Downfall

Before its sudden downfall, Enron remained at the top of the charts in energy trading and marketing, holding the lead for most of the history of NGI’s ranking of the largest gas marketing companies by volumes sold. It held that spot in the third quarter, but that soon will change, and the impact of Enron’s fall probably will reduce transaction volumes among the other top marketers in the near term, according to Ronald Barone of UBS Warburg.

Enron Corp.’s downfall will reach much further than the energy trading world it once controlled. Among other devastating losses, downtown Houston will lose 3% of its workforce; but even more important, the city and the visible venues Enron reigned over will lose a prestigious and generous partner in philanthropic and worthy causes.

In reaction to the downfall of Enron Corp. that eventually led to its buyout by Dynegy Corp., Duke Energy executives took an hour last week to reassure the investment community about its portfolio and risk management system, and also talked about the future of energy trading, whether or not a merger takes place. But what top management was attempting to do most was put most succinctly by CFO Mary Gilbert, when she firmly explained that they will hear “no surprises from Duke Energy.”

In reaction to the downfall of Enron Corp. that eventually led to its buyout by Dynegy Corp., Duke Energy executives took an hour on Monday to reassure the investment community about its portfolio and risk management system, and also talked about the future of energy trading, whether or not a merger takes place. But what top management was attempting to do most was put most succinctly by CFO Mary Gilbert, when she firmly explained that they will hear “no surprises from Duke Energy.”