1. Energy Sector Proposal: Hold 125 Enron Proposal: Hold 125 Enron Hold 400 Exxon Hold 400 Exxon Hold 125 El Paso Hold 125 El Paso

2. YTD Performance

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

4. Chart of Stock Price

5. Comparison of Major Four Oil Companies

6. Key Figures P/E : 17.89 P/E : 17.89 Revenue Quarter vs Year Ago : = -26.26 Revenue Quarter vs Year Ago : = -26.26 Market Cap : 266.1 B nearest competitor Market Cap : 266.1 B nearest competitor BP Market Cap of 183.3B BP Market Cap of 183.3B

7. Enron Corporation – ENRNQ Last 0.25 52 Week High 77.07 52 Week Low 0.12 Needs to pay off debt Needs to pay off debt –Sell assets North American energy trading unit North American energy trading unit Possibly broadband unit Possibly broadband unit –Jarvis Entertainment Group –Receive royalties From Swiss Bank USB Warberg From Swiss Bank USB Warberg –Operations Wholesale services Wholesale services Energy services Energy services Global services Global services Full debt pay-off not likely Full debt pay-off not likely –.16 to.20 per dollar to creditors –“No one expects to get paid” Can’t obtain credit so: Can’t obtain credit so: –Cancel current stock –Reissue new stock under new name Consequently, Enron issued a statement essentially declaring its stock is worthless Consequently, Enron issued a statement essentially declaring its stock is worthless Recommendation : HOLD Recommendation : HOLD –NDIC position in ENRNQ = $31.25 Just “pocket change” –Educational stock –Doesn’t it feel good to see the club’s worst performing stock of all time every time we look at our portfolio?

8. El Paso Corporation (EP) Houston, TX

9. 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.

10. 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: –2–2002: $3.38 –2–2003: $3.75 EPS: $0.10 5 yr Projected Earnings Growth –E–EP: 14% –I–Industry 11%

11. El Paso Chart

12. Natural Gas Chart

13. Recommendation: Hold Company should experience high earnings growth for its industry Owns largest gas pipeline in United States Brings diversification to portfolio

14. 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

15. 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.

16. Stock Ideas- Syntroleum *Gas to Liquids Process *Licensee agreements with BP, Chevron, Daimler Chrysler *New news…..

17. Energy Sector Jason King- Team Leader Jason King- Team Leader Phillip Luijckx- Exxon Mobil Analyst Phillip Luijckx- Exxon Mobil Analyst Jason Kingery- Exxon Mobil Analyst Jason Kingery- Exxon Mobil Analyst Mike Murphy- Enron Analyst Mike Murphy- Enron Analyst Mike Melby- El Paso Analyst Mike Melby- El Paso Analyst Craig Oliver- El Paso Analyst Craig Oliver- El Paso Analyst