ENE: Detailed 1Q Earnings Analysis Following Conf. Call; Reiterate 1H Rating

*	ENE reported 1Q:01 EPS of $0.47 vs. $0.40 last year, above our and
consensus estimates of $0.43 and $0.45, respectively.
*	We raised our 2001 est. to $1.80 based on confidence in continued
strong growth in wholesale segment, as well as incremental contribution from
retail energy.  Company raised 2001 guidance by $0.05 to $1.75-$1.80.
*	Highlights: Merchant Energy-- Wholesale volumes up 65%, ahead of our
40%-50% expectation, driven by growing need for intermediation services and
continuing impact of EnronOnline. Segment IBIT up 76% with higher unit
margins reflecting volatility running at twice last year's level, by our
calculation.  Expect full year 2001 volatility to match 2000 level.
*	Bandwidth trading--"deals are getting done"  above expectations:
580 transactions 1Q01 vs. 232 in 4Q:00 and 320 for full year 2000.
*	Results include reserve for $580M in receivables owed from PCG in
Calif.

 <<ENE 1Q01 Detailed 4-17-01.doc>>  <<ENE 1Q01 Detailed 4-17-01.pdf>>

Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

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 - ENE 1Q01 Detailed 4-17-01.doc 
 - ENE 1Q01 Detailed 4-17-01.pdf