============= Page 1 of 72 ============= IL) !` v7 N 0 1-7 m ~ ~,- o0 xM W 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) ============= Page 2 of 72 ============= 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 -2- 5/30/03 5:37:55 PM 4_9io '.0 N '-I N ' -I 0 0 r-I a h EXH045-00024 ============= Page 3 of 72 ============= N N U) r1 N 0 1-1 0 r-I a What Happened ? PRIVILEGED AND CONFIDENTIAL EXH045-00025 ============= Page 4 of 72 ============= 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 - 5/30/03 5:37:55 PM y9 0 OD r - LO N 0 0 FD EXH045-00026 ============= Page 5 of 72 ============= 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 - 5/30/03 5:37:55 PM f&49 rn r I N 0 0 a h EXH045-00027 ============= Page 6 of 72 ============= 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 -6- 5/30/03 5:37:55 PM y'~o 0 co N -1 0 0 ri a h EXH045-00028 ============= Page 7 of 72 ============= 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 - 5/30/03 5:37:55 PM 4_9io .-4 w N 0 0 a EXH045-00029 ============= Page 8 of 72 ============= What Happened? How to Solve It Issues Actions Implemented Short-term Revolver drawdown • Get immediate liquidity • $1.013 secured facility Protect credit rating • $1.5B Northern Natural Gas preferred • Private equity initiative Medium-term Accelerated asset sale program • Restructure maturities • Improve rating outlook • Liquidate finance vehicles • Sell assets  Long-term Change in management • Rebuild investor confidence Restructured business focus • Asset / Liability management program Engaged corporate governance advisors • Management focus Restructured finance department • Strategic equity solutions PRIVILEGED AND CONFIDENTIAL -8- °g> 5/30/03 5:37:55 PM N 00 N 0 0 a h EXH045-00030 ============= Page 9 of 72 ============= What Happened? Historical Organization Chart Office of the Chairman Ken Lay L Jeff Skilling Wholesale T & D EES International EBS Azurix Finance Greg Whalley Assets Rebecca Andy Fastow - CFO Mark Frevert Stan Horton Lou Pai Joe Sutton Ken Rice Mark Ben Glisan - Treasurer 00 Dave Delainey John Lavorato Dabhol • Broadband • Wessex  Elektro -------------------------------------------- Current Enron Employee No Longer with the Company ------------------------------------------- PRIVILEGED AND CONFIDENTIAL -9- 5/30/03 5:37:55 PM y M w N 0 0 1-1 a EXH045-00031 ============= Page 10 of 72 ============= What Happened? Current Organization Chart Office of the Chairman Ken Lay Greg Whalley Mark Frevert Wholesale John Lavorato T&D Stan Horton EES Dave Delainey Finance Jeff McMahon - CFO Ray Bowen - Treasurer PRIVILEGED AND CONFIDENTIAL -10- 5/30/03 5:37:55 PM y9 0 11 00 10 N 0 0 a h EXH045-00032 ============= Page 11 of 72 ============= What Happened? Pro Forma Combined Company ($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 - 5/30/03 5:37:55 PM 'PO 4 LO 00 N 0 0 a h EXH045-00033 ============= Page 12 of 72 ============= 00 N 0 0 H a h Enron and Dynegy Merger PRIVILEGED AND CONFIDENTIAL EXH045-00034 ============= Page 13 of 72 ============= 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- 5:37:55 PM 5/30/03 r - CO Lt) N 0 0 r1 a h EXH045-00035 ============= Page 14 of 72 ============= 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 -14- 5/30/03 5:37:55 PM 419 OD OD U) N 0 0 a h EXH045-00036 ============= Page 15 of 72 ============= 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 $2.013 of new equity • Or additional equity as necessary to prevent a downgrade below investment grade These slides are meant as an overview of the principle terms of the Merger Agreement and, as summarized, are qualified as to the terms of the Merger Agreement PRIVILEGED AND CONFIDENTIAL - 15 - 5/30/03 5:37:55 PM y'9o rn CD U) N 0 0 a F3 EXH045-00037 ============= Page 16 of 72 ============= Enron and Dynegy Merger Financial Highlights of the New Dynegy  Significant balance sheet strength  Less leverage with fewer off-balance sheet transactions Strong free cash flow to support future growth PRIVILEGED AND CONFIDENTIAL -16- 5/30/03 5:37:55 PM y9 0 0 al U) N '--i 0 0 CQ a h EXH045-00038 ============= Page 17 of 72 ============= Ln Enron and Dynegy Merger °' N 0 Credit Strengths ° #1 wholesale gas and power industry position  Diversified earnings stream • Stable free cash flow from assets (midstream, pipes, T&D) • Significant recurring earnings / cash flow (wholesale) • Profitable C&I / Retail business • G&A savings  ChevronTexaco strategic relationship and support  Commitment to maintain investment grade ratings Conservative financial policy and practices PRIVILEGED AND CONFIDENTIAL -17- 5/30/03 5:37:55 PM 'y9 io EXH045-00039 ============= Page 18 of 72 ============= Enron and Dynegy Merger Combined Company - 2001 Estimate ($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 $600MM of EBITDA attributable to generation assets Note: Numbers subject to restatement pending filing of Enron 9/30/01 1 OQ Source: Dynegy Presentation November 2001 PRIVILEGED AND CONFIDENTIAL -18- °1`~o 5/30/03 5:37:55 PM N Q1 N 0 0 a h EXH045-00040 ============= Page 19 of 72 ============= (Y) rn '--I N .-1 0 0 ri a h Enron Business Review PRIVILEGED AND CONFIDENTIAL EXH045-00041 ============= Page 20 of 72 ============= Enron Business Review Enron Businesses Natural Gas Transportation, Electric Distribution and Global Assets PRIVILEGED AND CONFIDENTIAL -20- Energy Services for Commercial and Industrial Customers 5/30/03 5:37:55 PM Commodity Marketing and Delivery 4-Pio r1 N 0 0 a EXH045-00042 ============= Page 21 of 72 ============= Enron Business Review 9 Mo. 2001 EBITDA By Core Business ($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 - 5/30/03 5:37:55 PM y9 0 to rn to 14 N 0 0 a h EXH045-00043 ============= Page 22 of 72 ============= 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 -22- 5/30/03 5:37:55 PM 4-pi49 EXH045-00044 2000 9 Mo. 2001 ============= Page 23 of 72 ============= 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~ 5/30/03 5:37:55 PM N rn U) N 0 0 r4 a EXH045-00045 ============= Page 24 of 72 ============= 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- 5/30/03 `~ 5:37:55 PM 00 rn H N O 0 a EXH045-00046 Enron AEP Reliant Mirant Duke Dynegy Aquila BP El Paso PG&E ============= Page 25 of 72 ============= m x 0 C cn 0 0 0 0 I m m 0 z 0 0 z m 0 m z I- N U1 W 0 0 w Ul w J N N m a~ 0 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 O °0 2 U) CD I O PIL U) N m. \I \Y 1Y PIL 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 ============= Page 26 of 72 ============= 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 ============= Page 27 of 72 ============= 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) $30.0 Subject to restatement pending the filing of Enron 9/30/01 10Q PRIVILEGED AND CONFIDENTIAL -27- 5:37:55 PM 5/30/03 0 N .-1 0 0 a h EXH045-00049 1997 1998 1999 2000 2001E ============= Page 28 of 72 ============= N Enron Business Review ° N ° Natural Gas Pipelines ° CQ EBITDA ($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 - 5/30103 5:37:55 PM 4~19o EXH045-00050 ============= Page 29 of 72 ============= 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 -29- 5/30/03 5:37:55 PM y9 0 EXH045-00051 ============= Page 30 of 72 ============= 11 0 ko H N .-1 0 0 .-I a h Risk Assessment and Controls PRIVILEGED AND CONFIDENTIAL EXH045-00052 ============= Page 31 of 72 ============= 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- 6Q a C99 London RAC Team Ted Murphy 5/30/03 5:37:55 PM 4-Aio In 0 N 1-1 ' -I 0 0 a h EXH045-00053 ============= Page 32 of 72 ============= 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 -32- 5/30/03 5:37:55 PM 4-9io 0 N .-I 0 0 a h -XH045-00054 ============= Page 33 of 72 ============= 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 ============= Page 34 of 72 ============= 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 ============= Page 35 of 72 ============= - 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 -35- 5/30/03 5:37:55 PM yy 0 EXH045-00057 ============= Page 36 of 72 ============= 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 -36- 5/30/03 5:37:55 PM y9 0 0 w N 0 0 =XH045-00058 ============= Page 37 of 72 ============= 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 PRIVILEGED AND CONFIDENTIAL -37- 5/30/03 5:37:55 PM 0 .--1 N ' -I 0 0 a h EXH045-00059 ============= Page 38 of 72 ============= 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 -38- 5/30/03 5:37:55 PM y9 0 N N ri 0 0 a h EXH045-00060 ============= Page 39 of 72 ============= Risk Assessment and Controls Cash Collateral ~ Incoming Margin Outgoing Margin • Net Cash Margin In $MMs In 2, 000 1,615 1,678 1,609 1,620 1,645 1,396 1,500 1,261 1,082 957 1,000 500 0 (500) ) ) (1,000) (1,500) ( 2) (2,000) (1,687) (1,791) (1,823) (1,916) (1,822) (1 950) , (1,992) (2,134) (2,239) (2,500)- - 09/21/01 09/30/01 10/04/01 10/12/01 10/19/01 10/26/01 11/02/01 11/09/01 11/16/01 "Includes OTC and NYMEX positions PRIVILEGED AND CONFIDENTIAL -39- 5/30/03 5:37:55 PM 0 M r1 N .-I 0 0 a h EXH045-00061 ============= Page 40 of 72 ============= Risk Assessment and Controls Trading - Are Our Controls Effective? ($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 ($85 MM) 4~19o Iq H N r-I 0 0 rI a EXH045-00062 Backtesting of Enron Corp. aggregate VaR 12 Months Ended November 14, 2001 ============= Page 41 of 72 ============= Debt Issues PRIVILEGED AND CONFIDENTIAL EXH045-00063 ============= Page 42 of 72 ============= Debt Issues Enron Debt ($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 PRIVILEGED AND CONFIDENTIAL - 42 - 5/30/03 5:37:55 PM y9 0 W N .-1 0 0 a F3 EXH045-00064 ============= Page 43 of 72 ============= 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 PRIVILEGED AND CONFIDENTIAL -43- 5/30/03 5:37:55 PM 4-pio N N ,-1 0 0 a h EXH045-00065 ============= Page 44 of 72 ============= 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 ============= Page 45 of 72 ============= rn Debt Issues ~' N 0 0 Northern Natural Gas Preferred  Dynegy purchased $1.5B of NNG Preferred on November 13, 2001 a F3  Dynegy has the option to purchase equity of NNG if merger agreement is terminated PRIVILEGED AND CONFIDENTIAL -45- 5/30103 5:37:55 PM y9 0 EXH045-00067 ============= Page 46 of 72 ============= O Debt Issues 04 N 0 Private Equity ° a F3  Potential structure • Transwestern preferred similar to Northern Natural Gas  Timing • Prior to year-end  Sources • Traditional private equity • Strategic private investors PRIVILEGED AND CONFIDENTIAL - 46 - 5/30/03 5:37:55 PM 0 EXH045-00068 ============= Page 47 of 72 ============= Debt Issues " N Estimated Asset Sales through Year-End 2002 a h Cash Flow In ($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, $1.18 of debt reduction on consolidated balance sheet PRIVILEGED AND CONFIDENTIAL 2,630 -47- 5/30/03 5:37:55 PM "pi-9 EXH045-00069 ============= Page 48 of 72 ============= Debt Issues Debt Maturities Through 2002 ($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 -4&- 5/30/03 5:37:55 PM 4-9~0 N N N 0 0 a h EXH045-00070 ============= Page 49 of 72 ============= Debt Issues " N Debt Maturities 2003 - 2005 ($MM) a h 2003 2004 2005 Balance Sheet Debt 1,551 2,054 2,611 Preferred Stock - 103 - Minority Interest - 500 500 Structured 1)053 162 179 Securitizations / FAS 140s 193 379 88 Equity Forward Purchases - - - Leases 46 13 149 Commodity Transactions 607 1,364 840 3,450 TOTAL 2003 - 2005 12,392 4,575 43367 PRIVILEGED AND CONFIDENTIAL -49- 5/30/03 5:37:55 PM y9 0 EXH045-00071 ============= Page 50 of 72 ============= Debt Issues " " Cash Flow Summary - Based on Preliminary 2002 Plan ($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 PRIVILEGED AND CONFIDENTIAL -50- 5/30/03 5:37:55 PM y9 0 EXH045-00072 ============= Page 51 of 72 ============= LO Debt Issues N Expiring L/Cs Under Uncommitted Lines ($MM) 0 a h As of Nov 15 2001 Corp LC Instruments EOTT LC Instruments Trade LCs Total per Quarter Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Total 262 184 90 89 40 665 156 2 158 114 28 11 19 172 532 214 101 108 40 995 PRIVILEGED AND CONFIDENTIAL EXH045-00073 -51- 5/30/03 5:37:55 PM 4-pio ============= Page 52 of 72 ============= . ~o Debt Issues " N 0 Minority Interests °  Rationale • Cost effective financing and favorable balance sheet impact  Where on the Balance Sheet? • minority interest Deal Name Asset Description Total Funded Amount ($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 -52- 5/30/03 5:37:55 PM 0 EXH045-00074 ============= Page 53 of 72 ============= 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 -53- 5/30103 5:37:55 PM y9 0 r - C14 N 0 0 a h EXH045-00075 ============= Page 54 of 72 ============= 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 $59.78/share PRIVILEGED AND CONFIDENTIAL -54- 5/30/03 5:37:55 PM y9 0 OD N N .-1 0 0 a h EXH045-00076 ============= Page 55 of 72 ============= . rn Debt Issues " N Osprey Major Assets 0 Whitewing °4 Book Value h Asset 9/30101 ($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 $2,093 5/30/03 5:37:55 PM °f'9 O EXH045-00077 ============= Page 56 of 72 ============= Debt Issues Osprev Sensitive Analysis As of 9/30/01 ($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 -56- 5/30/03 5:37:55 PM 0 0 M N 0 0 a h EXH045-00078 ============= Page 57 of 72 ============= 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 $34.13/share PRIVILEGED AND CONFIDENTIAL -57- 5/30/03 5:37:55 PM y9o EXH045-00079 ============= Page 58 of 72 ============= N Debt Issues M N Marlin/Azurix Value Analysis As of 9/30/01 ($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 -58- 5/30/03 5:37:55 PM y~ 0 EXH045-00080 ============= Page 59 of 72 ============= 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 -59- 5/30103 5:37:55 PM y~o EXH045-00081 ============= Page 60 of 72 ============= 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 ============= Page 61 of 72 ============= 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 -61- 5/30/03 5:37:55 PM 'Do 4 EXH045-00083 ============= Page 62 of 72 ============= 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 PRIVILEGED AND CONFIDENTIAL - 62 - 5/30/03 5:37:55 PM y9 O EXH045-00084 ============= Page 63 of 72 ============= 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 -63- 5/30/03 5:37:55 PM ypo N M H N .-1 0 0 a h EXH045-00085 ============= Page 64 of 72 ============= 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 - 5/30/03 5:37:55 PM yy 0 CD M N .-I 0 0 rI a EXH045-00086 ============= Page 65 of 72 ============= 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 $463MM (after tax) PRIVILEGED AND CONFIDENTIAL -65- ''¢~PQ 5/30/03 5:37:55 PM EXH045-00087 ============= Page 66 of 72 ============= Debt Issues Restatements - Total Assets ($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 ============= Page 67 of 72 ============= Debt Issues Restatements - Debt ($MM) N 0 ° a h 1997 1998 1999 2000 Q1 2001 Q2 2001 Debt as reported 6,254 7,357 8,152 10,229 11,922 12,812 Restatements: Consolidation of JEDI and Chewco 711 561 685 628 - - Consolidation of LJM1 subsidiary - - - - - - Raptor equity adjustment - - - - - - Prior year proposed audit adjustments and reclassifications - - - - - - Debt restated 6,965 7,918 8,837 10,857 11,922 12,812 PRIVILEGED AND CONFIDENTIAL -67- 4-pi 5/30/03 5:37:55 PM EXH045-00089 ============= Page 68 of 72 ============= N Debt Issues N Restatements - Equity ($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 PRIVILEGED AND CONFIDENTIAL -68- 5/30/03 5:37:55 PM 419io EXH045-00090 ============= Page 69 of 72 ============= Next Steps PRIVILEGED AND CONFIDENTIAL EXH045-00091 ============= Page 70 of 72 ============= 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 PRIVILEGED AND CONFIDENTIAL - 70 - 5/30/03 5:37:55 PM 9y 0 a N 0 0 a F3 EXH045-00092 ============= Page 71 of 72 ============= 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 PRIVILEGED AND CONFIDENTIAL - 71 - 5/30/03 5:37:55 PM 419io to r1 N .- 1 0 0 N a h EXH045-00093 ============= Page 72 of 72 ============= N -1 0 0 r-I a h Question and Answer Session PRIVILEGED AND CONFIDENTIAL EXH045-00094