Enron Global Markets November 2000 Enron Global Markets

® Enron Global Markets November 2000

Enron Global Markets New business unit focusing on global markets and commodities outside Enron’s traditional gas and power markets – – – – – Global Crude, Products, Petchems, and LPGs Coal and Emissions Transportation Shipping LNG, Middle East, Puerto Rico, and Venezuela Currency, Equities and Interest Rate Trading Agricultural Trading Insurance Weather EGM provides a true network for market making opportunities related to commodities that are highly liquid in physical or financial terms and are enormous in market size EGM leverages the value of Enron’s existing trading network and international asset positions EGM’s operations will coordinate and leverage with our North American, European, Australian, and Japanese businesses 1

EGM’s Wholesale Business Natural Gas Power Financial Trading Transportation & Shipping Agriculture Global Crude & Products Coal & Emissions Weather Insurance LNG Pulp & Paper Merchant Investments 2 Metals

EGM’s Wholesale Business Crude & Products Coal LNG Emissions EGM Weather Transportation Insurance Shipping FX/Rates/ Equities Agribusiness 3

Enron Global Markets Creating New Markets in Global Commodities Offices Houston London Oslo Singapore Seoul Puerto Rico Tokyo Sydney Panama Dubai Johannesburg Frankfurt Coal Activities Europe China Australia USA Korea South Africa Japan India Colombia Venezuela Indonesia Poland Russia Crude and Product Activities USA UK (Europe) Singapore Australia Panama Korea Japan Argentina 4 Weather USA Europe Japan Australia LNG India Puerto Rico Venezuela Georgia Louisiana LNG Ships LNG Under Development

Developing High Growth Wholesale Business Coal $60 Billion Crude & Products $3 Trillion Crude and products (gasoline, heating oil, jet, gasoil, residue) MTBE, petrochemicals, plastics and LPGs Largest domestic coal trader Largest importer of coal into U. K. Expanding into Asia Actively trading online Coal, emissions, and dry-bulk freight trading online Geographic product expansion Leader in risk management products Largest petrochemical trader on the world Growing presence in global freight trading Enron Global Markets Weather $1+ Trillion LNG $18 Billion Leading market maker Flexible Global Network Products offered in every state and 10 countries on 4 continents Developing online trading network Growing shipping business Successful trading on Enron. Online Product offering covers entire developed world Leverage Enron. Online, North American, and European Networks 5

Enron Global Markets Office of the Chairman Mike Mc. Connell - President & Chief Executive Officer Jeff Shankman - Chief Operating Officer Financial Trading Gary Hickerson MD Transportation Dan Reck VP Coal, Emissions & Freight George Mc. Clellan MD Weather Mark Tawney Director Global Risk Markets Jere Overdyke MD Fundamentals Jen Frasier Director LNG & Middle East Rick Bergsieker MD Finance & Structure Larry Lawyer VP 6 Accounting Brent Price VP & CAO LNG Eric Gonzales VP Human Resources Cindy Skinner Sr. Director Global Crude & Products John Nowlan VP Legal Mark Haedicke MD & GC

Coal Key Active Areas Coal Offices Largest domestic coal trader Lead and growing business via electronic trading on Enron. Online. Currently trading emissions, coal and freight online Leader in risk management products and services, producer finance, e. Commerce and OTC markets Conduit into transportation trading Combines producer finance, marketing, trading, transportation, emissions technology & trading to provide services to its customers Expanding into Asian markets 7

LNG Key Active Areas & Contracts Under Development Creating an Enron network of LNG supplies, transportation, terminals and markets to maximize optionality Market and optimize the use of Dabhol, Hoegh Galleon and Exmar LNG vessels Developing online trading network and creating an Asian hub Gaining access to a broader network of terminals 8

Crude and Products Key Trading Areas Business includes crude and products (gasoline, heating oil, jet, gasoil, residue) MTBE, petrochemicals, plastics and LPGs Largest petrochemical trader in the world Continued growth expected due to focus on online trading, financial markets, geographic product expansion, and product origination and marketing activity Actively trading products on Enron. Online - Currently only platform with global coverage 9

Weather Key Weather Transaction Areas Offices Largest weather trader in the world Transacted in all lower 48 states and 10 countries on 4 continents Product offerings cover entire developed world Extensive growth expected by new product and new market development 10 Enron. Online’s success will continue to be an important platform for growth Enron is the largest aggregator of positions naturally exposed to cold winters and hot summers via our retail organization

Shipping Leading market maker of vessal freight Providing transparency, liquidity and long dated market making to the international freight market Actively trading products through Enron. Online Creating markets in long dated shipping capacity up to 5 years Currently quoting online bid/offer pricing for 3 liquid markets (1) Columbia to Europe (2) South Africa to Europe (3) US Gulf to Japan 11

Transportation Developing intermodel and truck-load risk management products to create value for railroad and trucking companies Technology allows for dramatic increases in efficiency and cost reduction for emerging trading markets with high transaction volume and large numbers of trading partners Developing new credit and financing alternatives for thinly capitalized trucking companies 12

Risk Markets - Insurance Identify, transform & transfer risks from Enron’s core markets into more efficient insurance market Create products that both extend Enron’s trading model and creates new markets Leverage financial capital, core competencies and industry knowledge to create contingent capital distribution/trading channels and solutions Opportunities for highly structured transactions that require specialized skill sets that can be managed effectively by Enron 13

Financial Trading Key Offices Financial Trading group includes Enron’s currencies; rates, equities trading and risk management activities Manages $4. 2 billion (NPV) global portfolio of commodity cash flow Structured over 1, 500 financial transactions in 50 countries this year Provides global financial risk management products, financial engineering services and 24 hour execution availability 14 Operates state-of-the-art web-based equity trading system with real-time position management and straight through processing Exploring origination, e. Commerce and trading opportunities in agriculture Enron’s Softs brokerage group in London is 3 rd largest on LIFFE exchange

Fundamentals Research Provide industry and commodity research for EGM trading units Build commodity expertise of analysts and associates in order to move them into origination/trading roles Centralize information and communication across commodity groups around the world Provide unique content to EOL (Research reports and market outlooks) Analyze cross-market and cross-commodity arbitage opportunities (LNG vs. NG, Distallates/Fuel Oil vs. NG) 15