1. Energy Inc. Forging Growth in an Uncertain World
New York Society of Financial Analysts Annual Update Fall 1998

2. Energy Inc. is... A diversified global energy concern
Assets of $23.5 billion
Total revenues of $21.0 billion
Operating income of $1.8 billion
Crude oil production, refining, marketing
Natural gas production, gathering, processing, transportation
Power production
Gas, power, liquids marketing
NYSE Symbol “EI”

3. …a Worldwide... Growth Targets Worldwide HQ: Houston NORTH AMERICA
Oil and gas E&P, R&M; pipelines; power generation and marketing; environmental services
Growth Targets
INDONESIA
Oil and gas exploration and production
Argentina
Gas E&P; pipelines; power generation and marketing
UNITED KINGDOM
Power generation, marketing; natural gas marketing

4. ...Emerging Leader...
In 1997 Return on Capital Employed (ROCE), Energy Inc. moved ahead of other competitors and is in the rank of world performers.
Note: ROCE computed w/o minority interest

5. …in Value Chain Development...
Major Divisions
Natural Gas
and Power
Marketing
Gathering,
Processing
Power
Generation
Gas Stream
Pipelines
Oil and Gas
Exploration
and Production
Energy Pipe, N.A.
Energy Asia
Energy del Sur
Energy Inc. Power
EastCan Power
(Canada)
Energy, U.K.
Energy del Sur
Challenge
Partners
Challenge Partners
Europe
Energy Inc. N.A.
Success
Exploration
Bold Oil & Gas
Energy Asia
(Indonesia)
Energy del Sur
(Argentina)
Environmental
Services
EcoServices, LLC
Marginal Refining, N.A.
Energy Asia
Challenge
Partners
Refined Products,
Natural Gas
Liquids Marketing
Oil Stream
Refining

6. ...Organized for Entrepreneurship...

7. ..to Meet Energy Needs in the 21st Century...
Worldwide production in mb/d (oil, refining throughput
and LPG); mmcf/d (natural gas); and megawatts
(electric power).

8. …and Create Value for Shareholders.
Energy Inc. demonstrated one of the best performances in 1997 for Net Income per Share of Common Stock.
Our 432,000 shareholders and 16,100 employee-owners hold $25.59 per share of equity.

9. We Care about the World of Energy...
Our philosophy--
Support market development
Maintain the highest environmental standards
Maintain strict corporate governance and ethical standards
Operate profitably!

10. ...and the World of People. Our international community associations--
Habitat for Humanity
Doctors Without Borders
Nature Conservancy International
An Energy Inc. initiative--
Estudios de Energía, integrated masters program in commercial practices for emerging professionals, Rio de Janeiro

11. Our Long-Term Business Strategies
Achieve reserves replacement through key frontier investments
Consolidate our natural gas businesses and focus on the gas value chain
Expand our electric power operations to add value
Grow our liquids businesses in intermediate markets
Establish a corporate-wide environmental audit
Initiate a long-term energy business transition plan for a sustainable future

12. Our Long-Term People Strategies
Energy Inc. has achieved our 1997 performance while increasing our labor force by 3.5 percent
Our goals--
Continue to build our human capital
Encourage creativity and innovation
Foster diversity and intellectual enrichment
Have fun!