<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 (DATE OF EARLIEST EVENT REPORTED): APRIL 8, 1998
--------------------
ENRON OIL & GAS COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 1-9743 47-0684736
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or organization) Number) 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 April 8, 1998, Enron Oil & Gas Company sold $150 million principal
amount of its 6.65% Notes due April 1, 2028 pursuant to an underwritten public
offering.
Item 7. Financial Statements, Pro-Forma Financial Information and Exhibits
(c) Exhibits
1.1 Underwriting Agreement dated April 3, 1998 between
Enron Oil & Gas Company and Lehman Brothers Inc. and
Chase Securities Inc.
1.2 Certificate of Senior Vice President and Chief
Financial Officer of Enron Oil & Gas Company
establishing the terms of the 6.65% Notes due April
1, 2028.
1.3 Specimen of 6.65% Notes due April 1, 2028 in
book-entry form.
1.4 Computation of Ratios of Earnings to Fixed Charges.
-1-
<PAGE> 3
SIGNATURE
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 thereunto duly authorized.
ENRON OIL & GAS COMPANY
Date: April 8, 1998 By: /s/ W. C. Wilson
---------------------------------
Walter C. Wilson
Senior Vice President and
Chief Financial Officer
-2-
<PAGE> 4
<TABLE>
<CAPTION>
EXHIBIT INDEX
-------------
<S> <C>
1.1 Underwriting Agreement dated April 3, 1998 between Enron Oil & Gas
Company and Lehman Brothers Inc. and Chase Securities Inc.
1.2 Certificate of Senior Vice President and Chief Financial Officer of
Enron Oil & Gas Company establishing the terms of the 6.65% Notes due
April 1, 2028.
1.3 Specimen of 6.65% Notes due April 1, 2028 in book-entry form.
1.4 Computation of Ratios of Earnings to Fixed Charges.
</TABLE>
-3-
<PAGE> 1
EXHIBIT 1.1
ENRON OIL & GAS COMPANY
UNDERWRITING AGREEMENT
April 3, 1998
Enron Oil & Gas Company
1400 Smith Street
Houston, Texas 77002
Ladies and Gentlemen:
Lehman Brothers Inc. and Chase Securities Inc. (the "Underwriters")
understand that Enron Oil & Gas Company, a Delaware corporation (the "Company"),
proposes to issue and sell $150,000,000 aggregate principal amount of 6.65%
Notes due April 1, 2028 (the "Purchased Securities"), registered on Registration
Statement No. 333-44785. Subject to the terms and conditions set forth herein or
incorporated by reference herein and referred to below, the Company hereby
agrees to sell and the Underwriters agree to purchase, severally and not
jointly, the principal amount of such Purchased Securities set forth below
opposite their names at a purchase price equal to 98.280% of the principal
amount thereof, plus accrued interest, if any, from April 8, 1998:
<TABLE>
<CAPTION>
Name Principal Amount
---- ----------------
<S> <C>
Lehman Brothers Inc............................................ $ 90,000,000
Chase Securities Inc........................................... $ 60,000,000
------------
Total ................................................ $150,000,000
============
</TABLE>
The Underwriters will pay for such Purchased Securities upon
confirmation of delivery thereof at the offices of Bracewell & Patterson,
L.L.P., South Tower Pennzoil Place, 711 Louisiana Street, Suite 2900, Houston,
Texas 77002-2781 at 9:00 a.m. (Houston time) on April 8, 1998.
<PAGE> 2
The Purchased Securities shall have the following terms:
Maturity: April 1, 2028
Initial Price to Public: 99.155%
Interest Rate: 6.65% per annum
Redemption Provisions: None
Interest Payment Dates: April 1 and October 1 of each year, commencing
October 1, 1998
Sinking Fund: None
Date referred to in Section 6(1) of the Standard Provisions: April 8, 1998
Purchase Price: 98.280% of the principal amount thereof
Listing: None
Other Items: References in the Standard Provisions to settlement in
next business day funds shall refer to settlement in immediately
available funds pursuant to settlement procedures of The
Depository Trust Company. In addition, the Company is making the
representations and warranties attached hereto as Annex A.
All statements, requests, notices, communications and agreements
hereunder shall be in writing, and if to the Underwriters shall be delivered or
sent by mail, telex or facsimile transmission to the Underwriters in care of
Lehman Brothers Inc., 200 Vesey Street, 3 World Financial Center, Ninth Floor,
New York, New York 10285-0900, Attention: Daniel Coakley, Facsimile No. (212)
528-8074; and if to the Company shall be delivered or sent by mail, telex or
facsimile transmission to it at 1400 Smith Street, Houston, Texas 77002,
Attention: Walter Wilson, Senior Vice President and Chief Financial Officer,
Facsimile No. (713) 646-2113.
Unless otherwise provided herein, all the provisions contained in the
document entitled Enron Oil & Gas Company Debt Securities Underwriting Agreement
Standard Provisions dated December 20, 1996, a copy of which was filed as an
exhibit to, or incorporated by reference into, Registration Statement No.
333-44785, are hereby incorporated herein by reference in their entirety and
shall be deemed to be a part of this Agreement to the same extent as if such
provisions had been set forth in full herein.
Please confirm your agreement by having an authorized officer sign a
copy of this Agreement in the space set forth below and returning the signed
copy to us, and in addition have an authorized officer send us no later than
5:00 p.m. (New York time) on April 3, 1998 by wire, telex, facsimile
transmission or other written means, the following message:
-2-
<PAGE> 3
We have entered into the Underwriting Agreement dated April 3, 1998
relating to the Purchased Securities referred to therein by signing a
copy of the Underwriting Agreement and returning the same or depositing
the same in the mail to you.
Very truly yours,
LEHMAN BROTHERS INC.
CHASE SECURITIES INC.
By: LEHMAN BROTHERS INC.
By: /s/ Robert H. Swindell
------------------------------------------
Name:
-------------------------------------
Title:
------------------------------------
Accepted:
ENRON OIL & GAS COMPANY
By: /s/ C. W. Burgher
------------------------------------------
Name: Cedric W. Burgher
Title: Vice President, Finance and
Treasurer
-3-
<PAGE> 4
ANNEX A
The Company represents and warrants to each Underwriter, as of the date of the
Underwriting Agreement and as of the Closing referred to in the Underwriting
Agreement, that:
(a) no stop order suspending the effectiveness of the Registration
Statement has been issued and no proceeding for that purpose has been instituted
or, to the knowledge of the Company, threatened by the Commission;
(b) the financial statements, and the related notes thereto, included
or incorporated by reference in the Registration Statement and the Prospectus,
present fairly the consolidated financial position of the Company and its
consolidated subsidiaries as of the dates indicated and the results of their
operations and the changes in their consolidated cash flows for the periods
specified; and said financial statements have been prepared in conformity with
generally accepted accounting principles applied on a consistent basis, and the
supporting schedules included or incorporated by reference in the Registration
Statement present fairly the information required to be stated therein;
(c) since the respective dates as of which information is given in the
Registration Statement and the Prospectus, there has not been any material
adverse change, or any development involving a prospective material adverse
change, in or affecting the general affairs, business, prospects, management,
financial position, stockholders' equity or results of operations of the Company
and its subsidiaries, taken as a whole, otherwise than as set forth or
contemplated in the Prospectus; and except as set forth or contemplated in the
Prospectus neither the Company nor any of its subsidiaries has entered into any
transaction or agreement (whether or not in the ordinary course of business)
material to the Company and its subsidiaries, taken as a whole;
(d) the Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the state of its incorporation,
with power and authority (corporate and other) to own its properties and conduct
its business as described in the Prospectus, and has been duly qualified as a
foreign corporation for the transaction of business and is in good standing
under the laws of each other jurisdiction in which it owns or leases properties,
or conducts any business, so as to require such qualification, other than where
the failure to be so qualified or in good standing would not have a material
adverse effect on the Company and its subsidiaries, taken as a whole;
(e) each of the Company's subsidiaries has been duly incorporated and
is validly existing as a corporation under the laws of its jurisdiction of
incorporation, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Prospectus, and has been
duly qualified as a foreign corporation for the transaction of business and is
in good standing under the laws of each jurisdiction in which
<PAGE> 5
it owns or leases properties, or conducts any business, so as to require such
qualification, other than where the failure to be so qualified or in good
standing would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole; and all the outstanding shares of capital stock
of each subsidiary of the Company have been duly authorized and validly issued,
are fully-paid and non-assessable, and (except in the case of foreign
subsidiaries, for directors' qualifying shares) are owned by the Company,
directly or indirectly, free and clear of all liens, encumbrances, security
interests and claims;
(f) the Underwriting Agreement has been duly authorized, executed and
delivered by the Company and constitutes the valid and binding agreement of the
Company, except as rights to indemnity and contribution thereunder may be
limited by applicable law;
(g) the Purchased Securities have been duly authorized, and, when
issued and delivered pursuant to the Underwriting Agreement, will have been duly
executed, authenticated, issued and delivered and will constitute valid and
binding obligations of the Company entitled to the benefits provided by the
Indenture; the Indenture has been duly authorized, executed and delivered by the
Company and the Trustee, constitutes a valid and binding instrument and has been
duly qualified under the Trust Indenture Act; and the Purchased Securities will,
and the Indenture does, conform to the descriptions thereof in the Prospectus;
(h) neither the Company nor any of its subsidiaries is, or with the
giving of notice or lapse of time or both would be, in violation of or in
default under, its Certificate of Incorporation or By-Laws or any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which it or any of
them or any of their respective properties is bound, except for violations and
defaults which individually and in the aggregate are not material to the Company
and its subsidiaries, taken as a whole, or to the holders of the Purchased
Securities; the issue and sale of the Purchased Securities and the performance
by the Company of all of the provisions of its obligations under the Purchased
Securities, the Indenture and the Underwriting Agreement and the consummation of
the transactions therein contemplated will not conflict with or result in a
breach of any of the terms or provisions of, or constitute a default under, any
indenture, mortgage, deed of trust, loan agreement or other material agreement
or instrument to which the Company or any of its subsidiaries is a party or by
which the Company or any of its subsidiaries is bound or to which any of the
property or assets of the Company or any of its subsidiaries is subject, nor
will any such action result in any violation of the provisions of the
Certificate of Incorporation or the By-Laws of the Company or any applicable law
or statute or any order, rule or regulation of any court or governmental agency
or body having jurisdiction over the Company, its subsidiaries or any of their
respective properties; and no consent, approval, authorization, order,
registration or qualification of or with any such court or governmental agency
or body is required for the issue and sale of the Purchased Securities or the
consummation by the Company of the transactions contemplated by the Underwriting
Agreement or the Indenture, except such consents, approvals,
<PAGE> 6
authorizations, registrations or qualifications as have been obtained under the
Securities Act, the Trust Indenture Act and as may be required under state
securities or Blue Sky laws in connection with the purchase and distribution of
the Purchased Securities by the Underwriters; and
(i) other than as set forth or contemplated in the Prospectus, there
are no legal or governmental proceedings pending or, to the knowledge of the
Company, threatened to which the Company or any of its subsidiaries is or may be
a party or to which any property of the Company or any of its subsidiaries is or
may be the subject which, if determined adversely to the Company, could
individually or in the aggregate reasonably be expected to have a material
adverse effect on the general affairs, business, prospects, management,
financial position, stockholders' equity or results of operations of the Company
and its subsidiaries, taken as a whole, and, to the best of the Company's
knowledge, no such proceedings are threatened or contemplated by governmental
authorities or threatened by others; and there are no contracts or other
documents of a character required to be filed as an exhibit to the Registration
Statement or required to be described in the Registration Statement or the
Prospectus which are not filed or described as required.
<PAGE> 1
EXHIBIT 1.2
ENRON OIL & GAS COMPANY
Certificate of Senior Vice President and Chief Financial Officer
I, Walter C. Wilson, Senior Vice President and Chief Financial Officer
of Enron Oil & Gas Company, a Delaware corporation (the "Company"), do hereby
establish the terms of certain debt securities of the Company under the
Indenture, dated as of September 1, 1991 (the "Indenture"), between the Company
and Chase Bank of Texas, National Association (formerly Texas Commerce Bank
National Association), as Trustee, as follows:
1. The title of the securities shall be "6.65% Notes Due 2028"
(the "Notes");
2. The aggregate principal amount of Notes which may be
authenticated and delivered under the Indenture shall be limited to a
maximum of $150,000,000, except for Notes authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of,
other Notes;
3. The final maturity of the principal of the Notes shall be
April 1, 2028;
4. The Notes shall bear interest at the rate of 6.65% per
annum, which interest shall accrue from April 8, 1998, or from the most
recent Interest Payment Date (as defined in the Indenture) to which
interest has been paid or duly provided for, which dates shall be April
1 and October 1 of each year, and such interest shall be payable
semi-annually on April 1 and October 1 of each year, commencing October
1, 1998, to holders of record at the close of business on March 15 or
September 15, respectively, next preceding each such Interest Payment
Date;
5. The principal of, and interest on, the Notes shall be
payable at the office or agency of the Company maintained for that
purpose in Dallas, Texas, or at the option of the holder of the Note,
at the office or agency of the Company maintained for that purpose in
the Borough of Manhattan, The City of New York, State of New York;
provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the person
entitled thereto as such address shall appear in the Security Register
(as defined in the Indenture);
6. There is no obligation or option of the Company to redeem,
purchase or repay the Notes prior to maturity;
1
<PAGE> 2
7. Chase Bank of Texas, National Association (formerly Texas
Commerce Bank National Association) is appointed to be trustee for the
Notes, and Chase Bank of Texas, National Association, and any other
banking institution hereafter selected by the officers of the Company,
are appointed agents of the Company (a) where the Notes may be
presented for registration of transfer or exchange, (b) where notices
and demands to or upon the Company in respect of the Notes or the
Indenture may be made or served and (c) where the Notes may be
presented for payment of principal and interest;
8. The Notes shall be issued upon original issuance in whole
in the form of a single book-entry Global Security (as defined in the
Indenture), and the Depository (as defined in the Indenture) shall be
The Depository Trust Company, New York, New York.
9. The price to be received by the Company from the
Underwriter for the Notes shall be 98.280%, plus accrued interest, if
any, from April 8, 1998.
IN WITNESS WHEREOF, I have hereunto signed my name this 3rd day of
April, 1998.
ENRON OIL & GAS COMPANY
/s/ W. C. Wilson
------------------------------------------
Walter C. Wilson
Senior Vice President and
Chief Financial Officer
2
<PAGE> 1
EXHIBIT 1.3
THIS SECURITY IS A BOOK-ENTRY GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY
IN THE LIMITED CIRCUMSTANCES DESCRIBED BELOW, AND NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR
ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE OF
THE DEPOSITORY TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
ENRON OIL & GAS COMPANY
6.65% Notes due April 1, 2028
No. BE-4 CUSIP No. 293562 AD 6
ENRON OIL & GAS COMPANY, a corporation duly organized and existing
under the laws of Delaware (herein called the "Company", which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000) on April 1,
2028, and to pay interest thereon from April 8, 1998 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semiannually in arrears on April 1 and
<PAGE> 2
October 1 in each year, commencing October 1, 1998, at the rate of 6.65% per
annum, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the March 15 or September 15 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.
Payment of the principal of (and premium, if any) and interest on this
Security will be made at the office or agency of the Company maintained for that
purpose pursuant to the Indenture hereinafter referred to in Dallas, Texas, in
such immediately available funds of the United States of America as at the time
of payment are legal tender for payment of public and private debts.
Reference is hereby made to the further provisions of this Security set
forth below, which further provisions shall for all purposes have the same
effect as if set forth in this place.
Unless the certificate of authentication hereon has been executed by
the Trustee referred to below by manual signature of an authorized officer, this
Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated: April 8, 1998
ENRON OIL & GAS COMPANY
By: /s/ W. C. Wilson
----------------------------------
Title: Senior Vice President
and Chief Financial
Officer
ATTEST:
/s/ Angus H. Davis
- --------------------------------
Secretary
<PAGE> 3
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
TEXAS COMMERCE BANK NATIONAL ASSOCIATION,
as Trustee
By /s/ Donna Edmundson
--------------------------------------------------
Authorized Signatory
<PAGE> 4
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of September 1, 1991 (herein called the
"Indenture"), between the Company and Chase Bank of Texas, National Association
(formerly named Texas Commerce Bank National Association), as Trustee (herein
called the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitation of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is a Book-Entry Security representing
the entire principal amount of the series designated on the face hereof, limited
in aggregate principal amount to $150,000,000.
The Securities of this series shall not be subject to a sinking fund
requirement.
The Indenture contains provisions for defeasance at any time of the
entire indebtedness of the Company on this Security upon compliance by the
Company with certain conditions set forth therein, which provisions apply to
this Security.
If an Event of Default with respect to the Securities of this series
shall occur and be continuing, the unpaid principal of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of more than 50% in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all the Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.
As set forth in, and subject to, the provisions of the Indenture, no
Holder of any Security of this series shall have any right to institute any
proceeding with respect to the Indenture or for any remedy thereunder, unless
such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default with respect to the Securities of this series, the
Holders of not less than 25% in principal amount of the Outstanding Securities
of this series shall have made written request, and offered reasonable
indemnity, to the Trustee to institute such proceeding as trustee, and the
Trustee shall not have received from the Holders of a majority in principal
amount of the Outstanding Securities
<PAGE> 5
of this series a direction inconsistent with such request, and the Trustee shall
have failed to institute such proceeding within 60 days; provided, however, that
such limitations shall not apply to a suit instituted by the Holder hereof for
the enforcement of payment of the principal of (or premium, if any) or interest
on this Security on or after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall, without the consent of the Holder, alter or impair
the right of the Holders, which is absolute and unconditional, to receive
payment of the principal of (and premium, if any) and interest on this Security
at the times, place and rate, and in the coin or currency, herein prescribed,
except for Section 113 of the Indenture (which limits interest to the maximum
amount permissible by law), the provisions of which are incorporated herein by
reference.
This Security shall be exchangeable for Securities of this series
registered in the names of Persons other than the Depository with respect to
such series or its nominee only as provided in this paragraph. This Security
shall be so exchangeable if (x) such Depository notifies the Company that it is
unwilling or unable to continue as Depository for this Security or if at any
time such Depository ceases to be a clearing agency registered as such under the
Securities Exchange Act of 1934, (y) the Company executes and delivers to the
Trustee a written order providing that this Security shall be so exchangeable or
(z) there shall have occurred and be continuing an Event of Default with respect
to the Securities of this series. Securities so issued in exchange for this
Security shall be of the same series and of like tenor, in authorized
denominations and in the aggregate having the same unpaid principal amount as
this Security and registered in such names as such Depository shall direct.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of (and
premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or its
attorney duly authorized in writing, and thereupon one or more new Securities of
this series, and of like tenor, of authorized denominations and for the same
aggregate unpaid principal amount, shall be issued to the designated transferee
or transferees.
No service charge shall be made for any such exchange or registration
of transfer, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this
<PAGE> 6
Security be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused a CUSIP number to be
printed on this Security as a convenience to the Holder hereof. No
representation is made as to the accuracy of such number and reliance may be
placed only on the other identifying information printed hereon.
All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
<PAGE> 7
ASSIGNMENT FORM
I or we assign and transfer this Security to
-----------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Print or type name, address and zip code of assignee or transferee)
- --------------------------------------------------------------------------------
(Insert Social Security or other identifying number of assignee or transferee)
and irrevocably appoint
---------------------------------------------------------
as agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated: Signed:
------------------------------ -------------------------------
(Sign exactly as name appears above
or on the other side of this Security)
Signature Guarantee:
-----------------------------------------------
Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Trustee)
<PAGE> 1
EXHIBIT 1.4
ENRON OIL & GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
(UNAUDITED)
------------
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------
1997 1996 1995 1994 1993
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Earnings Available for Fixed Charges:
Net Income $ 121,970 $ 140,008 $ 142,118 $ 147,998 $ 138,025
Less:
Capitalized Interest Expense (13,706) (9,136) (6,490) (6,124) (5,457)
Add:
Fixed Charges 41,423 21,997 18,414 14,613 15,378
Income Tax Provision(Benefit) 41,500 50,954 41,936 5,937 (25,752)
--------- --------- --------- --------- ---------
Earnings Available $ 191,187 $ 203,823 $ 195,978 $ 162,424 $ 122,194
========= ========= ========= ========= =========
Fixed Charges:
Interest Expense 27,369 12,370 11,310 8,135 9,921
Capitalized Interest 13,706 9,136 6,490 6,124 5,457
Rental Expense Representative of
Interest Factor 348 491 614 354 --
--------- --------- --------- --------- ---------
Total Fixed Charges $ 41,423 $ 21,997 $ 18,414 $ 14,613 $ 15,378
========= ========= ========= ========= =========
Ratio of Earnings to Fixed Charges 4.62 9.27 10.64 11.12 7.95
========= ========= ========= ========= =========
</TABLE>
