============= Page 1 of 75 ============= Enron Corp. August 2001 ENRON CORP. NYSE Stock Symbol: ENE Common Dividend: $.50 Shares Outstanding (Diluted): 900 Million Internet Address: www.enron.com Investor Relations Contacts: Mark E. Koenig, Exec. Vice President (713) 853-5981 Paula H. Rieker, Managing Director (713) 853-7209 EXH064-00435 EC26550A0070522 GOVERNMENT EXHIBIT 4159 Crim. No. H-04-25 (S-2) ============= Page 2 of 75 ============= Definitions Natural Gas Btu British thermal unit. The amount of energy required to raise the temperature of one pound of water one degree Fahrenheit. MMBtu One million Btu. The standard unit of delivery for natural gas, representing energy content. Mcf 1,000 cubic feet. A common measure of volume for natural gas. Used interchangeably with MMBtu, as one Mcf = one MMBtu after extraction of natural gas liquids. Common M One Thousand MM One Million B One Billion T One Trillion e Equivalent Units /d Per Day Electricity kWh Kilowatt-hour. A standard unit of electric consumption corresponding to usage of one thousand watts for one hour. A 100-watt lightbulb burning for 10 hours consumes one kWh. MWh Megawatt-hour. One thousand kWh MW Megawatt. One thousand kWh for one year (8,760 hours) GW Gigawatt. One thousand MWh for one year Other Bbl Barrel (of oil) MT Metric Ton Conversions 1 MMBtu I Bbl(oil) 1 gallon I cubic meter of gas I MMcf I Bcf = 292.7 kWh = 5.46 MMBtu of natural gas = 3.785 liters = .035 Mcf = 1 BBtu = 1 TBtu This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Enron believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include success in marketing natural gas and power to wholesale customers; the ability to penetrate new retail natural gas and electricity markets, including the energy outsource market, in the United States and Europe; development of Enron's broadband network and customer demand for intermediation and content services; and conditions of the capital markets and equity markets during the periods covered by the forward looking statements. EC2655OA0070523 EXH064-00436 ============= Page 3 of 75 ============= EC2655OA0070524 ITINERARY EXH064-00437 ============= Page 4 of 75 ============= FINAL: 9/4/200110:50 AM Lehman CEO Energy Conference September 4-5, 2001 New York MEK Pager: 800/901-5209 PHR Pager: 800/957-8467 Tuesday, September 4 6:00 p.m. Gulf Stream N5733 departs hangar for Teterboro Pilots: Gary Simmons, Ron Fain and Michael Boegler Passengers: Ken Lay, Mark Koenig and Paula Rieker Note: Rick Causey and Jim Derrick will be traveling on plane to attend New Power Company Board Meeting. Hotel and Transportation arrangements have been made by NPC. Fruit & Cheese Tray and Dinner 9:51 p.m. Arrive Teterboro FBO: Jet Aviation Tel: 201/4624000, Fax: 462-4005 Transportation: Delroy sedan - Rich 718/292-1010 Note: Rick Causey and Jim Derrick have arranged for transportation separately Hotel: The Four Seasons 57 E. 57th Street New York, NY Tel: 212/758-5700/ Fax: 212/758-5711 Conf: K. Lay 849382, M. Koenig 90097932 and P. Rieker 849381 Note: a Package with 30 books for 1:1 is being sent to Hotel to Paula Rieker Pilots Hotel: Marriott at Glenpointe 201/836-0600 Wednesday, September 5 7:30 a.m. - 1:1 Lehman Brothers/Rick Gross & Jim Harmon (212/526-3143) 8:30 a.m. Breakfast Meeting (7a, Four Seasons Hotel - Suite 505 on 5` Floor Contact: Francine 212/893-6867 8:45 a.m. Depart The Four Seasons for The New York Hilton via Delroy sedan Transportation provided by Delroy (718/292-1010) 9:20 a.m.- Ken Lay Presentation to Lehman Conference/Sutton South Room 9:55 a.m. The New York Hilton, 1335 Avenue of the Americas (Between 53rd St. and 54th St.) Tel. 212/586-7000 20 minute presentation + 10-15 Q&A. Media will attend 10:00 a.m.- Break-out Session Gibson Suite (20 minutes) 10:20 a.m. 11:00 a.m. - 1:1 Morgan Stanley Investment Management/Ron Silvestri (212/762-9681) + 12 12:00 p.m. 1221 Ave. of the Americas, 22nd Floor 9 (Between 48th St. and 49th St.) 1:00p.m. - 1:lOppenheimer Funds, Inc./Mike Levine (212/323-0877) + 6 2:15 p.m. Lunch Meeting -Two World Trade Center, 31St Floor 2:30 p.m. - 1:1 Smith Barney Asset Manaaemen/Kevin Struass (203/961-4843) + 10 3:30 p.m and Salomon Asset Mamt/Michael Kagan (212/783-6324) Seven World Trade Center, 37th Floor EC2655OA0070525 EXH064-00438 ============= Page 5 of 75 ============= 3:30 p.m. Mr. Lay departs for 88 Pine Street meeting at 4:00 p.m. Note: A second sedan will be provided for M. Koenig and P. Rieker 4:00 p.m. - 1:1 CIBCBill Hyler (212/667-7048) - Koenig & Rieker 5:00 p.m. One World Trade Center, 200 Liberty at West Street 5:00 p.m. Depart for Teterboro 6:00 p.m. Depart Teterboro for Enron hangar Pilots: Gary Simmons, Ron Fain and Michael Boegler Passengers: Ken Lay, Mark Koenig, Paula Rieker, Rick Causey and Jim Derrick Fruit & Cheese Tray and Dinner 8:05 p.m. Arrive Enron hangar EC2655OA0070526 EXH064-00439 ============= Page 6 of 75 ============= EC2655OA0070527 1:1's EXH064-00440 ============= Page 7 of 75 ============= BlackBook Profile Page 1 of 2 11 Morgan Stanley Investment Management ;. ,. Ownership data as of 06/30/01 111" Page 1 1 Page 2 11 . Founded: 1975. Formerly Morgan Stanley Style GARP 1221 Avenue of the Americas Asset Management Inc. In Dec. '98, the parent M.S.D.W. & Co., re-named the firm Morgan Orientation Active New York, NY 10020 Stanley Dean Witter Invt. Mgmt. As of second Turnover Mod quarter 2001, the firm has phased out the # of Stocks Held 3,217 Tel (212) 762-7100 Dean Witter and is know known as Morgan Stanley Investment Management. Portfolio Turnover 62.5 Equity Assets ($MM) 51,746 Fax (212) 762-7379 Investor Type Investment Advisors KEY CONTACTS POSITIONAL HISTORY Name Title Phone Date Position Change % Out Senior Vi ce President/Global (212) 762-9679 Current 3,134,946 0 0.42 Edward Gaylor Utilities 06/30/01 3,134,946 658,104 0.42 Michelle Kaufman Senior Vi ce President (212) 762-9695 03/31/01 2,476,842 124,401 0.33 12/31/00 2,352,441 665,329 0.31 Andrew Arbenz Vice President 212-762-9680 09/30/00 1,687,112 384,220 0.22 Vice President (212) 762-9681 Ronald Silvestri 06/30/00 1,302,892 -15,714 0.17 03/31/00 1,318,606 73,500 0.18 INDUSTRY WEIGHTINGS 12/31/99 1,245,106 505,908 0.17 Top 10 Holdings S&P % Port $ Chg Top 5 Buys S&P % Port $ Chg 09/30/99 739,198 -233,020 0.10 Multi-Industry (0.8) 5.9 -130.0 Mutual Funds (NA) 1.2 389.8 PEER OWNERSHIP Hlthcar-Drgs/Ph (0.8) 5.4 143.3 Railroads (1.4) 0.5 214.4 06/01 03/01 12/00 09/00 Computer Sftwr (0.9) 4.7 - 2,365.5 Oil&Gas-Svcs (1.4) 1.0 150.0 Top 10 ($MM) ($MM) ($MM) ($MM) Semiconductors (0.9) 2.9 150.0 Semiconductors (0.9) 2.9 150.0 ENE 153.9 143.9 195.5 147.8 Inv Bank/Broker (0.7) 2.8 -0.7 Hlthcar-Drgs/Ph (0.8) 5.4 143.3 AES 261.7 274.8 317.4 319.1 Computer Hrdwr (0.6) 2.3 90.2 Top 5 Sells S&P % Port $ Chg WMB 53.0 57.7 52.1 52.8 Finan-Dvsfd (0.9) 1.9 -65.1 Computer Sftwr (0.9) 4.7 -2,365.5 DUK 51.2 45.8 41.2 34.0 Biotechnology (2.2) 1.9 -109.7 Comms Equipm (1.1) 1.9 -850.6 D 27.8 12.6 13.5 9.4 Entertainment (0.6) 1.9 76.3 Telcom-Cell/Wrl (1.2) 1.0 -164.4 MIR 24.6 9.1 2.8 0.0 Hlthcar-Dvsfd (0.5) 1.9 92.1 Electronics (1.6) 1.9 -149.1 DYN 8.7 10.4 14.3 13.5 Telcom-Intgrtd (1.5) 1.5 -135.6 KMI 8.2 14.3 7.9 2.2 PCG 4.9 11.2 13.0 14.4 TRP 1.5 1.5 1.4 1.3 EGP 0.2 0.3 0.2 0.2 Total 442.1 439.2 463.8 447.0 PORT DI STRIBUTION Small Mid Large 7% 17% 76% PORTFOLIO CHARACTERISTICS P/E Yield Price/Est EPS EPS 5 Yr Gr Proj ROE Debt/Eq uity P/B Beta Enron Corp 47.0 1.1 24.9 17.4 7.8 83.3 3.6 0.8 S&P 500 26.4 1.4 25.8 15.3 20.7 53.2 4.3 1.0 Morgan Stanley Investment Management 28.1 1.4 28.3 17.3 19.5 34.3 3.8 1.1 HOLDINGS (All Cap) ADJUSTMENTS Proj EPS Proj EPS $ Held $ Chg % Port P/E Yield Growth Buys $ Held $ Chg % Port P/E Yield Growth MSFT 1,163.8 -2,069.7 2.2 48.0 0.0 16.6 QQQ 521.0 364.6 1.0 NA 0.0 NA GE 1,075.3 -44.1 2.1 32.7 1.5 15.3 CP 209.3 195.2 0.4 9.2 1.5 12.7 PFE 1,003.2 31.0 1.9 34.4 1.1 20.9 IBM 527.0 122.5 1.0 22.5 0.5 12.7 INTC 840.8 83.5 1.6 34.6 0.3 17.5 AOL 758.5 98.3 1.5 NM 0.0 NA AOL 758.5 98.3 1.5 NM 0.0 NA PEP 203.1 91.6 0.4 29.3 1.2 12.7 TYC 725.6 -93.3 1.4 20.6 0.1 19.1 Proj EPS C 647.4 -8.5 1.3 18.2 1.1 14.3 Sells $ Held $ Chg % Port P/E Yield Growth CSCO 615.6 -3.7 1.2 236.5 0.0 26.5 MSFT 1,163.8 -2,069.7 2.2 48.0 0.0 16.6 AIG 608.4 70.0 1.2 32.3 0.2 14.4 ERICY 11.4 -485.4 0.0 NA 2.0 18.4 IBM 527.0 122.5 1.0 22.5 0.5 12.7 BK 235.8 -149.1 0.5 22.0 1.6 12.4 GMH 18.2 -108.0 0.0 NM 0.0 34.7 - TYC 725.6 -93.3 1.4 20.6 0.1 19.1 EC2655OA0070528 http://w.../irchn?page=iosown&formtype=41 &lname=Enron%2OPeer%20FR&instid=MRGNST00 8/29/2001 EXH064-00441 ============= Page 8 of 75 ============= BlackBook Profile Page 2 of 2 INVESTMENT APPROACH Morgan Stanley Investment Management New York's office manages both large and small-cap strategies for equity investments. For larger-cap issues, the firm uses a bottom-up fundamental approach, emphasizing strength of balance sheet and management. Below-average debt levels and productive use of cash flow are critical factors in stock selection. Historical measurements of a company's ability to increase earnings and dividends are also important. Selected companies tend to be mid to large-sized, with at least a $500 million market-cap. The universe consists of the 500 largest and highest US quality corporations making up at least 75% of the portfolio. The remainder, if any, is chosen from a universe of 1,000 complimentary global corporations. The portfolio holds approximately 45 companies. The emerging growth approach is bottom-up and focuses exclusively on small to mid-size, high quality, rapidly growing companies with annual sales in the $10-750 million range. Managers also seek EPS growth rates of at least 20% per year over the next five years, high return on shareholders' equity so that as much growth is internally financed as possible, clean balance sheets, conservative accounting practices and industry leadership. The U.S. equity plus strategy strives to produce mirrored results from that of the S&P 500 benchmark, plus 120 basis points. The analyst's ratings are combined with earnings momentum analysis andd the firm will generally invest in large-cap stocks chosen from the S&P 500. o Decision-Making Process: Portfolio managers conduct their own research broken down by market-cap specialty groups as well as the integration of outside research. The firm relies on 70% in house, 20% provided by the street and 10% from consultants. The domestic equity strategy group establishes sector guidelines and company selection criteria. ฉ Copyright 2000 Thomson Financial/Carson. All rights reserved. http:/,/www.irchannel.coni EC2655OA0070529 http://w.../irchn?page=iosown&formtype=41 &lname=Enron%20Peer%20FR&instid=MRGNSTOO 8/29/2001 EXH064-00442 ============= Page 9 of 75 ============= Page 1 of 1 Mr. Ronald Silvestri, Vice President Morgan Stanley Investment Management 1221 Avenue of the Americas 22nd Floor New York , NY 10020 US Job Function Portfolio Manager Tel Tel: (212) 762-9681 Fax Fax: (212) 762-7379 E-mail ronald.silvestri0morganstanley com URL www.msdw.com Focus Equity Buy-Side COVERAGE Industry - Mid Cellular/Wireless Telecom Non-Electric Utilities Telephone (Local) Industry - Micro Natural Gas-Distr-Pipe Line Electric Utilities Telephone-Long Distance Power Producers (Independ) MUTUAL FUNDS MANAGED Fund Morgan Stanley Utilities Fund Morgan Stanley Variable Utilities Fund Morgan Stanley Sel. Dimensions Utilities Style Turnover Assets Specialty Low 1,871 Specialty Low 400 Specialty Low 139 BIOGRAPHY Employment History: Mr. Ronald Silvestri is employed at Morgan Stanley Dean Witter Advisors, Inc. as a vice president. Preferences: Mr. Ronald Silvestri prefers to be called "Ron." EC2655OA0070530 ... /irchn?page=iosown&formtype=36&compid=ENRNCR001&instid=MRGNST001 &contact=3216 8/29/2001 EXH064-00443 ============= Page 10 of 75 ============= BlackBook Profile OppenheimerFunds, Inc. Ownership data as of 06/30/01 Page 1 Page 2 Two World Trade Center New York, NY 10048-0203 Tel (212) 323-0200 Fax (212) 323-4013 Founded: 1959. The firm Is a subsidiary of MassMutual Life Insurance Co. Some funds are managed from OppenheimerFunds' Hartford office. In March 1999, OppenheimerFunds, Inc. acquired Trinity Investment Management. HarbourView Asset Management Corp. Is a subsidiary. KEY CONTACTS Name Title Frank Jennings Vice President Phone (212) 323-0799 0. Leonard Darling Chief Investment Officer (212) 323-0200 Nikolaos Monoylos Vice President (212) 323-0242 INDUSTRY WEIGHTINGS Top 10 Holdings S&P % Port $ Chg Top 5 Buys S&P % Port $ Chg Finan-Dvsfd (3.0) 6.4 122.7 TV, Radio, Cabl (4.5) 3.1 527.6 Computer Sftwr (1.1) 5.8 144.4 Hithcar-Dvsfd (0.6) 2.1 471.8 Multi-Industry (0.6) 3.9 8.1 Retail-Chain St (0.6) 1.7 319.5 Hithcar-Drgs/Ph (0.6) 3.8 9.8 Computer Svcs (1.3) 1.5 263.6 Oil&Gas-Intl (0.7) 3.4 38.6 Electric Cos (1.3) 2.9 231.6 Inv Bank/Broker (0.8) 3.4 -110.4 Top 5 Sells S&P % Port $ Chg Biotechnology (3.8) 3.3 -305.0 Electronics (1.8) 2.1 -660.3 TV, Radio, Cabl (4.5) 3.1 527.6 Comms Equipm (1.1) 1.8 -343.4 Electric Cos (1.3) 2.9 231.6 Biotechnology (3.8) 3.3 -305.0 Banks-Money Ctr (0.8) 2.6 136.7 Retail-Cptr&Eiec (3.5) 0.7 -207.0 Manftg-Dvrsfd (0.8) 0.8 -177.7 Page l of 2 Style GARP Orientation Active Turnover Mod # of Stocks Held 1,712 Portfolio Turnover 64.5 Equity Assets ($MM) 51,096 Investor Type Investment Advisors POSITIONAL HISTORY Date Position Change % Out Current 4,700,000 810,500 0.63 06/30/01 3,889,500 -435,000 0.52 03/31/01 4,324,500 -321,200 0.58 12/31/00 4,645,700 -183,800 0.62 09/30/00 4,829,500 781,700 0.64 06/30/00 4,047,800 303,200 0.54 03/31/00 3,744,600 -54,800 0.50 12/31/99 3,799,400 -620,000 0.51 09/30/99 4,419,400 46,400 0.59 PEER OWNERSHIP 06/01 03/01 12/00 09/00 Top 10 ($MM) ($MM) ($MM) ($MM) ENE 191.0 251.3 386.2 423.2 DUK 219.2 263.6 110.4 12.2 KMI 198.2 76.1 56.0 33.4 AES 151.8 199.4 191.4 194.3 D 138.0 132.9 90.7 19.2 WMB 130.3 143.4 86.3 55.1 DYN 123.5 145.4 121.0 158.2 MIR 86.1 0.0 5.3 9.7 PCG 11.2 8.3 18.3 17.1 NRG 4.7 0.1 0.0 0.0 Total 1,062.9 969.3 679.3 499.4 PORT DISTRIBUTION Small Mid Large 4% 16% 80% PORTFOLIO CHARACTERISTICS P/E Yield Pr ice/Est EPS EPS 5 Yr Gr Proj ROE Debt/Equity P/B Beta Enron Corp 47.0 1.1 24.9 17.4 7.8 83.3 3.6 0.8 S&P 500 26.4 1.4 25.8 15.3 20.7 53.2 4.3 1.0 OppenheimerFunds, Inc. 27.0 1.2 25.6 16.5 18.1 29.2 4.0 1.1 HOLDINGS (Al l Cap) ADJU STMENTS Proj EPS Proj EPS $ Held $ Chg % Port PIE Yield Growth Buys $ Held $ Chg % Port P/E Yield Growth FRE 1,170.3 28.5 2.3 16.5 1.2 14.5 JNJ 652.4 444.6 1.3 30.3 1.3 14.2 C 1,163.0 -34.4 2.3 18.2 1.1 14.3 HI 481.4 250.5 0.9 17.4 1.3 14.4 MSFT 953.5 142.5 1.9 48.0 0.0 16.6 TGT 276.3 231.9 0.5 27.5 0.6 14.9 AOL 812.7 182.2 1.6 NM 0.0 NA CMCSK 477.4 221.7 0.9 NM 0.0 18.7 JNJ 652.4 444.6 1.3 30.3 1.3 14.2 WCOM 361.5 203.6 0.7 12.4 0.0 13.3 GE 635.9 -7.3 1.2 32.7 1.5 15.3 Proj EPS PFE 610.5 14.2 1.2 34.4 1.1 20.9 Sells $ Held $ Chg % Port P/E Yield Growth TYC 609.9 131.1 1.2 20.6 0.1 19.1 AZA_ 0.0 -268.1 0.0 NA NA NA XOM 590.8 -53.9 1.2 15.4 4.2 7.3 CPN 28.9 -201.9 0.1 23.6 0.0 33.8 AIG 531.1 16.1 1.0 32.3 0.2 14.4 EMR 80.6 -193.7 0.2 17.9 2.7 11.8 RSH 0.5 -177.0 0.0 16.5 0.8 16.6 RTN A_ 0.0 -169.0 0.0 NA NA NA EC2655OA0070531 http://w.../irchn?page=iosown&formtype=41 &lname=Enron%2OPeer%20FR&instid=OPPNHM00 8/30/2001 EXH064-00444 ============= Page 11 of 75 ============= BlackBook Profile 1ZJ ~.At)tr•~ Page 2 of 2 INVESTMENT APPROACH Oppenheimer manages a number of funds, each with their individual investment objectives. However, the firm's overall investment process is based on a combination of bottom-up and top-down analysis. Portfolio managers place emphasis on relative valuations, historical and projected growth rates, as well as company fundamentals. This research is complemented by a macro analysis of interest rates, economic growth, industry trends and inflation. Ultimately, investments are concentrated in companies with attractive growth prospects and reasonable prices. The investment horizon is dependent, in part, upon Oppenheimer's outlook on the market as well as the fund under management. Investment Criteria: 1) Strong earnings and revenue growth; 2) Attractive fundamentals; 3) Earnings surprise. Decision-Making Process: Portfolio managers have discretion to select investments for their individual funds. ฉ Copyright 2000 Thomson Financial/Carson. All rights reserved. http;//www irchannel.com EC2655OA0070532 http://w.../irchn?page=iosown&formtype=41 &lname=Enron%2OPeer%20FR&instid=OPPNHM00 8/30/2001 EXH064-00445 ============= Page 12 of 75 ============= Page 1 of 1 Mr. Michael Levine, Vice President OppenheimerFunds, Inc. Two World Trade Center 34th Floor New York, NY 10048-0203 US Job Function Portfolio Manager Fixed Income Portfolio Manager COVERAGE Country United States Style GARG MUTUAL FUNDS MANAGED Fund Oppenheimer Capital Income Fund O_ppenheimer Multiple Strategies Fund Oppenheimer Multiple Strategies Fund/VA Tel Tel: (212) 323-0877 Fax Fax: (212) 323-4017 E-mail mlevineeoppenheimerfunds.com URL www.oppenheimerfunds.com Focus Equity/Fixed Income Buy-Side Style Turnover Assets Yield Low 2,315 GARP Low 382 GARP Mod 299 BIOGRAPHY Employment History: Prior to joining OppenheimerFunds, Inc. in June 1994, Mr. Michael S. Levine served as a portfolio manager and research associate for Amas Securities, Inc. Preferences: Mr. Michael Levine prefers to go by the name "Mike." EC26550A0070533 .../irchn?page=iosown&formtype=36&compid=ENRNCR001 &instid=OPPNHM002&contact=3615 8/30/2001 EXH064-00446 ============= Page 13 of 75 ============= BlackBook Profile Page 1 of 2 Smith Barney Asset Management Ownership data as of 06/30/01 k Page 1 1 Page 2 '• In 1998, Citicorp merged with Travelers Group Style GARP Seven World Trade center to form Citigroup. In 1999, Citigroup reorganized Its asset management businesses Orientation Active New York, NY 10048-1102 to form Citigroup Asset Management, Turnover Low comprising Salomon Brothers Asset Mgmt, # of Stocks Held 3,776 Tel (212) 816-6000 Smith Barney Asset Mgmt and Citibank Global Asset Mgmt. A small portion of the firm's Portfolio Turnover 28.7 assets are accounted for in a confidential filing. Equity Assets ($MM) 153,042 Fax (212) 816-6101 Investor Type Investment Advisors KEY CONTACTS POSITIONAL HISTORY Name Title Phone Date Position Change % Out Managing Director/Large-Cap (203) 961-4841 Current 14,600,000 -1,157,260 1.95 Nicholson Lamdin Va lue 06/30/01 15,757,260 759,510 2.10 Scott Se Van Bergh curity Analyst (212) 816-0982 03/31/01 14,997,750 554,948 2.00 12/31/00 14,442,802 186,607 1.93 Mario Rodriguez Se curity Analyst (212) 816-0966 09/30/00 14,256,195 1,867,586 1.90 INDUSTRY WEIGHTINGS 06/30/00 12,388,609 -3,286,391 1.65 Top 10 Holdings S&P % Port $ Chg Top 5 Buys S&P % Port $ Chg 03/31/00 15,675,000 -3,724,463 2.09 Hlthcar-Drgs/Ph (0.9) 5.8 100.1 Semiconductors (1.2) 4.0 326.1 12/31/99 19,399,463 -4,334,961 2.59 Multi-Industry (0.8) 5.6 -291.8 Telcom-Long (0.9) 0.8 200.9 09/30/99 23,734,424 1,190,108 3.17 Biotechnology (5.2) 4.6 -695.8 Telcom-Intgrtd (1.5) 1.5 195.0 PEER OWNERSHIP Computer Sftwr (0.8) 4.1 -62.9 Inv Bank/Broker (0.8) 3.5 189.2 06/01 03/01 12/00 09/00 Semiconductors (1.2) 4.0 326.1 Oil&Gas-E&P (1.2) 0.6 144.5 Top 10 ($MM) ($MM) ($MM) ($MM) 011&Gas-Intl (0.7) 3.5 -286.0 Top 5 Sells S&P % Port $ Chg ENE 773.7 871.4 1,200.6 1,249.2 Inv Bank/Broker (0.8) 3.5 189.2 Biotechnology (5.2) 4.6-695.8 DUK 445.4 498.1 466.3 433.5 Entertainment (1.1) 3.5 -117.2 Electron-Defens (0.8) 0.1 -435.3 WMB 393.4 501.4 455.3 468.2 Banks-Money Ctr (1.1) 3.4 -207.7 Finan-Dvsfd (1.4) 3.0 -398.0 AES 278.6 351.0 302.4 363.2 Finan-Dvsfd (1.4) 3.0 -398.0 Consumer Finan (1.6) 1.4 -299.6 DYN 107.9 105.0 109.3 78.3 Multi-Industry (0.8) 5.6 -291.8 D 69.5 74.2 67.0 34.2 MIR 47.5 24.3 18.4 0.0 PCG 21.9 24.9 42.7 41.7 TRP 14.9 13.1 13.4 10.0 NRG 12.9 21.3 14.0 7.3 KMI 7.9 10.0 5.5. 3.7 Tota 1 1,401.5 1,624.9 1,494.7 1,440.4 PORT DISTRIBUTION Small Mid Large 4% 11% 85% PORTFOLIO CHARACTERISTICS P/E Yield Price/Est EPS EPS 5 Yr Gr Proj ROE Debt/Equ ity P/B Beta Enron Corp 47.0 1.1 24.9 17.4 7.8 83.3 3.6 0.8 S&P 500 26.4 1.4 25.8 15.3 20.7 53.2 4.3 1.0 Smith Barney Asset Management 30.0 1.1 29.8 16.7 20.2 34.1 4.2 1.1 HOLDINGS (All Cap) ADJUSTMENTS Proj EPS Proj EPS $ Held $ Chg % Port P/E Yield Growth Buys $ Held $ Chg % Port P/E Yield Growth GE 4,113.6 -92.6 2.7 32.7 1.5 15.3 AXP 984.4 215.2 0.6 20.6 0.8 13.6 AOL 3,455.5 -99.5 2.3 NM 0.0 NA AGR A 171.1 171.1 0.1 NA 0.0 NA MSFT 3,453.1 -138.1 2.3 48.0 0.0 16.6 FON 396.9 165.6 0.3 15.3 2.1 10.7 TYC 3,048.8 -80.1 2.0 20.6 0.1 19.1 RTN 113.4 113.4 0.1 18.7 2.8 10.6 INTC 2,824.4 -50.8 1.8 34.6 0.3 17.5 JNJ 1,859.2 108.0 1.2 30.3 1.3 14.2 PFE 2,581.0 65.4 1.7 34.4 1.1 20.9 Proj EPS AIG 2,551.9 52.3 1.7 32.3 0.2 14.4 Sells $ Held $ Chg % Port P/E Yield Growth XOM 2,485.9 -137.5 1.6 15.4 4.2 7.3 RTN A_ 0.0 -473.3 0.0 NA NA NA AMGN 2,477.4 -137.3 1.6 56.7 0.0 19.6 HI 1,079.7 -311.8 0.7 17.4 1.3 14.4 HD 1,978.4 -116.5 1.3 45.6 0.3 21.0 CEFT 80.9 -248.5 0.1 56.5 0.0 30.5 DAL 32.1 -215.3 0.0 70.4 0.2 9.0 AZA_ 0.0 -211.3 0.0 NA NA NA EC26550A0070534 http://ww ... /irchn?page=iosown&formtype=41&lname=Enron%20Peer%20FR&instid=TRVLRSOO 8/30/2001 EXH064-00447 ============= Page 14 of 75 ============= BlackBook Profile Page 2 of 2 INVESTMENT APPROACH The firm builds equity portfolios around a core group of strong, large-cap growth companies that are subject to ongoing fundamental analysis. Focus is on earnings growth, absolute and relative P/E, dividend growth and balance sheet quality. Investments tend to be made in companies with a global scope that are leaders in their industries. Equity investments also reflect investment themes within the prevailing market environment. However, the firm does not trade aggressively. Companies are held on average for three years. Smith Barney also offers a Growth Equity Management program. The firm has a tendency to concentrate holdings in one industry. Decision-Making Process: Meetings with company management are considered important to determine company quality, strategic plans and goals. Research is conducted separately from other advisors within Smith Barney, but on occasion information is shared. ฉ Copyright 2000 Thomson Financial/Carson. All rights reserved. http;//www.irchannel.com EC2655OA0070535 http://ww.../irchn?page=iosown&formtype=41 &lname=Enron%2OPeer%20FR&instid=TRVLRS00 8/30/2001 EXH064-00448 ============= Page 15 of 75 ============= Page 1 of 1 Mr. Kevin Strauss, Vice President/Large Cap-Value Smith Barney Asset Management 100 First Stamford Place Tel Tel: 203- 961-4843 Fifth Floor Fax Fax: 203- 961-4995 E-mail kevin.strauss@citicorp.com Stamford , CT 06902-6729 US URL www.smithbarney.com Job Function Portfolio Manager Focus Equity Buy-Side COVERAGE Industry - Mid Cellular/Wireless Telecom Industry - Micro Oil & Gas (International Integrated) Oil & Gas (Exploration & Production) Communications Equipment Semiconductors Market Cap Large Cap Style Value Oil & Gas (Domestic Integrated) Office Equipment & Supplies Computers (Networking) Electronics BIOGRAPHY Employment History: Mr. Kevin Strauss serves as a vice president and portfolio manager with Smith Barney Asset Management where he covers energy, telecom and technology among other sectors. EC26550A0070536 /irchn?page=iosown&formtype=36&compid=ENRNCR001 &instid=TRVLRS001 &contact=3870 8/30/2001 EXH064-00449 ============= Page 16 of 75 ============= BlackBook Profile Salomon Brothers Asset Management Inc. LhQr~~ Ownership data as of 06/30/01 Page 1 1 Page 2 World Trade Center In 1998, Citicorp merged with Travelers Group Seven Inc. to form Citigroup. In 1999, Citigroup reorganized It various asset management New York, NY 10048-1102 businesses to form Citigroup Asset Management, which comprises Salomon Tel (212) 783-0589 Brothers Asset Management, Smith Barney Asset Management and Citibank Global Asset Fax (212) 783-4573 Management. KEY CONTACTS Name Title Phone Henry Clark Managing Director (212) 816-0989 Ross Margolies Managing Director (212) 783-6314 Gary Magnuson Senior Portfolio Manager (206) 344-5856 Ajay Dravid Portfolio Manager (212) 783-6886 INDUSTRY WEIGHTINGS Top 10 Holdings S&P % Port $ Chg Top 5 Buys S&P % Port $ Chg Computer Hrdwr (1.4) 5.2 75.9 Computer Hrdwr (1.4) 5.2 75.9 Banks-Money Ctr (1.4) 4.6 36.2 Telcom-Long (3.6) 3.0 54.9 Hlthcar-Drgs/Ph (0.6) 3.8 43.4 Hlthcar-Drgs/Ph (0.6) 3.8 43.4 Comms Equipm (2.2) 3.5 30.2 Retail-Food Chn (5.0) 2.8 38.0 Hlthcar-Hosp (9.2) 3.5 24.3 Banks-Money Ctr (1.4) 4.6 36.2 TV, Radio, Cabi (4.9) 3.4 9.8 Top 5 Sells S&P % Port $ Chg Foods (2.2) 3.3 25.3 Oil&Gas-Refng (6.3) 0.6 -12.3 Telcom-Local (0.9) 3.0 33.6 Svcs-CommCons (1.5) 0.8 -12.2 Telcom-Long (3.6) 3.0 54.9 Telcom-Cell/Wri (0.4) 0.3 -12.0 Retail-Food Chn (5.0) 2.8 38.0 Ins-Multi-Line (0.1) 0.2 -10.1 Oil&Gas-E&P (1.6) 0.8 -9.3 Page l of 2 Style Core Growth Orientation Active Turnover High # of Stocks Held 570 Portfolio Turnover 138.2 Equity Assets ($MM) 2,770 Investor Type Investment Advisors POSITIONAL HISTORY Date Position Change % Out Current 8,930 0 0.00 06/30/01 8,930 0 0.00 03/31/01 8,930 -15,000 0.00 12/31/00 23,930 -459,700 0.00 09/30/00 483,630 299,000 0.06 06/30/00 184,630 -94,000 0.02 03/31/00 278,630 0 0.04 12/31/99 278,630 0 0.04 09/30/99 278,630 22,000 0.04 PEER OWNERSHIP 06/01 03/01 12/00 09/00 Top 10 ($MM) ($MM) ($MM) ($MM) ENE 0.4 0.5 2.0 42.4 WMB 12.5 13.4 5.8 10.6 DUK 0.1 0.1 0.1 18.9 PCG 0.0 0.0 0.0 3.8 KMI 0.0 1.9 0.0 0.0 AES 0.0 3.6 4.0 6.5 Total 12.6 19.0 9.8 39.8 PORT DISTRIBUTION Small Mid Large 14% 17% 69% PORTFOLIO CHARACTERISTICS P/E Yield Pri ce/Est E PS EPS 5 Yr Gr Proj ROE Debt/ Equity P/B Beta Enron Corp 47.0 1.1 24.9 17.4 7.8 83.3 3.6 0.8 S&P 500 26.4 1.4 25.8 15.3 20.7 53.2 4.3 1.0 Salomon Brothers Asset Management Inc. 24.5 1.3 24.4 16.1 17.5 23.7 3.9 1.1 HOLDINGS (All Cap) ADJUSTMENTS Proj EPS Proj EPS $ Held $ Chg % Port P/E Yield Growth Buys $ Held $ Chg ฐio Port P/E Yield Growth SWY 68.6 36.9 2.5 17.7 0.0 16.5 T 65.6 43.5 2.4 45.6 0.7 10.3 T 65.6 43.5 2.4 45.6 0.7 10.3 SWY 68.6 36.9 2.5 17.7 0.0 16.5 WM 56.7 34.0 2.0 14.1 2.3 12.4 WM 56.7 34.0 2.0 14.1 2.3 12.4 HCA 53.5 18.9 1.9 25.4 0.2 14.6 SUNW 30.9 27.2 1.1 37.3 0.0 20.2 VZ 52.6 18.8 1.9 20.7 2.8 11.4 OAT_ 23.6 23.6 0.9 24.6 1.3 10.3 NWS A 43.4 21.2 1.6 NA NA NA Proj EPS FBF 39.8 9.8 1.4 12.9 3.5 11.0 Sells $ Held $ Chg % Port P/E Yield Growth BK 38.4 13.7 1.4 22.0 1.6 12.4 MIKL_ 0.0 -13.9 0.0 NA NA NA IBM 37.8 8.0 1.4 22.5 0.5 12.7 AIG 1.6 -11.7 0.1 32.3 0.2 14.4 FD 37.3 9.8 1.3 12.3 0.0 12.7 DCX 5.5 -10.8 0.2 NM 6.6 6.0 GE 11.9 -9.5 0.4 32.7 1.5 15.3 EVG 0.0 -8.7 0.0 24.5 0.0 33.8 EC26550A0070537 http://ww.../irchn?page=iosown&formtype=41 &lname=Enron%2OPeer%20FR&instid=SLMNBR00 8/29/2001 EXH064-00450 ============= Page 17 of 75 ============= BlackBook Profile Page 2 of 2 INVESTMENT APPROACH The firm utilizes both quantitative and fundamental analysis when evaluating potential investments. Emphasis is placed on growth stocks that are performing poorly due to a specific event or overall industry woes. Such companies are often under- followed or out-of-favor with the Street. Fundamental analysis concentrates on companies which exhibit several of the following characteristics: 1) increasing earnings; 2) new products or services; 3) experiencing changes in market demand for products; 4) competitive industry position; 5) strong cash flow; and, 6) operating in favorable economic and regulatory environments. The firm prefers large-cap companies as all investments are set for long-term horizons. Investment Criteria: 1) Low P/E relative to both historical levels and current market levels; 2) Above-average, long-term growth prospects; 3) Catalyst to drive earnings; 4) Undervalued assets; 5) Qualified management team or new management policies or personnel. Decision-Making Process: Portfolio managers, many of whom are analysts, generate a considerable amount of research and have the freedom to make investment decisions as long as they are within the guidelines set by the Investment Policy Committee. ฉ Copyright 2000 Thomson Financial/Carson. All rights reserved. http;//www.irchannel.com EC26550A0070538 http://ww.../irchn?page=iosown&formtype=41 &lname=Enron%2OPeer%20FR&instid=SLMNBR00 8/29/2001 EXH064-00451 ============= Page 18 of 75 ============= Page 1 of 1 Mr. Michael Kagan, Portfolio Manager Salomon Brothers Asset Management Inc. Seven World Trade Center Tel Tel: (212) 783-6324 37th Floor Fax Fax: (212) 783-2495 E-mail michael.a.kagan@ssmb.com New York , NY 10048-1102 US URL www.sbam.com Job Function Portfolio Manager Focus Equity Security Analyst Buy-Side COVERAGE Industry - Mid Aerospace/Defense Autos/Auto Parts Business Cyclicals Chemicals Consumer Cyclicals Energy Health Care Industry - Micro Automobiles Homebuilding Lodging-Hotels Oil & Gas (Domestic Integrated) Engineering & Construction Country United States Market Cap Large Cap Mid Cap Small cap Style Growth MUTUAL FUNDS MANAGED Fund Style Turnover Assets Smith Barney Growth and Income Fund Core Value High 1,625 Concert Investments Select Growth and Income High 8 Greenwich Street Series Fund - Growth & Income Core Growth High 16 Prudential Series - Equity Portfolio Core Value High 5,444 Salomon Brothers Fund Inc. GARP Mod 1,553 BIOGRAPHY Employment History: Mr. Michael Kagan is a portfolio manager with Salomon Brothers Asset Management where he also follows the aerospace, automotive, healthcare and housing sectors. Prior to joining Salomon Brothers Asset Management, Mr. Michael Kagan held positions at Zweig Advisors and Fidelity Investments. Preferences: Mr. Kagan prefers to be called "Mike". Education: Mr. Michael Kagan received an M.B.A from the Sloan School of Management at Massachusetts Institute of Technology, and a B.A. in Economics from Harvard College. Funds Formerly Managed: Mr. Michael Kagan managed the Smith Barney Large Cap Blend Fund prior to it's liquidation in December 2000. EC2655OA0070539 ./irchn?page=iosown&formtype=36&compid=ENRNCR001 &instid=SLMNBR001 &contact=4214 8/29/2001 EXH064-00452 ============= Page 19 of 75 ============= BlackBook Profile Page 1 of 2 CIBC World Ma rkets Corp. y Ownership data as of 06/30/01 Page 1 1 Page 2 Founded: 1950. Forme rly CIBC Oppenheimer Style Specialty One World Financial Center Corp., the firm changed its name in May 1999. In November 1997, Op penheimer & Co. was Orientation Passive New York, NY 10281-1098 purchased by CIBC Wood Gundy Securities Turnover Mod Corp. to form CIBC Oppenheimer Corp. The # of Stocks Held 2,618 Tel (212) 667-7000 firm handles all financial services for CIBC's U.S. operations. Portfolio Turnover 53.0 Equity Assets ($MM) 4,513 Fax (212) 667-4928 Investor Type Research Firm KEY CONTACTS POSITIONAL HISTOR Y Name Title Phone Date Position Change % Out Managin William Hyler g Director/Sell-Side (212) 667-7048 Current 240,330 0 0.03 06/30/01 240,330 33,824 0.03 Jonathan Mogil Security Analyst/Sell-Side (212) 667-7256 03/31/01 206,506 5,215 0.03 Director Christopher of Research/Sell-Side (212) 667-7067 12/31/00 201,291 09/30/00 180,919 20,372 -3,244 0.03 0.02 Paul Keung Security Analyst/Sell-Side (212) 667-7789 06/30/00 184,163 22,162 0.02 INDUSTRY WEIGHTINGS 03/31/00 162,001 79,913 0.02 12/31/99 82,088 16,710 0.01 Top 10 Holdings S&P % Port $ Chg Top 5 Buys S&P Port $ Chg 09/30/99 65,378 20,910 0.01 Computer Sftwr (1.3) 6.8 68.1 Computer Sftwr (1.3) 6.8 68.1 Hlthcar-Drgs/Ph (0.7) 5.0 18.6 Semiconductors (1.0) 3.4 20.4 PEER OWNERSHIP Multi-Industry (0.6) 3.9 10.6 Hlthcar-Drgs/Ph (0.7) 5.0 18.6 06/01 03/01 12/00 09/00 TV, Radio, Cab[ (5.2) 3.6 2.2 Computer-Netwrk (1.1) 1.5 17.3 Top 10 ($MM) ($MM) ($MM) ( $MM) Semiconductors (1.0) 3.4 20.4 Internet (10.9) 1.1 12.8 ENE 11.8 12.0 16.7 15.9 Oil&Gas-Intl (0.7) 3.2 -3.4 Top 5 Sells S&P % Port $ Chg DUK 17.1 16.8 15.4 16.5 Inv Bank/Broker (0.7) 3.1 2.6 Electron-Defens (1.2) 0.1 -16.4 WMB 16.5 16.8 11.3 8.7 Entertainment (1.0) 3.0 8.4 Mutual Funds (NA) 0.1 -13.9 DYN 10.0 6.8 8.2 11.3 Electronics (2.4) 2.9 -3.1 Railroads (0.2) 0.1 -13.4 AES 4.2 2.3 3.0 3.1 Comms Equipm (1.8) 2.9 6.5 Mining-Prec (0.2) 0.0 -10.7 D 3.4 2.1 2.1 0.4 S&L Cos (1.4) 0.7 -10.1 KMI 3.0 2.8 0.0 0.0 PCG 1.0 1.1 1.5 1.9 MIR 0.9 0.0 0.0 0.0 NRG 0.2 0.7 0.5 3.5 EGP 0.0 0.0 0.0 0.0 Total 56.3 49.3 42.1 45.4 PORT DISTRIBUTION Small Mid Large 6% 16% 77% PORTFOLIO CHARACTERISTIC S P/E Yield Price/Est EPS EPS 5 Yr Gr Proj ROE Debt/Equity P/B Beta Enron Corp 47.0 1.1 24.9 17.4 7.8 83.3 3.6 0.8 S&P 500 26.4 1.4 25.8 15.3 20.7 53.2 4.3 1.0 CIBC World Markets Corp. 27.7 1.0 27.5 17.8 19.1 35.2 4.1 1.1 HOLDINGS (All Cap) ADJUSTMENTS Proj EPS Proj EPS $ Held $ Chg % Port P/E Yield Growth Buys $ Held $ Chg % Port P/E Yield Growth MSFT 119.6 14.9 2.7 48.0 0.0 16.6 MERQ 48.1 47.0 1.1 51.5 0.0 39.4 GE 65.8 -0.9 1.5 32.7 1.5 15.3 INTC 64.9 20.1 1.4 34.6 0.3 17.5 C 65.6 4.6 1.5 18.2 1.1 14.3 SLR 15.8 15.0 0.4 22.0 0.0 29.2 AOL 65.2 0.9 1.4 NM 0.0 NA MSFT 119.6 14.9 2.7 48.0 0.0 16.6 INTC 64.9 20.1 1.4 34.6 0.3 17.5 CSCO 38.2 9.9 0.8 236.5 0.0 26.5 VIA B 49.8 5.6 1.1 NA 0.0 33.2 Proj EPS MRK 48.5 2.8 1.1 22.5 2.0 11.9 Sells $ Held $ Chg % Port P/E Yield Growth MERQ 48.1 47.0 1.1 51.5 0.0 39.4 CLS 0.7 -17.6 0.0 41.2 0.0 30.1 XOM 48.0 -0.4 1.1 15.4 4.2 7.3 RTN A_ 0.0 -16.7 0.0 NA NA NA IBM 45.6 -2.5 1.0 22.5 0.5 12.7 UNP 0.0 -14.4 0.0 14.9 1.5 11.4 QQQ 3.1 -13.9 0.1 NA 0.0 NA DBRSY 0.0 -10.6 0.0 NA NA NA EC2655OA0070540 http://ww ... /irchn?page=iosown&formtype=41&lname=Enron%20Peer%20FR&instid=OPPNHM02 9/4/2001 EXH064-00453 ============= Page 20 of 75 ============= EC26550A0070541 ~-00454 SLIDES ============= Page 21 of 75 ============= EC2655OA0070542 EXH064-00455 ============= Page 22 of 75 ============= I i I Enron Logo • Welcome. EC2655OA0070543 EXH064-00456 ============= Page 23 of 75 ============= Earnings Performance (Recurring Per Diluted Share) $2.15 20% Average An rual Growth Rate Lehman 9-01 1 EC26550A0070544 EXH064-00457 1997 1998 1999 2000 2001E 2002E ============= Page 24 of 75 ============= c a Earnings Performance - 1997 through 2002E • Enron has a strong track record of earnings growth. Our earnings growth rate is continuing at very strong levels. • Enron's recurring earnings of $1.47 per diluted share last year were 25% above 1999 results. • We had an initial target for 2001 of $1.70 - $1.75 per diluted share, which we have increased to $1.80 per share. • Our five-year annualize Parnings -Per share growth rate is 20ฐ/2 - a sustainable level for the company and consistent with the growth rated implied in the recently revised 2002 guidance of $2.15 per diluted share. Background: Millions 1997 1998 1999 2000 2001E 2002E Revenues $ 20,273 $ 31,260 $40,112 $100,789 Net Income (Recurring) $ 515 $ 698 $ 957 $ 1,266 EPS (Recurring) $ 0.87 $ 1.00 $ 1.18 $ 1.47 $ 1.80 $ 2.15 EC26550A0070545 EXH064-00458 ============= Page 25 of 75 ============= Financial Performance Lehman 9-01 2 EC2655OA0070546 EXH064-00459 ============= Page 26 of 75 ============= Enron Corp. - Financial Performance • We had another excPtlen+ +P, in all of our businesses The second quarter results confirm our strong growth and momentum. • Net income was up 40% to $404 million • Earnings per share were $0.45 per diluted share this quarter, compared to ~0.341ast year - a 32% percent increase. Background: Revenues ($ Millions) 13,145 16,886 30,031 50,129 50,060 100,189 33,174 196% 70,158 Net Income ($ Millions) 338 289 627 406 404 810 115 40% 183 EPS $ 0.40 $ 0.34 $ 0.73 $ 0.47 $ 0.45 $ 0.92 0.11 32% 0.19 234% 29% 26% EC2655OA0070547 EXH064-00460 ============= Page 27 of 75 ============= Natural Gas Marketing and Delivery Energy Services Transportation and of Commodities for Commercial and Electric Distribution Worldwide Industrial Customers EC2655OA0070548 Lehman 9-01 3 EXH064-00461 ============= Page 28 of 75 ============= Organization Chart • Transportation and Distribution includes our regulated businesses- Our gas pipeline network, which operates as Enron Transportation Services, is one of the lest, most innovative and cost effective systems in North America. Portland General-is-our electric utility in the northwest U.S. Our T&D businesses vroduce strong, ear~ ning an stable 7a= sows. • Wholesale Services is our largest business. scale and extensive scope enables us to pack anagement services at the lowest availab e cost. e are also successfully extendi us ria maresM addition, we are well positioned, in ermediation market for bandwidth. • Our Retail Energy business provides energy services directly to end-use customers in the commercial and light industrial markets. We are the only comprehensive- na onwide provider of enejv services_ in North America an are experiencing great results in Europe. We have a strong history of contracting success, and we are penetrating new markets with proven, standardized products. EC2655OA0070549 EXH064-00462 Enron's wholesale business outlook is very strong. Our broad age and reliably eliver energy commodities and provide once ~ri k ============= Page 29 of 75 ============= Transportation and Distribution Strong Competitive Position in All Markets Served 3.1 Bcf/d Peak Capacity (Interstate Pipelines) • Operating at Full Capacity • Midstream Operations Recently Acquired Portland General ' ' 2,013 MW Generating Capacity 4.3 Bcf/d Peak Capacity • Low-Cost, Flexible • Extensive Supply and Flow Generation Optionality • Commodity Price Exposure • Operating at Full Capacity Managed Through Rate During Peak Demand Structure 1.7 Bcf/d Peak Capacity • Serves Rapidly Growing Market Transwestern • 200 MMcf/d Expansion 1.7 Bcf/d Peak Capacity Completed; 425 MMcf/d • Serves Strong Gas Markets Underway • 150 MMcf/d California Capacity Expansion Announced EC2655OA0070550 Lehman 9-01 4 EXH064-00463 ============= Page 30 of 75 ============= Transportation and Distribution • Portland General is a strong utility. - Tremendous supply optionality results from access to substantial low-cost hydro generation, combined with owners ip o gas, oil ,,an coal generation. - Proven wholesale operations-are used to balance base-load supply with normal retail demand. (Portland General currently has fully covered their base-load generation requirements through the end of 2002). - Finally, wholesale commodity price exposure in Oregon is largely managed through Portland General's rate structure. • Each of our interstate pipelines generated solid financial results. We continue to experience strong demand for capacity. The outlook for our gas pipelines is excellent. i driven to a large degree by new gas-fir power oPnerstinn_ Natural gas demand in the U.S. is grow - The majority 7 -capacity is contracted under long-term agreemgr „wit . no new rate _cases required until late in 2003. - e are competitively well-positioned to expand our markets we serve. We expa id d our system in Florid .. )elines to meet e increased demand in each of the to 1.7 Bcf/d in May 2001. We will complete an a_crnal expansion in April 2002 which win bring our total actively pursuing an addition to the California border, which border from 1.1 Bcf/d to 1.24 Bcf/d in June 2002. MQ+/oL ca acit m Florida to 2.1 Bcf% We are will bring our tal capacity to the California /0~ 4o-o.n4 50A0070551 EC265 EXH064-00464 ============= Page 31 of 75 ============= Natural Gas Transportation and Electric Distribution Marketing and Delivery of Commodities Worldwide Energy Services for Commercial and Industrial Customers Lehman 9-01 5 EC2655OA0070552 EXH064-00465 ============= Page 32 of 75 ============= Wholesale Services - Organization Chart • Wholesale Services is our largest business and has been the main driver of Growth o Enron since its incP ion a decade ago. We have leading market positions worldwide in the fast growing, deregulating worldwide energyy markets. We have consistently increase profitability regardless of commodity market conditions. • We have also extended the Wholesale Services business model to other wholesale markets with enormous growth potential, -including, coal, metals, forest products, steel and bandwidth. • Through our Wholesale Services activities, we have established a franchise with strong, accelerating, recurring growth opportunity. EC2655OA0070553 EXH064-00466 ============= Page 33 of 75 ============= High, Long-Term Correlation in Volumes and Profitability Physical Volumes (Bcfe/d) 51.7 0 Other* / Power  Gas 32.4 27.3 18.0 12.4 W i i 8.1 9.0 6.6 4.4 4.9 0 iiii in- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 31% CAGR *Excludes Products Such as Steel, Metals and Forest Products not Convertible to Bcfe/d Income Before Interest and Taxes* (Millions) $2,252 1 *1997-2000 Have Been Restated EC26550A0070554 Lehman 9-01 6 EXH064-00467 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 I 29% CAGR ============= Page 34 of 75 ============= High, Long-Term Correlation in Volumes and Profitability - 10-Years Historical Physical volumes are the best indicator of earnings growth for Enron. Physical Volumes • Physical volumes have increased at a compounded annual growth rate of 31% since 1991. - ------------- • We have steadily expanded beyond natural gas. Power deliveries have increased rapidly ger 140ฐ/ annually) since our early entry into the wholesale power market in 1995 • Our volume mix has become increasingly well diversified, with power contributing significantly to increasing energy deliveries. IBIT • Income before interest and taxes has also grown substantially, with a compounded annual growth rate of 29% over t e ten-year perio . • IBIT is highly correlated with our physical volumes. • We have consistently grown profits regardless of prevailing commodity pricing Pnvirnnmenr Physical Volumes (Bcfe/d) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Gas 3.7 4.1 5.7 7.0 7.8 9.2 11.0 12.7 15.5 28.3 Power - - - - 0.2 1.6 5.3 11.0 10.7 17.3 Other 0.7 0.8 0.9 1.1 1.0 1.6 1.7 3.6 6.2 6.1 - Total by Product 4.4 4.9 6.6 8.1 9.0 12.4 18.0 27.3 32.4 51.7 110-Year CAGR 31% Increase over Prior Year 11% 35% 23% 11% 38% 45% 52% 19% 60% IBIT( Millions) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Wholesale Services IBIT $ 234 $ 282 $ 330 $ 372 $ 401 $ 466 $ 629 $ 935 1,299 $ 2,252 10-Year CAGR 29% Increase over Prior Year 21% 17% 13% 8% 16% 35% 49% 39% 73% EC2655OA0070555 EXH064-00468 ============= Page 35 of 75 ============= Volume Growth and Strong Margins Drive Profitability Physical Volumes (Bcfe/d) 51.7 / Europe & Other*  North America 32.4 27.3 18.0 12.4011 8.1 9.0 6.6 4.9   1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 'Excludes Products Such as Steel, Metals and Forest Products not Convertible to Bcfe/d EXH064-00469 EC2655OA0070556 Lehman 9-01 7 ============= Page 36 of 75 ============= Volume Growth and Strong Margins Drive Profitability - 10-Years Historical Physical Volumes • Our consistent growth has also been achieved by expanding into new high-growth markets. • Our Europe energy network provides a strong contribution to increased physical volumes. Average per Unit IBIT Margin • The strong correlation in IBIT and physical volumes translates to very consistent per unit margins. We have increased our Average Unit IBIT Margin to 11.9 cents per Mcfe for 2000. Physical Volumes (Bcfe/d) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 North America 3.7 4.1 5.7 7.0 8.0 10.6 15.6 22.5 24.4 40.5 Europe & Other 0.7 0.8 0.9 1.1 1.0 1.8 2.4 4.8 8.0 11.2 Total by Product 4.4 4.9 6.6 8.1 9.0 12.4 18.0 27.3 32.4 51.7 10-Year CAGR 29% Increase over Prior Year 11% 35% 23% 11% 38% 45% 52% 19% 60% IBIT ($ Millions) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Wholesale Services IBIT $ 234 $ 282 $ 330 $ 372 $ 401 $ 466 $ 629 $ 935 $ 1,299 $ 2,252 10-Year CAGR 29% Increase over Prior Year 21% 17% 13% 8% 16% 35% 49% 39% 73% Average per Unit Margin (cents per Mcfe) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Average per Unit WIT Margin 14.6 15.7 13.7 12.6 12.2 10.3 9.6 9.4 11.1 11.9 EC2655OA0070557 EXH064-00470 ============= Page 37 of 75 ============= Second Quarter Performance Physical Volumes (Bcfe/d) 0 Other • Power 74.8 0 Gas 46.7 A' 60% 2Q00 2Q01 Income Before Interest and Taxes (Millions) $802 Average Per Unit IBIT Margin (Cents per Mcfe) 11.8 EC26550A0070558 Lehman 9-01 8 EXH064-00471 2Q00 2Q01 2Q00 2Q01 ============= Page 38 of 75 ============= Second Quarter Performance • These charts depict the combined Wholesale Services group.- • We had an outstanding quarter. Total physical volumes were u 60% from last year to 74.8 Bcfe/d. Natural gas and power , in t e second quarter from a year ago. As we will discuss, EnronOnline volumes increased by 25% an 109%. respectively has been a sign ii cant contributor to our expanded scale. • IBIT increased 93% from a year ago to 5802 million. - Commodity, Sales and Services IBIT increased b 81% to $762 million, once again primarily due to significantly increase physical e every increases across North America and Europe. Our North American power businesslede t e IBIT contribution. - IBIT from assets and investments increased by 144% to $134 million, reflecting a higher level of earnings from merchant investments and related assets. • A_ of PHYSICAL VOLUMES (Bcfe/d) - 2Q 2Q00 2Q01 Gas U.S. Canada Europe and Other Total Physical Sales Vol. Transport Total Gas Oil and Liquids Electricity Total Volumes Electricity (Thousand MWh) U.S. Europe and Other 14,902 19,806 7,536 5,808 3,593 7,290 26,031 32,904 595 319 26,626 33,223 5,048 10,054 15,056 31,500 46,730 74,777 124,089 12,912 137,001 213,948 72,704 286,652 33% -23% 103% 26% -46% 25% 99% 109% 60% 72% 463% 109% EXH064-00472 largely attributable to the scale to 0 0 0 a U9 N t.) W IBIT (S Millions) - 2Q Commodity Sales & Services Gas Trading Power Trading (including Retail) Other Total Commodity Sales & Services Assets & Investments Fair Value Investments Other Changes-Merchant Activities Asset Operations Development & Construction Total Assets & Investments Unallocated Expenses Total IBIT for Wholesale Services MMcfe/d (Cents per Mcfe) 2Q00 2Q01 $Change $ 240 $ 36 $ (204) -85% 151 790 639 423% 29 (64) (93) -321% 420 762 342 81% (55) (58) (3) 5% 88 151 63 72% 27 40 13 48% (5) 1 6 -120% 55 134 79 144% (60) (94) (34) 57% $ 415 S 802 $ 387 93% 46,730 74,777 28,047 60% 9.8 11.8 2.0 21%1 ============= Page 39 of 75 ============= Contrasting Business Approaches Example: Providing Reliable Power Supply Merchants 'd in .4 IN IMF Source from Dedicated Plant Aggregate Power from Market Sources Aggregate Cheapest Power from Numerous, Deep Market Sources Lehman 9-01 9 EC26550A0070560 EXH064-00473 ============= Page 40 of 75 ============= Contrasting Business Approaches - (Build-Up Slide) • Enron's wholesale business is unique. We can apply our scope, scale and access to market information in many ~v Jy' top ide our rs e l ost reliable physical delivery_ at the lowest available cost. Enron is ne4 a /ot "~radmg company. We ar a o istics com an . We utilize the markets to source the cheapest energy components and reliable package and eliver energy to our customers. The value of our extensive network can be seen by contrasting alternatives available to utilities, other merchants and Enron in providing reliable power supply. - Utilities obtain power from limited sources - typically by direct ownership of plants dedicated to serve a specific group of customers. Other merchant companies aggregate supplies from market sources within a given region, including from other utilities with excess power or rom other merchants. Enron's vast scope and scale enable us to have many more contacts and market sources both within the region as well as in surrounding regions. We can aggregate the cheapest power from numerous, deep market sources. EC26550A0070561 EXH064-00474 ============= Page 41 of 75 ============= Enron's Unique Network Alternatives Example: Providing Reliable Power Supply I Toll I Site, Permit, Build A Retail Customer ฎ Utility Customer Plant O Merchant Role • Power Market • Gas Market •Tฐ Displace Utility Load; Source Alternate Fuel Reduce Consumption Aggregate Cheapest Power from Numerous, Deep Sources Contract for Capacity; Aggregate Cheapest Gas Supply Build Plant; Aggregate Cheapest Gas Supply Influence Demand Lehman 9-01 10 EC26550A0070562 EXH064-00475 ============= Page 42 of 75 ============= Enron's Unique Network Alternatives - (Build-Up Slide) • Enron's broad capability to aggregate power is repeated here, along with numerous other ways Enron can source reliable, low-cost power. • We also obtain contract access to third party plants through tolling agreements, which provide us the benefits of ownership without h c:,p+': l-Qa trnt. The advantages of our scope and scale extend from power into gas, as we can aggregate low-cost gas supply to fuel the plant, similar to our sourcing power from many broad sources. • In regions with tight capacity, we develop plants, including sighting, permitting and construction activities. We may sell these rights to third parties _prior to com etion, or we may build to completion and source low-cost gas supp y for an Enron-owned plant. • We can also work direct-1 t down their plants when it is cheaper to buy power on the market than to roduce. Similarly, we can work wit strial custom to shut down th it o ~erations when value off"' t eir energy is worth more than the value o the o For plants with fuel switc mg capabilities, we can source alternate fuel sources when cheaper than running with natural gas or other fuels. • With our retail business, Enron is distinct ct is being able to work directly with retail business customers to reduce _ energy consume ion with our full range of energy management services. -40 EC2655OA0070563 EXH064-00476 ============= Page 43 of 75 ============= Enron's Leading Market Position (Bcfe/d) 64.7 Enron AEP Reliant Mirant Source: Gas Daily, Power Markets Week, Company Reports Duke Dynegy Aquila BP El Paso PG&E Second Quarter 2001 EC2655OA0070564 Lehman 9-01 11 EXH064-00477 ============= Page 44 of 75 ============= Enron's Leading Market Position - 2001 This slide presents Enron's ~omnP+i+i~~e position relative to U.S.-based energy merchants. • Enron has signifi demonstrate FM( ltly distanced its market share from other marketers. The volume results continue to s more than three-fold lead on our nearest group o competitors. • In addition, Enron has a well-diversified energy business, with gas and power con~in.g ah ut 60% andd 4% to volumes, respectively. No other merchant energy peer has so successfully penetrated both markets. Similarly, no of er peer has so success u y expanded into the Europe energy market. • We have built a tremendous market franchise that has significant sustainable competitive advantages. NOTE: Physical volumes only: Volumes include Europe to the extent publicly reported (descending order by 2Q total volumes). Enron's Lead Market Position Bcfe/d 1Q01 2Q01 Gas Power Total Gas Power Total Enron 36.5 25.8 62.3 33.2 31.5 64.7 NA 27.8 21.8 49.6 25.9 23.5 49.4 Europe 8.7 4.0 12.7 7.3 8.0 15.3 AEP 3.5 15.5 19.0 8.5 13.1 21.6 Reliant 10.8 8.5 19.3 11.5 9.6 21.1 Mirant 12.8 7.3 20.1 11.8 7.7 19.5 Duke 13.6 6.6 20.2 11.2 8.2 19.4 Dynegy 10.7 2.9 13.6 10.9 7.7 18.6 Aquila 10.4 5.5 15.9 10.3 7.0 17.3 BP 12.5 1.3 13.8 12.3 2.7 15.0 El Paso 13.8 3.9 17.7 9.2 5.0 14.2 PGBE 6.8 6.0 12.8 3.9 9.0 12.9 Source: Company Reports EC26550A0070565 EXH064-00478 ============= Page 45 of 75 ============= EnronOnline 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Nov 1999 Mar 2000 Jun 2000 Oct 2000 Jan 2001 May 2001 Aug 2001 Lehman 9-01 12 EXH064-00479 EC2655OA0070566 Average Daily Transactions ============= Page 46 of 75 ============= EnronOnline - Average Daily Transactions EnronOnline has been an enormous accelerator to our businesses. • Customers have rapidly embraced EnronOnline. The wide range of products and ease of use are attracting any increasing number of both existing and new customers. In the second quarter of 2001, an average of 4,000 customers logged onto our site each week. 12 months ended LTD-Since Launch EnronOnline 12/31/00 1Q01 2Q01 (as of Au 27, 2001 Transactions 548,000 276,000 325,000 1,360,000 Gross Value (Bn) $ 336 $ 163 $ 180 $ 780 Products Offered >1,800 • EnronOnline completes more than 5,000 transactions per day worth over $2.7 billion notional value daily. New records for average weekly volumes continued to be set throughout the second quarter. • We have quickly moved to introduce new We offer ove 1,800 produc nline currently. Products inc u e a full range of gas and power products in North America an- urope and many other products, such as coal, metals, weather protection and bandwidth. • On May 23, 2001, we completed our one-millionth transaction on EnronOnline. EC2655OA0070567 EXH064-00480 ============= Page 47 of 75 ============= Enron North America Largest Market-Maker at Every Major Hub Expanding Market Reach, Scalability, Information and Liquidity o Generating Consistent Growth Regardless of Market Conditions The Most Flexible, Reliable and Valuable Energy Network EC2655OA0070568 Lehman 9-01 13 EXH064-00481 ============= Page 48 of 75 ============= Enron North America Enron has established the leading energy network in North America. We have an unparalleled network of physical assets that enable us to deliver natural gas and power anywhere in the U.S. on short notice. We may own these assets, or we may contract for capacity on third party assets. We use our market making skills to secure the c'ieapest availahlP c mmnrlitiQ, and we use our extensive network to reliably deliver the commodity. Our extensive scope, access to assets, liquidity and lard, provides us remen ous competitive vantages. • Volumes were up significantly ineverti_North American region, with total gas and power volumes increasC' 35% on a quarter-to-quarter basis to 49.4 Bcfe/d. • Because we actively operate in every area of North America, we have enormous inform ation about gas and powei supply and demand and related events. We create value with that market information by adjusting our prices and pro uc s on a real-time basis. • We are continuing to see relativel hi h gas and power price volatility. Customers need a reliable provider of increasingly complex energy supply, and we are experiencing a signs cant increase in demand for risk management products an services. EC26550A0070569 EXH064-00482 ============= Page 49 of 75 ============= Enron North America Regional Transmission Organizations 0 Recent FERC Order Very Favorable to Power 0 Industry - Movement Towards Formation of Four Large RTO's - Lxpedites Moving Northeast & Southeast to Single RTO's Facilitates More Supplies To More Customers o rives Deeper, more Liquid Power Markets o Provides New Opportunities for Enron - Ability to Leverage Extensive Power Network - New Demand for Risk Management Products - Accelerates Retail Market Development EC2655OA0070570 Lehman 9-01 14 EXH064-00483 ============= Page 50 of 75 ============= Regional Transmission Organizations • Work from slide. EC26550A0070571 CYI-InRA-nndRA ============= Page 51 of 75 ============= Enron Europe The Only Major Pan-European Energy Network i t~ 4 Teesside 1,875 MW / Wilton 154 MW Amsterdam Sarlux 551 MW * Offices ฎ Energy Exchanges A Energy Partnerships Third-Party Capacity ฎ Leased Gas Storage Power Plants In Operation 11 Sale Pending Under Development Marketing Activity • Gas 0 Coal • Power ฎ Metals o Leading Market Position o Extending Enron's Market-Making Model o Early Entry, Scale, Scope and Local Workforce Providing Tremendous Competitive Advantages Lehman 9-01 15 EXH064-00485 P EC2655OA0070572 ============= Page 52 of 75 ============= Enron Europe • We entered the European market earl and guicklX to establish the few p ysical assets in t e U.K. and Europe. Just as in North Amei creating market liquidity and nroviding price transparency. r • We have seen increased liquidity across all with aggregate power and gas volumes inci ling energy franchise e in Europe. We have relatively our market-making activities are a driving force in ii mats. Volumes were up significantly in the second quarter, 21.8 Bcfe/d. • We have a number of new opportunities from the recent implementation of NETALMarch 27, 2001). The new structure plays to our proven s reng s y creating a true "bi-lateral" physical power mar et_~ eplacing the pool structure. In addition, we expect the demand for orwar pricing an delivery commitments to significantly increase. • As gas and power markets become more liquid and concentrated, Enron is actively participating in the formation of regional trading hubs on the Continent. r • We are also very well-positioned for increased profit and growth opportunities as the U.K. and Continent gas and power markets continue their convergence. • Enron is the energy market-maker in Europe, and Enronnnline has been a positive factor in our growth in Europe. Over 30% of our European transactions are currently executed on-line. ---------------- Background: Volume Growth 1Q2000 2Q2000 YTD2000 1Q2001 2Q2001 YTD2001 Q. Chg % Chg YTD Chg % YTD Chg Physical Gas 2,411 3,567 2,989 8,695 7,273 7,980 3,706 104% 4,991 167% Financial Gas 17 159 88 73 159 116 0 0% 28 32% Total Gas (BBtue/d) 2,428 3,726 3,077 8,768 7,432 8,096 3,706 99% 5,019 163% Physical Power 832 1,349 1,090 3,967 7,809 5,899 6,460 479% 4,809 441% Financial Power 3,719 4,566 4,143 10,448 6,542 8,484 1,976 43% 4,341 105% Total Power (BBtue/d) 4,551 5,915 5,233 14,415 14,351 14,383 8,436 143% 9,150 175% Total Gas & Power (Mcfe/d) 7.0 9.6 8.3 23.2 21.8 22.5 12.1 127% 14.2 171% !Power Volumes (minion MWh) 41.4 53.8 95.2 129.7 130.6 260.3 77 143% 165 173% EC26550A0070573 EXH064-00486 ============= Page 53 of 75 ============= Profitably Extending to New Markets ENRON INDUSTRIAL MARKETS 2Q00 2Q01 EXH064-00487 2Q00 2Q01 2Q00 2Q01 Lehman 9-01 16 EC2655OA0070574 Forest Products (Thousand Metric Tonnes) 584 Steel (Thousand Metric Tonnes) 99 Metals (Thousand Tonnes) 1 77- ============= Page 54 of 75 ============= Profitability Extending to New Markets • Enron has extended our successful wholesale model to several large markets for new growth opportunities. • Coal, where we are: - Are the largest U.S. and leading i in near! 200 customers - Have a sigm scant presence at major hubs (Major - Powder River Basin NYM - e Columbia, South Africa, Australia, Indonesia. Also at other hubs - China, Russia and Poland); 10 • Weather, where we are largest weather market-maker in the world. • LNG, where we are creating a global network of LNG capabilities - Leveraging our existing holdings; an osrtiomng Enron to capture potential transatlantic arbitrage opportunities. • In addition, Liquids (Crude and Products), where we are: - Leveraging our expertise in origination, risk mana nt and finance service - Transacting with over customers worldwide offering 24 x 7 global market-making services. 06- Enron Global Markets 1Q2000 2Q2000 YTD2000 1Q2001 2Q2001 YTD2001 Q. Chg % Chg YTD Chg % YTD Chg Liquids (MM BBL) 100 95 195 112 165 277 70 74% 82 42% Coal (Thousand Metric Tons) 8,072 9,229 17,301 20,884 22,774 43,658 13,545 147% 26,357 152% Weather (Notional Value $MM) 325 23 348 290 185 475 162 704% 127 36% LNG (BBtue) - - - 2,812 5,978 8,790 5,978 8,790 Enron Industrial Markets • Metals, where we are a leading provider of merchant energy and financial services transacting with over 900 customers • Forest Products, where we are creating world class logistics, operating and financial n! ancial services capabilities - Leveraging our access of physical newsprint capability (Garden State - 2100,000 tones/yr QQuebec City Mill - 515,000 tones/year). • Steel, where we are establishing a position as a leading - Initially rolling out business in the U.S with plans to build a European capability Enron Industrial Markets 1Q2000 2Q2000 YTD2000 1Q2001 2Q2001 YTD2001 Q. Chg % Chg YTD Chg % YTD Chg Metals (Thousand Tons) 835 959 1,794 2,345 1,775 4,120 816 85% 2,326 130% Forest Products (Thousand Metric Tons) 16 13 29 339 584 923 571 4392% 894 3083% Steel (Thousand Metric Tons) - - - 132 99 231 99 231 EC2655OA0070575 EXH064-00488 ============= Page 55 of 75 ============= Enron Broadband Services - Maintain Functionality to Support Commercial Activities - Make Liquid and Transparent Market For Broadband-Related Products - Provide Reliable Delivery at Predictable Prices - Bundled Services for Large-Scale Users Objective: Cost Effectively Maximize Option Value Lehman 9-01 17 EC2655OA0070576 EXH064-00489 ============= Page 56 of 75 ============= Enron's Broadband Services • We have moved rapidly t perly si our business (network, in a to ion term network needs an transactions • Network - Our existing broadband PI network is a key functionality nec tiation from to deliver vi :e 3roadband for the current environment. The three major components of and content services) are unchanged, bu are highly focused on our near- it associated associated current gross main.- inform continues to provide us with a low-cost, flexible network. Our entrants into bandwidth intermediatiojj, We plan to maintain the i taming commitments and support our highly focused commercial • Tntermediation - We will continue to make markets foLbandwidth and IPl as well originate bundled services. The market values our reliab el -delivery and1irm price commitmen We continue a strong resource commitment in this business. Content Services - We have further focused ur content business to the large players who can have a major impact on the Entertainment-on-Deman market. We have a few, very effective commercial employees pursuing a "low-cost, high impact ppro-a tote business. Intermediation Transactions • We have seen a ramp-up in transaction activity for all products. We completed 759 transactions in the cecQnd quarter, up o from the first quarter of 2001. Area Intermediation Hcadcouilt At 6,300 1 96 After Reorg. 49 Traiisfer to fle Wholes, 7 Network services 208 153 2 Wholesale origination 15 8 1 Enterprise origination 19 0 Content services 23 13 1 Europe and Asia 132 81 8 Structuring & Support 423 42 210 TOTAL 916 346 229 EC2655OA0070577 EXH064-00490 ============= Page 57 of 75 ============= Natural Gas Transportation and Electric Distribution Marketing and Delivery of Commodities Worldwide Energy Services for Commercial and Industrial Customers Lehman 9-01 18 EC2655OA0070578 EXH064-00491 ============= Page 58 of 75 ============= Retail Services -Divider Slide • Divider Slide EC2655OA0070579 FXNnMannAQ9 ============= Page 59 of 75 ============= Enron Energy Services o Leading Provider of Retail Energy Services in North America and Europe 0 "Energy Awareness" Very High o Penetrating New Markets With Proven, Standardized Products 0 Achieving Significant Scale 0 Rapidly Increasing Profitability Leading Provider of Retail Energy Services in North America and Europe Lehman 9-01 19 EC2655OA0070580 EXH064-00493 ============= Page 60 of 75 ============= Enron Energy Services • Enron Energy Services is the leading provider of energy services to end-use customers in the commercial and light industrial markets. We are the largest manager of energy n we offer customers expert commodity risk management. Enron remains the sole nationwide provider of these energy services in the U.S., while our domestic competitors are more regional in nature. awareness is at an all time high and The fundamental market has changed. Our customers are experiencing in Ineir energ its, an they are under budget pressure to contain these, cc,. ts_ This environment has further enhanced Sies, as we are uniquely suited to help customers manage risks associated with increasingly volatile energy prices an ener • We are continuing to expand by penetrating new marl-etc. We activities. We have penetrated our markets more deeply by gc -et[ pL" rovM, standardized p-Mucts, which are enabling us to de iav expanded geographic y, as reflected by ourverysuccessfulU.. ng fui wns ream into a given customer segment. We have rolled ver more products in more markets and shorten our sales cycles. By offering more compellin standardized products on a broader scale and moving down market and markets, EES will apidly and quickly build on the existing, established business. Background: Facilities Under Contract* Sq. Ft. Under Contract Value of Assets Controlled 1998 11,500 300 MM $1 Billion 1999 16,600 1 Billion $4 Billion 2000 28,800 2.8 Billion $8.5 Billion Q1 01 31,300 3.1 Billion $9 Billion Q201 35,700 3.5 Billion $9 Billion * Averages 100,000 sq. ft. per site broad scaleable EES USA EFS EES UK Total ** Gas Power Total w/o Linc w/Linc Total ED including bundled deals Number of Customers 16,650 1,025 17,675 1,000 20,000 21,000 168,045 206,720 No of Meters/Sites 29,658 21,777 51,435 14,564 34,000 48,564 180,000 279,999 Note: The key difference from number of sites previously disclosed is the Enron Direct U.K. of 180,000. ** Excluding Canada and bundled deals in Europe EC26550A0070581 EXH064-00494 ============= Page 61 of 75 ============= Enron Energy Services Financial Highlights Income Before Interest and Taxes (in millions) $225 $111 ($50) 1999 2000 2001E Annual Total Contract Value (in billions) First Half $30.0 $16.1 $8.5 1999 2000 2001E Annual Reflects Customers Energy Expenditures Over Contract Life Lehman 9-01 20 EC2655OA0070582 EXH064-00495 ============= Page 62 of 75 ============= Enron Energy Services - Financial Highlights Income Before Interest and Taxes • We have seen consistent growth in revenues and have also experienced benefits of very strong operating leverage resulting strong earnings growth. Total Contract Value • Our contracting track record shows that the comprehensive energy products and services. • In the second quarter 200(, contracting totaled $7.2 billion, which is almost 90% greater Alan the contrac_ tins; achieved in the second quarter 2000 and over 4 times e level that we achieved two years ago in the second uarter of 1999. • We are on target for full year contracting in 200 $30 billion. TCV has been an effective metric to reflect strong contracting results in EES' start-up phase, with over $40 billion of contracts signed since inc ice. Background: TCV (Billions) 1997 $ - 1998 $ 3.8 1999 $ 8.5 2000 $ 16.1 2001E $ 30.0 Qtr TCV (Billions) Q499 $ 2.6 Q100 $ 3.7 Q200 $ 3.8 Q300 $ 4.1 Q400 $ 4.5 Q101 $ 5.9 Q201 $ 7.2 (IN MILLIONS of $) 1998 $ TCV 1999 TCV UC/CSU 312 Owens Corning 1,359 Quebecor 280 Simon Properties 1,200 PacBell 260 Suiza 1,070 Kaiser 198 Tyco Healthcare 458 Chase 450 Arch of Chicago 247 Polaroid 203 Houston Astros 200 General Cable 137 Oceanspray 120 Packaged Ice 1 15 Lucent 113 2000 $ TCV 01-2001 TC V Quebecor >1000 Owens-Illinois 2,200 Starwood >1000 Lilly 1,300 Chase 750 JCPenney 660 IBM 610 Quaker Oats 400 Springs 583 Saks 225 General GrowthProp 260 Sonoco 210 02-2001 TCV Macerich 189 Park Place 298 Owens-AGY 180 Equity Office Prop 291 Prudential 180 Home Depot 244 Consumer Food Prod 150 Harrahs 208 Glacier Sports 108 M9p 0 r 0 0 a 0 eD N ca W EXH064-00496 ============= Page 63 of 75 ============= Customer Segments Large National and Multi- National Companies with Multiple Facilities USA Canada UK Comprehensive, Packaged Energy and Facilities Management Y Aa National and Regional Companies with Numerous Facilities Gas, Power and Energy Management Services ra Equi~ffice S I F -I F-I .A V L N U L Single-to-Multiple Site Businesses Standardized Gas and Power Services Enron Direct Lehman 9-01 21 EC2655OA0070584 EXH064-00497 ============= Page 64 of 75 ============= Customer Segments Internally, we think of our target customers in three major segments- • Greater than $30 million in total annual energy spend a d less than 100 sites. hese are large companies with facilities across North America and Europe that require hig an comprehensive agreements and service. (Potential number of customers: >400) Examples of energy management agreements signed in this segment during the first half of 2001 are: Eli Lilly, Owens-Illinois, Harrah's and Quaker Oats. • Total annual energy spend between $10 and S30 million, d more than 100 sit his is much more of a component-based transaction with lower customization. (Potential num er o customers: 1,000s) Examples of contracts signed during the first six months of this year are: Equity Office, Home Depot, JC Penney, and Saks, Incorporated. • Less than $10 million of total annual ener ment is a component-basPrl +ran~art;nn with high standardizati . (Potential number customer: 10,000s). - Enron Direct in the U.K. has over 140,000 customers. We had great success in the U.S. during the most recent is cu e including approximately 2,000 new agreements for energy services. We la ched Enron Direct in Canada urmg e most recent quarter as well. Background: SEGMENT 6/30/01 Energy Outsourcing $3.8 million Energy Porfolio Mgmnt $3.8 million Energy Direct (including U.K.) $5.5 million $13.1 million EC2655OA0070585 EXH064-00498 ============= Page 65 of 75 ============= Conclusion 0 Long-Term History of Excellent Performance 0 Record First Half Results Demonstrate Enron's Strong Business 0 Firmly Positioned For Continued Growth Lehman 9-01 22 EC2655OA0070586 EXH064-00499 ============= Page 66 of 75 ============= Conclusion Work from slide. EC2655OA0070587 EXH064-00500 ============= Page 67 of 75 ============= EC2655OA0070588 STATISTICS CVUnFn_nnrn1 ============= Page 68 of 75 ============= SELECTED FINANCIAL DATA Enron Corn. and Subsidiaries 1999 2000 2001 (In Millions Except Per Share Amounts 1st Otr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year Revenues, Net of Intercompany Transportation and Distribution Transportation Services $ 178 $ 121 $ 160 $ 175 $ 634 $ 202 $ 163 $ 126 $ 201 $ 692 $ 247 $ 148 $ 395 Portland General 299 296 407 377 1,379 397 382 663 608 2,050 686 787 1,473 Wholesale Services (1) 6,691 8,702 10,841 9,938 36,172 12,162 15,632 28,445 39,201 95,440 48,407 48,616 97,023 Retail Energy Services I1) 188 157 181 321 847 288 409 513 452 1,662 642 283 925 Broadband Services - - - - - 59 151 135 63 408 85 15 100 Exploration and Production (2) 149 175 105 - 429 - - - - - - - - Corporate and Other 127 221 141 162 651 37 149 125 226 537 62 211 273 Total 7.632 9,672 11,835 10.973 40,112 13,145 16.886 30,007 40,751 100.789 50,129 50,060 100,189 Net Income Income (Loss) Before Interest, Minority Interests and Income Taxes Transportation and Distribution Transportation Services $ 126 $ 72 $ 85 $ 97 $ 380 $ 128 $ 77 $ 83 $ 103 $ 391 $ 133 $ 77 $ 210 Portland General 92 56 52 105 305 105 62 74 100 341 60 65 125 Wholesale Services (1) 328 363 375 233 1,299 429 415 630 778 2,252 755 802 1,557 Retail Energy Services (1) (39) (33) (15) 37 (50) 6 46 27 32 111 40 60 100 Broadband Services - - - - - - (8) (20) (32) (60) (35) (102) (137) Exploration and Production (2) 12 20 33 - 65 - - - - - - - - Corporate and Other 14 9 23 1 17 44 17 128 134 289 158 109 267 BIT - Recurring 533 469 507 473 1,982 624 609 666 847 2,746 795 793 1,588 Non-Recurring Items (See Analysis of Reported Earnings) 13 13 264 264 Total IBIT 533 469 520 473 1,995 624 609 666 583 2,482 795 793 1,588 Interest and Related Charges, net 175 175 187 119 656 161 196 247 234 838 201 215 416 Dividends on Company-Obligated Preferred Securities of Subsidiaries 19 19 19 19 76 18 21 20 18 77 18 18 36 Minority Interests 33 23 38 41 135 35 39 35 45 154 40 30 70 Income Tax Provision (Benefit) 53 30 14 35 104 72 64 72 226 434 130 126 256 Net Income Before Cumulative Changes 253 222 290 259 1,024 338 289 292 60 979 406 404 810 Cumulative Effect of Accounting Changes, net of tax 131 131 19 19 Net Income 122 222 290 259 893 338 289 292 60 979 425 404 829 Preferred Stock Dividend (3) 4 19 19 24 66 20 21 21 21 83 20 21 41 Earnings on Common Stock 118 203 271 235 827 318 268 271 39 896 405 383 788 Earnings Per Share (4) Basic 0.17 0.29 0.38 0.33 1.17 0.44 0.37 0.37 0.05 1.22 0.54 0.51 1.04 Diluted Recurring $ 0.34 $ 0.27 $ 0.27 $ 0.31 $ 1.18 $ 0.40 $ 0.34 $ 0.34 $ 0.41 $ 1.47 $ 0.47 $ 0.45 $ 0.92 Non-Recurring Items (See Analysis of Reported Earnings) 0.18 0.08 0.08 0.36 0.35 0.02 0.02 Reported 0.16 0.27 0.35 0.31 1.10 0.40 0.34 0.34 0.05 1.12 0.49 0.45 0.94 Depreciation, Depletion and Amortization Transportation and Distribution Transportation Services $ 17 $ 17 $ 18 $ 14 $ 66 $ 16 $ 17 $ 16 $ 18 $ 67 $ 17 $ 17 $ 34 Portland General 46 48 43 44 181 46 46 60 59 211 51 55 106 Wholesale Services 57 70 71 96 294 75 85 89 94 343 92 109 201 Retail Energy Services 6 4 9 10 29 9 9 10 10 38 9 10 19 Broadband Services - - - - - 3 8 52 14 77 14 16 30 Exploration and Production (2) 82 89 42 213 - - - - - - - - Corporate and Other 7 8 42 30 87 23 27 29 40 119 30 33 63 Total 215 236 225 194 870 172 192 256 235 855 213 240 453 (1) Beginning in 2001, risk management activities associated with Enron's retail customers are managed by Wholesale Services. Prior period Wholesale Services and Retail Energy Services amounts have been restated. (2) 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 operations in India and China are included in Wholesale Services. (3) The Second Preferred Stock and the Series B Preferred Stock are both dilutive in the first three quarters of 2000 and both antidilutive in the fourth quarter. The Second Preferred Stock is dilutive for the year-to-date 2000, while the Series B Preferred Stock is antidilutive for the same period. The Second Preferred Stock and the Series B Preferred Stock are both dilutive in the first two quarters of 2001. (4) Adiusted to reflect two-for-one common stock split effective August 13, 1999. EC2655OA0070589 8i22i2001 EXH064-00502 ============= Page 69 of 75 ============= ANALYSIS OF REPORTED EARNINGS Enron Corp. and Subsidiaries 1999 2000 2001 (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 Year Diluted Earnings Per Share - Recurring (1) $ 0.34 $ 0.27 $ 0.27 $ 0.31 $ 1.18 $ 0.40 $ 0.34 $ 0.34 $ 0.41 $ 1.47 $ 0.47 $ 0.45 $ 0.92 Non-Recurring Earnings (Loss) Items Per Share (1) Charge to reflect impairment by Azurix of certain assets - - - - - - - - (0.41) (0.40) - - - Gain on The New Power Company, net - - - - - - - - 0.05 0.05 - - - Gain on sale of subsidiary stock - - 0.44 - 0.45 - - - - - - - - Charge to reflect losses on impairment of MTBE assets - - (0.36) - (0.36) - - - - - - - - Cumulative effect of accounting changes (2) (0.18) - - - (0.17) - - - - - 0.02 - 0.02 Total Non-Recurring Earnings (Loss) Items Per Share (0.18) - 0.08 - (0.08) - - - (0.36) (0.35) 0.02 - 0.02 Reported Diluted Earnings Per Share $ 0.16 $ 0.27 $ 0.35 $ 0.31 $ 1.10 $ 0.40 $ 0.34 $ 0.34 $ 0.05 $ 1.12 $ 0.49 $ 0.45 $ 0.94 Average Number of Common Shares Used in Diluted Computation (1X3) 744.6 771.1 781.1 779.1 769.0 851.9 862.2 869.6 787.7 813.9 871.6 891.1 881.5 Non-Recurring Earnings (Loss) Items - After tax (4) Charge to reflect impairment by Azurix of certain assets $ - $ - $ - $ - $ - $ - $ - $ - $ (326) $ (326) $ - $ - $ - Gain on The New Power Company, net - - - - - - - - 39 39 - - Gains on sales of subsidiary stock - - 345 - 345 - - - - - - - - Charge to reflect losses on impairment of MTBE assets - - (278) - (278) - - - - - - - - Cumulative effect of accounting changes (2) (131) - - - (131) - - - - - 19 - 19 Total Non-Recurring Earnings (Loss) Items - After tax $ 131 $ - $ 67 $ - $ 64 $ - $ - $ - $ 287 $ 287 $ 19 $ $ 19 Non-Recurring Earnings (Loss) Items - Pretax Charge to reflect impairment by Azurix of certain assets $ - $ - $ - $ - $ - $ - $ - $ - $ (326) $ (326) $ - $ - $ - Gain on The New Power Company, net - - - - - - - - 62 62 - - - Gains on sales of subsidiary stock - 454 - 454 - - - - - - - Charge to reflect losses on impairment of MTBE assets - - (441) - (441) - - - - - - - - Cumulative effect of accounting changes (2) (200) - - - (200) - - - - - 31 - 31 Total Non-Recurring Earnings (Loss) Items-Pretax $ 200 $ - $ 13 $ - $ (187) $ - $ - $ - $ (264 $ 264 $ 31 $ - $ 31 (1) Adjusted to reflect two-for-one common stock split effective August 13, 1999. (2) 1999 primarily due to the adoption of an accounting pronouncement requiring that costs for all start-up activities and organization costs be expensed as incurred. 2001 due to the adoption of an accounting pronouncement requiring the measurement of all derivative instruments at fair value. (3) In 2001, the average number of diluted shares outstanding reflect the impact of equity instruments indexed to Enron common stock. The equity instruments, which terminate beginning in 2003, were originated in conjunction with off-balance sheet structures. (4) Except where a specific tax rate applied, assumes a 35% tax rate. EC2655OA0070590 Printed: 8/22/2001 9:16 AM g2 EXH064-00503 ============= Page 70 of 75 ============= CAPITAL STRUCTURE AND STATISTICS Enron Corp. and Subsidiaries (In Millions Except Per Share Amounts 1st Qtr 2nd Qtr 1999 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 2000 3rd Qtr 4th Qtr Year 2001 1st Qtr 2nd Qtr Common Shares Outstanding (1) Average, Basic 683.4 708.0 714.1 715.3 705.3 722.5 733.4 741.2 747.8 736.2 751.5 757.3 Average, Diluted 744.6 771.1 781.1 779.1 769.0 851.9 862.2 869.6 787.7 813.9 871.6 891.1 End of Period, Diluted 764.4 779.0 781.1 783.2 783.2 861.3 858.3 872.3 791.1 824.5 874.2 900.8 Market Price Per Share (end of period) /11 $ 32.125 $ 40.875 $ 41.063 $ 44.375 $ 44.375 $ 74.875 $ 64.500 $ 87.645 $ 83.125 $ 83.125 $ 58.100 $ 49.000 Dividends Per Share Cumulative Second Preferred Convertible Stock ('Series J') (2) (3) (4) $ 3.413 $ 3.413 $ 3.413 $ 3.413 $ 13.652 $ 3.413 $ 3.413 $ 3.413 $ 3.413 $ 13.652 $ 3.413 $ 3.413 Junior Convertible Preferred Stock ('Series A') (5) - 59.150 59.233 - 118.383 - - - - - Junior Manditorily Convertible Preferred Stock ('Series B') (4) (5) - - 4.333 65.000 69.333 65.000 65.000 65.000 65.000 260.000 65.000 65.000 Common Stock (1) 0.125 0.125 0.125 0.125 0.500 0.125 0.125 0.125 0.125 0.500 0.125 0.125 Company-Obligated Preferred Securities of Subsidiaries 8% Cumulative Preferred ('Series C') (3) 0.500 0.500 0.500 0.500 2.000 0.500 0.500 0.500 0.500 2.000 0.500 0.500 9% Cumulative Preferred ('Series A') (3) 0.563 0.563 0.563 0.563 2.252 0.563 0.563 0.563 0.563 2.252 0.563 0.563 8.57% Cumulative Preferred 2,142.500 2,142.500 2,142.500 2,142.500 8,570.000 2,142.500 2,142.500 2,142.500 2,142.500 8,570.000 2,142.500 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 1,847.500 1,847.500 1,847.500 7,390.000 1,847.500 1,847.500 8.30% Trust Originated Preferred ('Series T') (3) 0.519 0.519 0.519 0.519 2.076 0.519 0.519 0.519 0.519 2.076 0.519 0.519 8.125% Trust Originated Preferred ('Series R') (3) 0.508 0.508 0.508 0.508 2.032 0.508 0.508 0.508 0.508 2.032 0.508 0.508 7.1% Cumulative Preferred 19.878 19.878 19.878 19.878 79.512 19.878 19.878 19.878 19.878 79.512 19.878 19.878 Adjustable Rate Trust Securities (6) 13.653 12.968 13.177 14.430 54.228 16.105 11.691 - - 27.796 - - 7.75% Cumulative Preferred 1.938 1.938 1.938 1.938 7.750 1.938 1.938 1.938 1.938 7.752 1.938 1.938 LNG Power II L.L.C. Preference Units 18.125 18.125 18.125 54.375 18.125 18.125 Capital Structure Total Debt $ 9,419 $ 8,979 $ 8,592 $ 8,152 $ 8,152 $ 10,172 $ 11,697 $ 13,781 $ 10,229 $ 10,229 $ 11,922 $ 12,812 Percent 44.1 41.5 41.4 38.5 38.5 43.7 46.3 49.5 40.9 40.9 44.2 46.0 Minority Interests $ 2,125 $ 2,475 $ 1,822 $ 2,430 $ 2,430 $ 1,872 $ 1,893 $ 1,889 $ 2,414 $ 2,414 $ 2,418 $ 2,395 Percent 9.9 11.4 8.8 11.5 11.5 8.0 7.5 6.8 9.7 9.7 9.0 8.6 Company-Obligated Preferred Securities of Subsidiaries $ 1,001 $ 1,001 $ 1,001 $ 1,000 $ 1,000 $ 1,099 $ 899 $ 904 $ 904 $ 904 $ 904 $ 903 Percent 4.7 4.6 4.8 4.7 4.7 4.7 3.6 3.2 3.6 3.6 3.3 3.2 Shareholders' Equity $ 8,824 $ 9,206 $ 9,345 $ 9,570 $ 9,570 $ 10,140 $ 10,769 $ 11,276 $ 11,470 $ 11,470 $ 11,727 $ 11,740 Percent 41.3 42.5 45.0 45.3 45.3 43.6 42.6 40.5 45.8 45.8 43.5 42.2 Annual Date Optional Redemption Securities PREFERRED STOCK Dividend Rate Issued Call Date Price Authorized Original Issue Outstanding at 613012001 Enron Corp. Second Preferred Stock ('Series J ")(2)(3) (4) $ 13.65 8/83 8/93 $ 100 1,370,000 2,396,455 1,162,649 Enron Corp. Junior Manditorily Convertible Preferred Stock ('Series B") (4) (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') p) 8.000% 11/93 11/98 25 9,200,000 8,550,000 8,550,000 Enron Capital Resources, L P. ('Series A') (31 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% 11/96 12101 25 8,000,000 8,000,000 8,000,000 Enron Capital Trust ll ('Series R') (3) 8.125% 1/97 3/02 25 6,000,000 6,000,000 6,000,000 Private Placement 7.100% 3/97 4/02 n/a (7) 20,000 20,000 20,000 Enron Capital Trust Ill (6) Variable 6/97 Variable 1,000 200,000 200,000 - Portland General Electric Company 7.750% 6/93 n/a 100 30,000,000 300,000 300,000 LNG Power II L.L.C. Preference Units 6.740% (a) 3/00 n/a 1,000 105,000 105,000 105,000 (1) Adjusted to retied N+o-for-one common stock split effective August 13,1999. (5) On September 24,1999, one share of Series B heior Manditorily Convertible Preferred Stock was issued in exchange for each share of (2) Each share is convertible into 27.304 shares of Enron common stock at the holder's option Waiving the call by Enron in 1993 (adjusted for common Series A Junior Voting Convertible Preferred Stock. Each share of Series B is mandlk.ily convertible int o 200 shares of Enron common stock split 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 dock on January 15,2003. had been converted. (6) Redeemed June 6,2000. (3) Publicly traded on the New Yak Stock Exchange. (7) Redemption price varies based on original issue amounts. (4) The Second Preferred Stock and the Series B Preferred Stock are both dilutive in the first three quarters of 2000 and both antidilution in the fourth quarter. (8) Initial rate is 6.74% increasing to 7.79%. The Second Preferred Stock is ditutive for the year-to-date 2000, while the Series B Preferred Stock is antidilulive for the same period. The Second Preferred Stock and the Series B Preferred Stock are both dilutive in the first two quarters of 2001. EC2655OA0070591 Printed: 81222001 9:16 AM Pg 3 EXH064-00504 ============= Page 71 of 75 ============= 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 equity affiliates 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 Retained earnings Cumulative foreign currency translation adjustment Common stock held in treasury Restricted stock and other Total Shareholders' Equity EXH064-00505 1999 2000 2001 3131 6130 9130 12131 3131 6/30 9130 12/31 3131 6130 $ 296 $ 286 $ 316 $ 288 $ 466 $ 718 $ 697 $ 1,374 $ 1,086 $ 847 3,534 3,522 3,851 3,548 4,352 6,269 7,675 12,270 11,310 12,581 1,554 1,756 2,156 2,205 3,139 5,696 7,294 12,018 12,672 8,815 458 557 613 598 437 571 1,942 953 650 913 603 772 631 616 939 1,116 1,198 3,766 3,449 3,168 6,445 6,893 7,567 7,255 9,333 14,370 18,806 30,381 29,167 26,324 4,632 4,779 4,968 5,036 6,020 5,621 5,376 5,294 5,694 5,934 2,271 2,364 3,052 2,929 3,428 5,228 7,367 8,988 9,998 9,023 2,690 2,696 2,636 2,799 2,905 3,408 3,646 3,638 3,609 3,527 5,076 5,599 5,578 4,681 5,101 5,728 6,348 5,459 7,217 7,843 14,669 15,438 16,234 15,445 17,454 19,985 22,737 23,379 26,518 26,327 17,197 17,507 12,924 13,912 14,012 14,682 15,133 15,459 15,297 14,287 5,612 5,691 3,149 3,231 3,315 3,471 3,680 3,716 3,722 3,546 11,585 11.816 9,775 10,681 10.697 11,211 11,453 11.743 11,575 10,741 $ 2,694 $ 2,603 $ 2,281 $ 2,154 $ 2,914 $ 4,400 $ 5,390 $ 9,777 $ 8,686 $ 9,646 1,542 2,386 2,829 1,836 2,697 4,292 6,187 10,495 10,840 7,470 - - - 1,001 1,884 1,486 3,117 1,679 2,159 3,457 1,408 1,457 1,559 1,768 1,695 2,044 2,408 6,455 5,885 3,740 5,644 6,446 6,669 6,759 9,190 12,222 17,102 28,406 27,570 24,313 9,419 8,979 8,592 7,151 8,288 10,211 10,664 8,550 9,763 9,355 2,194 2,352 1,908 1,894 1,791 1,678 1,565 1,644 1,625 1,758 1,852 2,068 2,521 2,990 3,510 5,525 7,314 9,423 10,472 10,062 1,640 1,620 1,718 1,587 1,594 2,369 2,282 2,692 2,781 2,866 5,686 6,040 6,147 6,471 6,895 9,572 11,161 13,759 14,878 14,686 2,125 2,475 1,822 2,430 1,872 1,893 1,889 2,414 2,418 2,395 1,001 1,001 1,001 1,000 1,099 899 904 904 904 903 131 131 130 130 129 127 127 124 121 116 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 6,249 6,588 6,640 6,637 7,041 7,665 8,003 8,348 9,513 9,416 2,256 2,369 2,537 2,698 2,922 3,101 3,277 3,226 3,525 3,827 (711) (760) (853) (741) (756) (861) (958) (1,048) (1,193) (1,606) (50) (1) (1) (49) (16) (84) (18) (32) (1,082) (861) 51 121 108 105 180 179 155 148 157 152 8,824 9,206 9,345 9,570 10,140 10,769 11,276 11,470 11,727 11,740 '2.699 $ 34.147 $ 33.576 $ 33.381 $ 37.484 $ 45.566 $ 52.996 $ 65.503 $ 67.260 $ 63.392 EC2655OA0070592 Printed 8/29/2001 P16 AM ============= Page 72 of 75 ============= CONSOLIDATED STATEMENT OF CASH FLOWS Enron Corp. and Subsidiaries (in Millionsl 3131 YTD 1999 6130 9130 12131 3131 YTD 2000 6130 9130 12131 YTD 2001 3/31 6130 Cash Flows From Operating Activities __ Reconciliation of net income to net cash provided by (used in) operating activities Net income $ 122 $ 344 $ 634 $ 893 $ 338 $ 627 $ 919 $ 979 $ 425 $ 829 Cumulative effect of accounting changes 131 131 131 131 - - - - (19) (19) Depreciation, depletion and amortization 215 451 676 870 172 364 620 855 213 453 Impairment of long-lived assets (including equity investments) - 441 441 - - - 326 - - Deferred income taxes 2 (11) (38) 21 30 31 22 207 113 188 Gains on sales of non-merchant assets (12) (12) (461) (541) (18) (90) (135) (146) (32) (50) Changes in components of working capital (556) (909) (1,072) (1,000) (313) (524) (188) 1,769 (599) (3,142) Net assets from price risk management activities (518) 247 55 (395) (52) (799) (952) (763) (270) 782 Merchant assets and investments: Realized gains and losses on sales (22) (161) (252) (756) (31) 29 15 (104) 26 (64) Proceeds from sales 26 561 708 2,217 199 553 683 1,838 135 479 Additions and unrealized gains (135) (829) (657) (827) (517) (1,095) (1,414) (1,295) (74) (154) Other operating activities 87 150 208 174 265 357 530 1,113 382 639 Net Cash Provided by (Used In) Operating Activities 660 38 43 1,228 457 547 100 4,779 464 1,337 Cash Flows From Investing Activities Capital expenditures (519) (969) (2,022) (2,363) (496) (1,009) (1,549) (2,381) (382) (1,200) Equity investments (409) (648) (718) (722) (316) (390) (870) (933) (716) (1,088) Proceeds from sales of non-merchant assets 43 138 245 294 17 105 222 494 339 1,423 Acquisition of subsidiary stock - - - - (485) (485) (485) (485) - - Business acquisitions, net of cash acquired (38) (40) (213) (311) (144) (358) (773) (777) (33) (34) Other investing activities 207 340 447 405 69 117 147 182 332 262 Net Cash Used in Investing Activities 1.130) 1,859 (3,155) (3,507) 1,493 2,254 3,602 4,264 (1,124) (1,161) Cash Flows From Financing Activities Issuance of long-term debt 114 1,301 1,570 1,776 1,361 2,479 2,725 3,994 1,747 2,864 Repayment of long-term debt (68) (645) (1,417) (1,837) (393) (431) (545) (2,337) (996) (1,782) Net increase (decrease) in short-term borrowings 1,119 128 2,038 1,565 962 1,301 1,694 (1,595) 799 1,169 Net issuance (redemption) of company-obligated preferred securities of subsidiaries - - - - 105 (95) (95) (96) - - Issuance of common stock 839 889 889 852 179 264 182 307 119 185 Issuance of subsidiary equity - 513 513 568 - - - 500 - - Dividends paid (113) (227) (346) (467) (156) (265) (396) (523) (143) (256) Net (acquisition) disposition of treasury stock 119 181 223 139 70 (129) 354 327 (226) (209) Other financing activities 35 68 67 140 107 8 6 Net Cash Provided by Financing Activities 1,975 2,072 3,403 2,456 2,128 3,231 3,911 571 1,300 1,971 Increase (Decrease) in Cash and Equivalents 185 175 205 177 178 430 409 1,086 (288) (527) Cash and Cash Equivalents, Beginning of Period 111 111 111 111 288 288 288 288 1,374 1,374 Cash and Cash Equivalents. End of Period 296 286 316 288 466 718 697 1.374 1,086 847 Capital Expenditures Transportation and Distribution Transportation Services $ 25 $ 50 $ 66 $ 120 $ 10 $ 2 $ 33 $ 71 $ 60 $ 73 Portland General 29 60 128 196 31 78 130 199 54 112 Wholesale Services 278 610 1,035 1,216 317 523 862 1,280 145 775 Retail Energy Services 22 34 49 64 17 30 40 70 12 29 Broadband Services - - - - 71 219 280 436 84 100 Exploration and Production 92 180 227 226 - - - - - - Corporate and Other 73 35 517 541 50 157 204 325 27 111 Total 519 969 2.022 2,363 496 1,009 1,549 2.381 382 1,200 Equity Investments Transportation and Distribution Transportation Services $ - $ - $ - $ - $ - $ - $ - $ 1 $ 3 $ 6 Portland General - - - - - - - - - - Wholesale Services 381 647 709 712 304 372 848 911 388 756 Retail Energy Services - - - - - - - - - - Broadband Services - - - - - - - - - - Exploration and Production - - - - - - - - - Corporate and Other 28 1 9 10 12 18 22 21 325 326 Total 409 648 718 722 316 390 870 933 716 1,088 Printed: 8/22/2001 9:16 AM Pg 5 M 0) U, 0 0 0 0 99 to N V W EXH064-00506 ============= Page 73 of 75 ============= SELECTED FINANCIAL AND OPERATING HIGHLIGHTS Transportation and Distribution - Transportation Services 1999 2000 2001 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 Year Transportation Services Gross Margin $ 181 $ 124 $ 145 $ 176 $ 626 $ 201 $ 148 $ 119 $ 182 $ 650 $ 243 $ 121 $ 364 Operating Expenses 61 65 64 74 264 65 76 63 76 280 107 54 161 Depreciation and Amortization 17 17 18 14 66 16 17 16 18 67 17 17 34 Equity in Earnings of Unconsolidated Affiliates 8 8 14 8 38 7 10 28 18 63 14 16 30 Other, net 15 22 8 1 46 1 12 15 (3) 25 - 11 11 Reported Income Before Interest and Taxes $ 126 $ 72 $ 85 $ 97 $ 380 $ 128 $ 77 $ 83 $ 103 $ 391 $ 133 $ 77 $ 210 Northern Natural Gas (100% Owned) Transportation Revenues $ 140 $ 87 $ 86 $ 137 $ 450 $ 164 $ 69 $ 77 $ 136 $ 446 $ 170 $ 76 $ 246 Average Transportation Rate (per MMBtu) $ 0.35 $ 0.27 $ 0.27 $ 0.40 $ 0.32 $ 0.44 $ 0.23 $ 0.28 $ 0.40 $ 0.34 $ 0.50 $ 0.29 $ 0.42 Gas Transportation BBtu/d 4,464 3,553 3,525 3,738 3,820 4,147 3,237 3,009 3,728 3,529 3,750 2,908 3,327 Transwestem Pipeline (100% Owned) Transportation Revenues $ 35 $ 35 $ 36 $ 36 $ 142 $ 36 $ 36 $ 39 $ 40 $ 151 $ 41 $ 45 $ 86 Average Transportation Rate (per MMBtu) $ 0.28 $ 0.27 $ 0.25 $ 0.27 $ 0.27 $ 0.24 $ 0.25 $ 0.24 $ 0.25 $ 0.25 $ 0.26 $ 0.25 $ 0.26 Gas Transportation BBtu/d 1,393 1,419 1,575 1,460 1,462 1,566 1,606 1,746 1,715 1,657 1,744 1,973 1,859 Florida Gas Transmission (50% Owned) Transportation Revenues $ 75 $ 76 $ 78 $ 76 $ 305 $ 76 $ 77 $ 78 $ 77 $ 308 $ 80 $ 87 $ 167 Average Transportation Rate (per MMBtu) $ 0.68 $ 0.54 $ 0.47 $ 0.54 $ 0.56 $ 0.54 $ 0.53 $ 0.51 $ 0.66 $ 0.56 $ 0.72 $ 0.61 $ 0.66 Gas Transportation BBtu/d 1,225 1,546 1,659 1,538 1,495 1,563 1,591 1,649 1,270 1,501 1,234 1,574 1,404 Northern Border Pipeline (8% Owned) Transportation Revenues $ 74 $ 73 $ 74 $ 78 $ 299 $ 76 $ 77 $ 78 $ 79 $ 310 $ 77 $ 77 $ 154 Gas Transportation (BBtu/d) 2,388 2,405 2,419 2,406 2,405 2,464 2,429 2,420 2,460 2,443 2,490 2,303 2,396 Rate per 100 Dekatherm Miles $ 0.037 $ 0.037 $ 0.036 $ 0.036 $ 0.037 $ 0.041 $ 0.041 $ 0.040 $ 0.040 $ 0.041 $ 0.037 $ 0.037 $ 0.037 EC2655OA0070594 Printed: 812212001 9:16 AM ]g 6 EXH064-00507 ============= Page 74 of 75 ============= SELECTED FINANCIAL AND OPERATING HIGHLIGHTS Transaortation and Distribution - Portland General Electric 1999 2000 2001 (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 Year Revenues (Portland General Group) Residential $ 134 $ 98 $ 86 $ 120 $ 438 $ 135 $ 99 $ 90 $ 124 $ 448 $ 134 $ 98 $ 232 Commercial 89 86 96 96 367 92 92 102 102 388 94 90 184 Industrial 36 39 46 52 173 46 51 56 55 208 48 47 95 Accrued (Collected) Revenues 10 6 7 3 26 3 2 9 - 14 Retail Revenues 269 229 235 271 1,004 276 244 257 281 1,058 276 235 511 Wholesale 25 62 166 102 355 114 182 466 409 1,171 480 587 1,067 Other 5 5 6 4 20 7 5 6 9 27 11 9 20 Total Revenues 299 296 407 377 1,379 397 431 729 699 2,256 767 831 1,598 Purchased Power& Fuel 100 119 241 179 639 202 252 522 485 1,461 582 624 1,206 Operating Expenses 70 79 74 81 304 78 76 85 82 321 67 94 161 Depreciation & Amortization 46 48 43 44 181 46 46 60 59 211 51 55 106 Other Income (Expense) 9 6 3 32 50 34 5 12 27 78 17) 7 - Income Before Interest and Taxes $ 92 $ 56 $ 52 $ 105 $ 305 Operating Statistics (Portland General Electric) Retail Customers (End of Period, Thousands) 708 711 714 719 719 Electricity Sales (Thousand MWh) Residential 2,342 1,618 1,440 2,004 7,404 Commercial 1,816 1,746 1,951 1,879 7,392 Industrial 1,020 1,083 1,162 1,198 4,463 Total Retail 5,178 4,447 4,553 5,081 19,259 Wholesale 1,338 3,053 4,921 3,300 12,612 Total Sales 6,516 7,500 9,474 8,381 31,871 Average Billed Revenue (ข per kWh) Residential 5.73 6.08 6.04 5.99 5.91 Commercial 4.91 4.92 4.87 5.12 4.97 Industrial 3.49 3.63 3.96 4.32 3.88 Total Retail 5.00 5.03 5.01 5.27 5.08 Wholesale 1.88 2.03 3.37 3.11 2.82 Total Sales 4.36 3.81 4.15 4.42 4.18 Resource Mix Coal 18% 12% 14% 16% 15% Combustion Turbine 4% 6% 8% 14% 8% Hydro 13% 10% 5% 8% 9% Total Generation 35% 28% 27% 38% 32% Firm Purchases 47% 61% 61% 56% 57% Secondary Purchases 18% 11% 12% 6% 11% Total Resources 100% 100% 100% 100% 100% Average Variable Power Cost (MillsIkWh) Generation 8.0 8.7 10.1 11.5 11.3 Firm Purchases 16.7 16.8 30.3 25.0 23.2 Secondary Purchases 15.0 18.5 22.0 27.4 19.7 EXH064-00508 724 726 2,361 1,480 1,872 1,769 1.169 1.235 5.72 4.91 3.93 5.05 2.66 4.00 13% 10% 8% 31% 62% 7% 00% 12.1 23.3 25.5 6.69 5.20 4.13 5.40 3.71 4.51 7% 6% 7% 20% 74% 6% 00% 14.5 25.0 74.6 722 725 725 1,444 2,148 7,433 1,964 1,922 7,527 1,249 1,259 4,912 4,657 5,329 19,872 5,703 3,655 18,548 0,360 8,984 38,420 6.23 5.77 6.03 5.19 5.31 5.15 4.48 4.37 4.23 5.33 5.27 5.25 8.17 11.19 6.31 6.89 7.68 5.77 9% 14% 11% 14% 17% 12% 4% 6% 6% 27% 37% 29% 63% 53% 63% 10% 10% 8% 100% 100% 100% 15.1 16.0 14.5 50.1 43.0 34.9 126.6 226.6 123.6 728 730 730 2,171 1,548 3,719 1,820 1,785 3,605 1,200 1,139 2,339 5,191 4,472 9,663 2,739 3,035 5,774 7,930 7,507 15,437 6.17 6.33 6.24 5.16 5.04 5.10 4.00 4.13 4.06 5.32 5.25 5.29 17.52 19.34 18.48 9.67 10.95 10.22 16% 12% 14% 17% 17% 17% 6% 7% 6% 39% 36% 37% 53% 58% 56% 8% 6% 7% 100% 100% 100% 24.0 19.6 22.2 91.2 111.7 101.6 173.9 177.2 175.3 EC2655OA0070595 Printed: 8/22/2001 9:16 AM Pg 7 ============= Page 75 of 75 ============= SELECTED FINANCIAL AND OPERATING HIGHLIGHTS Wholesale Services (In Millions, Except Where Noted) 1st Qtr Income Before Interest, Minority Interests and Income Taxes Commodity Sales and Services (1) Assets and Investments Unallocated Expenses ReportedIBIT Physical Volumes (BBtueld) Gas: North America 13,042 Europe and Other 1,799 Total Physical Sales Volumes 14,841 Transportation Volumes 556 Total Physical Gas Volumes 15,397 Crude Oil and Liquids 4,284 Electricity (2) 9,594 Total Physical Volumes 29,275 Electricity Volumes (Thousand MWh) North America 85,962 Europe and Other 384 Transaction Volumes Marketed 86,346 Financial Settlements (Notional)(BBtueld) 95.151 12,513 13,321 14,625 13,380 1,223 1,640 1,630 1,572 13,736 14,961 16.255 14,952 513 537 693 575 14,249 15,498 16,948 15,527 8,822 4,699 6,824 6,160 10,637 12,406 10,306 10,742 33,708 32,603 34,078 32,429 2000 1st Qtr 2nd Qtr 3rd QI 20,606 22,438 24,625 28,410 24,033 2,469 3,593 3,605 4,866 3,637 23,075 26,031 28,230 33,276 27,670 456 595 618 925 649 23,531 26,626 28,848 34,201 28,319 6,134 5,048 5,754 7,406 6,088 12,170 15,056 18,857 23,068 17,308 41,835 46,730 53,459 64,675 51,715 2001 27,256 25,614 26,430 8,699 7,290 7,991 35,955 32,904 34,421 506 319 412 36,461 33,223 34,833 6,836 10,054 8,454 25,822 31,500 28,677 69,119 74,777 71,964 94,966 111,336 88,254 380,518 102,903 124,089 162,963 188,832 578,787 196,064 213,948 410,012 1,833 2,795 6,564 11,576 7,844 12,912 10,525 23,389 54,670 36,338 72,704 109,042 96,799 114,131 94,818 392,094 110,747 137,001 173,488 212,221 633,457 232,402 286,652 519,054 82.699 109.351 109.872 99.337 141.865 152.627 212.174 276.865 196.148 302.694 258.443 280.447 Retail Energy Services 1999 2000 2001 (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 Year Revenues (1) $ 181 $ 161 $ 202 $ 332 $ 876 $ 314 $ 420 $ 535 $ 497 $ 1,766 $ 693 $ 557 $ 1,250 IBIT (recurring) (1) $ (39) $ (33) $ (15) $ 37 $ (50) $ 6 $ 46 $ 27 $ 32 $ 111 $ 40 $ 60 $ 100 Total Contract Value (In Billions) (3) $ 1.7 $ 1.7 $ 2.5 $ 2.6 $ 8.5 $ 3.7 $ 3.8 $ 4.1 $ 4.5 $ 16.1 $ 5.9 $ 7.2 $ 13.1 Broadband Services 1999 2000 2001 (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 Year Revenues - - - - - $ 59 $ 151 $ 135 $ 63 $ 408 $ 83 $ 16 $ 99 IBIT - - - - - $ - $ (8) $ (20) $ (32) $ (60) $ (35) $ (102) $ (137) Terabytes Delivered (4) - - - - - 6,005 13,692 19,446 33,263 72,406 43,400 98,478 141,878 (1) Beginning in 2001, risk management activities associated with Enron's retail customers are managed by Wholesale Services. Prior period Wholesale Services and Retail Energy Services amounts have been restated (2) Represents electricity volumes, converted to BBtue/d. (3) Represents customers' estimated future expenditures related to new contracts. (4) Unit of measurement for data delivered, equal to one trillion bytes. EXH064-00509 1999 2nd Qtr 3rd Qti $ 232 $ 88 $ 169 $ 121 $ 610 $ 256 $ 420 $ 407 $ 539 $ 1,622 $ 785 $ 762 $ 1,547 136 325 240 149 850 220 55 305 309 889 59 134 193 (40) (50) (34) (37) (161) (47) 60 82 (70) (259) (89) (94) (183 $ 328 $ 363 $ 375 $ 233 $ 1.299 $ 429 $ 415 $ 630 $ 778 $ 2.252 $ 755 $ 802 $ 1.557 EC26550A007O596 Printed: 8122/2001 9:16 AM -18