Once considered the most complex solution, we are now driven by lower energy prices, lower production costs, a weak Canadian dollar and less capital being tied up in unproductive assets. These drivers coupled with proven assets, should enable us to leverage our resources across a wider base." The report continued, "This transaction presents a unique opportunity to significantly reduce Enron's overall leverage, including a term loan to Moody's, reduction of debt to a manageable level, and a conversion of the majority of debt to preferred stock. This transaction is also accretive to the value of Enron's trading business. This combination creates significant upside potential to Enron's trading commodity positions, development projects and growing EBITDA base." Enron's current ratio is reported at approximately 1.20X which is above our target of 1.10X. We are confident that our current ratio can be maintained given the long-term transactions we have in place to provide liquidity to our balance sheet. The company said its liquidity position remains strong. Enron concluded the review of all of its businesses and has taken additional steps to increase liquidity and the number of lower-cost, lower-risk investments we have in place. "We also believe that we have adequate liquidity to complete pending investments in this current quarter," said Lay. "We will continue our effort to preserve our cash flow and invest it in market opportunities that best position Enron for the future." During the past week, we have seen large cap and heavily weighted energy names take heavy losses on both the buy and sell side due to the pressure from the spread widening in the oil and gas sector. The liquidity of our name reflects our improved position in the sector, having built up a greater buying power with suppliers as the large cap stocks have faltered. In an effort to protect shareholder interests, we have seen traders selling out of positions, some incurring significant losses. Enron reports that its Blockbuster venture and LJM will be consolidated into their respective regions and report normal earnings. Banks cut Enron's credit rating after $1 billion in writedowns New York Post, 10/20/01 Houston Chronicle, 10/20/01 KRTBN Knight-Ridder Tribune Business News: North Texas, 10/20/01 Oakland Tribune, 10/20/01 Mountain Times, 10/20/01 The Orange County Register, 10/20/01 The Palm Beach Post, 10/20/01 The Stars and Stripes, 10/20/01 El Paso Times, 10/20/01 Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. COMMODITIES & AGRICULTURE - Enron - US old crop futures only - maintenance. At 1815 Paris time, October 20, 2001 the front-month September corn/soybean basis was $1.3475, up $0.0100; the September corn/soybean contract was at $1.4900, up $0.0175. The September meeting was at 1700. Also, the October soybean meal future traded in a range of 153-158, up 3 points. The September soybean oil future traded in a range of 18.71-19.09, up 0.13 points. The November variety traded in a range of 19.34-19.84, up 0.50 points. The September RBOB gasoline future traded in a range of 0.7517-0.7535, rising 0.0025, or 0.7%. The October heating oil future traded in a range of 0.5335-0.5345, rising 0.01, or 0.6%. For the December delivery month, the front-month September Henry Hub natural gas futures contract traded in a range of 3.68-3.7, up 0.09cents on the bid. The September NYMEX Henry Hub natural gas swap traded in a range of 3.61-3.65, up 0.1 cents. Also, the November natural gas basis traded in a range of 0.5389-0.549, rising 5 basis points. The ACE monthly ethanol demand survey for October 2001 showed 917,100 barrels of ethanol demanded by the utilities sector, down 39,000 barrels from September. September 2001 demand was estimated at 976,700 barrels. This figure was 232,600 barrels below the last year's October 2001, and 1.1% above the previous month's (September) total. The weekly EIA fuel oil inventory report showed a 90,000 barrel build in commercial crude distillate inventories, bringing them up to 2,844,000, which was 3.2% above last year's level (then estimated to be 2,775,000). According to an analysis of the data by the U.S. Energy Information Administration (EIA), refinery output is currently running at a 94.5% capacity rate, which is 0.8 percentage point higher than the average over the last five years. LAWYER MOVES J. Carol Williams has joined the law firm of Haynes and Boone in its national energy practice. She will practice in the firm's new Dallas office and report to Robert L. Leppert, the firm's managing partner for the Energy Industry Group. Before joining Haynes and Boone, Williams was the editor-in- chief of Fuel Oil Report, the monthly publication of the National Fuels Association. She will focus her practice on regulatory matters and the strategy of fuels companies. Williams earned a juris doctorate from South Texas College of Law. Lawrence A. Freehling has been named partner-in-charge of the Houston office of Andrews Kurth Kenyon, effective Oct. 1. The firm announced the appointment this week. Kenyon Labor & Energy Group attorney David Robichaux has joined the law firm of Liddell Sapp, Houston, as an associate. In this capacity, Robichaux will help establish Liddell Sapp's labor and energy group. Vinson & Elkins LLP attorney Marc James Berger has joined the law firm of Baker & Botts as a partner in the litigation department. He is the former general counsel of the New York Power Authority and has served as the legal adviser to Governor George Pataki on energy and telecommunications matters. Christopher C. Myers has joined the law firm of K&L Gates, Seattle, as a partner. Myer specializes in litigation, intellectual property law and government relations. He had been with Troutman Sanders, Atlanta. Steven R. Reed has joined the law firm of Baker & McKenzie in Chicago as a partner in its commercial transactions and finance department. Reed specializes in the area of energy. Rachel N. Moore has joined the law firm of Howrey Simon Arnold & White as an associate in the international department. Moore is a graduate of the University of Pennsylvania.