Press Release

ENRON CORP. REPORTS 20 PERCENT INCREASE IN THIRD QUARTER 1996 EARNINGS PER SHARE TO $.48 PER SHARE

FOR IMMEDIATE RELEASE: Thursday, October 10, 1996

Houston -- Enron Corp. today reported a 20 percent increase in earnings per share to $.48 compared to 1995 third quarter earnings per share of $.40. Net income was $122.9 million in the third quarter of 1996 compared to third quarter 1995 net income of $100.6 million. Revenues were $3.2 billion in the third quarter of 1996, compared to $2.2 billion in the third quarter of 1995.

"Enron's continued growth in the third quarter indicates that we are on track with our 1996 and longer-term objectives, and we are pleased to have recently announced our sixth consecutive annual dividend increase," said Kenneth L. Lay, chairman and chief executive officer of Enron Corp. "Steady earnings from the interstate pipeline companies and a strong performance by Enron Capital & Trade Resources (ECT) provide a solid foundation as Enron pursues growth strategies in its wholesale and retail energy marketing efforts and international development activities. Our proposed merger with Portland General Corporation is consistent with those strategies and our related filings with both the Oregon Public Utility Commission and the Federal Energy Regulatory Commission (FERC) are proceeding as anticipated."

For the first nine months of 1996, Enron reported a 15 percent increase in earnings per share to $1.79, compared to $1.55 per share for the first nine months of 1995. Net income for the first nine months of 1996 was $452.4 million compared to $389.6 million for the first nine months of 1995. Revenues for the first nine months of 1996 were $9.2 billion compared to $6.6 billion in the first nine months of 1995.

• Enron Operations' earnings include the commercial and operational aspects of Enron's U.S. interstate natural gas, natural gas liquids and crude oil pipelines as well as fees associated with engineering and construction services provided to third parties worldwide.
• Enron Operations reported earnings before interest and taxes of $97.5 million in the third quarter of 1996, compared to $83.4 million a year ago.
• Earnings in the third quarter of 1996 reflect improved earnings from Enron Engineering & Construction, continued significant contributions from the interstate natural gas pipelines and a strong performance at EOTT Energy Partners, L.P.

"Our interstate natural gas pipelines are extremely well positioned for the upcoming winter heating season," Lay said. "Recent expansion on the east leg of the Northern Natural Gas system has increased throughput by 103 million cubic feet per day of gas (MMcf/d). Likewise, expansion of the Transwestern Pipeline San Juan lateral, which provides 255 MMcf/d of additional capacity, along with Transwestern's recent acquisition of the 30-mile La Plata pipeline system, combine to offer stronger and more flexible services on the east end of the system. In addition, the Northern Border Pipeline expansion project into the Chicago market area has received preliminary approval by the FERC."

• ECT's earnings are derived from the marketing, purchasing and financing of natural gas, natural gas liquids and power.
• ECT reported earnings before interest and taxes of $73.8 million in the third quarter of 1996, compared to $60.4 million a year ago.
• ECT's earnings are comprised of balanced contributions from the company's businesses, reflecting ECT's broad based competitive advantages in meeting customers' needs.
• Physical volumes marketed in the third quarter of 1996 increased 33 percent to 9.5 trillion British thermal units of energy equivalent per day (TBtue/d) compared to 7.1 TBtue/d a year ago.
• ECT's U.S. power marketing business reflected significant growth in the third quarter of 1996, with 18.7 million megawatt-hours sold, compared to 2.3 million megawatt-hours sold in the third quarter of 1995.

"As natural gas and electricity markets converge, ECT's unique ability to tailor broad based commodity solutions to meet customer needs has been extremely successful," Lay said.

• International earnings consist of earnings from the development and promotion of integrated energy projects, commercial power generation and pipeline activities outside of North America and Enron Global Power & Pipelines (EPP).
• International reported earnings before interest, minority interest and taxes of $37.3 million in the third quarter of 1996 compared to $39.8 million a year ago.
• International results in the third quarter of 1996 include net revenues of approximately $15.0 million from the sale of a portion of Enron's interest in Teesside Power Limited, effectively bringing Enron's ownership interest in the project to 27.6 percent.
• Earnings in the third quarter of 1995 included $24.0 million from the final recognition of revenues earned in connection with the formation of EPP, reflecting Enron's satisfaction of all support obligations to EPP.

"We are pleased to announce that financing has closed on our Turkey power project and construction is underway, " Lay said. "We expect a decision imminently on the only remaining lawsuit related to our power project in Dabhol, India, and we will proceed with financial close and resume full scale construction on that facility in the very near future."

• Exploration and Production earnings before interest, minority interest and taxes in the third quarter of 1996 were $49.6 million compared to $52.9 million for the same period a year ago.
• Enron Oil & Gas Company's (EOG) total wellhead natural gas sales volumes averaged 774 million cubic feet per day (MMcf/d) in the third quarter of 1996, compared to 769 MMcf/d during the third quarter of 1995.
• The average North America wellhead natural gas price received by EOG was $1.70 per thousand cubic feet (Mcf) for the third quarter of 1996 compared to $1.24 per Mcf for the same period a year ago.
• EOG's total crude oil and condensate volumes averaged 17.7 thousand barrels per day (MBD) in the third quarter of 1996 compared to 20.2 MBD for the same period a year ago.

"Our strong prospect inventory includes 22 blocks acquired at the recent offshore Gulf of Mexico lease sale," Lay said. "We hope to begin drilling the first of the seven deepwater blocks acquired at the sale within 18 months after final bid approval and we believe these prospects will significantly add to our ongoing exploration and development program."

Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates the largest natural gas transmission system in the Western Hemisphere and the second largest system in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; produces and markets natural gas liquids worldwide; owns 59 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 59 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines in emerging markets; and is one of the largest independent developers and producers of electricity in the world. Enron Corp. is traded under the ticker symbol, "ENE."

For additional information please contact:

Diane Bazelides

713-853-6285