Once considered the most complex solution, we are now driven by innovation in business. We have a unique perspective in that we know businesses, not just technology. We see it in terms of end goals: we want to empower our key partners with what they need to know, in a form that they can action. We know that if you empower people and provide them with a meaningful tool, they'll use it. We know that they'll use it, and use it to empower others. Our perspective gives us a natural advantage: We understand that if a customer isn't given the right answers, the process is flawed. We know that they'll take that knowledge they obtain and apply it to the benefit of others. That's the business. It is the technology that empowers business. And it's that perspective that gives us our unique, natural advantage. We're not alone: There are others out there that see what we see, who'd like to help transform technology into a business enabler. And there are still many organizations that simply need that technology. That's our plan. What's the next chapter of EnronOnline? Find out at enrononline.com. Enron Turns to Bankruptcy Filing to Help Lock in Lenders By Andrew Kelly and Claire Poole Of DOW JONES NEWSWIRES 10/23/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Enron Corp. (ENE) filed for Chapter 11 bankruptcy protection Friday in New York, the company said in a press release. It said in a press release that it has secured $1 billion in debtor-in-possession financing and has lined up a syndicate of investment banks to provide an additional $300 million to $500 million in debtor-in-possession financing. The company said that this new financing brings its total amount of secured credit lines to $3.3 billion. Enron said that the new financing is independent of Dynegy Inc.'s (DYN) $690 million secured credit line. Credit Suisse First Boston and J.P. Morgan Chase are coordinating and managing the terms of the debtor-in-possession financing. "The newly secured credit facilities strengthen our balance sheet and provide us with increased liquidity to support our core energy businesses," said Kenneth L. Lay, Enron chairman and chief executive officer. The filing is also designed to head off a potential downgrade of Enron's debt by ratings agencies. Last month, Standard & Poor's cut Enron's long-term debt to "BBB-minus" from "BBB," and Moody's Investors Service followed with a similar cut to "BBB-minus." Enron has been reeling from a sharp drop in its share price in the past month, amid disclosures of losses and growing disclosure obligations. On Monday, Fitch put the company's debt on watch for a possible downgrade and criticized the firm for not obtaining additional financing quickly enough. The company had operated with a debt structure that kept much of its borrowing off its balance sheet, and as a result, some of its financial disclosures don't necessarily reflect its actual obligations. This is in contrast to some other large market participants that financed a significant portion of their business operations through Enron credit lines. But as Enron's credit situation worsened, it became increasingly difficult for the company to find a trading partner to take on its books. "This capital structure may not be acceptable to potential partners," said J.P. Morgan analyst Anatol Feygin, in a research note. "The large amount of debt it has raised in the past year and a half, combined with the company's weak financial flexibility, will remain a concern." Enron filed its Chapter 11 petition in a New York bankruptcy court in New York. A statement from the company was due to follow. -By Andrew Kelly, Dow Jones Newswires; 201-938-4484; andrew_kelly@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. The 10-Q ENRON INTERNAL FILING The North American Natural Gas Team Completes the Year Highlighted by Industry Trends and FERC Activities by John Adamiak and William Crowe, with Andy Weissmann and David Pena, Vice Presidents and Ed Wells, Director 10/23/2001 Business Wire (Copyright (c) 2001, Business Wire) Lower Credit Scores? What Credit Scores? It's hardly been a typical year in Enron's credit circles. That's as true of deals completed in bankruptcy reorganizations as deals yet to be finalized, including a handful of important gas-pipeline transactions that will impact our projects in Canada and Mexico and may have a flow-on impact to our dealings with customers in the U.S. This deals season is not without credit risk, however, and there is at least one major pending deal that has a doubtful outlook. Major projects, some under way and some planned, are on hold and the stream of standout transactions has slowed to a trickle. There is reason to expect that many more deals with credit risk will arise before they are completed. Despite the credit challenges, Enron's business pipelines business is more active in 2001 than at any time in its history. The steady flow of deals, along with the consistent execution, delivery and trading of energy and the gas contracts, has helped the division grow to a point where the pipelines are now worth approximately $10 billion greater than at the end of 2000. As of September 30, 2001, there were $16.2 billion in recognized revenues and approximately $12.1 billion in assets related to our North American natural gas pipelines. Additionally, during the third quarter of 2001, the company executed its first significant equity investment since 1997 with the $890 million purchase of an equity interest in OGE Energy Resources, a top ten energy trading company. What was done and why ? During the third quarter of 2001, we entered into the following major deal involving our Mexican operations: We purchased the remaining 50% equity interest in a Mexican natural gas distribution company, CFE, that we did not already own. A key element of this transaction was the purchase of two substantial natural gas distribution systems located in the northeastern region of Mexico, called the Fierro del Concho system and the Múgica I system. These additions expand our system by 360,000 MMcf/d of firm transportation capacity to approximately 1.3 billion MMcf/d of firm capacity and 245,000 MMcf/d of interruptible transportation capacity. With these additions, our Mexican pipeline organization now has approximately 1.8 billion MMcf/d of capacity. See graphic: The CFE distribution systems were originally part of our investment in the Mexican company Tula. We made a strategic decision to reacquire these transportation assets to increase the capacity of our system in Mexico. Although we considered other options for these assets, we determined that it would provide the best return to our shareholders to repurchase these assets. ? In the past, we had focused our activities in a number of different business lines related to natural gas, including efforts to gather and market natural gas in Canada, our focus on the natural gas liquids and electricity businesses in the U.S., and our development of a significant industrial market for natural gas. We also continued to expand our natural gas marketing business into high growth areas, while reducing lower growth areas. For the remainder of 2001, we will continue to develop and grow our core gas pipeline businesses in the U.S. and Mexico. Entering New Markets ? In Mexico, we executed an agreement to re-gasify and operate approximately 450,000 barrels per day of currently non-operated capacity to satisfy third party contractual obligations that extend through 2003. On September 19, 2001, we received FERC approval of the abandonment and re-gasification of the Sea Robin Lateral that extends from the Sea Robin facility in Southern California to the U.S.-Mexico border. The Sea Robin lateral is the last significant segment of the pipeline in Southern California that is not already owned by El Paso. The Sea Robin system extends offshore from the U.S.-Mexico border to the California/Arizona border and currently flows about 180,000 MMcf/d. A capacity of 175,000 MMcf/d will flow from El Paso's south-of-California system into the Sea Robin. El Paso will have ownership of 100% of the Sea Robin; the Sea Robin shippers will hold equity in the remaining El Paso capacity of 175,000 MMcf/d. The Sea Robin pipeline feeds the market from one of the highest demand areas in North America, as well as in one of the most constrained natural gas markets. A full service capability of the Sea Robin is scheduled for October, 2002. For more information about the Sea Robin project, see the Sea Robin website at: http://www.sea-robin.com/ . ? Enron Pipeline Company, the principal North American gas pipeline subsidiary of Enron, leased a 30-year, 250-mile pipeline loop from Bison Pipeline to serve the Wamsutter Storage Area near Rock Springs, WY. The Wamsutter area, through which approximately 40 Bcf of natural gas storage is working, currently uses the existing intrastate pipeline transportation to serve about 230 MW of power generation