ENE: Adjust Historical EPS As Per Restatements; Lower 4Q & 2002 Ests.

*	We adjust Enron's historical EPS for the restatements filed in their
8K published on November 8th.
*	We revise our stand-alone 2002 EPS estimates to $1.50 from $2.15.
We think this could prove conservative, but await further data on Enron's
ongoing performance in their energy trading & marketing business.
*	Enron is currently trading at a relatively large 20% discount to
their implied merger value of $12.40.  We think this spread could contract
as certainty improves over accounting issues, stand-alone earnings power,
and the scope of hurdles to merger completion.

 <<ENE EPS adjustments 11-14-01.pdf>>  <<ENE EPS adjustments 11-14-01.doc>> 
                                                  
Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

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