Enron stock surges on executive's assurances
Associated Press Newswires, 03/23/01

USA: Cinergy buys two U.S. Southeast power plants from Enron.
Reuters English News Service, 03/23/01

USA: UPDATE 1-Enron seeks to assuage investor fears of broadband.
Reuters English News Service, 03/23/01

Enron Teleconf.: Core Business Highlights and Outlook
Bloomberg, 03/23/01

Cinergy Capital & Trading Completes Acquisition of Merchant
Bloomberg, 03/23/01

Enron Says Portland General Sale Probably Won't Close (Update2)
Bloomberg, 03/23/01



Enron stock surges on executive's assurances

03/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

HOUSTON (AP) - Shares of Enron Corp. surged nearly 8 percent Friday as chief 
executive officer Jeffrey Skilling assured analysts there are no layoffs 
planned for the company's broadband division. 
Enron shares began plunging this week because of layoff rumors, setting a 
52-week low of $51.51 before rebounding. Houston-based Enron closed up $4.38 
Friday to $59.40 on the New York Stock Exchange.
Skilling called the company's stock price drop to the low-$50 range "just 
crazy." 
The rumors surfaced after some staffing changes were made at the broadband 
division, which Skilling said should perform better than expected this 
quarter. 
The conference call came a day after Enron repeated its expectation of 
earning between $1.70 and $1.75 per share. The consensus of analysts surveyed 
by First Call/Thomson Financial is $1.74 per share. 
On the Net: http://www.enron.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


USA: Cinergy buys two U.S. Southeast power plants from Enron.

03/23/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, March 23 (Reuters) - Cinergy Capital & Trading Inc., a unit of 
Cincinnati, Ohio-based Cinergy Corp. , said Friday it completed the 
acquisition of two merchant generating facilities in the Southeast from Enron 
North America. 
The two companies announced in December, 2000 they had signed a definitive 
agreement subject to regulatory approvals, which have now been received, 
Cinergy said in a statement.
Financial terms of the transaction were not disclosed. 
The plants are the 494-megawatt (MW) Brownsville generation facility in 
Haywood County, Tennessee and the 504-MW Caledonia generation facility in 
Lowndes County, Mississippi. Both are natural gas-fired units. 
Cinergy Corp., owns, operates or has under development over 21,000 MW of 
generation. The company provides service to about 1.5 million electric and 
about 500,000 natural gas customers in Ohio, Indiana and Kentucky. 
Houston-based energy giant Enron Corp. produces electricity and natural gas, 
develops, constructs and operates energy facilities worldwide, and delivers 
physical commodities and financial and risk management services to customers 
around the world. 
- New York Power Desk, 212 859-1627, fax 212 859-1758, e-mail 
Eileen.Moustakis@reuters.com.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 



USA: UPDATE 1-Enron seeks to assuage investor fears of broadband.
By C. Bryson Hull

03/23/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, March 23 (Reuters) - Enron Corp.'s top executive set out on Friday 
to assuage investor fears about trouble in the company's broadband unit, 
assuring Wall Street that the nascent business was on track to meet its 
targets. 
Enron president and chief executive Jeff Skilling told analysts on a 
conference call that the broadband unit, which has been the subject of false 
layoff rumors, is in good shape and would actually benefit from the current 
weak market for bandwidth capacity.
"My expectation is that we will see over 400, maybe over 500 transactions 
this quarter, which shows this business is absolutely developing. It is ahead 
of plans," Skilling said. 
If expectations are met, Enron will have cut roughly twice as many deals for 
the first quarter of 2001 as it did in the fourth quarter of 2000, when it 
performed 236 transactions, Skilling said. In all of 2000, Enron cut 321 
broadband deals, he said. 
Enron has said it expects a sevenfold increase in bandwidth transactions in 
2001 compared with last year. 
The conference call followed two hard days for Enron's stock which lost about 
8 percent of its value and dropped under $59 for the first time since January 
2000. 
Investors, already pushing the stock price up before Skilling's midday call, 
reacted favorably to his comments on Friday as shares closed at $59.40, up 
$4.31 - nearly eight percent higher. 
"It seems to me that there have been a lot of little negatives developments 
along the way and these have taken their toll on the stock, in fact I think 
the stock has clearly overreacted," UBS Warburg analyst Ron Barone said. 
LONG BANDWIDTH SUPPLY A BONUS - 
A long supply of bandwidth capacity and a weak telecom market translates to a 
savings of about $500 million in capital costs Enron laid out to develop its 
bandwidth network this year, Skilling said. 
"We will not have to make as ... large an investment in our network as we had 
expected because we are going to have access to third-party networks much 
more easily than we could have possibly expected," he said. 
"There is a huge amount of capacity out there and people are desperate to 
sell capacity for cash," Skilling said. 
That should translate to a $500 million drop in Enron Broadband Services' 
(EBS) 2001 capital budget of $750 million. 
Commerzbank Securities analyst Andre Meade said growing liquidity and access 
is a good sign for Enron's bandwidth trading business. 
"If prices fall, Enron is largely agnostic because there is just a big a need 
to optimize the price of fiber transport when prices are falling as when 
prices are rising," Meade said. 
Meade said he was not certain whether some of the shrinking capital outlay 
might be related to Enron's broadband content business, which suffered a blow 
three weeks ago with the collapse of its 20-year-exclusive video on demand 
deal with Blockbuster Inc.. 
BROADBAND RUMORS FUELED STOCK DROP 
Some analysts have attributed two consecutive days of price drops in Enron's 
stock to false rumors of layoffs at EBS and the market's devaluation of that 
unit in light of weakness in the technology and telecom sectors. 
Skilling reiterated earlier denials of layoff talk, which Enron says was 
prompted by a shift of personnel inside EBS. 
"Enron had a very specific purpose on the conference call which was to dispel 
rumors about their bandwidth unit and they said they are not true," Salomon 
Smith Barney analyst Ray Niles said. 
Niles said the broadband numbers Skilling gave look in line with reaching the 
target of a sevenfold increase, which "would fully validate the potential of 
the market," Niles said. 
Skilling addressed lingering concerns over payment problems at its Dabhol 
power plant, the California power crisis and reaffirmed Enron's projected 
earnings per share of $1.70-$1.75 in 2001. 
"Our credit exposure in California has actually dropped, so regardless of 
what happens in California the $1.70-1.75 numbers I think look great," 
Skilling said. 
On Dabhol, Skilling reiterated his view that India's national government 
would continue to honor its contract to back power payments if the 
Maharashtra state government did not.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 




Enron Teleconf.: Core Business Highlights and Outlook
2001-03-23 15:07 (New York)

     Houston, March 23, 2001 (Bloomberg) -- Jeffrey Skilling, chief executive
of Enron Corp., speaks on a teleconference about the performance of the
company's core businesses, the outlook for the sale of Portland General
Electric Co. and Enron's 2001 financial forecast. Richard Causey, Mark Koenig
and Steven Kean also speak.

01:36 Operator, Skilling: opening remarks and call agenda
01:36 Skilling: transportation business; wholesale performance
03:53 Skilling: retail unit; broadband services outlook, layoffs
01:00 Skilling: EPS targets; outlook for Portland General sale
00:51 Skilling: update on India unit; California credit exposure
02:17 Skilling: balance sheet overview; liquid natural gas market
01:54 Skilling: South America plans; Enron's stock price
06:31 Questions: Skilling on bandwidth trading volume; assets
07:08 Skilling: sale of Portland General; management changes
04:43 Skilling, Koenig: standardized contracts; capital spending
02:35 Skilling, Kean: blackouts; outlook for new energy bill
05:52 Skilling: India contracts; layoffs in bandwidth trading
00:33 Skilling makes summary remarks.

     For company information see ENE US <Equity> CN, BQ. For related news see
the following NI codes: PIP, NRG, CMD, UTI, GAS, TRN, TEL, TLS, COS, TX, US.
For more Bloomberg Multimedia reports see AV. -- Bloomberg Multimedia (609)
279-4455 (MS/JK)



Cinergy Capital & Trading Completes Acquisition of Merchant
2001-03-23 15:27 (New York)

 Generating Plants From Enron

   Business Editors, Energy Writers

   CINCINNATI--(BUSINESS WIRE)--March 23, 2001--Cinergy Capital &
Trading, Inc., an energy merchant-focused affiliate of Cinergy Corp.
(NYSE:CIN), announced today that it has completed the acquisition of
two merchant generating facilities in the Southeast U.S. from Enron
North America.
   The two companies announced in December, 2000, that they had
signed a definitive agreement subject to regulatory approvals, which
have now been received. Terms of the transaction were not disclosed.
   "This purchase of 1,000 megawatts of natural gas-fired capacity is
another key milestone for the asset development segment of our energy
merchant business. It will directly contribute to our target of
growing our energy merchant earnings at a 10-12 percent average rate
as part of our three-year corporate target of seven to eight percent,"
said Michael J. Cyrus, CEO of Cinergy's energy merchant business unit
and president of Capital & Trading. "It also gives our business
merchant capability in another energy trading hub that will complement
our leadership status in the 'Into Cinergy' energy trading hub."
   The acquisition consists of Enron's 494-megawatt Brownsville
generation facility located in Haywood County, Tennessee and the
504-megawatt Caledonia generation facility located in Lowndes County,
Mississippi. Brownsville has four natural gas-fired combustion
turbines and Caledonia has six. Plant management and staff at both
facilities have agreed to join Cinergy, allowing these facilities to
be ready for the summer peaking season.
   Cinergy Corp., one of the nation's leading diversified energy
companies, has a focused strategy intent on growing its energy
merchant business. The company owns, operates or has under development
over 21,000 megawatts of generation. Cinergy has the 6th largest
electricity trading organization in the U.S. as well as physical and
financial gas trading capabilities of 17 bcf/day. The "Into Cinergy"
power trading hub is the most liquid trading hub in the United States.
Cinergy's energy merchant business operates in several regions of the
U.S. and is based on a profitable balance of asset development,
customer origination, marketing and trading, industrial-site
cogeneration infrastructure development and plant operations.
   Cinergy also owns regulated operations in Ohio, Indiana and
Kentucky that serve about 1.5 million electric customers and about
500,000 gas customers. In addition, Cinergy manages one of the
industry's top power technology portfolios.

   Statements made in this release that convey the company's or
management's intentions, expectations or predictions of the future are
forward-looking statements. The company's actual results could differ
materially from those projected in the forward-looking statements, and
there can be no assurance that estimates of future results will be
achieved. Please refer to the company's SEC filings for additional
information concerning factors that could cause actual results to
differ materially from those in the forward-looking statements.



Enron Says Portland General Sale Probably Won't Close (Update2)
2001-03-23 17:01 (New York)

Enron Says Portland General Sale Probably Won't Close (Update2)

     (Adds information on share movement, analyst comment. Closes
shares. For more on the California electricity crisis, see {EXTRA
<GO>}.)

     Houston, March 23 (Bloomberg) -- Enron Corp., the largest
energy trader, said its $3.1 billion sale of Portland General
Electric Co. to Sierra Pacific Resources probably won't be
completed because of California's energy crisis.
     ``There's probably a 5 percent probability that Sierra
Pacific's purchase of Portland General will be consummated,''
Chief Executive Jeffrey Skilling said on a conference call with
investors.
     In January, Enron said Sierra Pacific might not be able to
sell a 14 percent stake in the Mohave coal-fired power plant in
Nevada as needed to win regulatory approval of the purchase of
Portland General.
     AES Corp. planned to buy the Mohave stake, along with a 56
percent stake owned by Southern California Edison, for $667
million. Southern California Edison, owned by Edison
International, can't sell its stake because California has banned
the sale of generators by its utilities until 2006 because of an
electricity shortage.

                         Committed to Bandwidth

     Skilling also said that while Houston-based Enron is cutting
spending on its fiber-optic telecommunciations business, the
company doesn't intend to sell it. The news sent Enron shares up
$4.38, or 8 percent, to $59.40. They had fallen 25 percent since
Friday on concerns about the fiber-optic business and disputes
over an Enron power plant in India.
     ``They assured Wall Street that they were not liquidating
their bandwith trading business,'' Prudential Securities analyst
Carol Coale said. Analysts have reckoned that the potential of
bandwidth trading adds as much as $20 to the future value of
Enron's stock, she said.
     Skilling did confirm speculation that Enron is cutting
capital spending and cutting bandwidth staff, although the
employees won't necessarily be fired from the company.
     Portland General is making money, and Enron still is willing
to sell the Oregon utility, Skilling said.
     Sierra Pacific has not given up on its plans to buy Portland
General, said Sierra Pacific Resources spokeswoman Faye Andersen.
Five percent ``is a figure of speech,'' she said. ``We know it
will be difficult, but we will meet our obligations.''
     Enron's share-price fell to as low as $51.51 yesterday, a
drop that was ``just crazy,'' Skilling said on the conference
call, which was scheduled to reassure investors worried about
Enron's plunging share price.
     The shares had fallen 29 percent this year on concern that
its businesses in broadband and in California and India might lose
money or might not make as much as expected.
     Enron's shares fell 11 percent on March 12 after the collapse
of an agreement for Blockbuster Inc. to deliver movies on demand
over Enron's fiber-optic system.


                            Strong Profit

     The company said yesterday it still expects profit of $1.70
to $1.75 a share this year. Enron raised its 2001 profit estimate
in January, citing growth in European and North American trading
and more business from its fiber-optic network. It previously
expected to earn $1.60 to $1.70 a share.
     The company is expected to earn 45 cents a share in the first
quarter, the average estimate of analysts surveyed by First
Call/Thomson Financial. Estimates range from 43 cents to 47 cents.
Enron earned $338 million, or 40 cents, a year earlier.
     Enron's credit exposure in California has ``actually
dropped'' in the past few months, Skilling said. ``We have more
than ample reserves.''
     Enron isn't a power generator in California, though it trades
with power and gas companies in the state that may default.
California's two largest utilities are on the brink of bankruptcy
partly because they've been paying more for power than they're
allowed to charge consumers.

                           Cost Savings

     Enron expects to save about $500 million in costs previously
set for building its broadband network, said Mark Koenig,
executive vice president for investor relations. That reduces the
company's planned capital spending, as outlined in U.S. Securities
and Exchange Commission filings, to $1 billion in 2001 from about
$1.5 billion.
     For the broadband unit, it reduces planned spending to as
little as $250 million from a planned $750 million, Enron
spokesman Mark Palmer said.
     ``We will not have to make as large an investment in our
network as we expected because we'll have access to other
networks,'' Skilling said.
     Enron remains committed to the video-on-demand business and
expects to sign contracts with video-providers in the next few
months, Skilling said.

--Margot Habiby in Dallas, (214) 740-0873 or
mhabiby@bloomberg.net, and Jim Polson in Princeton, (609) 279-
4000/slb/pjm/alp