Enron Global Markets January 2001 ®

1 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 Rates –Insurance –Weather –Agricultural 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 network and international asset positions EGM’s operations will coordinate and leverage with our North American, European, Australian, and Japanese businesses

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

3 EGM WeatherLNG Crude & Products CoalEmissionsTransportationShippingInsurance EGM’s Wholesale Business FX/Rates/ Equities Agribusiness

4 Enron Global Markets WeatherOfficesCoal ActivitiesCrude and Product ActivitiesLNG Activities Tokyo Sydney Panama Dubai Johannesburg Frankfurt Houston London Oslo Singapore Seoul Puerto Rico Europe China Australia USA Korea South Africa Japan USA UK (Europe) Singapore Australia Panama Korea USA Europe Japan Australia India Puerto Rico Venezuela Georgia Louisiana China Australia Korea Creating New Markets in Global Commodities India Colombia Venezuela Indonesia Poland Russia Japan Argentina LNG Ships Oman Abu Dhabi Bahamas Indonesia Malaysia

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

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

7 Coal Largest domestic coal market maker Leader in risk management products and services, producer finance, eCommerce and OTC markets Combines producer finance, marketing, trading, transportation and emissions technology to provide services to its customers Growing business via electronic platform on EnronOnline. Currently making markets in emissions, coal and freight online Conduit into transportation market making Expanding into Asian markets Key Active Areas Coal Offices

8 LNG Creating a global Enron network of LNG supplies, transportation, terminals and markets to maximize optionality Gaining access to a broader network of terminals Marketing and optimizing the use of Lakshmic, Hoegh Galleon and Excalibur LNG vessels Developing online market making network and creating an Asian hub Key Active Areas & Contracts Offices

9 Crude and Products Business includes crude and products (gasoline, heating oil, jet, gasoil, residue) MTBE, petrochemicals, plastics and LPGs Actively transacting all products on EnronOnline - Currently only platform with global coverage Largest non-integrated petrochemical marketer in the world Growth will be accelerated through increased marketing, penetration of online markets, geographic & product expansion and greater physical presence in key markets Key Trading Areas Offices

10 Weather Largest weather market maker 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 EnronOnline’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 Key Weather Transaction Areas Offices Active Online Markets

11 Shipping Leading market maker of vessel freight Providing transparency, liquidity and long dated market making to the international freight market Actively transacting products through EnronOnline Creating markets in long dated shipping capacity up to 5 years Currently making an online market for 3 liquid markets (1) Colombia to Europe (2) South Africa to Europe (3) US Gulf to Japan

12 Transportation Investigating and 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 commodity markets with high transaction volume and large numbers of counterparties Developing new credit and financing alternatives for thinly capitalized trucking companies

13 Risk Markets - Insurance Identify, transform & transfer risks from Enron’s core markets into more efficient insurance market Create products that both extend Enron’s market making model and creates new market opportunities 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

14 Financial Trading Financial Trading group provides risk management activities in foreign exchange, interest rates and equities 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 capability Key Offices Operates state-of-the-art web-based equity trading system with real-time position management and straight through processing Exploring origination and eCommerce opportunities in agriculture Enron’s “Softs” brokerage group in London is 3rd largest on LIFFE exchange

15 Fundamentals Research Provide industry and commodity research for EGM 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 Enron Online (Research reports and market outlooks) Analyze cross-market and cross-commodity arbitrage opportunities (LNG vs. NG, Distillates/Fuel Oil vs. NG)