Energy Sector

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Energy Sector

• Proposal Hold 125 Enron
• Hold 400 Exxon
• Hold 125 El Paso

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YTD Performance
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ExxonMobil Corp

• Latest News
• ExxonMobil confirms talks with Saudi officials
• Oil shares slip back on price outlook
• U.S. majors consider Balkan pipeline-project head

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Chart of Stock Price
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Comparison of Major Four Oil Companies
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Key Figures

• P/E 17.89
• Revenue Quarter vs Year Ago -26.26
• Market Cap 266.1 B nearest competitor
• BP Market Cap of 183.3B

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Enron Corporation ENRNQLast 0.2552 Week High
77.0752 Week Low 0.12

• Needs to pay off debt
• Sell assets
• North American energy trading unit
• Possibly broadband unit
• Jarvis Entertainment Group
• Receive royalties
• From Swiss Bank USB Warberg
• Operations
• Wholesale services
• Energy services
• Global services
• Full debt pay-off not likely
• .16 to .20 per dollar to creditors
• No one expects to get paid

• Cant obtain credit so
• Cancel current stock
• Reissue new stock under new name
• Consequently, Enron issued a statement
  essentially declaring its stock is worthless
• Recommendation HOLD
• NDIC position in ENRNQ 31.25
• Just pocket change
• Educational stock
• Doesnt it feel good to see the clubs worst
  performing stock of all time every time we look
  at our portfolio?

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El Paso Corporation (EP)

• Houston, TX

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Industry

• We chose this stock over competitors because it
  is a strong, safe company that is still
  expanding. Its principal operations include the
  transportation, gathering, processing and storage
  of natural gas the marketing of energy and
  energy-related commodities and products the
  generation of power the development and
  operation of energy infrastructure facilities
  and the exploration and production of natural gas
  and oil.

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The Numbers

• Current Price 36.17
• 52 wk Range 31.70-75.30
• P/E Ratio 241.13
• Mkt Cap 18.46B
• Beta 0.6

• Earning Estimates
• 2002 3.38
• 2003 3.75
• EPS 0.10
• 5 yr Projected Earnings Growth
• EP 14
• Industry 11

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El Paso Chart
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Natural Gas Chart
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Recommendation Hold

• Company should experience high earnings growth
  for its industry
• Owns largest gas pipeline in United States
• Brings diversification to portfolio

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Stock Ideas- Valero
Dividend Yield .40 ROE 27.6 v.
22.6 Refiners PE v. Market PE 60 avg.,
now 40 Consolidation, pricing
power Acquisitions Crackspread
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Stock Ideas- Duke Energy Corp.
Safe Play Dividend Yield 1.1 Sales Growth v.
Industry 20.7 v. 1.9 Better than
industry on both ROE and ROA, strong mgt.
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Stock Ideas- Syntroleum
Gas to Liquids Process Licensee agreements with
BP, Chevron, Daimler Chrysler New news..
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Energy Sector

• Jason King- Team Leader
• Phillip Luijckx- Exxon Mobil Analyst
• Jason Kingery- Exxon Mobil Analyst
• Mike Murphy- Enron Analyst
• Mike Melby- El Paso Analyst
• Craig Oliver- El Paso Analyst