History of Enron in Timeline
Enron Corporation, based in Houston, Texas, was an American energy, commodities, and services company. Founded in 1985 by Kenneth Lay through a merger between Houston Natural Gas and InterNorth, it grew to employ around 20,600 people before its bankruptcy in December 2001. Prior to bankruptcy, Enron was a major player in the electricity, natural gas, communications, and pulp and paper industries, boasting nearly $101 billion in revenue in 2000. For six years in a row, Fortune magazine recognized Enron as "America's Most Innovative Company."
1925: Houston Natural Gas (HNG) Founded
Houston Natural Gas (HNG) was formed in 1925 to supply gas to Houston customers.
1930: InterNorth Founded
InterNorth, one of Enron's predecessors, was founded in Omaha, Nebraska, in 1930 during the Great Depression.
1932: InterNorth's Early Growth
By 1932, InterNorth had doubled in size, fueled by low natural gas costs and cheap labor during the Great Depression.
1967: Robert Herring's Leadership at HNG
Robert Herring became CEO of HNG in 1967, leading the company through a period of growth and dominance in the Texas energy market.
1978: Natural Gas Policy Act Impacts HNG
The Natural Gas Policy Act of 1978 reduced HNG's profitability in the Texas market.
1979: InterNorth Reorganized
In 1979, InterNorth was reorganized as the main subsidiary of a diversified energy holding company.
1981: Herring's Death and Matthews's Takeover
Robert Herring died in 1981, and M.D. Matthews took over as CEO of HNG.
1983: InterNorth Merges with Belco Petroleum
InterNorth merged with Belco Petroleum, a Fortune 500 oil exploration and development company, in 1983.
1984: Kenneth Lay Becomes CEO of HNG
Kenneth Lay became CEO of HNG in 1984, inheriting a company facing financial challenges.
May 1985: InterNorth Acquires HNG
In May 1985, InterNorth acquired HNG for $2.3 billion.
July 16, 1985: InterNorth and HNG Merge
InterNorth and HNG officially merged on July 16, 1985, creating the second-largest gas pipeline system in the US.
1985: Enron's Formation
Enron was formed in 1985 through the merger of Houston Natural Gas and InterNorth.
February 14, 1986: Lay Proposes Name Change
On February 14, 1986, Kenneth Lay proposed changing the company's name from HNG/InterNorth.
March 7, 1986: Enron Name Introduced
On March 7, 1986, the name "Enron" was introduced after the initially proposed name, "Enteron," was rejected.
1988: Enron Expands Power Portfolio
Enron added power plants and cogeneration units to its portfolio in 1988.
1989: Teesside Plant Construction and Operation
In 1989, Enron built and began operating the Teesside plant, one of the world's largest gas-fired power stations, which supplied 3% of the UK's energy needs. Enron owned half of the plant's equity, with the other half split between four regional electricity companies.
1990: Andrew Fastow Joins Enron
Andrew Fastow was hired by Enron in 1990.
1990: Jeffrey Skilling Hires Andrew Fastow
Jeffrey Skilling hired Andrew Fastow in 1990.
1991: Enron Expands Internationally
In 1991, Enron expanded its operations internationally, starting with a power plant in the UK.
1991: Jeffrey Skilling Joins Enron
Jeffrey Skilling joined Enron in 1991 to lead the Gas Bank division.
1992: Indian Experts Seek Energy Investors
Around 1992, experts from India visited the United States seeking investors to address India's energy shortage problems. This outreach led to Enron's involvement in the Dabhol Power Project.
1992: Energy Policy Act
In 1992, the Energy Policy Act was passed by Congress, deregulating electricity markets in several states, including California.
December 1993: Dabhol Power Project Contract Finalized
In December 1993, Enron finalized a 20-year power-purchase contract with the Maharashtra State Electricity Board (MSEB) in India. This contract paved the way for the construction of the Dabhol Power Station, a large 2,015 megawatt power plant. The project was intended to be the first step in a larger $20 billion plan to improve India's power grid. Enron, GE, and Bechtel each held 10% equity in the project, while MSEB covered the remaining 90%.
1993: Fastow Establishes Special-Purpose Entities
Andrew Fastow began creating special-purpose entities in 1993, which later became central to Enron's accounting scandal.
December 1994: Panna-Mukta and Tapti Fields Joint Venture
In December 1994, a joint venture was formed between ONGC (40%), Enron (30%), and Reliance (30%) to operate the Panna-Mukta and South Tapti oil and gas fields, initially discovered and operated by ONGC.
1994: Enron International Growth
By 1994, Enron International (EI) had assets in numerous countries across the globe.
1994: Deregulation Opens Opportunities
In 1994, states began deregulating their electricity utilities. Enron saw this as a business opportunity.
July 1996: Enron's Acquisition Proposal
In July 1996, Enron proposed to acquire Portland General Electric corporation. At this time, several states, including California, New Hampshire, and Rhode Island, had already enacted power deregulation laws.
1996: EI Contributes to Enron's Earnings
Enron International contributed significantly to Enron's earnings in 1996.
1996: Enron Attempts to Revive Dabhol Project
From 1996 until its bankruptcy in 2001, Enron unsuccessfully attempted to revive the Dabhol Power Project and persuade the Indian government of its necessity.
1996: Start of "America's Most Innovative Company" Title
In 1996, Enron began its six-year streak of being named "America's Most Innovative Company" by Fortune magazine, lasting until 2001.
1996: Dabhol Power Project Halted
In 1996, after a change in government in India, the Dabhol Power Project was deemed too expensive. The Indian government refused to pay for the plant and halted construction. Despite this, MSEB was contractually obligated to pay Enron for plant maintenance, even without purchasing power. MSEB found it unaffordable to buy the power at Enron's price, and the plant operator couldn't find other buyers due to India's regulated utilities market.
1996: Paul Rand Designs Enron Logo
The new Enron logo was designed by Paul Rand in 1996.
January 14, 1997: New Corporate Identity
Enron introduced a new corporate identity and logo on January 14, 1997.
1997: Enron Acquires Portland General Electric
Enron acquired Portland General Electric (PGE) in 1997 to tap into the California market.
1997: FTV Communications Builds Fiber Optic Network
In 1997, Enron's subsidiary, FTV Communications, constructed a fiber optic network between Portland and Las Vegas.
1997: Rebecca Mark Resigns from Enron International
In 1997, Rebecca Mark resigned from her position as CEO of Enron International to lead Azurix, Enron's newly acquired water business. Mark played a significant role in the Dabhol power project in India, which was Enron's largest international project.
1998: Enron Acquires Wessex Water
Enron acquired Wessex Water and formed Azurix in 1998.
1998: Enron Builds Las Vegas Facility
Enron built a data center in Las Vegas in 1998, aiming to control bandwidth trading.
1998: Enron Enters Water Business
Enron expanded into the water sector in 1998 with the creation of the Azurix Corporation.
1998: Enron Enters Retail Energy Market
In 1998, Enron began offering discounted energy services in California, Ohio, and Iowa.
June 1999: Azurix IPO
Azurix, Enron's water subsidiary, had a promising IPO in June 1999.
November 29, 1999: Enron Launches EnronOnline
On November 29, 1999, Enron launched EnronOnline, an electronic trading platform for energy commodities, which later faced scrutiny for its reporting practices.
1999: Enron Exits Retail Energy
Enron ended its retail energy venture in 1999 due to high costs.
1999: Enron Launches EnronOnline
Enron launched EnronOnline, its internet-based trading platform, in 1999.
1999: Azurix in Buenos Aires
In 1999, Azurix managed the Buenos Aires water concession, which resulted in substantial debt and the eventual collapse of the branch. Azurix is involved in litigation against the Argentinian government related to this event.
1999: Enron's Fraudulent Accounting Practices
In 1999, Enron engaged in deceptive accounting practices, such as promising to repay Merrill Lynch's investment with interest to inflate its profits. The company also used offshore entities to hide debts and losses.
January 2000: Enron Announces Broadband Trading
In January 2000, Enron announced plans to trade bandwidth, leading to a surge in stock prices.
April 2000: Wessex Water Rate Cuts
Wessex Water was required to cut its rates in April 2000.
August 2000: Enron Stock Reaches Peak Value
In August 2000, Enron's stock price reached its highest point at $90. Executives, aware of hidden losses, began selling their shares while encouraging the public to buy.
August 2000: Rebecca Mark Resigns
Rebecca Mark resigned from Azurix and Enron in August 2000 after financial difficulties.
October 2000: Analyst Suspends Energy Ratings
In October 2000, Daniel Scotto, a prominent utility analyst, suspended his ratings on energy companies in California due to concerns about their compensation.
November 2000: Traders' Callousness Exposed
Recordings revealed the callous attitude of Enron traders towards California ratepayers during the energy crisis in November 2000.
December 2000: California Energy Deregulation
In December 2000, California's energy market was deregulated, a move supported by Senator Phil Gramm, who had ties to Enron.
2000: Enron International's Global Projects and Struggles
By 2000, Enron International had constructed power plants and pipelines worldwide. While some, like the Teesside plant, remained operational, others, such as the Puerto Plata barge-mounted plant in the Dominican Republic, led to financial losses for Enron through lawsuits and investment losses, due to issues like soot blowing onto a nearby hotel and garbage clogging the plant's water intake. The company only collected $3.5 million of a $95 million investment in the project. Enron also invested in other international energy projects.
2000: Enron's Stock Price Decline Begins
During the summer of 2000, Enron's share prices began to decline from US$90 as the scandal surrounding its special-purpose entities and hidden debts came to light.
2000: Enron Listed Among Best Companies to Work For
Enron was included in Fortune's "100 Best Companies to Work for in America" list in 2000.
2000: Enron's Peak Revenue
In 2000, Enron reported nearly $101 billion in revenue, marking the peak of its financial performance before the scandal.
2000: Skilling's Shift to "Intellectual Assets"
In 2000, Jeff Skilling expressed his belief that "intellectual assets" were more valuable than traditional business assets, leading to a shift in Enron's corporate strategy.
2000: Dabhol Plant Nears Completion and Enron Restructures
In 2000, the Dabhol power plant was nearing completion, and Phase 1 began producing power. However, Enron was facing financial difficulties, leading to the resignation of Rebecca Mark and other key executives at Enron International in an attempt to restructure the company.
February 2001: Enron Stock Decline
Enron's stock price dropped from $80 to below $60 in February 2001 following the failed Blockbuster deal.
March 12, 2001: Blockbuster Deal Cancellation
On March 12, 2001, a deal between Enron and Blockbuster fell through, impacting Enron's stock price.
March 2001: Fortune Magazine Raises Concerns
In March 2001, Fortune magazine published an article questioning Enron's profitability and stock valuation, adding to growing skepticism about the company.
June 2001: California Rolling Blackouts End
Federal regulators intervened in June 2001, ending the rolling blackouts in California that were exacerbated by Enron's manipulation of the energy market.
June 2001: Dabhol Power Project Stop-Work Order
In June 2001, following a payment dispute with MSEB, Enron issued a stop-work order on the Dabhol power plant.
July 2001: Enron Broadband Shutdown
Enron's broadband division was shut down in July 2001 after disappointing earnings.
July 2001: Paula Rieker Charged with Insider Trading
In July 2001, former Enron executive Paula Rieker was charged with insider trading, highlighting the illegal activities within the company.
August 15, 2001: Enron Stock Price Declines
By August 15, 2001, Enron's stock price had fallen to $42, yet many investors continued to hold or buy shares based on Kenneth Lay's reassurances.
August 2001: First Analyst Questions Enron
Daniel Scotto of BNP Paribas issued a critical note on Enron's financial health in August 2001, titled "Enron: All stressed up and no place to go." He downgraded the stock and urged investors to sell.
November 28, 2001: Lay Family Sells Stock
On November 28, 2001, Kenneth Lay's wife, Linda, sold a significant amount of Enron stock shortly before the company's problems became public and the stock price plummeted.
December 2, 2001: Enron Declares Bankruptcy
On December 2, 2001, Enron, once a giant in the energy sector, declared bankruptcy.
December 2001: Enron's Bankruptcy Impacts Dabhol Project
By December 2001, Enron's bankruptcy ended any possibility of reviving the Dabhol power plant's construction.
December 2001: Enron Bankruptcy Filing
Enron filed for bankruptcy in December 2001, revealing the extent of its fraudulent activities and complex business structure.
2001: Enron's Revenue Quadruples
By the first quarter of 2001, Enron's "Wholesale Services" revenues had quadrupled compared to the same period in 2000.
2001: Enron Attempts Asset Sales
During the summer of 2001, Enron attempted to sell several assets of Enron International, leading to public and media speculation about the company's financial health and cash flow needs.
2001: Enron Files for Bankruptcy
Enron filed for bankruptcy in late 2001 after the revelation of its fraudulent accounting practices.
2001: Enron Scandal Revealed
In 2001, Enron's fraudulent accounting practices were exposed, leading to one of the largest corporate scandals in history.
2001: Enron's Broadband Strategy and Accounting Practices
Throughout 2001, Enron executives profited from inflated stock prices, while the company engaged in questionable accounting practices related to its broadband business and dark fiber acquisitions.
November 2002: UBS Closes EnronOnline
UBS shut down EnronOnline in November 2002 after attempting to relaunch the platform.
2002: Arthur Andersen Found Guilty
Arthur Andersen, Enron's auditor, was found guilty of obstruction of justice in 2002 for destroying Enron-related documents.
2002: Enron's Nevada Facility Sold
Following Enron's bankruptcy, its Las Vegas facility was sold for a fraction of its value in 2002.
2002: "We Have All Been Enroned"
Following Enron's collapse and the demise of Andersen LLP in 2002, the phrase "We have all been Enroned" emerged, signifying the widespread impact of the scandal.
2002: "Women of Enron" Pictorial in Playboy
In 2002, Playboy magazine published a nude pictorial featuring current and former female Enron employees titled "Women of Enron." The women involved stated they participated for financial gain and entertainment.
2002: Enron Awarded Ig Nobel Prize
In early 2002, Enron was awarded the Ig Nobel Prize for "Most Creative Use of Imaginary Numbers," a satirical award recognizing dubious achievements. Enron's management declined to accept the award.
2002: British Gas Acquires Enron's Stake in Panna-Mukta and Tapti Fields
In mid-2002, British Gas (BG) acquired Enron's 30% stake in the Panna-Mukta and Tapti fields for $350 million, just months before Enron declared bankruptcy.
2002: Sarbanes-Oxley Act
The Enron scandal, along with the WorldCom scandal, contributed to the passage of the Sarbanes-Oxley Act of 2002, aimed at reforming corporate governance and financial reporting.
2002: Worldcom's Bankruptcy
Worldcom's bankruptcy filing in 2002 surpassed Enron's as the largest Chapter 11 bankruptcy at the time.
2003: Enron in "The Corporation"
In 2003, the documentary The Corporation highlighted Enron as an example of corporate misconduct, referring to the company as a "bad apple".
November 2004: Enron Sues Financial Institutions
After emerging from bankruptcy in November 2004, Enron's new board sued 11 financial institutions for their role in the company's downfall.
November 2004: Enron Emerges from Bankruptcy
Enron emerged from bankruptcy in November 2004 under a court-approved reorganization plan, renamed Enron Creditors Recovery Corp.
2005: Ratnagiri Gas and Power Revives Dabhol
In 2005, Ratnagiri Gas and Power, an Indian government-run company, was established to complete construction and operate the Dabhol power plant.
2005: Andersen's Conviction Overturned
The Supreme Court overturned Arthur Andersen's conviction in 2005.
September 7, 2006: Enron Sells Prisma Energy
On September 7, 2006, Enron sold its last remaining subsidiary, Prisma Energy International, marking the final stage of its liquidation process.
2006: Enron Sells Last Business
Enron sold its last remaining business, Prisma Energy, in 2006.
2007: Enron Changes Name
Enron's name was changed to Enron Creditors Recovery Corporation in early 2007.
2007: Enron in Popular Culture
In 2007, Enron's presence in popular culture continued with its inclusion in the film Bee Movie.
December 2008: Creditors to Receive $7.2 Billion
In December 2008, it was announced that Enron's creditors would receive $7.2 billion from the company's liquidation.
2008: Enron Settles with Financial Institutions
By 2008, Enron had settled with all of the financial institutions involved in the "megaclaims litigation."
2008: Lehman Brothers' Bankruptcy
Lehman Brothers' bankruptcy in 2008 also surpassed Enron's as the largest Chapter 11 filing.
December 2009: Claim and Process Payments Distributed
As of December 2009, Enron was still distributing claim and process payments.
May 2011: $21.8 Billion Distributed to Creditors
By May 2011, Enron had distributed $21.8 billion to creditors, representing 53% of the debts owed at the time of bankruptcy.
November 28, 2016: Enron Creditors Recovery Corporation Dissolved
Enron Creditors Recovery Corporation, formerly Enron, was dissolved on November 28, 2016.
