ENE: Quick Read; Strong 1Q Driven by Merchant Energy; Raise 2001 Estimate

*	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.
*	Prelim. raise 2001E EPS to $1.80 based on confidence in cont. strong
growth in wholesale segment.  Company ups 2001 guidance by $0.05 to
$1.75-$1.80.
*	ENE earnings conference call:  10AM EST today. Dial-in:
913-981-4900.
*	Highlights: Energy Merchant-- Wholesale volumes up 65%, ahead of our
40-50% expectation and appear to have benefited from volatility running
double last years level, by our calculation. Segment IBIT up 76%, driven by
strong volume growth in both natural gas and power in North America and
Europe.  Bandwidth Trading: over 580 transactions executed for the quarter--
greater than in all of 2000.
*	Results include reserve for receivables owed from PCG in California;
estimate to be approximately $580 million.

 <<ENE 1Qquick 4-17-01.doc>>  <<ENE 1Qquick 4-17-01.pdf>>


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

s


 - ENE 1Qquick 4-17-01.doc 
 - ENE 1Qquick 4-17-01.pdf