Spreadsheet: tracy_geaccone__40185__Det Var 2000 ETS-TW
Sheet: ETS

 | Enron Corp
 | Enron Transportation Services  (EGPG4)
 | Detailed Variation Analysis
 | 4th Quarter
 |  | Year Ended Dec 31 |  |  |  | Fourth Quarter |  |  |  | 9 mo Ended Sept 30 |  |  |  | Third Quarter |  |  |  | 6 Mo Ended June 30 |  |  |  | Second Quarter |  |  |  | First Quarter
 |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr)
 | Revenues
 | NNG | 505.5 | 491.3 |  | JJ |  |  |  |  | 367.6 | 352.5 |  | W |  |  |  | P | 287.4 | 231.1 |  |  |  |  |  | I | 165.8 | 141.4 |  | A
 | TW | 184.9 | 156.8 |  | KK |  |  |  | AA | 131 |  |  | Q |  |  |  | Q | 82.6 | 76.6 |  |  |  |  |  | J | 39.3 | 39.1 |  | B
 | Other Ops | 8.5 | 4.9 |  |  |  |  |  |  | 2.8 |  |  |  |  |  |  |  | 1.6 | 2.5 |  |  |  |  |  |  | 0.8 | 1.7
 | Cost of Sales
 | NNG | 13.7 | 16 |  | LL |  |  |  |  | 12.3 |  |  | X |  |  |  | P | 11.1 | 2.6 |  |  |  |  |  | I | 0.8 | 0.5
 | TW | 35.4 |  |  | BB |  |  |  | BB | 20.7 |  |  | Q |  |  |  | Q | 11.7 | 3 |  |  |  |  |  | J | 3.9 | 1 |  | C
 | Other Ops | 0 | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0
 | Gross Margin
 | NNG
 | TW
 | Other P/L Ops
 | Operating Expenses (incl taxes)
 | NNG | 230.5 | 217.4 |  | MM |  |  |  | CC | 164.6 | 155.7 |  | Y |  |  |  |  | 111.1 | 100.9 |  |  |  |  |  | K | 53.6 | 50.8 |  | D
 | TW | 28.2 |  |  | DD |  |  |  | DD | 24.9 | 32.1 |  | R |  |  |  | R | 18.8 | 21.7 |  |  |  |  |  | L | 9.3 | 10.9 |  | E
 | EOTT | 0 | 1.2 |  |  |  |  |  |  | 0.1 |  |  |  |  |  |  |  | 0.3 | 0.5 |  |  |  |  |  |  | 0.2 | 0
 | Other Ops | 22.6 |  |  |  |  |  |  |  | 14.4 |  |  |  |  |  |  | S | 11 | 2.6 |  |  |  |  |  |  | 2.6 | -0.3 |  | F
 | NNG - depreciation | 47.2 | 46.8 |  |  |  |  |  | EE | 34.8 | 37.5 |  | T |  |  |  | T | 22.8 | 24.2 |  |  |  |  |  |  | 11.1 | 11.9
 | TW - depreciation | 19.6 | 19 |  |  |  |  |  |  | 14.3 | 13.8 |  |  |  |  |  |  | 9.8 | 9.2 |  |  |  |  |  |  | 4.8 | 4.6
 | Other Ops - depreciation |  | 0.3 |  |  |  |  |  |  | 0 | 0.3 |  |  |  |  |  |  | 0 | 0.2 |  |  |  |  |  |  | 0 | 0.2
 | Operating Income
 | Equity Earnings
 | NNG (Trailblazer, Overthrust) | 4.1 | 1.9 |  | FF |  |  |  | FF | 2.9 | 1.7 |  | G |  |  |  |  | 1.9 | 0.8 |  |  |  |  |  |  | 0.9 | 0 |  | G
 | Citrus | 50 | 25 |  | GG |  |  |  | GG |  | 17.3 |  | U |  |  |  | U | 15.5 | 11.6 |  |  |  |  |  | M | 6.5 | 6.3
 | Northern Border | 7.7 |  |  |  |  |  |  |  | 5.6 | 5.8 |  |  |  |  |  |  | 3.4 | 4.1 |  |  |  |  |  |  | 1.7 | 1.8
 | EOTT | 0.9 | 3.5 |  |  |  |  |  |  | 1.1 | 5.1 |  |  |  |  |  |  | -3.9 | -0.3 |  |  |  |  |  |  | -2.1 | 0 |  | H
 | Other |  | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0
 | TOTAL
 | Gains on Sales
 | NNG (Overthrust/Kingman Land/Zavala) | 1 | 0 |  |  |  |  |  |  | 1 | 0 |  |  |  |  |  |  | 1 | 0 |  |  |  |  |  |  | 0 | 0
 | NNG (Tejas/Champlin) |  | 0.7 |  |  |  |  |  |  | 0 | 0.7 |  |  |  |  |  |  | 0 | 0.7 |  |  |  |  |  |  | 0 | 0.7
 | NNG (Seagull '00) | 1.2 |  |  | HH |  |  |  | HH
 | TW ([NAME]) |  | 2 |  |  |  |  |  |  | 0 |  |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0
 | [NAME] |  | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0
 | Customer County Assets |  | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0 |  |  |  |  |  |  | 0 | 0
 | Other |  |  |  |  |  |  |  |  | 0 | 0.4 |  |  |  |  |  |  | 0 | 0.3 |  |  |  |  |  |  | 0 | 0
 |  | Year Ended Dec 31 |  |  |  | Fourth Quarter |  |  |  | 9 mo Ended Sept 30 |  |  |  | Third Quarter |  |  |  | 6 Mo Ended June 30 |  |  |  | Second Quarter |  |  |  | First Quarter
 |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr) |  | 2000 | 1999 | Incr (Decr)
 | Other Income
 | Interest Income | 0.8 |  |  |  |  |  |  |  | 0.8 |  |  |  |  |  |  |  | 0.8 | 11.3 |  |  |  |  |  | N |  | 0
 | 99 Interest Lock / '98 KN Deposit |  | 9 |  |  |  |  |  |  | 0 | 9 |  |  |  |  |  |  | 0 | 9 |  |  |  |  |  |  | 0 | 9
 | 99 Conoco / '98 Kansas Ad valorem refund |  | 9 |  |  |  |  |  |  | 0 | 9 |  |  |  |  |  |  | 0 | 9 |  |  |  |  |  |  | 0 | 9
 | 99 Bear Paw & KMI / '98 Vehicles sales |  | -2.8 |  |  |  |  |  |  | 0 |  |  |  |  |  |  |  | 0 | -2.8 |  |  |  |  |  |  | 0 | -2.8
 | NP (Reimb. Of Transcanada Payment) |  | 9 |  |  |  |  |  |  | 0 | 9 |  |  |  |  |  |  | 0 | 9 |  |  |  |  |  |  | 0 | 0
 | NNG Overthrust 2000 | 1 |  |  |  |  |  |  |  | 1 | 0 |  |  |  |  |  |  | 1 | 0 |  |  |  | 0 |  |  | 0.9 | 0
 | NNG Conoco 2000 | -2.3 |  |  | NN |  |  |  |  | -2.3 | 0 |  |  |  |  |  |  | -2 | 0 |  |  |  | 0 |  |  | 0 | 0
 | ENA swap 2000 | 14.7 |  |  | OO |  |  |  |  | 14.7 | 0 |  |  |  |  |  |  | 14.7 | 0 |  |  |  | 0 |  | O | 0 | 0
 | NNG ( [NAME] inventory sale) | 11 |  |  | PP |  |  |  |  | 11 | 0 |  | V
 | Other | -0.6 |  |  |  |  |  |  | II |  |  |  |  |  |  |  |  | -2.3 | 0.5 |  |  |  |  |  |  | 0 | -0.6
 | TOTAL
 | IBIT
 | NNG | 242.4 | 229.6 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 157.6 | 120.4 |  |  |  |  |  |  | 102.1 | 94.1
 | TW | 103.7 | 84.8 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42.2 | 42.7 |  |  |  |  |  |  | 21.3 | 22.6
 | Citrus | 50 | 25 |  |  |  |  |  |  |  | 17.3 |  |  |  |  |  |  | 15.5 | 11.6 |  |  |  |  |  |  | 6.5 | 6.3
 | EOTT | 1.67 | 21 |  |  |  |  |  |  | 1.7 |  |  |  |  |  |  |  | -3.2 | 10.9 |  |  |  |  |  |  | -1.9 | 0
 | Other Ops | -6.6 |  |  |  |  |  |  |  |  | 16.3 |  |  |  |  |  |  | -7 | 12.9 |  |  |  |  |  |  | -0.2 | 3
 | TOTAL IBIT
 | Interest Expense
 | Int on 3rd party debt | 12 | 37.9 |  |  |  |  |  |  | 29.9 |  |  |  |  |  |  |  | 20.4 |  |  |  |  |  |  |  | 10.5
 | Other trade interest | 0 | 14.3 |  |  |  |  |  |  | 0 |  |  |  |  |  |  |  | 0 |  |  |  |  |  |  |  | 0
 | Capitalized interest | -0.7 | -1.6 |  |  |  |  |  |  | -0.5 |  |  |  |  |  |  |  | -0.2 |  |  |  |  |  |  |  | -0.1 | -0.7
 | Int exp - trade
 | Interco interest (inc)/exp | -59.6 | -107
A | Margins increased $9mm primarily due to new rates in 2000, rate case reserve of $9.4mm in 1999 and $4.2mm rate case refund reserve reversal in 2000.
B | Bloomfield Bisti contract buyout in 1999 of $3.6mm partially offset by $2.8mm of operational gas sales in 2000.
C | Operational gas sales
D | Higher Corporate allocations in 2000.
E | Fuel used in operations in 1999.
F | Primarily due to SAP system costs of $2.5mm in 2000.
G | [NAME] income
H | EOTT was reported in Corp & Other in 1999.
I | Base Gas Sale in 2000 resulted in $51.2MM of revenue and $9.1MM in costs.
J | Primarily operational gas sales (sale of linepack) in 2000.
K | SBA Fees in 2000 $2.4mm, [NAME] in 2000 $2.3, Higher Corporate allocations in 2000 $3.3, Other $1.4mm.
L | Unaccounted fuel percentage dropped in 2000, compared to 1999, resulting in upside.
M | Lower financing costs, due to interest hedge on debt.
N | Lower EOTT interest income
O | Earnings from derivative related to '99 Base Gas transaction were locked in during 2Q00.
P | Base Gas Sale in 1999 resulted in $33.8 in revenue and $11.1 in costs.
Q | Primarily operational gas sales (sale of linepack) in 2000.
R | Unaccounted fuel percentage dropped in 2000, compared to 1999, resulting in upside, and higher gas prices in 2000 resulted in upside in fuel over-retainage.
S | Compensation plan accrual
T | Timing of depreciation will be offset in 4Q2000.
U | Change due to FAS 133
V | Gain from sale of inventory parts to [NAME] in 2000.
W | Primarily due to larger base gas sale in 2000 ($51.2MM) versus 1999 ($33.8MM).
X | Primarily due to costs of base gas sale in 1999 ($11.1MM) versus 2000 ($9.1MM).
Y | SBA Fees in 2000 $3.7mm, [NAME] in 2000 $5.8, Other ($.4MM)
 | 4TH Quarter [NAME]
AA | Primarily operational gas sales (sale of linepack) in 2000 $10.7 and margins increased $3.5 in 2000 primarily due to a higher index price.
BB | Primarily costs associated with operational gas sales (sale of linepack) in 2000.
CC | SBA Fees in 2000.
DD | Unaccounted fuel percentage dropped in 2000, compared to 1999, resulting in upside, and higher gas prices in 2000 resulted in upside in fuel over-retainage.
EE | Higher depreciation in 4th qtr. due to timing.  Only a .4 increase from 1999, for the year.
FF | [NAME] income
GG | Higher margins and lower financing costs
HH | Gain on sale of Seagull asset in 2000.
II | Deferral of gain on sale of inventory sale to Cooper ($4.5), Gain on TransCanada Swap $1.5, NW Alaska Pipeline Indemnification ($.5), Other ($1.3)
 | YTD 2000 [NAME]
JJ | Primarily due to larger base gas sale in 2000 ($51.2MM) versus 1999 ($33.8MM).
KK | Primarily operational gas sales (sale of linepack) in 2000 $22.9 and margins increased in 2000 primarily due to a higher index price.
LL | Primarily due to costs of base gas sale in 1999 ($11.1MM) versus 2000 ($9.1MM).
MM | Primarily SBA Fees in 2000 $8.6, Corporate Allocations in 2000 $2.6.,  and other $2.0.
NN | Conoco litigation reserve in 2000.
OO | Earnings from derivative related to '99 Base Gas transaction were locked in during 2Q00.
PP | Gain from sale of inventory parts to [NAME] in 2000.