168 4 - - 4 $ 182 $ (18) $ - $ 164 659.0 712.6 712.6 712.6 712.6 $ 0.25 $ 0.26 $ (0.02) $ - $ 0.24 Note: Shares outstanding and EPS amounts have been restated to reflect the two-for-one common stock split that was effective August 13, 1999. ECO6419BO100776 EXH066-00202 ============= Page 50 of 62 ============= Nine months 1999 ENRON CORP. Table 2c - Results by Segment (Unaudited: in millions, except per share amounts) Retail Core Energy Non- Businesses Services Recurring Total IBIT: Transportation and Distribution Gas Pipeline Group $ 283 $ - $ - $ 283 Portland General 200 - - 200 Wholesale Energy Operations and Services 1,054 - - 1,054 Retail Energy Services - (75) - (75) Exploration and Production (a) 65 - - 65 Corporate and Other (18) - 13 (5) IBIT 1,584 (75) 13 1,522 Interest and Related Charges, net 530 7 - 537 Dividends on Preferred Securities of Subsidiaries 57 - - 57 Minority Interests 94 - - 94 Income Tax Provision (Benefit) 147 (24) (54) 69 Income (Loss) before Cumulative Accounting Changes 756 (58) 67 765 Cumulative Effect of Accounting Changes, net of tax - - (131) (131) Net Income (Loss) 756 (58) (64) 634 Preferred Dividends Second preferred stock 13 - - 13 Series A Junior Voting Convertible Preferred Stock (b) 29 - - 29 Earnings (Loss) on Common Stock $ 714 $ (58) $ (64) $ 592 Average Number of Shares Used: (c) Basic 702.0 Diluted 765.7 765.7 765.7 765.7 Earnings (Loss) per Common Share: (c) Basic $ 0.84 Diluted $ 0.95 $ (0.08) $ (0.07) $ 0.79 (a) Reflects results of Enron Oil & Gas through August 16, 1999, date of share exchange transaction. (b) The Series A Junior Voting Convertible Preferred Stock is antidilutive and therefore has been excluded from the calculation of diluted earnings per share. (c) Shares outstanding and EPS amounts have been restated to reflect the two-for-one common stock split that was effective August 13, 1999. ECO6419BO100777 EXH066-00203 ============= Page 51 of 62 ============= Nine months 1998 ENRON CORP. Table 2d - Results by Segment (Unaudited: in millions, except per share amounts) Retail Core Energy Non- Businesses Services Recurring Total WIT: Transportation and Distribution: Gas Pipeline Group Portland General Wholesale Energy Operations and Services Retail Energy Services Exploration and Production Corporate and Other IBIT Interest and Related Charges, net Dividends on Preferred Securities of Subsidiaries Minority Interests Income Tax Provision (Benefit) Net Income (Loss) Preferred Dividends - Second preferred stock Earnings (Loss) on Common Stock Average Number of Shares Used: Basic Diluted Earnings (Loss) per Common Share: Basic Diluted $ 267 $ - $ - $ 267 202 - - 202 767 - - 767 - (93) - (93) 97 - - 97 (19) - - (19) 1,314 (93) - 1,221 394 4 - 398 58 - - 58 60 - - 60 209 (31) - 178 593 (66) - 527 13 - - 13 $ 580 $ (66) $ - $ 514 635.9 688.3 688.3 688.3 688.3 $ 0.81 $ 0.86 $ (0.09) $ - $ 0.77 Note: Shares outstanding and EPS amounts have been restated to reflect the two-for-one common stock split that was effective August 13, 1999. EC0641980100778 =XH066-00204 ============= Page 52 of 62 ============= Transportation and Distribution ENRON CORP. Table 3a - Core Business Highlights (Unaudited) Gas Pipeline Group (In Millions) Quarter Ended Nine Months Ended September 30, September 30, 1999 1998 1999 1998 Net Revenues $ 145 $ 144 $ 450 $ 473 Operating Expenses 64 68 190 205 Depreciation & Amortization 18 17 52 50 Equity in Earnings 14 8 30 28 Other Income, net 8 2 45 21 WIT $ 85 $ 69 $ 283 $ 267 Total Volumes Transported (BBtu/d) (a) Northern Natural Gas 3,523 3,792 3,870 4,046 Transwestern Pipeline 1,571 1,564 1,507 1,646 Florida Gas Transmission 1,670 1,471 1,482 1,328 Northern Border Pipeline 2,407 1,723 2,432 1,766 Portland General (In Millions) Revenues Purchased Power & Fuel Operating Expenses Depreciation & Amortization Other Income, net IBIT $ 407 $ 280 $ 1,002 241 104 460 74 76 223 43 47 137 3 8 18 $ 52 $ 61 $ 200 $ 869 322 230 136 21 $ 202 Retail Customers (end of period, thousands) 714 698 714 698 Electricity Sales (Thousand MWh) Residential 1,440 1,449 5,400 5,049 Commercial 1,951 1,815 5,513 5,056 Industrial 1,162 834 3,265 2,641 Total Retail 4,553 4,098 14,178 12,746 Wholesale 4,921 2,675 9,312 8,632 Total Sales 9,474 6,773 23,490 21,378 (a) Reflects 100% of each entity's throughput volumes. ECO641980100779 EXH066-00205 ============= Page 53 of 62 ============= Wholesale Energy Operations and Services ENRON CORP. Table 3b - Core Business Highlights (Unaudited) Quarter Ended September 30, 1999 1998 Wholesale Energy Operations and Services (In Millions) Commodity Sales and Services $ 172 $ 152 Energy Assets and Investments 240 160 Unallocated Expenses (34) (35) IBIT $ 378 $ 277 Projects Under Construction Pipeline: Bolivia-Brazil Pipeline, Phase I - Bolivia Bolivia-Brazil Pipeline, Phase I - Brazil Cuiaba - Brazil Power Plants: EcoElectrica Power, Phase I - Puerto Rico Nowa Sarzyna - Poland Barge Power Plants Cuiaba, Phase II - Brazil Cuiaba, Phase Ill - Brazil Puerto Quetzal (Barge Mounted) - Guatemala Sarlux - Italy Dabhol, Phase II - India Other: EcoElectrica LNG Terminal - Puerto Rico Accroven NGL Facility - Venezuela LNG Vessel Dabhol LNG Terminal - India Commodity Sales and Services Physical Volumes (BBtue/d) (a) Gas: United States Canada Europe Other Transport Volumes Total Gas Volumes Oil Liquids Electricity (b) Total Physical Volumes (BBtue/d) (a) Estimated Commercial Size/Capacity Operation Date 346 miles 1 Q 2000 1,601 miles 1Q 2000 389 miles 2Q 2000 Nine Months Ended September 30, 1999 1998 $ 477 $ 304 701 569 (124) (106) $ 1,054 $ 767 Percent Complete at 9/30/99 99% 90% 50% 507 MW 4Q 1999 95% 116 MW 1Q 2000 85% 270 MW 1Q 2000 85% 75 MW 2Q 2000 90% 255 MW 2Q 2000 75% 124 MW 2Q 2000 10% 551 MW 2Q 2000 90% 1,624 MW 4Q 2001 25% - 3Q 2000 - 2Q 2001 37,500 Cu Meters 3Q 2001 - 4Q 2001 60% 35% 10% 25% Quarter Ended September 30, 1999 1998 8,573 7,749 4,748 3,656 1,605 1,176 35 17 14,961 12,598 537 643 15,498 13,241 3,972 2,596 727 652 12,406 17,684 32,603 34,173 Electricity Volumes Marketed (Thousand MWh) United States 111,336 162,527 Europe & Other 2,795 165 Total 114,131 162,692 Financial Settlements (Notional)(BBtue/d) 109,351 83,653 (a) Includes third-party transactions of Enron Energy Services. (b) Represents electricity transaction volumes marketed, converted to BBtue/d. Nine Months Ended September 30, 1999 1998 8,564 7,242 4,395 3,279 1,531 1,121 22 3 14,512 11,645 535 575 15,047 12,220 5,249 2,298 688 619 10,889 11,838 31,873 26,975 292,264 322,874 5,012 287 297,276 323,161 95,786 73,711 EC06419B0100780 EXH066-00206 ============= Page 54 of 62 ============= SELECTED FINANCIAL DATA 1997 1998 1999 In Millions Except Per Share Amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Revenues, Net of Intercompany Core Businesses Transportation and Distribution Gas Pipeline Group $ 201 $ 137 $ 143 $ 175 $ 656 $ 184 $ 141 $ 145 $ 167 $ 637 $ 178 $ 121 $ 158 Portland General - - 386 360 746 320 269 280 327 1,196 299 296 407 Wholesale Energy Operations and Services 4,713 2,786 4,954 4,891 17,344 4,738 5,774 10,225 6,483 27,220 6,516 8,558 10,749 Exploration and Production (1) 210 168 188 223 789 198 176 186 190 750 149 175 221 105 72 Corporate and Other Retail Energy Services 6 214 18 142 6 129 25 198 55 683 47 195 43 154 84 400 211 323 385 1,072 127 363 301 344 Total $ 5,344 $ 3,251 $ 5,806 5,872 $ 20,273 $ 5,682 $ 6,557 11,320 7,701 31,260 7,632 $ 9,672 $ 11,835 Net Income (Loss) Income (Loss) Before Interest, Minority Interests and Income Taxes Core Businesses Transportation and Distribution Gas Pipeline Group $ 135 $ 73 $ 71 $ 85 $ 364 $ 126 $ 72 $ 69 $ 84 $ 351 $ 126 $ 72 $ 85 Portland General - - 51 63 114 79 62 61 84 286 92 56 52 Wholesale Energy Operations and Services 167 130 173 184 654 249 241 277 201 968 320 356 378 Exploration and Production (1) 42 30 49 62 183 43 29 25 31 128 12 20 33 Corporate and Other 3 19 8 39 31 1 16 4 26 7 14 9 23 IBIT from Core Businesses 341 252 336 355 1,284 498 388 428 426 1,740 564 495 525 Retail Energy Services Results (14) (25) (25) (43) (107) (27) (43) (23) (26) (119) (31) (26) (18) Gain on Sale of 7% Interest 61 61 - - - - - - - - Non-recurring Items (See Analysis of Reported Earnings) 102 775 - 673 - - 39 39 - - 13 Total IBIT 429 (548) 311 373 565 471 345 405 361 1,582 533 469 520 Interest and Related Charges, net 70 79 122 130 401 133 131 134 152 550 175 175 187 Dividends on Company-Obligated Preferred Securities of Subsidiaries 15 16 19 19 69 19 20 19 19 77 19 19 19 Minority Interests 19 17 22 22 80 25 19 16 17 77 33 23 38 Income Tax Provision (Benefit) 103 240 14 33 90 80 30 68 3 175 53 30 14 Income (Loss) Before Extraordinary Items 222 (420) 134 169 105 214 145 168 176 703 253 222 290 Net of Tax Cumulative Effect of Accounting Changes - - - - - - - - - 131 - - , NetIncome (Loss) 222 (420) 134 169 105 214 145 168 176 703 122 222 290 Preferred Stock Dividend 4 4 5 4 17 4 5 4 4 17 4 19 19 Earning Loss on Common Stock $ 218 $ 424 $ 129 $ 165 $ 88 $ 210 $ 140 $ 164 $ 172 $ 686 $ 118 $ 203 $ 271 Earnings (Loss) Per Share (2) Basic $ 0.44 $ 0.86 $ 0.22 $ 0.28 $ 0.16 $ 0.34 $ 0.22 $ 0.25 $ 0.26 $ 1.07 $ 0.17 $ 0.29 $ 0.38 Diluted Core Businesses $ 0.30 $ 0.22 $ 0.26 $ 0.22 $ 0.99 $ 0.35 $ 0.25 $ 0.26 $ 0.27 $ 1.13 $ 0.37 $ 0.30 $ 0.29 Retail Energy Services Results (0.01) (0.03) (0.03) (0.05) (0.12) (0.03) (0.04) (0.02) (0.03) (0.12) (0.03) (0.03) (0.02) Gain on Sale of 7% Interest - - - 0.10 0.11 - - - - - - - - Non-recurring Items (See Analysis of Reported Earnings) 0.12 1.05 0.02 0.82 - - - 0.01 0.18 - 0.08 Reported 0.41 $ 0.86 $ 0.21 $ 0.27 $ 0.16 $ 0.32 $ 0.21 0.24 0.25 $ 1.01 $ 0.16 $ 0.27 $ 0.35 Depreciation, Depletion and Amortization Core Businesses Transportation and Distribution Gas Pipeline Group $ 18 $ 16 $ 16 $ 19 $ 69 $ 16 $ 17 $ 17 $ 20 $ 70 $ 17 $ 17 $ 18 Portland General - - 45 46 91 44 45 47 47 183 46 47 43 Wholesale Energy Operations and Services 37 33 26 37 133 39 38 52 66 195 57 70 71 Exploration and Production 63 69 72 74 278 72 73 84 86 315 82 89 43 Corporate and Other 5 6 8 3 22 6 8 7 12 33 7 9 41 Retail Energy Services 1 1 2 3 7 5 9 8 9 31 6 4 9 Total 124 $ 125 $ 169 182 $ 600 182 190 215 240 827 $ 215 $ 236 $ 225 (1) Reflects results of Enron Oil & Gas through August 16, 1999. the date of the share exchange transaction; following this date the results of the Exploration and Production (2), Adjusted to reflect two-for-one common stock split effective August 13, 19 99. operations in India and China are included in the Wholesale Energy Operations and Services segment. EC06419BO100781 Printed: 10/12/99 12:56 AM EXH066-00207 ============= Page 55 of 62 ============= ANALYSIS OF REPORTED EARNINGS Enron Corp. and Subsidiaries 1997 1998 1999 (In Millions, Except Per Share Amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Diluted Earnings Per Share - Core Businesses (1) $ 0.30 $ 0.22 $ 0.26 $ 0.22 $ 0.99 $ 0.35 $ 0.25 $ 0.26 $ 0.27 $ 1.13 $ 0.37 $ 0.30 $ 0.29 Retail Energy Services Results (0.01) (0.03) (0.03) (0.05) (0.12) (0.03) (0.04) (0.02) (0.03) (0.12) (0.03) (0.03) (0.02) Gain on sale of 7% interest (non-taxable) - - - 0.10 0.11 - - - - - - - - Non-Recurring Earnings (Loss) Items Per Share (1) (2) Transportation and Distribution Gains on sales of assets and investments 0.12 - - - 0.11 - - - - - - - - Corporate and Other Gain on sale of subsidiary stock - - - - - - - - 0.07 0.06 - - 0.44 Charge for Clean Fuels Plant operations (3) - (0.14) - - (0.13) - - - (0.06) (0.06) - - - Charge to reflect impact of amended J-Block gas contract (4) - (0.83) (0.02) - (0.78) - - - - - - - - Charge to reflect impairment of MTBE facility (0.36) Cumulative effect of accounting changes - - - - - - - - - - (0.18) - Effect of anti-dilution (5) - (0.08) - - (0.02) - - - - - - - Total Non-Core Business and Non-Recurring Earnings (Loss) Items Per Share 0.11 (1.08) (0.05) 0.05 (0.83) (0.03) (0.04) (0.02) (0.02) (0.12) (0.21) (0.03) 0.06 Reported Diluted Earnings (Loss) Per Share $ 0.41 $ (0.86) $ 0.21 $ 0.27 $ 0.16 $ 0.32 $ 0.21 $ 0.24 $ 0.25 $ 1.01 $ 0.16 $ 0.27 $ 0.35 Average Number of Common Shares Used in Diluted Computation (1) (5) 545.0 496.8 633.2 644.6 554.6 659.6 692.7 712.6 716.4 695.3 744.6 771.1 778.4 Non-Recurring Earnings (Loss) Items - After tax Transportation and Distribution Gains on sales of assets and investments $ 66 $ - $ - $ - $ 66 $ - $ - $ - $ - $ - $ - $ - $ - Corporate and Other Gains on sales of subsidiary stock - - - - - - - - 45 45 - - 345 Charge for Clean Fuels Plant operations - (74) - - (74) - - - (40) (40) - - - Charge to reflect impact of amended J-Block gas contract - (463) - - (463) - - - - - - - - Charge to reflect impairment of MTBE facility - - - - - - - - - - - - (278) Cumulative effect of accounting changes - - - - - - - - - - (131) - - Total Non-Recurring Earnings (Loss) Items-After-tax $ 66 $ (537) $ - $ - $ (471) $ - $ - $ - $ 5 $ 5 $ (131) $ - $ 67 Non-Recurring Earnings (Loss) Items - Pretax Transportation and Distribution Gains on sales of assets and investments $ 102 $ - $ - $ - $ 102 $ - $ - $ - $ - $ - $ - $ - $ - Corporate and Other Gains on sales of subsidiary stock - - - - - - - - 22 22 - 454 Charge for Clean Fuels Plant operations - (100) - - (100) - - - (61) (61) - - - Charge to reflect impact of amended J-Block gas contract - (675) - - (675) - - - - - - - - Charge to reflect impairment of MTBE facility - - - - - - - - - - - (441) Cumulative effect of accounting changes - - - - - - - - - - (200) - - Total Non-Recurring Earnings (Loss) Items - Pretax $ 102 $ (775) $ - $ - $ (673) $ - $ - $ - $ (39) $ (39) $ (200) $ - $ 13 (t)Aa)ustea to renect two-tor-one common stock split effectve August 13, 1999. (2) Except where a specific tax rate applied, assumes a 34% tax rate for all taxable items for years prior to 1993, when the 35% tax rate became effective. (3) Reflects annual tax expense of $26 million. (4) Reflects annual tax expense of $212 million. (5) For the second quarter and total year 1997, the conversion of preferred shares to common for purposes of the diluted earnings per share calculation was ant-dilutive by $0.08 and $0.02 per share, respectively. However, in order to present comparable results, per share amounts for each earnings component were calculated using 543.4 and 591.6 million shares, respectively, which assume the preferred conversion. EC06419B0100782 Printed: 10/11/99 11:21 PM Pa 2 EXH066-00208 ============= Page 56 of 62 ============= CAPITAL STRUCTURE AND STATISTICS Enron Corp. and Subsidiaries (In Millions, Except Per Share Amounts) Common Shares Outstanding (t) Average, Basic Average, Diluted End of Period, Diluted Market Price Per Share (end of period) 11) $ Dividends Per Share Cumulative Second Preferred Convertible Stock ("Series J") (2) (3) $ Junior Convertible Preferred Stock ("Series A") (4) $ Junior Manditorily Convertible Preferred Stock ('Series B') (5) $ Common Stock (t) $ Company-Obligated Preferred Stock of Subsidiaries 1997 1998 st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd 0 1999 Qtr Year 1st Qtr 2nd Qtr 3rd 497.0 496.8 587.2 596.0 544.2 610.0 638.6 658.8 661.8 642.4 683.4 708.0 714.1 545.0 496.8 633.2 644.6 554.6 659.6 692.6 712.6 716.4 695.2 744.6 771.0 778.4 543.4 497.6 629.6 656.6 656.6 663.4 713.2 716.2 718.2 718.2 764.4 779.0 781.1 19.063 $ 20.406 $ 19.250 $ 20.781 $ 20.781 $ 23.188 $ 27.032 $ 26.750 $ 28.531 $ 28.531 $ 32.125 $ 40.875 $ 41.063 3.072 $ 3.072 $ 3.072 $ 3.242 $ 12.458 $ 3.242 $ $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ 0.113 $ 0.113 $ 0.113 $ 0.119 $ 0.457 $ 0.119 $ 3.242 $ 3.242 $ 3.413 $ 13.139 $ 3.413 $ 3.413 $ 3.413 - $ - $ - $ - $ - $ 59.150 $ 59.233 -$ -$ -$ - $ - $ -$ 4.333 0.119 $ 0.119 $ 0.125 $ 0.482 $ 0.125 $ 0.125 $ 0.125 0.500 $ 0.500 $ 0.500 $ 2.000 $ 0.500 $ 0.500 $ 0.500 0.563 $ 0.563 $ 0.563 $ 2.252 $ 0.563 $ 0.563 $ 0.563 2,142.500 $ 2,142.500 $ 2,142.500 $ 8,570.000 $ 2,142.500 $ 2,142.500 $ 2,142.500 1,847.500 $ 1,847.500 $ 1,847.500 $ 7,390.000 $ 1,847.500 $ 1,847.500 $ 1,847.500 0.519 $ 0.519 $ 0.519 $ 2.076 $ 0.519 $ 0.519 $ 0.519 0.508 $ 0.508 $ 0.508 $ 2.032 $ 0.50I' $ 0.508 $ 0.508 19.878 $ 19.878 $ 19.878 $ 79.512 $ 19.878 $ 19.878 $ 19.878 14.798 $ 14.484 $ 13.934 $ 57.681 $ 13.653 $ 12.968 $ 13.177 1.938 $ 1.938 $ 1.938 $ 7.750 $ 1.938 $ 1.938 $ 1.938 8% Cumulative Preferred ("Series C") (3) $ 0.500 $ 0.500 $ 0.500 $ 0.500 $ 2.000 $ 0.500 1 9% Cumulative Preferred ("Series A') (3) $ 0.563 $ 0.563 $ 0.563 $ 0.563 $ 2.250 $ 0.563 1 8.57% Cumulative Preferred $ 2,142.500 $ 2,142.500 $ 2,142.500 $ 2,142.500 $ 8,570.000 $ 2,142.500 7.39% Cumulative Preferred $ 1,847.500 $ 1,847.500 $ 1,847.500 $ 1,847.500 $ 7,390.000 $ 1,847.500 1 8.30% Trust Originated Preferred ("Series T') (3) $ 0.519 $ 0.519 $ 0.519 $ 0.519 $ 2.075 $ 0.519 1 8.125% Trust Originated Preferred ("Series R") (3) $ 0.423 $ 0.508 $ 0.508 $ 0.508 $ 1.946 $ 0.508 ; 7.1% Cumulative Preferred $ 1.104 $ 19.878 $ 19.878 $ 19.878 $ 60.739 $ 19.878 ; Adjustable Rate Trust Securities - $ 3.950 $ 14.197 $ 14.197 $ 32.344 $ 14.465 ; 7.75% Cumulative Preferred - - $ 1.938 $ 1.938 $ 3.875 $ 1.938 ; Capital Structure Total Debt $ 3,564 $ 4,537 $ 6,931 $ 6,254 $ 6,254 $ 6,835 $ 6,989 $ 8,475 $ 7,357 $ 7,357 $ 9,419 $ 8,979 n/a Percent 39.6 46.8 50.5 44.6 44.6 46.2 44.1 48.3 41.9 41.9 44.1 41.5 n/a Minority Interests $ 754 $ 770 $ 767 $ 1,147 $ 1,147 $ 1,153 $ 1,089 $ 1,142 $ 2,143 $ 2,143 $ 2,125 $ 2,475 n/a Percent 8.4 7.9 5.6 8.2 8.2 7.8 6.9 6.5 12.2 12.2 9.9 11.4 n/a Company-Obligated Preferred Securities of Subsidiaries $ 764 $ 964 $ 993 $ 993 $ 993 $ 993 $ 993 $ 993 $ 1,001 $ 1,001 $ 1,001 $ 1,001 n/a Percent 8.5 9.9 7.2 7.1 7.1 6.7 6.2 5.6 5.7 5.7 4.7 4.6 n/a Shareholders' Equity $ 3,914 $ 3,431 $ 5,039 $ 5,618 $ 5,618 $ 5,814 $ 6,787 $ 6,951 $ 7,048 $ 7,048 $ 8,824 $ 9,206 n/a Percent 43.5 35.4 36.7 40.1 40.1 39.3 42.8 39.6 40.2 40.2 41.3 42.5 n/a Annual Date Optional Redemption Securities PREFERRED STOCK Dividend Rate Issued Call Date Price Authorized Original Issue Outstanding at 9130199 Enron Corp. Second Preferred Stock ("Series J ") (2) (3) $ 13.65 8183 8/93 $ 100 1,370,000 2,396,455 1,304,304 Enron Corp. Junior Maditorily Convertible Preferred Stock ("Series B") (5) 6.500% 9/99 n/a 4,000 250,000 250,000 250,000 Preferred Securities of Subsidiary Companies Enron Capital L.L.C. ("Series C") (3) 8.000% 11/93 11/98 25 9,200,000 8,550,000 8,550,000 Enron Capital Resources, L. P. ("Series A") (3) 9.000% 7194 8199 25 3,000,000 3,000,000 3,000,000 Enron Equity Corp. 8.570% 12/94 12199 100,000 880 880 880 Enron Equity Corp. 7.390% 4/96 4/01 100,000 150 150 150 Enron Capital Trust I ("Series T") (3) 8.300% 1/97 12/01 25 8,000,000 8,000,000 8,000,000 Enron Capital Trust II ("Series R") (3) 8,125% 1/97 3/02 25 6,000,000 6,000,000 6,000,000 Private Placement 7.100% 3197 4/02 (6) 20,000 20,000 20,000 Enron Capital Trust III Variable 6/97 Variable 1,000 200,000 200,000 200,000 Portland General Electric Company (7) 7.750% 6/93 n/a 100 30,000,000 300,000 300,000 (1) Adjusted to reflect two-for-one common stock split effective August 13, 1999. (5) On September 24, 1999 one share of Series B Junior Manditorily Convertible Preferred Stock was issued in exchange for one share of Series A Junior Voling Conver tib le (2) Each share is convertible into 27.304 shares of Enron common stock al the holders option following the call by Enron in 1993 (adjusted for common stock split Preferred Stock. Each share is manditorily convertible into 200 shares of Enron common stock on January 15, 2003. The dividends for the third quarter of 1999 are for the period effective August 13, 1999). The dividend is equal to the higher of $10.50 per share or the equivalent dividend that would be paid if the shares had been converted. from September 24, 1999 to September 30, 1999. (3) Publicly traded on the New York Stock Exchange. (6) Redemption price varies based on original issue amounts. (4) Each share is convertible into 200 shares of Enron common stock at the holder's option. On September 24, 1999 each share of Series A Junior Voti ng Convertible (7) Consolidated by Enron beginning July 1, 1997. Preferred Stock was exchanged for one share of Series B Junior Manditorily Convertible Preferred Stock. EC06419BO100783 Printed: 10/11/99 11:21 PM P113 EXH066-00209 ============= Page 57 of 62 ============= CONSOLIDATED BALANCE SHEET Enron Corn. and Subsidiaries Current Assets Cash and cash equivalents Trade and other receivables, net Assets from price risk management activities Inventories Other Total Current Assets Investments and Other Assets Investments in and advances to unconsolidated subsidiaries Assets from price risk management activities Goodwill Other Total Investments and Other Assets Property, Plant and Equipment, at cost Less accumulated Depreciation, depletion and amortization Net Property, Plant and Equipment Total Assets Current Liabilities Accounts payable Liabilities from price risk management activities Short-term debt Other Total Current Liabilities Long-term Debt Deferred Credits and Other Liabilities Deferred income taxes Liabilities from price risk management activities Other Total Deferred Credits and Other Liabilities Minority Interests Company-Obligated Preferred Securities of Subsidiaries Shareholders' Equity Cumulative second preferred convertible stock Junior voting convertible preferred stock Common stock Additional paid-in capital Retained earnings Cumulative foreign currency translation adjustment Common stock held in treasury Other (including Flexible Equity Trust) Total Shareholders' Equity Total Liabilities and Shareholders' Equity EXH066-00210 1997 1998 1999 3131 6130 9130 12131 3131 6130 9130 12131 3131 6130 $ 255 $ 211 $ 194 $ 170 $ 173 $ 175 $ 383 $ 111 $ 296 $ 286 1,802 1,875 2,578 1,826 1,936 2,762 2,337 2,893 3,534 3,522 657 1,119 1,127 1,346 1,889 2,120 1,654 1,904 1,554 1,756 111 121 198 136 163 291 369 514 458 557 448 496 667 635 574 523 597 511 603 772 3,273 3,822 4,764 4,113 4,735 5,871 5,340 5,933 6,445 6,893 1,685 1,927 2,305 2,656 2,649 2,761 4,382 4,433 4,632 4,779 1,266 999 1,930 1,038 1,281 2,370 2,063 1,941 2,271 2,364 139 144 1,666 1,910 1,883 1,884 1,976 1,949 2,690 2,696 1,706 1,991 3,116 3,665 4,007 4,091 4,509 4,437 5,076 5,599 4,796 5,061 9,017 9,269 9,820 11,106 12,930 12,760 14,669 15,438 11,324 11,539 13,476 13,742 13,942 14,318 15,064 15,792 17,197 17,507 4,245 4,337 4,447 4,572 4,695 4,810 5,037 5,135 5,612 5,691 7,079 7,202 9,029 9,170 9,247 9,508 10,027 10,657 11,585 11,816 $ 15,148 $ 16,085 $ 22,810 $ 22,552 $ 23,802 $ 26,485 $ 28,297 $ 29,350 $ 32,699 $ 34,147 $ 1,587 $ 1,725 $ 2,036 $ 1,794 $ 1,806 $ 1,974 $ 1,822 $ 2,380 $ 2,694 $ 2,603 699 1,006 839 1,245 1,774 1,888 1,774 2,511 1,542 2,386 - - - - - - 1,102 - - - 496 549 750 817 669 920 1,208 1,216 1,408 1,457 2,782 3,280 3,625 3,856 4,249 4,782 5,906 6,107 5,644 6,446 3,564 4,537 6,931 6,254 6,835 6,989 8,475 7,357 9,419 8,979 2,359 1,980 2,270 2,039 2,158 2,052 2,040 2,357 2,194 2,352 531 581 1,556 876 884 2,086 1,222 1,421 1,852 2,068 480 542 1,629 1,769 1,716 1,707 1,568 1,916 1,640 1,620 3,370 3,103 5,455 4,684 4,758 5,845 4,830 5,694 5,686 6,040 754 770 767 1,147 1,153 1,089 1,142 2,143 2,125 2,475 764 964 993 993 993 993 993 1,001 1,001 1,001 137 134 134 134 133 132 132 132 131 131 - - - - - - - - 1,000 1,000 26 26 3,755 4,224 4,230 5,084 5,110 5,117 6,249 6,588 1,879 1,881 - - - - - - - - 2,172 1,692 1,750 1,852 1,989 2,051 2,138 2,226 2,256 2,369 (142) (129) (129) (148) (147) (159) (170) (162) (711) (760) (7) (11) (306) (269) (256) (247) (202) (195) (50) (1) (151) (162) (165) (175) (135) (74) (57) (70) (51) (121) 3,914 3,431 5,039 5,618 5,814 6,787 6,951 7,048 8,824 9,206 $ 15,148 $ 16,085 $ 22,810 $ 22,552 $ 23,802 $ 26,485 _ $__ 28,297 $ 29,350 $ 32,699 $ 34,147 EC06419BO100784 Printed: 10/11/99 11:21 PM ============= Page 58 of 62 ============= CONSOLIDATED STATEMENT OF CASH FLOWS Enron Corn. and Subsidiaries Year-to-date 1998 Cash Flows From Operating Activities Reconciliation of net income (loss) to net cash provided by (used in) operating activities Net income (loss) before extraordinary items $ 222 $ (198) $ (64) $ 105 $ 214 $ 359 $ 527 $ 703 $ 122 $ 344 Cumulative effect of accounting changes, net of tax - - - - - - - - 131 131 Depreciation, depletion and amortization 124 249 418 600 182 372 587 827 215 451 Oil and gas exploration expenses 22 46 68 102 34 60 94 121 25 45 Deferred income taxes 54 (178) (193) (174) 54 60 109 87 2 (11) Gains on sales of assets and investments (107) (125) (129) (195) (27) (32) (31) (82) (40) (65) Changes in components of working capital (71) (193) (427) (65) (158) (660) (372) (233) (556) (909) Net assets from price risk management activities (228) (67) (198) 201 (249) (253) (458) 350 (518) 247 Merchant assets and investments: Realized gains on sales (12) (52) (136) (136) (48) (252) (368) (628) (22) (161) Proceeds from sales 21 96 338 339 134 629 855 1,434 26 561 Additions (21) (89) (230) (308) (103) (282) (515) (721) (96) (490) Other operating activities 153 51 224 258 17 252 457 218 51 181 Net Cash Provided by (Used In) Operating Activities 149 562 777 211 50 251 29 1,640 660 38 Cash Flows From Investing Activities Capital expenditures (219) (610) (932) (1,392) (288) (585) (1,231) (1,905) (519) (969) Equity investments (79) (173) (500) (700) (49) (151) (1,470) (1,659) (409) (648) Proceeds from sales of investments and other assets 298 320 417 473 3 58 59 239 43 138 Acquisition of subsidiary stock - - - - - (180) (180) (180) - - Business acquisitions, net of cash acquired - (38) (77) (82) - (25) (87) (104) (38) (40) Other investing activities 61 85 215 445 158 254 262 356 207 340 Net Cash Provided by (Used in) Investing Activities 61 586 1,307 2,146 492 1,137 3,171 3,965 1,130 1,859 Cash Flows From Financing Activities Issuance of long-term debt 31 409 2,059 1,817 - 305 1,253 1,903 114 1,301 Repayment of long-term debt (189) (302) (419) (607) (42) (341) (388) (870) (68) (645) Net increase (decrease) in short-term borrowings 373 958 723 464 623 769 1,997 (158) 1,119 128 Issuance of company-obligated preferred securities of subsidiaries 172 372 372 372 - - - 8 - - Issuance of common stock - - - - 2 844 867 867 839 889 Issuance of subsidiary equity - - - 555 - - - 828 - 513 Dividends paid (83) (165) (255) (354) (99) (204) (307) (414) (113) (227) Net (acquisition) disposition of treasury stock (32) (84) (396) (422) 3 7 6 13 119 181 Decrease in other long-term obligations - - - - - - - - - - Other financing activities 63 63 62 24 42 13 15 89 35 68 Net Cash Provided by (Used in) Financing Activities 209 1,125 2,022 1,849 445 1,393 3,413 2,266 1,975 2,072 Increase (Decrease) in Cash and Equivalents (1) (23) (62) (86) 3 5 213 (59) 185 175 Cash and Cash Equivalents, Beginning of Period 256 256 256 256 170 170 170 170 111 111 Cash and Cash Equivalents, End of Period 255 233 194 170 173 175 383 111 296 286 Capital Expenditures Transportation and Distribution Gas Pipeline Group $ 30 $ 65 $ 119 $ 245 $ 31 $ 69 $ 164 $ 181 $ 25 $ 50 Portland General - - 39 92 34 72 104 129 29 60 Wholesale Energy Operations and Services 44 215 257 318 72 116 290 706 321 610 Retail Energy Services 1 7 23 36 16 27 39 75 22 34 Exploration and Production 136 297 448 626 118 271 580 690 92 180 Corporate and Other 8 26 46 75 17 30 54 124 30 35 Total $ 219 $ 610 $ 932 $ 1.392 $ 288 $ 585 $ 1.231 5 1 905 5 519 lt or o Equity Investments Transportation and Distribution Gas Pipeline Group Portland General Wholesale Energy Operations and Services Retail Energy Services Exploration and Production Corporate and Other Total (1) Includes cash payment of $440 million made in connection with the resolution of the J-Block gas contract. $ - $ - $ - $ 2 $ - $ - $ - $ 27 $ - $ - 1 12 16 22 - - - O° 55 137 455 580 43 160 1,475 725 381 647 00 24 36 45 117 6 25 27 907 28 1 79 173 500 700 49 151 1,470 1 659 CAD 409 648 U , Printed: 10/11/99 1121 PM  . . P, c EXH066-00211 ============= Page 59 of 62 ============= SELECTED FINANCIAL AND OPERATING HIGHLIGHTS Transportation and Distribution - Gas Pipeline Group 1997 1998 1999 (In Millions, Except Where Noted) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Gas Pipeline Group Gross Margin $ 206 $ 139 $ 143 $ 177 $ 665 $ 192 $ 137 $ 144 $ 167 $ 640 $ 181 $ 124 $ 145 Operating Expenses 73 76 77 84 310 69 68 68 71 276 61 65 64 Depreciation and Amortization 18 16 16 19 69 16 17 17 20 70 17 17 18 Equity in Earnings of Unconsolidated Subsidiaries 10 8 11 11 40 11 9 8 4 32 8 8 14 Other Income, net 10 18 10 - 38 8 11 2 4 25 15 22 8 [BIT Before Items Impacting Comparability 135 73 71 85 364 126 72 69 84 351 126 72 85 Items Impacting Comparability 102 - - - 102 - - - - - - - - Reported Income Before Interest and Taxes $ 237 $ 73 $ 71 $ 85 $ 466 $ 126 $ 72 $ 69 $ 84 $ 351 $ 126 $ 72 $ 85 Northern Natural Gas Transportation Revenues $ 160 $ 101 $ 108 $ 136 $ 505 $ 150 $ 98 $ 105 $ 127 $ 480 $ 140 $ 87 $ 86 Average Transportation Rate (per MMBtu) $ 0.31 $ 0.27 $ 0.28 $ 0.33 $ 0.31 $ 0.37 $ 0.28 $ 0.30 $ 0.33 $ 0.32 $ 0.34 $ 0.27 $ 0.27 Gas Transportation (BBtu/d) 4,809 4,085 4,063 4,507 4,364 4,476 3,879 3,792 4,252 4,098 4,544 3,553 3,523 Transwestern Pipeline Transportation Revenues $ 38 $ 37 $ 37 $ 36 $ 148 $ 35 $ 37 $ 37 $ 36 $ 145 $ 35 $ 35 $ 36 Average Transportation Rate (per MMBtu) $ 0.31 $ 0.27 $ 0.28 $ 0.26 $ 0.28 $ 0.23 $ 0.24 $ 0.25 $ 0.27 $ 0.25 $ 0.25 $ 0.27 $ 0.25 Gas Transportation BBtu/d 1,251 1,476 1,453 1,482 1,416 1,668 1,707 1,564 1,492 1,608 1,531 1,419 1,571 Florida Gas Transmission Transportation Revenues $ 81 $ 80 $ 76 $ 71 $ 308 $ 76 $ 78 $ 76 $ 76 $ 306 $ 75 $ 76 $ 78 Average Transportation Rate (per MMBtu) $ 0.74 $ 0.59 $ 0.57 $ 0.64 $ 0.63 $ 0.71 $ 0.65 $ 0.56 $ 0.64 $ 0.63 $ 0.68 $ 0.54 $ 0.51 Gas Transportation BBtu/d) 1,221 1,440 1,486 1,217 1,341 1,182 1,328 1,471 1,310 1,324 1,225 1,546 1,670 Northern Border Pipeline Transportation Revenues $ 47 $ 46 $ 40 $ 46 $ 179 $ 48 $ 49 $ 49 $ 51 $ 197 $ 74 $ 74 $ 75 Gas Transportation (BBtu/d) 1,856 1,785 1,740 1,820 1,800 1,839 1,737 1,723 1,781 1,770 2,485 2,404 2,407 Rate per 100 Dekatherm Miles $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.037 $ 0.036 ECO641980100786 Printed: 10/11/99 11:21 PM Pg6 EXH066-00212 ============= Page 60 of 62 ============= SELECTED FINANCIAL AND OPERATING HIGHLIGHTS Transoortation and Distribution - Portland General Electric Before Merger with Enron on Juty 1,1997 1997 1997 1998 1999 In Millions Except Where Noted 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Six Months 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Revenues (Portland General Group) Residential $ 117 $ 83 $ 79 $ 111 $ 190 $ 110 $ 108 $ 93 $ 121 $ 432 $ 134 $ 98 $ 87 Commercial 87 83 92 91 183 84 82 94 85 345 89 86 95 Industrial 33 38 37 36 73 31 28 36 36 131 36 39 46 Accrued (Collected) Revenues 6 1 7 10 3 5 2 27 13 7 10 6 7 Retail Revenues 243 205 201 248 449 230 220 196 255 901 269 229 235 Wholesale 116 100 180 99 279 65 41 70 58 234 25 62 166 Other 9 2 5 13 18 25 8 14 14 61 5 5 6 Total Revenues 368 307 386 360 746 320 269 280 327 1,196 299 296 407 Purchased Power & Fuel 157 128 221 168 389 124 94 104 129 451 100 119 241 Operating Expenses 67 74 69 85 154 76 78 76 65 295 70 79 74 Depreciation & Amortization 39 39 45 46 91 44 45 47 47 183 46 48 43 Other Income (Expense) - 1 - 2 2 3 10 8 2 19 9 6 3 Income Before Interest and Taxes $ 105 $ 67 $ 51 $ 63 $ 114 $ 79 $ 62 $ 61 $ 84 $ 286 $ 92 $ 56 $ 52 Operating Statistics (Portland General Electric) Retail Customers (End of Period, Thousands) 672 677 681 685 685 688 694 698 704 704 708 711 714 Electricity Sales (Thousand MWh) Residential 2,142 1,462 1,391 1,988 3,379 2,076 1,524 1,449 2,052 7,101 2,342 1,618 1,440 Commercial 1,711 1,623 1,831 1,787 3,618 1,654 1,587 1,815 1,725 6,781 1,816 1,746 1,951 Industrial 983 1,086 1,093 1,073 2,166 891 916 834 921 3,562 1,020 1,083 1,162 Total Retail 4,836 4,171 4,315 4,848 9,163 4,621 4,027 4,098 4,698 17,444 5,178 4,447 4,553 Wholesale 6,419 6,958 8,556 4,892 13,448 3,575 2,382 2,675 2,237 10,869 1,338 3,053 4,921 Total Sales 11,255 11,129 12,871 9,740 22,611 8,196 6,409 6,773 6,935 28,313 6,516 7,500 9,474 Average Billed Revenue (¢ per kWh) Residential 5.45 5.68 5.71 5.57 5.63 5.91 6.40 6.45 5.75 6.07 5.73 6.08 6.04 Commercial 5.07 5.14 5.01 5.10 5.06 5.07 5.15 5.20 4.94 5.09 4.91 4.92 4.87 Industrial 3.36 3.46 3.45 3.25 3.35 3.43 3.18 4.34 3.86 3.69 3.49 3.63 3.96 Total Retail 4.89 4.92 4.84 4.88 4.86 5.13 5.17 5.47 5.08 5.21 5.00 5.03 5.01 Wholesale 1.81 1.44 2.10 2.03 2.07 1.82 1.72 2.61 2.59 2.15 1.88 2.03 3.37 Total Sales 3.13 2.76 3.02 3.45 3.20 3.68 3.89 4.34 4.27 4.03 4.36 3.81 4.15 Resource Mix Coal 5% 4% 7% 12% 10% 15% 12% 19% 19% 16% 18% 12% 14% Combustion Turbine - - 5% 5% 5% 7% 6% 17% 19% 12% 4% 6% 8% Hydro 9% 6% 4% 7% 5% 9% 11% 7% 9% 9% 13% 10% 5% Total Generation 14% 10% 16% 24% 20% 31% 29% 43% 47% 37% 35% 28% 27% Firm Purchases 80% 82% 77% 72% 74% 65% 64% 47% 45% 56% 47% . 61% 61% Secondary Purchases 6% 8% 7% 4% 6% 4% 7% 10% 8% 7% 18% 11% 12% Total Resources 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Average Variable Power Cost (Mills/kWh) Generation 4.3 4.4 8.8 8.3 8.7 7.0 6.6 9.6 10.1 8.6 8.0 8.7 10.1 Firm Purchases 16.3 12.3 19.2 18.5 18.9 16.3 14.3 18.8 21.6 17.3 16.7 16.8 30.3 Secondary Purchases 12.2 10.7 13.0 13.9 13.2 14.2 12.4 32.1 28.3 23.6 15.0 18.5 22.0 Total Average Variable Power Cost 15.0 12.1 17.6 16.7 17.2 14.4 13.2 17.3 17.9 15.6 15.0 15.5 24.7 EC06419BO100787 Printed: 10/11/99 11:21 PM Pn 7 EXH066-00213 ============= Page 61 of 62 ============= SELECTED FINANCIAL AND OPERATING HIGHLIGHTS (In Millions, Except Where Noted Income Before Interest, Minority Interests and Income Taxes Commodity Sales and Services Energy Assets and Investments Unallocated Expenses Reported IBIT $ 142 $ 9 $ 22 $ 76 $ 249 $ 129 $ 23 $ 152 $ 107 $ 411 $ 224 $ 81 $ 172 53 152 190 170 565 151 258 160 140 709 136 325 240 (28) (31) (39) (62) (160) (31) (40) (35) (46) (152) (40) (50) (34 $ 167 $ 130 $ 173 $ 184 $ 654 $ 249 $ 241 $ 277 $ 201 $ 968 $ 320 $ 356 $ 378 Physical Volumes (BBtueld) (1) Gas: United States 8,611 7,330 7,321 7,370 7,654 7,276 6,696 7,749 7,941 7,418 9,088 8,038 8,573 Canada 2,107 2,123 2,353 2,464 2,263 2,876 3,295 3,656 4,101 3,486 3,954 4,475 4,748 Europe 460 572 748 854 660 1,125 1,062 1,176 1,605 1,243 1,792 1,198 1,605 Other - - - - - 1 9 17 4 8 7 25 35 Total Physical Sales Volumes 11,178 10,025 10,422 10,688 10,577 11,278 11,062 12,598 13,651 12,155 14,841 13,736 14,961 Transport Volumes 207 686 456 488 460 450 630 643 510 559 556 513 537 Total Physical Gas Volumes 11,385 10,711 10,878 11,176 11,037 11,728 11,692 13,241 14,161 12,714 15,397 14,249 15,498 Oil 663 454 684 956 690 1,756 2,534 2,596 4,923 2,960 3,704 8,068 3,972 Liquids 1,248 1,080 858 768 987 654 550 652 586 610 580 754 727 Electricity(2) 3,699 4,193 7,854 5,232 5,256 8,262 9,463 17,684 8,609 11,024 9,594 10,637 12,406 Total Physical Volumes 16,995 16,438 20,274 18,132 17,970 22,400 24,239 34,173 28,279 27,308 29,275 33,708 32,603 Electricity (Thousand MWh) United States 33,242 38,141 72,238 48,125 191,746 74,272 86,075 162,527 78,969 401,843 85,962 94,966 111,336 Europe 50 18 19 13 100 82 40 165 196 483 297 1,726 2,677 Other - - - - - - - - 46 46 87 107 118 Transaction Volumes Marketed 33,292 38,159 72,257 48,138 191,846 74,354 86,115 162,692 79,211 402,372 86,346 96,799 114,131 Financial Settlements (Notional)(BBtueld) 39,916 45,647 51,953 58,574 49,082 69,918 67,411 83,653 79,879 75,266 95,151 82,699 109,351 (1) Volumes include third-party transactions of Enron Energy Services. (2) Represents electricity transaction volumes marketed, converted to BBtueld EXH066-00214 1997 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st 1998 1999 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr EC06419BO100788 Printed: 10/11/99 11:22 PM Pg 8 ============= Page 62 of 62 ============= ASSET PROFILE Wholesale Energy Operations and Services Pipelines Power Plants Commercial Project Country Capacity Miles Megawatts Operations Date Assets and Operations: Transportadora de Gas del Sur Puerto Quetzal Power Teeside Power Batangas Power Bitterfeld Power Subic Bay Power Puerto Plata Power Centragas Pipeline Hainan Island Power Transredes Pipelines Natural Gas Oil / Gas Liquids Bahia Las Minas Piti Power Cuiaba Power, Phase I Dabhol Power, Phase I Sutton Bridge Power Trakya Power Corinto Total CEG LDC Brazil - 1,364 - 3Q 1997 Riogas LDC Brazil - 193 - 3Q 1997 GasPart (7 LDCs) Brazil 95 MMcf/d - - 4Q 1997 Elektro Brazil - - - 3Q 1998 SK Enron Corp. (5 LDCs & LPG Import Co.) South Korea - - - 1Q 1999 Argentina 1.9 Bcf/d 4,104 - 401992 Guatemala - - 110 1Q 1993 U.K. - - 1,875 1Q 1993 Philippines - - 110 3011993 Germany - - 125 4Q 1993 Philippines - - 116 1Q 1994 Dominican Republic - - 185 3Q 1994 Colombia 110 MMcf/d 357 - 1Q 1996 China - - 154 3Q 1996 Bolivia 2Q 1997 320 MMcf/d 1,655 - 35 MBbI/d 1,438 - Panama - - 355 1Q 1999 Guam - - 80 10 1999 Brazil - - 150 2Q 1999 India - - 826 2Q 1999 U.K. - - 790 2Q 1999 Turkey - - 478 2Q 1999 Nicaragua - - 71 30 1999 7,554 5,425 Project Country Pipelines Power Plants Miles Megawatts Estimated Commercial Operations Date Estimated Project Cost (Millions) Est. Percent Complete at 9130199 Major Projects In Construction: EcoElectrica Power, Phase I Puerto Rico - 507 40 1999 $ 670 95% Bolivia-Brazil Pipeline, Phase I Bolivia 346 - 1 Q 2000 464 99% Bolivia-Brazil Pipeline. Phase I Brazil 1,601 - 1Q 2000 1,625 90% Barge Power Plants - - 270 1 Q 2000 71 85% Nowa Sarzyna Power Poland - 116 1 Q 2000 130 85% Cuiaba Pipeline Brazil 389 - 2Q 2000 228 50% Cuiaba Power, Phase II Brazil - 75 2Q 2000 102 90% Cuiaba Power, Phase III Brazil - 255 2Q 2000 132 75% Puerto Quetzal (Barge-Mounted) Guatemala - 124 2Q 2000 107 10% Sarlux Power Italy - 551 2Q 2000 1,234 90% EcoElectrica LNG Terminal Puerto Rico - - 30 2000 60% Accroven NGL Facility Venezuela - - 2Q 2001 420 35% LNG Vessel India - - 3Q 2001 220 10% Dabhol Power, Phase II India - 1,624 4Q 2001 1,160 25% Dabhol LNG Terminal India - - 4Q 2001 708 25% Total 2,336 3,522 $ 7,271 EXH066-00215 EC06419BO100789 Printed: 10/11/99 11:22 PM