Enron Corporation Essay

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Enron Corporation

Before filing for bankruptcy in 2001, Enron Corporation was one of the largest integrated natural gas and electricity companies in the world. It marketed natural gas liquids worldwide and operated one of the largest natural gas transmission systems in the world, totaling more than 36,000 miles. It was also one of the largest independent developers and producers of electricity in the world, serving both industrial and emerging markets.

Enron began as Northern Natural Gas Company, organized in Omaha, Nebraska, in 1930. The company's founding came just a few months after the stock market crash of 1929, an unusual time to launch a new venture. Several aspects of the Great Depression actually worked in
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1985: InterNorth merges with Houston Natural Gas Corp. to form HNG/InterNorth. The new enterprise begins to divest some of its business that did not fit in with its long-term goals, including the Peoples division, which sells for $250 million. Peru's government nationalizes the company's assets there, and HNG/InterNorth begins negotiating for payment, taking a $218 million charge against earnings in the meantime.
1986: Changes its name to Enron Corp. Sells its chemical subsidiary and its 50% stake in Citrus Corp.

Enron built power plants in industrial and developing nations all over the world: Italy, Turkey, Argentina, China, India, Brazil, Guatemala, Bolivia, Colombia, the Dominican Republic, the Philippines, and others. By 1996, earnings from these projects accounted for 25 percent of total company earnings before interest and taxes

1998: Enron puts its Enron Oil & Gas Co. up for sale, but refuses an offer, reportedly from Occidental Petroluem Corp., for 53.5% of the unit. The company secures roughly $800 million worth of new customers each quarter. By the year's end, it is the largest electricity wholesale operation in the U.S.
1999: Acquires Teeside Utilities and Services from Imperial Chemical Industries PLC for $480 million. BP Amoco PLC pays $45 million for Enron's 50% stake in Solarex, a solar energy venture. Begins
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