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ENRON CITES PLANS TO FURTHER STRENGTHEN FINANCIAL POSITION THROUGH DEBT REDUCTION

 ENRON CITES PLANS TO FURTHER STRENGTHEN
 FINANCIAL POSITION THROUGH DEBT REDUCTION
 HOUSTON, April 3 /PRNewswire/ -- Enron Corp. (NYSE: ENE) announced today that it will further strengthen its financial position through debt reduction during 1992. The company will take the actions in light of having been listed on Standard & Poor's (S&P) negative credit watch, according to Kenneth L. Lay, chairman and CEO of Enron Corp.
 "We are convinced that opportunities in the natural gas industry will be developed and achieved by companies with strong balance sheets and financial fundamentals," Lay said. "Given Enron's positive outlook for growth and our assessment of the financial ratios currently targeted by S&P for the natural gas industry, Enron will further strengthen its balance sheet and financial profile during 1992. As a result of these actions, we feel confident that S&P will reaffirm BBB credit ratings for Enron and Enron Oil & Gas Company and remove the companies from negative credit watch."
 According to Lay, Enron's actions to achieve its financial objectives will include reducing debt through expected free cash flow, selling approximately $250 million of non-strategic assets, and issuing in the near future approximately 6 million shares of common stock equity, which represents a 6 percent increase in primary shares. Proceeds from the sale of equity will be used for debt reduction and also will be available to fund capital expenditures such as Enron's estimated $165 million equity investment in the Teesside power project in 1993. Lay noted that market conditions throughout the year would determine the timing of asset sales.
 "As a result of these measures, Enron expects to achieve a year-end debt-to-total capitalization ratio of about 50 percent compared to about 60 percent at year-end 1991," Lay said. "Most importantly after giving effect to the additional equity shares to be issued, we will remain on target for achieving a 20 percent increase in earnings per share in 1992 and at least a 15 percent increase in 1993."
 Enron's strong balance sheet and targeted level of debt and interest coverage will give the company a competitive edge and allow participation in major projects across the natural gas industry, Lay noted.
 Enron Corp., America's leading natural gas company with more than $13 billion in revenues and $10 billion in assets, operates the nation's largest natural gas transmission system, markets natural gas, gas liquids, crude oil and refined products nationally and worldwide; owns 84 percent of Enron Oil & Gas Company, one of the country's largest independent (non-integrated) natural gas exploration and production companies; is one of the largest independent developers and producers of electricity in the United States and the United Kingdom, with extensive experience in combined heat and power installations; and is a leading non-regulated purchaser and marketer of long-term natural gas commitments. Approximately 102.2 million shares of common stock were outstanding as of March 31, 1992.
 -0- 4/3/92
 /CONTACT: Diane Bazelides, 713-853-6285, or E. P. Segner, senior vice president-investor, public and government relations, 713-853-5299, or Paula Rieker, director-investor relations, 713-853-5981, all of Enron/
 (ENE) CO: Enron Corp. ST: Texas IN: OIL SU: RCN


TS -- NY010 -- 4715 04/03/92 08:48 EST
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Publication:PR Newswire
Date:Apr 3, 1992
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