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EXH045-00023

Enron Corp Bank Presentation

November 19, 2001

Waldorf Astoria

New York, N Y

PRIVILEGED AND CONFIDENTIAL

GOVERNMENT
EXHIBIT
  3551
  Crim. No. H-04-25 (S-2)


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Agenda

 Introduction -What Happened?

 Enron and Dynegy Merger

 Business Review

 Risk Assessment & Controls

 Debt Issues

 Next Steps

 Question and Answer Session

Jeff McMahon, Chief Financial Officer

Greg Whalley, President & COO

Greg Whalley, President & COO

Rick Buy, Chief Risk Officer

Jeff McMahon, Chief Financial Officer

Ray Bowen, Treasurer

Jeff McMahon, Chief Financial Officer

Panel

PRIVILEGED AND CONFIDENTIAL

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EXH045-00024


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What Happened ?

PRIVILEGED AND CONFIDENTIAL

EXH045-00025


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What Happened?
Current Situation

 Complete loss of investor and creditor confidence
 Management
   Performance of the business

 Financial markets

 No access to capital
 Short-term

 Long-term

 Trade credit markets nervous

 Current maturities greatly exceed operating cash flow
 Revolving credit facility matures May 2002 - $1.7513
   Osprey Trust must be defeased September 2002 - $2.6B
 Other bank maturities

 Too much leverage tied to stock price

 Osprey
 Marlin
 Equity forwards

PRIVILEGED AND CONFIDENTIAL - 4 -

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EXH045-00026


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What Happened?
Cause

 Series of bad investments
 Azurix
   Broadband
 Elektro
   Dabhol
   Merchant investments

 Overlevered

 Failed asset / liability management program
 Large use of Enron stock
 No significant equity issuances

 Related party transactions
 Conflicts of interest
   Slow to address investor concerns
 Overused
   Possible control failure

   Failure of management to respond quickly
PRIVILEGED AND CONFIDENTIAL - 5 -

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EXH045-00027


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What Happened?
  Enron Daily Share Price

  --------------------- - ----------------
- - - - - - - - - - - - - - -------------------------- -
  --------------------------------

45

  Jeff Skilling Resigns
40 -- ------------------------------------------------ -------------------------------------------------------------------------
3Q Earnings
35 -------------------------- ---Septem xer1.1-Tragedy--------------- ---------------------------- ..................
WSJ Articles Begin
30 ----------------------------------------------------------- ----------------------- -----------------------------------------
Bond Spreads Gap
25 ---------------------------------------------------- - ------------------------------- - - - -----------------------------

  SEC Inquiry Begins
20 ------------------------------------ -

15 CP Market Disappears / RC Drawdown
----------------------------
--------------------------------------------
  CFO Replaced Pipe Financing Announced
Loss of
  ------------------ -------
---------------------------------------------------------------------------
  Investor Confidence
  Merger Announced
5 ----------------------------------------------------------------------------------------------------------------------------

0
  8/14 8/21 8/28 9/5 9/18 9/25 10/2 10/9 10/16 10123 10/30 11/6 11113

PRIVILEGED AND CONFIDENTIAL

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EXH045-00028


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What Happened?
  Shareholder Equity Activity 12/99 to 9/01

		$MM
December 1999 Shareholder Equity		9,570
Net Income Net Income - Recurring		2,507
Net Income - Non-recurring		
Azurix	(613)	
Broadband Services	(180)	
Investing Activities	(544)	
Other	20	
Non-recurring Total		(1,317)
Net Income Total		1,190
Share Related Dividends Declared	(786)	
Shares Purchased	(1,559)	
Shares/Contingent Shares Issued to Raptor	998	
Repurchase of Contingent Shares	(1,270)	
Equity Issuances for Business Acquisitions	409	
Equity Issuances for Benefits / Options	1,514	
Share Related Total		(694)
Other Other Comprehensive Income / CTA		(1,036)
All Other		460
September 2001 Shareholder Equity - Estimate		9,490

Subject to restatement pending the filing of Enron 9/30/01 10Q

PRIVILEGED AND CONFIDENTIAL - 7 -

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EXH045-00029


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What Happened?
How to Solve It

Issues

Actions Implemented

  Short-term Revolver drawdown

   Get immediate liquidity  $1.013 secured facility
  Protect credit rating  $1.5B Northern Natural Gas preferred
 Private equity initiative
Medium-term Accelerated asset sale program

   Restructure maturities
 Improve rating outlook
   Liquidate finance vehicles
 Sell assets

 Long-term Change in management

   Rebuild investor confidence Restructured business focus
   Asset / Liability management program Engaged corporate governance advisors
 Management focus Restructured finance department

   Strategic equity solutions

PRIVILEGED AND CONFIDENTIAL -8- g>
5/30/03 5:37:55 PM

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EXH045-00030


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What Happened?
  Historical Organization Chart

Office of the Chairman
Ken Lay
L Jeff Skilling

  Wholesale T & D EES International EBS Azurix Finance
Greg Whalley Assets Rebecca Andy Fastow - CFO
Mark Frevert Stan Horton Lou Pai Joe Sutton Ken Rice Mark Ben Glisan - Treasurer 00 Dave Delainey

John Lavorato
  Dabhol  Broadband  Wessex
 Elektro

--------------------------------------------
Current Enron Employee
  No Longer with the Company
-------------------------------------------

PRIVILEGED AND CONFIDENTIAL

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EXH045-00031


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What Happened?
  Current Organization Chart

Office of the Chairman

Ken Lay

Greg Whalley

Mark Frevert

Wholesale

John Lavorato

T&D

Stan Horton

EES

Dave Delainey

Finance

Jeff McMahon - CFO

Ray Bowen - Treasurer

PRIVILEGED AND CONFIDENTIAL

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EXH045-00032


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What Happened?
  Pro Forma Combined Company ($MM) - 12/31/02E

Cash & Equivalents

Balance Sheet Debt
Off-Balance Sheet Debt
Convertible Preferred
Redeemable Preferred
Minority Interest
Shareholder Equity
Total Book Capitalization
Adjusted Ratios
Net Debt / Net Book Cap.
EBITDA / Fixed Charges
FFO / Fixed Charges
FFO / Net Debt

(1) Includes $500 MM of synergies

				Asset Sales
Dynegy	Enron	Merger	Pro Forma	Sensitivities
Standalone	Standalone	Adjustments	NewCo (1)	$1.013 $2.OB
20	1,559		1,579	1,579 1,579
4,605	12,087	(1,000)	15,692	14,692 13,692
2,105	1,080		3,185	3,185 3,185
-	1,500	(1,500)	-	- 0
246	903		1,149	1,149 1,149
1,200	2,387		3,587	3,587 3,587
5,156	9,500	3,005	17,661	17,661 17,661
13,312	27,457	505	41,274	40,274 39,274
48.30%	44.80%		43.80%	42.30% 40.80%
4.8x	3.9x		4.5x	4.7x 5.Ox
5.4x	3.4x		4.2x	4.4x 4.6x
25.60%	21.50%		25.30%	27.20% 29.20%

Source: Dynegy Presentation - November 2001

PRIVILEGED AND CONFIDENTIAL - 11 -

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EXH045-00033


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00
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Enron and Dynegy Merger

PRIVILEGED AND CONFIDENTIAL

EXH045-00034


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Enron and Dynegy Merger

 #1 wholesale natural gas and power franchises

 Through the Q3, gas sales exceeded 40 Bcf per day and power sales
exceeded 500 million megawatt hours

 Principal energy market makers and liquidity providers

 EnronOnline + Dynegydirect

 Intellectual capital leveraging core asset positions

 Complementary physical and financial capabilities

 Combined revenues exceeded $2008 and $90B in assets

 Comprehensive energy delivery networks

 Includes more than 22,000 megawatts of generating capacity

 Diverse pipelines and generation assets

 Includes more than 25,000 miles of pipelines

  Source: Enron Merger Press Release November 9, 2001
PRIVILEGED AND CONFIDENTIAL -13-
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5/30/03

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EXH045-00035


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Enron and Dynegy Merger
Transaction Overview

 Stock for stock merger

 Fixed conversion ratio of 0.2685 ENE per DYN share
 Resultant ownership profile Enron 36%; Dynegy 64%

 Dynegy purchased preferred stock for $1.5B, exchangeable for ENE
common stock and convertible into 100% of Northern Natural preferred
equity under certain circumstances

   Funded via ChevronTexaco's $1.5B purchase of preferred stock in Dynegy
   ChevronTexaco's preferred is convertible into common equity of Dynegy at a 5%
discount to $35.966 (the 5-day average price as of November 2, 2001) per share

 Commitment by ChevronTexaco to infuse an additional $1.013 upon close of
the merger

This slide is intended only as a summary of the definitive documents to the Merger Agreement and the investment in
preferred stock by Dynegy

PRIVILEGED AND CONFIDENTIAL

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EXH045-00036


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Enron and Dynegy Merger
Merger Agreement

 Agreement

 Expected to close in the 3rd quarter of 2002

 Required approvals - FERC, HSR, SEC and Enron and Dynegy shareholders

 Termination Provisions

 Material Adverse Change Clause (MAC)
 Litigation Cap
   $3.5B Cap, MAC clause enforceable thereafter

 Interim Covenants

 Debt
   May refinance existing debt plus incur an additional $1.013 in addition'to the recent
$1.013 Chase / Citi financing
 Equity
  Enron is entitled to issue up to $2.013 of new equity
   Or additional equity as necessary to prevent a downgrade below investment
grade

These slides are meant as an overview of the principle terms of the Merger Agreement and, as summarized, are
qualified as to the terms of the Merger Agreement

PRIVILEGED AND CONFIDENTIAL - 15 -

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EXH045-00037


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Enron and Dynegy Merger
  Financial Highlights of the New Dynegy

 Significant balance sheet strength

 Less leverage with fewer off-balance sheet transactions

  Strong free cash flow to support future growth

PRIVILEGED AND CONFIDENTIAL

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a
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EXH045-00038


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Ln
Enron and Dynegy Merger '
  N
  0
Credit Strengths 
#1 wholesale gas and power industry position

 Diversified earnings stream

 Stable free cash flow from assets (midstream, pipes, T&D)

 Significant recurring earnings / cash flow (wholesale)

 Profitable C&I / Retail business

 G&A savings

 ChevronTexaco strategic relationship and support

 Commitment to maintain investment grade ratings

  Conservative financial policy and practices

PRIVILEGED AND CONFIDENTIAL

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EXH045-00039


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Enron and Dynegy Merger
  Combined Company - 2001 Estimate ($MM)

2001E
EBITDA

Dynegy M&T
Enron
  North American
Europe/Other
Subtotal

2001E 2001E
EBITDA EBITDA

  1,271 (1) Dynegy 0
Enron 286

Dynegy
Enron

  2001 E
EBITDA

Dyne

Midstream	280
Illinova T&D	396
S u btota 1	676
Enron	
Pipelines	484
Portland General	377
Global Assets	236
Subtotal	1,097

2,582
618
  3,200

(272)
(437)

  TOTAL 1,773 TOTAL 4,471 TOTAL 286 TOTAL (709)
(1) Includes $600MM of EBITDA attributable to generation assets
  Note: Numbers subject to restatement pending filing of Enron 9/30/01 1 OQ
Source: Dynegy Presentation November 2001

PRIVILEGED AND CONFIDENTIAL -18- 1`~o
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EXH045-00040


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Enron Business Review

PRIVILEGED AND CONFIDENTIAL

EXH045-00041


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Enron Business Review
Enron Businesses

Natural Gas

Transportation, Electric
Distribution and Global
Assets

PRIVILEGED AND CONFIDENTIAL

-20-

Energy Services
for Commercial and
Industrial
Customers

5/30/03 5:37:55 PM

Commodity
Marketing and
Delivery

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EXH045-00042


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Enron Business Review
  9 Mo. 2001 EBITDA By Core Business ($MM)

Notes: Core Businesses only
  EBITDA = Operating Income + DDA
  Subject to review pending the filing of Enron 9130/01 10Q

Core Businesses

Wholesale Services

 Marketing and Delivery of Commodities
Worldwide

Transportation & Distribution
 Pipelines

Retail Energy

 Energy Outsourcing to Commercial and
Industrial Customers

Non-Core Businesses

 Portland General, Global Assets,
Broadband

Businesses Under Review

 Other wholesale commodity businesses
outside of gas, power, and coal

PRIVILEGED AND CONFIDENTIAL - 21 -

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EXH045-00043


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LO
Enron Business Review '
  N
  0
Enron Wholesale Services 

  EBITDA ($MM)

Wholesale
Services

Americas

 North America Natural
Gas and Power

Other

Commodity

 Europe Natural Gas and
Power

Subject to restatement pending the filing of Enron 9/30/01 10Q

$2,160

Note: Excludes Global Assets, which is now Non-Core

PRIVILEGED AND CONFIDENTIAL

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5/30/03 5:37:55 PM

4-pi49

EXH045-00044

  2000 9 Mo. 2001


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Enron Business Review
Enron Wholesale Services

   Enron infrastructure gives
greater access to market
  MAPP' information than its competitors
M
  SCAR P
   The infrastructure involves:
MACC
  MSCC SPP  ownership of assets
   controlled access to assets
SERG asset management agreement
K
  I
  ERGOT
   Gas volumes on EnronOnline
FRGG were greater than NYMEX in
Offices September 2001
   Energy Exchanges
Third-Party Capacity
 Leased Gas Storage

  Power Plants
i In Operation
  Under Development  Enron's wholesale business continues to operate
  Marketing Activity successfully despite the crisis of confidence in the investor
 Gas
  Power community

PRIVILEGED AND CONFIDENTIAL - 23 -g~
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EXH045-00045


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Enron Business Review
  Enron's Leading Market Position

78.8

3Q01 2Q01

Physical Settlements in Bcfe/d

 Enron's market share makes it critical to the stable
operation of the power and gas trading markets
 Enron is the key liquidity provider / market maker for gas
and power

21.6 21.1 19.5 19.4
  18.6 ,7

2Q 01

  Power
Gas

Source: Gas Daily, Power Markets Week, Company Reports
PRIVILEGED AND CONFIDENTIAL -24-
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5:37:55 PM

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EXH045-00046

  Enron

  AEP Reliant Mirant Duke Dynegy Aquila BP El Paso PG&E


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m
x
0
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0
0
0

0
I
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  0
11/29/99

12/29/99
1/29/00
2/29/00
3/29/00
4/29/00
5/29/00
6/29/00
7/29/00
8/29/00
9/29/00
10/29/00
11/29/00
12/29/00

  1/29/01
2/28/01
3/29/01
4/29/01
5/29/01
6/29/01
7/29/01
8/29/01
9/29/01
10/29/01
11/15/01

mm
O O
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I

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O

JPMNBY 10 01215 9 9

  Trade Count

  N w - (n 0) v 00 (0 0
0 O 0 0 0 0 0 0 0 0
  0 0 0 0 0 0 0 0 0 0


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O
Enron Business Review
  N
  
EnronOnlineTrade Counts - Last 30 Days

  Through 11/16/01

  10000
9000
8000
7000

E- 6000
0
U 5000
m

~= 4000
3000
2000
1000

  0

 Actual Count
30 day avg

PRIVILEGED AND CONFIDENTIAL - 26 -

5/30/03 5:37:55 PM

y9o

EXH045-00048

T r r r T r' r r r r r r r T r r T r r T r r
O O O O O O O O O O O O O O O O O O O O O O
\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \
t` C a r M LO ti O M LO ti rn N c\D M O N cD
r r r r N N N N N M r r r"
CZ) C) CD
  '- , r-
0 0 C) 0 0 C) 0 0 0 0 C)
  r r r r r r r T r- r r r r r


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Enron Business Review
Enron Energy Services

 Medium / Long term natural gas and electricity outsourcing supply for clients
 Identification and installation of energy efficient equipment which allows
clients to reduce consumption
 Business is focused in US / UK / Canada

 Target market focused on large consumers (Fortune 2500 companies) as
well as small consumers

EBITDA ($MM)

$200.0

($52.0)

Total Contract Value Growth ($B)
$30.0

  Subject to restatement pending the filing of Enron 9/30/01 10Q
PRIVILEGED AND CONFIDENTIAL -27-
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EXH045-00049

  1997 1998 1999 2000 2001E


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N
  Enron Business Review 
  N
  
Natural Gas Pipelines 
CQ
EBITDA ($MM)

Transportation
& Distribution

Natural Gas
Pipelines

 Transwestern
 Northern Natural
 Citrus
 Northern Border
 Trailblazer

400
380
360
340
320
300
280
260
240
220
200

1998 1999 2000 9 Mo. 2001

  Subject to restatement pending the filing of Enron 9/30/01 1 OQ
PRIVILEGED AND CONFIDENTIAL - 28 -

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EXH045-00050


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m
  Enron Business Review 
  N

  Business Issues 
 Dabhol

 DPC continues to pursue remedies against Maharashtra State Electricity Board
(MSEB), the Government of Maharashtra (GOM) and the Government of India
(GOI)
 Procedural hearings in separate arbitrations against GOM and GOI are
scheduled for this month
 Project lenders considering approval of the termination notice to MSEB. DPC is
currently forbidden by the Bombay High Court from serving the Termination
Notice

 Enron has made its first claim against its political risk policies

 California

 Edison exposure approx. $150MM, PG&E gross exposure approx. $521 MM

 Effect of current events on wholesale business
 Liquidity
   Counterparty activity
 Transaction activity

PRIVILEGED AND CONFIDENTIAL

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EXH045-00051


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Risk Assessment and Controls

PRIVILEGED AND CONFIDENTIAL

EXH045-00052


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Risk Assessment and Controls
Risk Assessment & Control Groui

  Enron Board of - -
Directors
  I
1
I
Office of the Chairman
  Ken Lay, Greg Whalley 1
& Mark Frevert 1
I
I
I

  EVP I Chief Risk Officer _
Rick Buy

Underwriting

Dave Gorte

Portfolio

Credit Risk
Management

Market Risk
Management
  I
Ted Murphy
  David Port

Rick Carson

PRIVILEGED AND CONFIDENTIAL

Bill Bradford

-31-

6Q a C99

London
RAC Team

Ted Murphy

5/30/03 5:37:55 PM

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EXH045-00053


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Risk Assessment and Controls
Responsibilities

 Market Risk Management

 Identify and evaluate complex global risk issues
 Provide oversight and advice to the risk administration and risk technology
processes

 Credit Risk Management

 Credit review of over 7,000 transactions daily and review over 15,000
counterparties worldwide
 Actively monitor and manage portfolio credit exposure associated with worldwide
trading activities

 Underwriting

 Ensure that risks for merchant capital transactions are identified and, where
possible, mitigated
 Value investments by modeling transaction risks using standard valuation
processes

 Portfolio

 Provide due diligence review to identify financial and administrative risks in
proposed transactions

 Ongoing asset management and compliance

PRIVILEGED AND CONFIDENTIAL

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N
  Risk Assessment and Controls 
  N

  Transaction Approval Process 
r1

  a
h
TRANSACTION
  size
$MM Approving Unit
_ FUNCTIONAL
  ~- 2 GROUP HEAD I
ASSESSMENT
  - (-AC) c= 5 BUSINESS GROUP
HEAD
Request For:  Transaction CONFORMING <=10 RETAIL 1110.  RISK Review and CHAIRMAN & CEO
  ADJUSTED Valuation
  CAPITAL <= 20 WHOLESALE OOC ~~
or Credit and
  PREPAID OR Market Risk <= 75 ENE-OOC I
EMBEDDED Assessment ~~
DEBT 75+ ENE-BOD ~I
FINANCING Pricing
  or  RAC
   DIVESTITURE RECOMMEN- _
DATION
  (>$2,500,000) NON- <= 25 ENE-OOC ~~
CONFORMING 25+ ENE-BOD

  I I
I! I
I I
  ongoing portfolio review and revaluation I
PRIVILEGED AND CONFIDENTIAL -33-
  5/30/03 5:37:55 PM

EXH045-00055


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Risk Assessment and Controls 
  N
  
What Went Wrong and Remedies 
What Went Wrong?
   Large strategic transactions were NOT subject to RAC scrutiny
 Azurix
   EBS

 India
 The New Power Company

 RAC's role was to HIGHLIGHT THE RISKS for senior management and

Board of Director decision making

 Related party transactions approved by the Board of Directors

Remedies

 ALL transactions will be subject to RAC review

 Approval policy expected to be altered at December 2001 board meeting to

require Board of Director override of RAC decisions

PRIVILEGED AND CONFIDENTIAL - 34 -

5/30/03 5:37:55 PM

9q
0

EXH045-00056


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- rn
  Risk Assessment and Controls 
  N
  
Credit Controls 

How Do We Quantify and Control Credit?

 Standard credit analysis

 Strong documentation process

 Monitor and maintain collateral

 Monitor portfolio credit quality

 Perform simulations of price curve movements to estimate how credit
exposure and required margin is impacted

 Actively maintain a credit reserve

Actual reserve as of 9/28/2001 was $583MM

 Maintain credit insurance (base level of protection)

 Systems, systems, systems

PRIVILEGED AND CONFIDENTIAL

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EXH045-00057


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Risk Assessment and Controls
Credit Controls - continued

What Are the Issues Facing Us?

 Downgrade to BBB-

0 No real issue except confidence factor

 Downgrade below investment grade

 Requires the replacement of cash by L/C's

 Collateral thresholds (credit limits collapse to zero)

 Incremental margin posted under contractual margin agreements would be
approximately $1.613

 Nervous counterparties
 Calls for margin

 Reduced trading by some players

 Adequacy of cash for margin call and L/C replacement

PRIVILEGED AND CONFIDENTIAL

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=XH045-00058


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Risk Assessment and Controls
Credit Controls - continued

What Does Our Credit Portfolio Look Like?

 15,000 counterparties including retail
 3,500 active wholesale counterparties
  Investment Grade 68%
Non-Investment Grade 32%
 $15B of net credit exposures

Net exposure by E-Rating (In $MM)

I	Aaa/Aal	AAA/AA+	777	793
2	Aa2/Aa3/A1	AA/AA-/A+	1,751	1,615
3	A2/A3	A/A-	1,728	2,196
4	Baal/Baa2	BBB+/BBB	4,872	4,125
5	Baa3	BBB-	1,034
-- -----	- - - 1,000
-
-----
6	-------
Bat	--------
B9_+_	-
1,050	606
7	Ba2	BB	976	532
8	Ba3	BB-	502	490
9	131/132	B+/B	1,205	1,446
10	B3	B-	399	330
11	Caa/Ca/C	CCC	136	237
12		D	538	790

  14,968 14,160

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EXH045-00059


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Risk Assessment and Controls
Counterparty Behavior

How Are We Doing?

 Cash collateral converted to L/C's is manageable

 Industry's extension of credit to Enron has been reduced but stable

 Effort completed to reduce counterparty exposure to Enron through

assignment of trades and "ring" trades

 Cash has been needed to replace credit

PRIVILEGED AND CONFIDENTIAL

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EXH045-00060


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Risk Assessment and Controls
Cash Collateral

		~ Incoming Margin Outgoing Margin  Net Cash Margin
In $MMs
In	
2, 000		
	1,615	1,678 1,609 1,620 1,645
		1,396

1,500		1,261
		1,082 957
1,000		
500		
		
0		
(500)		) )
(1,000)		
(1,500)		( 2)
(2,000)	(1,687)	(1,791) (1,823)
(1,916) (1,822) (1
950)
		,
(1,992)
(2,134)
		(2,239)
(2,500)-	-	
	09/21/01	09/30/01 10/04/01 10/12/01 10/19/01 10/26/01 11/02/01 11/09/01 11/16/01
	"Includes OTC and NYMEX positions

PRIVILEGED AND CONFIDENTIAL

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Risk Assessment and Controls
  Trading - Are Our Controls Effective?

($MM)
600

150

50

(50

(150

(250

(600) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 `0 0 `0 0 0 0 0 0 0 0 0 0 0 0 0 ICD C, C, a ~ ~ N
  N - c"I 7- - N a a "' (N ' u3 `O (0 (NCO '- N w a3

PRIVILEGED AND CONFIDENTIAL - 40 -

  N
O) O) 0 0

5/30/03 5:37:55 PM

($85 MM)

4~19o

Iq
H

N
r-I
0
0
rI

a

EXH045-00062

Backtesting of Enron Corp. aggregate VaR
12 Months Ended November 14, 2001


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Debt Issues

PRIVILEGED AND CONFIDENTIAL

EXH045-00063


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Page 42 of 72
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Debt Issues
  Enron Debt ($MM)

I
Corp
  I

Balance Sheet Debt at 9/30/01 ($12,978)
Minority Interest Financings ($1,690)
Equity Forward Contracts ($304)
Leases ($596)
FAS 140s ($473)

Wholesale Transportation Off Balance
Services Retail & Distribution Sheet

FAS 140s ($1,253) FAS 140s ($281) FAS 140s ($80) Share Trust ($3,352)
Commodity Transactions with Structured Asset ($1,532)
Financial Institutions ($4,822) Unconsolidated Affiliates ($10,733)

Business unit obligations are not legal obligors. The chart does not consolidate business units into corporate

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EXH045-00064


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Debt Issues
  Enron Corp Recovery Plan

  Minority Preferred Other Proforma Corporate
As of September 30, 2001 Debt 8 Interest Stock Equity Obligations Total Capital Revolver D/C3
Current Book 11,977 $2,387 $903 $9,450 $713 25,430 54%
Pipeline Financing $750
Draw on RC less CP O/s $1,000

Dynegy Preferred	($1,500)	$1,500
Private Equity	($500)	$500
Asset Sales		
Contracted 4	($3,730)	
Other Anticipated	($1,850)	($200)
Securitization Potential Exposure		
Marlin / Azurix'	$395	($855)
Osprey 2	$569	($774)
Osprey Equity		($1,000)
FAS 140s	$325	($117)
Committed Stock Repurchases	$648	($648)
Potential Equity Reduction		
International Assets	???	???
Broadband Networks		($600)

Revised Total

  $8,084 $2,387 $903 $7,256 $713 $19,343 50%

I Assumes 1.0x RAB rrultlple for Wessex
2 Assumes Osprey assets worth 75% of book value less Enron debt obligations included in beginning debt bali
3 B/S debt/ (B/S debt + Preferred Stock + Shareholder's Equity)
4 Includes assets sales plus debt assumptions
5 (B/S debt + Other Obligations) / Total Capital
6 Beginning debt balance less cash

Subject to restatement pending the filing of Enron 9/30/01 10Q

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EXH045-00065


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OD

  Debt Issues `
  N
  0
New Facility Terms and Conditions 
Borrower: Transwestern Pipeline Company ($550MM)
  Northern Natural Gas Company ($45OMM
Guarantor: Enron Corp

Facilities: Secured Revolving Credit Facilities

Use of Proceeds: General Corporate Purposes

Maturity: 364 days after the Closing Date

Accordion Feature: Provides for increase of $200MM

Security: Capital Stock of Borrower

Unsecured subordinated note of Enron Corp

All assets of Borrower

  Covenants: Tangible Net Worth $750MM for both borrowers
Corp. Guarantee - reflects revolver (maximum debt-
to-capital 65%)

PRIVILEGED AND CONFIDENTIAL -44-
  5:37:55 PM
5/30/03

EXH045-00066


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rn
  Debt Issues ~'
  N
  0
0
Northern Natural Gas Preferred

   Dynegy purchased $1.5B of NNG Preferred on November 13, 2001
  a
  F3

 Dynegy has the option to purchase equity of NNG if merger agreement is
terminated

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EXH045-00067


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O
  Debt Issues 04
  N
0
  Private Equity 

  a
  F3

 Potential structure

 Transwestern preferred similar to Northern Natural Gas

 Timing

 Prior to year-end

 Sources

 Traditional private equity
 Strategic private investors

PRIVILEGED AND CONFIDENTIAL

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  0

EXH045-00068


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Debt Issues "
  N
Estimated Asset Sales through Year-End 2002

  a
h

  Cash Flow In ($MM) Expected Sale Date

Contracted
EGEP India
CEG Rio
EcoElectnca
Portland General (1)
Tota I

Anticipated Sales

Enron Wind
SK Enron
Gaspart
Other International
Other Merchant
Tota I

330	Dec-01
250	Dec-01
250	Dec-01
1,800	2nd Half 02

1st Half 02
1st Half 02
1st Half 02
2nd Half 02
Year 2002

1,850

Tota 1 4,480

(1) In addition, $1.18 of debt reduction on consolidated balance sheet

PRIVILEGED AND CONFIDENTIAL

2,630

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  "pi-9

EXH045-00069


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Debt Issues
  Debt Maturities Through 2002 ($MM)

Current CP
Balance Sheet Debt
Preferred Stock
Minority Interest
Structured
Securitizations / FAS 140s
Equity Forward Purchases
Leases
Commodity Transactions

TOTAL THROUGH 2002

Major Maturities
Current CP
Rawhide
Revolver
New Enron Building
Os prey
Pipeline Financing

Q4 2001	Q1 2002	Q2 2002	Q3 2002	Q4 2002
				
230	349	-	-	-
55	27	2,125	163	1,000
690	-	-	-	-
35	41	33	2,780	34
22	379	540	190	309
173	-	-	131	-
11	57	309	-	5
274	557	213	150	314

1,490 1,410 3,220 3,414 1,662
11,196

230 349
690

1,750
285

2,436

1,000

PRIVILEGED AND CONFIDENTIAL

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N
N
N
0
0

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h

EXH045-00070


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Debt Issues "
  N
Debt Maturities 2003 - 2005 ($MM)

  a
h

	2003	2004	2005
			
Balance Sheet Debt	1,551	2,054	2,611
Preferred Stock	-	103	-
Minority Interest	-	500	500
Structured	1)053	162	179
Securitizations / FAS 140s	193	379	88
Equity Forward Purchases	-	-	-
Leases	46	13	149
Commodity Transactions	607	1,364	840

3,450

TOTAL 2003 - 2005

12,392

4,575 43367

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EXH045-00071


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Debt Issues "
  "
Cash Flow Summary - Based on Preliminary 2002 Plan ($MM)

	Q4'01		Q1 '02	Q2'02	Q3'02	Q4'02		Total '02
Cash Flow from Operations	500		750	750	750	750		3,000
Staff Reduction Expense	(100)		-	-	-	-		-
Capital Expenditures	(292)		(243)	(253)	(194)	(176)		(866)
Sale of Investments	830		675	585	465	1,925		3,650
Amortization of Debt and Other Obligations	(2,325)		(1,410)	(3,220)	(3,414)	(1,662)		(9,706)
Collateral Activity	(750)							
Pipeline Financing (net)	750		-	-	-			-
Dynegy Preferred Equity	1,500		-	-	-	-		-
Private Equity	500		-	-	-	-		-
								
Surplus / (Shortfall)	613		(228)	(2,138)	(2,393)	837		(3,922)
Cash Balance-Beginning of Period(')	1,001		1,614	1,386	(752)	(3,145)		1,614
Scheduled Remaining Cash	1,614		1,386	(752)	(3,145)	(2,308)	(2,308)
Adjustments:								
Proforma/Rollover Bank Maturities/FAS 140s	920		349	2,035	-	-		2,384
Rollover Os prey Maturity	-		-	-	2,437	-		2,437
Adjusted Remaining Cash Balance (with Rollovers)	2,534		2,655	2,552	2,596	3,433		3,433

(1) Cash in Q4'01 is 9/30/01 balance

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EXH045-00072


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LO
Debt Issues
  N
Expiring L/Cs Under Uncommitted Lines ($MM)
  0

  a
h

As of Nov 15 2001
Corp LC Instruments
EOTT LC Instruments
Trade LCs

Total per Quarter

Q4 2001	Q1 2002	Q2 2002	Q3 2002	Q4 2002	Total
262	184	90	89	40	665
156	2				158
114	28	11	19		172
532	214	101	108	40	995

PRIVILEGED AND CONFIDENTIAL

EXH045-00073

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. ~o
  Debt Issues "
  N
  0
Minority Interests 
 Rationale

   Cost effective financing and favorable balance sheet impact

 Where on the Balance Sheet?
 minority interest

Deal Name	
Asset Description	Total Funded
Amount ($MM)	
Maturity Date
Rawhide	Backstop credit facility	690	Mar-03
Zephyrus	Preferred interest in Enron	500	Nov-05
	receivables		
Choctaw	Preferred interest in Enron	500	May-04
	receivables		

TOTAL

1,690

PRIVILEGED AND CONFIDENTIAL

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EXH045-00074


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Debt Issues
Minority Interests - Rawhide

 Enron demand Loans no longer Permitted Investments following downgrade
by S&P to BBB-. The demand loans are an inter-company obligation and
therefore no cross default to the Revolvers.

 Failure to repay the demand loans was a Termination Event which has
started the 9 business-day Purchase Option Period (to November 26, 2001)
and is an event of default on the inter-company loan from Sundance to
Ponderosa.

 Extension Requested to allow time to absorb information from the bank
meeting and to develop an acceptable restructuring plan

 Extend the start of the Liquidation Start Date to December 14, 2001.

 Agree to not pre-pay any debt not scheduled to mature during the extension
period.

PRIVILEGED AND CONFIDENTIAL

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EXH045-00075


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Debt Issues
  Structured Financings - Share Trusts - Osprey
 Purpose

 Deconsolidation of non-core business
 Bridge for sale of non-core assets in an off-balance sheet manner

 Capital Structure

 $2,436MM of 144a notes held by investors
 $220MM of certificates held by institutional investors and UM 2

 Repayment

 Enron obligation to pay when due:

 Enron Mandatory Convertible Preferred Stock
 Enron Remarketing Agreement

 Sales of assets
 Enron obligation to top off

 Trigger Event

 An Enron senior unsecured rating below Baa3 or BBB- concurrent with an Enron
Corp stock closing price below $59.78/share

PRIVILEGED AND CONFIDENTIAL

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EXH045-00076


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. rn
  Debt Issues "
  N
Osprey Major Assets
  0

  Whitewing 4
Book Value
  h
Asset 9/30101 ($MM)

  International

European Power Projects
Sarl ux (45% ownership)
Trakya (22% ownership)
  nership)
Nowa Sarzyna (50% ownership)
Arcos Turbines (100% ownership)
Total Europe
South American Gas Distribution
Elektro (24% ownership)
Promigas (43% ownership)
Total South America

nnmpsFir-

Merchant Assets
Yosemite I, II Certificates
American Coal Senior Note
EES Joint Venture
Canadian Turbines
Other
Total Domestic

TOTAL OSPREY ASSETS

PRIVILEGED AND CONFIDENTIAL - 55 -

353
112
  17
186

668

480
156

636

561
52
77
53
39
  7

789

$2,093

5/30/03 5:37:55 PM

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EXH045-00077


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Debt Issues
Osprev Sensitive

Analysis As of 9/30/01 ($MM)

Asset Value Percentage	100%	75%
		
Osprey Debt & Equity	2,656	2,656
Asset Value Merchant	2,093	1,570
Cash exposure	563	1,086
P/L exposure 1	(251)	(774)
Equity exposure	(1,251)	(1,774)

1 Assumes ENE share price $10

PRIVILEGED AND CONFIDENTIAL

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EXH045-00078


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Debt Issues "'
  N
Structured Financings - Share Trusts - Marlin

   Purpose
  h
 Allowed for the funding of the Wessex acquisition on a non-dilutive off-credit
  basis to Enron
 Capital Structure

 $915MM in notes held by 144a investors
 $125MM in Trust Certificates held by institutional investors

 Repayment

 Enron obligation to pay when due:

 Enron Mandatory Convertible Preferred Stock
 Enron Remarketing Agreement

 Sales of assets
 Enron obligation to top off

 Trigger Event

 An Enron senior unsecured rating below Baa3 or BBB- concurrent with an Enron
Corp stock closing price below $34.13/share

PRIVILEGED AND CONFIDENTIAL

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EXH045-00079


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N
  Debt Issues M
  N
Marlin/Azurix Value Analysis As of 9/30/01 ($MM)

  ENE Investment in Marlin & Azurix

Wessex RAB (1.0x Multiple) 2,000
Other Assets* 300
AZX Asset Value 2,300

Azurix Debt (9/30/01) 1,971
Marlin Debt 915
  2,886
Marlin Repayment Exposure (586)
Add Back ENE Preferred 191
ENE Top Up Obligation (395)
ENE P/L Exposure (855)

  Equity Exposure (855)

PRIVILEGED AND CONFIDENTIAL

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EXH045-00080


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M
  Debt Issues "'
  N
  0
0
FAS 125/140 and TRS Structures ~'

 Transaction rationale: 9

 Bridge for ultimate sale of non-core assets

 Generates cash flow for reinvestment

 Where on the balance sheet:

 Out of the money portion of Total Return Swap value recognized in Price Risk
Management Assets/Liabilities

PRIVILEGED AND CONFIDENTIAL

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EXH045-00081


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Debt Issues "'
  N
  0
0
FAS 125/140 and TRS Structures ($MM) ~'
Total
  Funded Total Asset (1) F3

  Deal Name Asset Description Amount Value Maturity Date

Hawaii	Multi-asset credit facility	455	November-02
			July-02
Riverside	Equity in Teesside Power	76	January-02
			December-13
ETOL	Equity in Teesside		
	Operations Ltd.	291	June-03
			January-04
Cerebus	Equity in EOG shares	517	June-02
Service Co.	Equity in Service Co.	25	September-03
Nikita - EOTT	Equity in EOTT	80	September-03
Comhusker	Equity in QF Powerplant	222	March-02
Motown	Equity in QF Powerplant	63	March-02
Slapshot	Canadian Newsprint Mill	358	June-06

TOTAL		~Mm
$ 2,087	

As of 9/30/01 (1) Valuations based on RAC or publicly traded assets

PRIVILEGED AND CONFIDENTIAL - 60 -

5/30/03 5:37:55 PM

  0

EXH045-00082


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LO
Debt Issues "'
  N
Commodity Transactions with Financial Institutions

   Rationale
  h
 Asset / Liability management of the commodity risk portfolio
   Monetize profit on commodity risk portfolio and transfer associated credit risk
 Contracts

 Monetize future cash flow and transfer counterparty credit risk to lenders
 Monetize future cash flow with lenders and Enron buys credit protection on
counterparties
 Monetize future cash flow with lenders and buy credit protection on Enron's
counterparties

 Where on the Balance Sheet?

 Reported in Price Risk Management Liabilities

PRIVILEGED AND CONFIDENTIAL

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  'Do
4

EXH045-00083


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Debt Issues

Commodity Transactions	. ~o
M
`
N
'-I
with Financial Institutions 0
			
	Term Current Amount ($MM)	Funding Source
Gas			
			
Gas 1	Dec-01	19	Bank - amortizing
Gas 2	Mar-02	350	Bank - non-amortizing
Gas 3	Jun-02	46	Bank - amortizing
Gas 4	Jun-04	308	Bank - amortizing
Gas 5	Jun-05	533	Bank - amortizing
Gas 6	Nov-05	299	Bank - amortizing
Gas 7	May-08	33	Bank - amortizing
Gas 8	Apr-11	258	Bank - amortizing
	Total Gas:	1,846	
Power			
Power 1	May-12	211	Bank - amortizing
	Total Power:	211	
Crude			
Crude 1	Dec-01	168	Bank - N/A
Crude 2	Oct-02	150	Bank - non-amortizing
Crude 3	Nov-02	75	Bank - amortizing
Crude 4	Oct-04	800	US Dollar Yosemite I - non-amortizing
Crude 5	Jul-05	475	US Dollar CLN I - non-amortizing
Crude 6	Apr-06	475	US Dollar CLN II - non-amortizing
Crude 7	Apr-06	162	Sterling CLN II* - non-amortizing
Crude 8	Apr-06	155	Euro CLN II* - non-amortizing
Crude 9	Feb-07	305	Sterling Yosemite II* - non-amortizing
	Total Crude:	2,765	
	Total:	4,822	*Amounts stated In USD

Note: GBP 1.00 = USD 1.4761 and EUR 1.00 = USD 0.9113

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5/30/03 5:37:55 PM

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EXH045-00084


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Debt Issues
  Rating Agency Update

Outlook

  MoodSenior Unsecured Debt Baa3 Review for
Downgrade

rsStandard Senior Unsecured Debt BBB- Negative
& Poors Watch

  Fitch,, Senior Unsecured Debt BBB- Evolving

PRIVILEGED AND CONFIDENTIAL

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ypo

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M
H
N
.-1
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0

a
h

EXH045-00085


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Debt Issues
8K Disclosure

 Restatement
 JEDI

   UM 1

   Accounting error $1.2B

 Related party transactions
 UM 1

   UM 2

   ChewCo

 Special committee investigation

 SEC investigation

PRIVILEGED AND CONFIDENTIAL - 64 -

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M
N
.-I
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a

EXH045-00086


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Debt Issues

Restatements - Net	

ncome	

$MM)	rn
"'
N

0
					
					
					a
F1
	1997	1998	1999	2000	Q1 2001 Q2 2001 Q3 2001
Net income as reported	105 (1)	703	893	979	425 404 (618)
Restatements:					
Consolidation of JEDI and Chewco	(45)	(107)	(153)	(91)	- - -
Consolidation of LJM1 subsidiary	-	-	(95)	(8)	- - -
Raptor equity adjustment	-	-	-	-	- - -
Prior year proposed audit					
adjustments and reclassifications	(51)	(6)	(2)	(33)	17 5 (17)
Net income restated	9	590	643	847	442 409 (635)

(1) After effect of significant contract restructuring charge totaling $463MM (after tax)

PRIVILEGED AND CONFIDENTIAL -65- ''~PQ
5/30/03 5:37:55 PM

EXH045-00087


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Debt Issues

Restatements -	

Total	

Assets	

($MM)	~'
N

O
						
						
						a
h
	1997	1998	1999	2000	Q1 2001	Q2 2001
Total assets as reported	22,552	29,350	33,381	65,503	67,260	63,392
Restatements:						
Consolidation of JEDI and Chewco	447	160	187	(192)	-	-
Consolidation of UM1 subsidiary	-	-	(222)	-	-	-
Raptor equity adjustment	-	-	-	(172)	(1,000)	(1,000)
Prior year proposed audit adjustments					
and reclassifications	(79)	(87)	(147)	(364)	(1,249)	247
Total assets restated	22,920	29,423	33,199	64,775	65,011	62,639

PRIVILEGED AND CONFIDENTIAL -66-
  5:37:55 PM
5/30/03

EXH045-00088


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Debt Issues

Restatements -	

Debt	

($MM)	
N

0

			
			
			a
			h
	1997	1998 1999	2000 Q1 2001 Q2 2001
Debt as reported	6,254	7,357 8,152	10,229 11,922 12,812
Restatements:			
Consolidation of JEDI and Chewco	711	561 685	628 - -
Consolidation of LJM1 subsidiary	-	- -	- - -
Raptor equity adjustment	-	- -	- - -
Prior year proposed audit			
adjustments and reclassifications	-	- -	- - -
Debt restated	6,965	7,918 8,837	10,857 11,922 12,812

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EXH045-00089


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N
Debt Issues
  N
Restatements - Equity ($MM)

  a
h

1997 1998 1999 2000 Q1 2001 Q2 2001

Equity as reported	5,618 7,048 9,570	11,470	11,727	11,740
Restatements:				
Consolidation of JEDI and Chewco	(262) (391) (540)	(810)	-	-
Consolidation of LJM1 subsidiary	- - (166)	60	60	60
Raptor equity adjustment	- - -	(172)	(1,000)	(1,000)
Prior year proposed audit				
adjustments and reclassifications	(51) (57) (128)	(242)	(286)	11

Equity restated 5,305 6,600 8,736 10,306 10,501 10,811

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419io

EXH045-00090


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Next Steps

PRIVILEGED AND CONFIDENTIAL

EXH045-00091


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Next Steps
Old Enron / New Enron

Old Enron New Enron

 Deal shop mentality  Liability management focus
 Compartmentalized information  Open communication

 Black box - -  Financial transparency
 Earnings driven  Cash driven

 Asset sales program book value  Asset sales program market
focused value driven
 Constant development of new  Focus on core businesses
businesses

 Related party deals  No related party deals
 Focus on achieving
successful merger

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9y
0

a
N
0
0

a
F3

EXH045-00092


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Next Steps

 Financings

   Extend Osprey maturity

 Amend pricing

 Raise additional equity

 Extend corporate maturities

 Accelerate asset sales based on current market values

 Restoration of L/C's

 Amend dividend policy

 Communication

 Restructuring Committee

 Additional lender meetings

 Deal specific conference calls/meetings
 Regular bank conference calls

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to

r1
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.- 1
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0
N

a
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EXH045-00093


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0
r-I

a
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Question and Answer Session

PRIVILEGED AND CONFIDENTIAL

EXH045-00094