<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: February 3, 1994
Enron Corp.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-3423 47-0255140
(Commission File Number) (IRS Employer Identification No.)
1400 Smith Street
Houston, Texas 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 713-853-6161
<PAGE> 2
Item 5. Other Events.
On January 27, 1994, Enron Corp. issued a press release which
included the following unaudited financial information for the quarter and
year ended December 31, 1993:
<PAGE> 3
ENRON CORP.
FINANCIAL REPORT
(Unaudited: in millions except per share data)
<TABLE>
<CAPTION>
QUARTER ENDED DECEMBER 31 1993 1992 (1)
---------- ----------
<S> <C> <C>
Operating Revenues $ 2,582.4 $ 2,656.6
========== ==========
Net Income $ 104.1 (2) $ 99.0 (3)
Preferred Dividends 4.0 4.8
---------- ----------
Income to Common $ 100.1 $ 94.2
========== ==========
Earnings per Share
Primary $ 0.42 $ 0.40
========== ==========
Fully Diluted $ 0.39 $ 0.38
========== ==========
Average Number of Shares Used
in Primary Computation 241.0 234.0
========== ==========
Average Number of Shares Used
in Fully Diluted Computation 265.9 264.4
========== ==========
YEAR ENDED DECEMBER 31 1993 1992
---------- ----------
Operating Revenues $ 10,096.5 $ 9,406.7
========== ==========
Net Income $ 332.5 (2) $ 306.2 (3)
Preferred Dividends 16.9 22.1
---------- ----------
Income to Common $ 315.6 $ 284.1
========== ==========
Primary Earnings per Share
Income Before Extraordinary Item $ 1.32 $ 1.40
Extraordinary Item -- (0.11)
---------- ----------
Total $ 1.32 $ 1.29
========== ==========
Fully Diluted Earnings Per Share
Income Before Extraordinary Item $ 1.25 $ 1.30
Extraordinary Item -- (0.09)
---------- ----------
Total $ 1.25 $ 1.21
========== ==========
Average Number of Shares Used in
Primary Computation 239.0 220.0
========== ==========
Average Number of Shares Used in
Fully Diluted Computation 265.3 254.2
========== ==========
</TABLE>
(1) Restated to reflect the operations of EOTT Energy Corp. as continuing
operations.
(2) The fourth quarter includes a $41.3 million after-tax gain from the sale of
limited partnership units in Northern Border Partners, L.P. substantially
offset by the establishment of reserves for litigation and other
contingencies. The fourth quarter also includes a $0.9 million after-tax
gain from the sale of oil and gas properties and $9.6 million from EOG's
deferred tax reduction. The third quarter of 1993 includes a $54.0 million
charge to adjust for the increase in the corporate statutory federal income
tax rate from 34% to 35% and a $6.0 million after-tax gain from the sale of
oil and gas properties.
(3) Includes after-tax gains in the fourth quarter of $10.9 million from an
asset sale and $5.5 million from Mobil stock sales; the third quarter in-
cludes after-tax gains of $60.0 million from the EOG stock sale offset by
a $21.5 million extraordinary loss from the early retirement of debt and
an after-tax write-off of $37.5 million primarily for pending litigation;
the second quarter includes after-tax gains of $18.4 million from the sale
of Mobil stock and $3.3 million from EOG property sales; the first quarter
includes after-tax gains of $10.4 million from the sale of Mobil stock.
<PAGE> 4
ENRON CORP.
SUMMARY OPERATING REVENUES
(Unaudited: in millions)
<TABLE>
<CAPTION>
QUARTER ENDED DECEMBER 31 1993 1992
--------- ---------
<S> <C> <C>
Interstate Gas Pipeline Group
Interstate Gas Pipelines $ 366.0 $ 328.0
EOTT 339.9 665.6
Gas Services 1,597.3 1,005.2
Power 68.7 21.0
Exploration and Production 181.4 172.2
Liquid Fuels 361.8 611.8
Intercompany (332.7) (147.2)
--------- ---------
Total $ 2,582.4 $ 2,656.6
========= =========
YEAR ENDED DECEMBER 31 1993 1992
--------- ---------
Interstate Gas Pipeline Group
Interstate Gas Pipelines $ 1,299.4 $ 1,247.7
EOTT 2,261.7 3,171.7
Gas Services 5,664.2 2,826.2
Power 138.1 70.4
Exploration and Production 686.9 554.1
Liquid Fuels 1,251.7 2,025.0
Intercompany (1,205.5) (488.4)
--------- ---------
Total $10,096.5 $ 9,406.7
========= =========
EARNING SUMMARY
(Unaudited: in millions)
QUARTER ENDED DECEMBER 31 1993 1992
-------- --------
Interstate Gas Pipeline Group $ 114.7 $ 87.1
Gas Services 52.0 38.5
Power 46.1 29.5
Exploration and Production 19.1 38.8
Liquid Fuels 6.4 18.9
Corporate and Other (29.4) 11.9
-------- --------
Income Before Interest, Minority,
Interest and Taxes 208.9 224.7
Interest Expense 77.6 78.7
Dividends on preferred stock of
subsidiary company 2.1 --
Minority Interest in E&P Operations 7.7 8.0
Income Tax Expense 17.4 39.0
-------- --------
Net Income $ 104.1 $ 99.0
======== ========
YEAR ENDED DECEMBER 31 1993 1992
-------- --------
Interstate Gas Pipeline Group $ 409.9 $ 322.5
Gas Services 167.4 122.3
Power 103.1 88.7
Exploration and Production 122.2 102.1
Liquid Fuels 30.0 80.3
Corporate and Other (34.9) 51.3
-------- ---------
Income Before Interest, Minority,
Interest and Taxes 797.7 767.2
Interest Expense 300.2 330.3
Dividends on preferred stock of
subsidiary company 2.1 --
Minority Interest in E&P Operations 27.6 17.6
Income Tax Expense 89.3 90.5
Income Tax Rate Adjustment 46.0 (1) --
-------- --------
Income before extraordinary item 332.5 328.8
Extraordinary Item -- (22.6)
-------- --------
Net Income $ 332.5 $ 306.2
======== ========
</TABLE>
(1) Excludes charges of approximately $8 million related to the tax rate
adjustment primarily applicable to entities accounted for utilizing the
equity method and included in non-tax accounts.
<PAGE> 5
Item 7. Exhibits.
10 Letter Report of DeGolyer and MacNaughton dated
January 27, 1994
24 Consent of DeGolyer and MacNaughton
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ENRON CORP.
By: KURT S. HUNEKE
_______________________________
Kurt S. Huneke
Vice President, Finance and
Treasurer
Dated: February 3, 1994
<PAGE> 1
Exhibit 10
DeGolyer and MacNaughton
One Energy Square
Dallas, Texas 75206
TELEPHONE
(214) 368-6391
January 27, 1994 TELEFAX
(214) 369-4061
Enron Oil & Gas Company
1400 Smith Street
Houston, Texas 77002
Gentlemen:
Pursuant to your request, we have prepared estimates, as of
January 1, 1994, of the proved oil, condensate, natural gas liquids, and
natural gas reserves of certain selected properties in the United States and
Canada owned by Enron Oil & Gas Company, hereinafter referred to as "Enron."
The properties consist of working interests located in the states of New
Mexico, Texas, Utah, and Wyoming and in the offshore waters of Texas in the
United States and in the province of Saskatchewan in Canada. Our estimates are
reported in detail in our "Report as of January 1, 1994 on Proved Reserves of
Certain Properties in the United States owned by Enron Oil & Gas Company --
Selected Properties" and our "Report as of January 1, 1994 on Proved Reserves
of Certain Properties in Canada owned by Enron Oil & Gas Company -- Selected
Properties." We also have reviewed data provided to us by Enron that it
represents to be Enron's estimates of the reserves, as of January 1, 1994, for
the same properties as those included in our aforementioned reports.
Proved reserves estimated by us and referred to herein are
judged to be economically producible in future years from known reservoirs
under existing economic and operating conditions and assuming continuation of
current regulatory practices using conventional production methods and
equipment. Proved reserves are defined as those that have been proved to a
high degree of certainty by reason of actual completion, successful testing, or
in certain cases by adequate core analyses and electrical-log interpretation
when the producing characteristics of the formation are known from nearby
fields. These reserves are defined areally by reasonable geological
interpretation of structure and known continuity of oil- or gas-saturated
material. This definition is in agreement with the definition of proved
reserves prescribed by the Securities and Exchange Commission.
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2
Enron represents that its estimates of the proved reserves, as
of January 1, 1994, net to its leasehold interests in the properties included
in our report are as follows:
<TABLE>
<CAPTION>
OIL, CONDENSATE, AND
NATURAL GAS LIQUIDS NATURAL GAS NET EQUIVALENT
(THOUSAND BARRELS) (MILLION CUBIC FEET) MILLION CUBIC FEET
- -------------------- -------------------- ------------------
<S> <C> <C>
6,737 1,216,700 1,257,122
</TABLE>
Note: Net equivalent million cubic feet is based on 1 barrel of oil,
condensate, or natural gas liquids being equivalent to 6,000 cubic feet of gas.
Enron has advised us, and we have assumed, that its estimates
of proved oil, condensate, natural gas liquids, and natural gas reserves are in
accordance with the rules and regulations of the Securities and Exchange
Commission.
Proved reserves estimated by us for the properties included in
our reports, as of January 1, 1994, are as follows:
<TABLE>
<CAPTION>
OIL, CONDENSATE, AND
NATURAL GAS LIQUIDS NATURAL GAS NET EQUIVALENT
(THOUSAND BARRELS) (MILLION CUBIC FEET) MILLION CUBIC FEET
- --------------------- -------------------- ------------------
<S> <C> <C>
6,533 1,191,431 1,230,629
</TABLE>
Note: Net equivalent million cubic feet is based on 1 barrel of oil,
condensate, or natural gas liquids being equivalent to 6,000 cubic feet of
gas.
In making a comparison of the detailed estimates prepared by
us and by Enron of the properties involved, we have found differences, both
positive and negative, in reserve estimates for individual fields. These
differences appear to be compensating to a great extent when considering the
reserves of Enron in the properties included in our reports, resulting in
overall differences not being substantial. It is our opinion that the reserve
estimates prepared by Enron on the
<PAGE> 3
properties reviewed by us and referred to above, when compared on a net-
equivalent-cubic-feet-of-gas basis, do not differ materially from those
prepared by us.
Submitted,
DeGOLYER and MacNAUGHTON
W. G. McGILVRAY, P.E.
____________________________
W. G. McGilvray, P.E.
Senior Vice President
DeGolyer and MacNaughton
<PAGE> 1
Exhibit 24
DeGolyer and MacNaughton
One Energy Square
Dallas, Texas 75206
TELEPHONE
(214) 368-6391
February 3, 1994 TELEFAX
(214) 369-4061
Enron Corp.
1400 Smith Street
Houston, Texas 77002
Gentlemen:
We hereby consent to the inclusion of our letter report, dated January
27, 1994, addressed to Enron Oil & Gas Company (the Company) relating to our
comparison of estimates prepared by us to those furnished to us by the Company
of proved oil, condensate, natural gas liquids, and natural gas reserves of
certain selected properties owned by the Company as prepared in such letter
report for estimates as of January 1, 1994, to be included as Exhibit 10 to
Enron Corp.'s Current Report on Form 8-K to be filed with the Securities and
Exchange Commission on or about February 3, 1994.
Very truly yours,
DeGOLYER and MacNAUGHTON
