ENRON REAFFIRMS SHARE REPURCHASE PROGRAM; CITES STRONG EARNINGS AND COMPANY FUNDAMENTALS
ENRON REAFFIRMS SHARE REPURCHASE PROGRAM;
CITES STRONG EARNINGS AND COMPANY FUNDAMENTALS
HOUSTON, Dec. 12 /PRNewswire/ -- Citing strong earnings performance, Enron Corp. (NYSE: ENE) today announced that it is continuing to repurchase common stock under a previously authorized repurchase program and that it views the company's fundamentals favorably.
According to Chairman and CEO Kenneth L. Lay, at current stock prices, the company will acquire Enron common stock under the share repurchase program authorized by the board of directors in January 1991. The program authorized the repurchase of up to 1 million shares of Enron common stock.
"We have been very disappointed to see nearly all natural gas pipeline share prices decline this week, allegedly due to lower natural gas prices and unseasonably warm weather in the northeast," Lay said. "All natural gas stocks seem to suffer the brunt of these factors irrespective of the merits or offsets that an individual company has to offer. For example, Enron's natural gas liquids and power businesses benefit from lower natural gas prices. Weather in our midwestern market area was 30 percent colder than normal for the month of November and thus far, December is also colder than normal. It is reportedly the tenth coldest winter in the Midwest since 1895," Lay added.
"In light of declining energy prices in the past week, we have reviewed our performance for the fourth quarter compared to our earnings targets, and we are able to specifically reaffirm our ability to achieve our previously announced 1991 earnings target of at least $4.25 per share. In addition to this 20 percent compounded increase, we remain committed to our earlier announced 20 and 15 percent growth targets for 1992 and 1993, which would bring Enron's earnings to at least $5.00 per share in 1992 and just under $6.00 per share in 1993, excluding the benefits of the pending Tenneco acquisition," Lay said.
"We will certainly take advantage of the share repurchase program to acquire Enron stock at what we view as a tremendous value," Lay added.
Enron Corp., America's leading natural gas company with approximately $13 billion in annual 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.
/CONTACT: Diane Bazelides, 713-853-6285, E. P. Segner, 713-853-5299, or Paula Rieker, 713-853-5981, all of Enron Corp./
(ENE) CO: Enron Corporation ST: Texas IN: OIL SU: FC -- NY010 -- 1774 12/12/91 08:56 EST