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ENRON ANNOUNCES MANAGEMENT CONTRACT EXTENSION AND CHANGES
FOR IMMEDIATE RELEASE: Tuesday, November 26, 1996
HOUSTON -- Enron announced today that Chairman and CEO Kenneth L. Lay has agreed to a new five year contract extension with the company as chairman and chief executive officer and, effective January 1, 1997, will assume the additional position of president.
"I am pleased that, after its normal periodic review of senior management, the board asked Rich Kinder, president and chief operating officer, and me to continue in our current roles," Lay said. "Unfortunately, after much discussion and due consideration of his career objectives, Rich has elected to pursue opportunities beyond Enron rather than continue in the chief operating officer role, which he has held for more than six years. He has made tremendous contributions to this company, and we thank him for his commitment and leadership."
"Last week I celebrated my 16th anniversary with Enron, and during this time I have experienced more opportunities and changes in both the industry and this company than I ever could have imagined possible," said Richard D. Kinder, Enron president and chief operating officer. "At a time of deciding upon recommitting to the company for another five years in my current position, I reflected on the successes I've achieved and my personal career objectives for additional growth. After significant consideration, I have elected to take a new direction in my career and will be leaving the company effective December 31, 1996. During the time I served as president we have delivered compound annual return to shareholders in excess of 26 percent. I am very proud to have been a part of the team that made this performance possible, and as a continuing shareholder, wish only the best for Enron in the future."
"Enron's growth prospects remain outstanding as recently confirmed by our annual five-year planning process," Lay said. "The pending acquisition of Portland General will be a catalyst for our development of national electricity markets, and we expect substantial growth both domestically and internationally across each of our business lines.
"The success of these efforts are only possible because of the extremely talented and dedicated employees who work at Enron, including a group of more than 300 experienced senior managers," Lay added. "I am proud and excited to be a part of this trend-setting natural gas and electric company that will lead the industry into the next millennium."
Enron, one of the world's largest integrated natural gas and electric companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns 58 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 around the world; and is one of the largest independent developers and producers of electricity in the world. Enron is traded under the ticker symbol, "ENE."
This release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Enron believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include political developments in foreign countries, the pace of deregulation of retail natural gas and electricity markets in the United States, federal and state regulatory developments, the timing and extent of changes in commodity prices for oil, gas, electricity and interest rates, the extent of success in acquiring oil and gas properties and in discovering, developing and producing reserves, the timing and success of efforts to develop international power, pipeline and other infrastructure projects and conditions of the capital markets and equity markets during the periods covered by the forward looking statements.
For additional information please contact:
Carol Hensley
(713) 853-6498
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