1. Energy Inc. Energy Inc. Forging Growth in an Uncertain World New York Society of Financial Analysts Annual Update Fall 1998

2. Energy Inc. Energy Inc. is...  A diversified global energy concern  Assets of $23.5 billion  Total revenues of $21.0 billion  Operating income of $1.8 billion  Crude oil production, refining, marketing  Natural gas production, gathering, processing, transportation  Power production  Gas, power, liquids marketing NYSE Symbol “EI”

3. Energy Inc. …a Worldwide... INDONESIA Oil and gas exploration and production UNITED KINGDOM Power generation, marketing; natural gas marketing Growth Targets NORTH AMERICA Oil and gas E&P, R&M; pipelines; power generation and marketing; environmental services Worldwide HQ: Houston Argentina Gas E&P; pipelines; power generation and marketing

4. Energy Inc....Emerging Leader...  In 1997 Return on Capital Employed (ROCE), Energy Inc. moved ahead of other competitors and is in the rank of world performers.  Note: ROCE computed w/o minority interest

5. Energy Inc. …in Value Chain Development... Oil and Gas Exploration and Production Gathering, Processing Pipelines Refining Power Generation Natural Gas and Power Marketing Refined Products, Natural Gas Liquids Marketing Major Divisions Challenge Partners Energy Inc. N.A. Success Exploration Bold Oil & Gas Energy Asia (Indonesia) Energy del Sur (Argentina) Energy Pipe, N.A. Energy Asia Energy del Sur Marginal Refining, N.A. Energy Asia Energy Inc. Power EastCan Power (Canada) Energy, U.K. Energy del Sur Challenge Partners Challenge Partners Europe Gas Stream Oil Stream Environmental Services EcoServices, LLC

6. Energy Inc....Organized for Entrepreneurship...

7. Energy Inc...to Meet Energy Needs in the 21st Century... Worldwide production in mb/d (oil, refining throughput and LPG); mmcf/d (natural gas); and megawatts (electric power).

8. Energy Inc. …and Create Value for Shareholders.  Energy Inc. demonstrated one of the best performances in 1997 for Net Income per Share of Common Stock.  Our 432,000 shareholders and 16,100 employee- owners hold $25.59 per share of equity.

9. Energy Inc. We Care about the World of Energy...  Our philosophy--  Support market development  Maintain the highest environmental standards  Maintain strict corporate governance and ethical standards  Operate profitably!

10. Energy Inc....and the World of People.  Our international community associations--  Habitat for Humanity  Doctors Without Borders  Nature Conservancy International  An Energy Inc. initiative--  Estudios de Energía, integrated masters program in commercial practices for emerging professionals, Rio de Janeiro

11. Energy Inc. Our Long-Term Business Strategies  Achieve reserves replacement through key frontier investments  Consolidate our natural gas businesses and focus on the gas value chain  Expand our electric power operations to add value  Grow our liquids businesses in intermediate markets  Establish a corporate-wide environmental audit  Initiate a long-term energy business transition plan for a sustainable future

12. Energy Inc. Our Long-Term People Strategies  Energy Inc. has achieved our 1997 performance while increasing our labor force by 3.5 percent  Our goals--  Continue to build our human capital  Encourage creativity and innovation  Foster diversity and intellectual enrichment  Have fun!