Enron Mail

Subject:EGM earnings from EOTT transaction
Date:Wed, 26 Sep 2001 12:52:17 -0700 (PDT)

In today's eSpeak session you made the following comments:
"To the best of my recollection, the only asset we sold in the second quarter to a subsidiary company was our Clean Fuels business, which we sold to EOTT, and on that transaction there was virtually no profit."
In fact, EGM recognized $120 million in mark to market earnings from an offtake agreement that was inextricably linked to the sale. The recognition of these earnings would not have been possible without the sale.
My confidence in your integrity compells me to alert you of my concern with your statements from the eSpeak session. I urge you to investigate the transaction further. After you have done so, I believe you will agree with me that your statements appear misleading to anyone with a better understanding of the deal.
Brian Terp