The Gas Of Houston Natural Gas - 1953 Words

Enron was formed through the merger of Houston Natural Gas of Houston (HNG), Texas and InterNorth. Houston natural gas covered the Florida and California market, their pipelines running from east to west and InterNorth catered the Iowa and Minnesota market, their pipelines running from north to south. HNG was formed in 1920, providing gas to retail customers in Houston. The company sold its retail gas business in 1920 and ventured into the gas exploration and production business. In the year 1984, HNG had $3.7 billion in assets, over $2 billion in sales and booked profits of $123 million. InterNorth was a natural pipeline company located in Omaha, Nebraska. In 1984 InterNorth had revenues of $7.5 billion. The reason behind the merger was that InterNorth faced the threat of a buyout by corporate raiders as it had low debt and high revenues. The conservative operations and low debt of InterNorth made it a target for corporate raiders who planned to use its cash reserves and borrowing capacity to extract funds for themselves. On the other hand HNG Company had borrowed heavily to expand its pipelines in the Florida and California markets. Therefore merging with Houston Natural Gas made perfect sense as it fended off corporate raiders. In May 1984 InterNorth acquired HNG for $2.4 billion, under the leadership of Sam Segnar who was the CEO of InterNorth at that time. The negotiations for HNG were handled by John Wing and he was able to negotiate a price for HNG shares which wereShow MoreRelatedExecutive Office Of Houston Natural Gas1689 Words   |  7 Pagescreated in 1985 when Houston Natural Gas and InterNorth merged together. Houston Natural Gas was a utility company based in Houston, Texas before being taken over by InterNorth. InterNorth was a very large energy company based out of Omaha, Nebraska. They specialized in natural gas pipelines, but also were successful in the plastic industry, coal and petroleum exploration and production. In the beginning Ken neth Lay, who was the Chief Executive Office of Houston Natural Gas, became the CEO andRead MoreThe Merger Between Houston Natural Gas Company1077 Words   |  5 Pagesback to the Omaha-based Northern Natural Gas Company, an interstate pipeline company formed in 1932. In 1979, the Northern Natural Gas Company merged under their holding company InterNorth. Accordingly, InterNorth branched into a more diversified energy company working in natural gas marketing, production, and transmission alongside plastics innovation and other energy-related products. In 1985, during the reorganization of the merger between Houston Natural Gas and InterNorth, the company namedRead MoreEnron s Of Houston Natural Gas And Omaha Based Inter North1347 Words   |  6 PagesEnron s origins date back to 1985 when it began life as an interstate pipeline company through the merger of Houston Natural Gas and Omaha-based Inter North. Kenneth Lay, the former chief executive officer of Houston Natural Gas, beca me CEO, and the next year won the post of chairman. From the pipeline sector, Enron began moving into new fields. In 1999, the company launched its broadband services unit and Enron Online, the company s website for trading commodities, which soon became the largestRead MoreThe Oil And Gas Industry1285 Words   |  6 PagesHouston, which is the fourth most populous city in the nation and the largest in the southern U.S. and Texas, has been developing strong economy, especially in oil and gas industry. During the last decades of the twentieth century, Houston focused on developing energy industry—which comprises oil and gas exploration and production, oilfield equipment manufacturing and wholesaling, and pipeline transportation. However, some economists doubt that depending on oil and gas too much could make HoustonRead MoreHistory And Formation Of Enron966 Words   |  4 PagesEnron Enron was formed through the merger of Houston Natural Gas (HNG) of Houston, Texas and InterNorth of Omaha, Nebraska. HNG covered the Florida and California market, their pipelines running from east to west. InterNorth catered the Iowa and Minnesota market, their pipelines running from north to south. HNG was formed in 1920, providing gas to retail customers in Houston. The company sold its retail gas business in 1920 and ventured into the gas exploration and production business. In the yearRead MoreEssay about Oil and Texas: A Cultural History1599 Words   |  7 PagesOil and Texas: A Cultural History Soon the 4-inch drill pipe†¦shot skyward. After the mud, water, and pipe were blown out, gas followed, but only for a short time. Then the well was very quiet. We ventured back, after our wild scramble for safety, to find things in a terrible mess...We started shoveling the mud away-when, without warning, a lot of heavy mud shot out of the well with the report of a cannon†¦In a very short time oil was going up through the top of the derricks, and rocks were beingRead MoreCorporate Fraud, Greed, Corruption, And Ethics1598 Words   |  7 Pagesbegan as Northern Natural Gas Company.1 With revenues up to $7.5, it was one of the nation s premier pipeline networks. 1 To avoid potential takeover from corporate raiders, CEO Sam Segnar looked to buy Houston Natural Gas. In May 1985 InterNorth acquire Houston Natural Gas for $2.4 billion. Houston Natural Gas was originally formed in the 1920s from the Houston Oil Co., providing gas to Houston retail customers.1 According to the Tex as State Historical Association, Houston Natural Gas had assets ofRead MoreEnron‚Äà ´s Demise ~ Where There Warning Signs?1408 Words   |  6 PagesWhere There Warning Signs? Janise Baldwin Management Decision Making-Summer 2013 C. Forest Guest July 14, 2013 Executive Summary Enron is a company which headquarters is located in Houston, Texas. Enron was first headed by Samuel F. Segnar. Enron was the result of InterNorth’s acquisition of Houston Natural Gas in 1985. Under the new terms of this acquisition, the company was headed by Kenneth Lay on the first day of 1997. Enron offered employment for 20,600 employees in four major segments overRead MoreNorthern Natural Gas Company Management1225 Words   |  5 PagesCorporation was once known as Northern Natural Gas Company, Founded in 1932 in Omaha, Nebraska as a provider of natural gas. Through its early stages, Northern Natural Gas Company was unsuccessful in their business venture. They experienced problems in persuading consumers to use natural gas to heat their homes because of fear that natural gas leaks lead to explosions. Thanks to the great depression, many people were taking the risk because of how relatively cheap natural gas was. As the company’s revenuesRead MoreThe Enron Scandal And Its Impact On The Business World1320 Words   |  6 Pagestheir success, they were the top supplier of natural gas and electricity throughout America. Enron Corporation came about from a merger between Houston Natural Gas and InterNorth. Houston Natural Gas was a gas providing company formed in Houston during the 1920’s. InterNorth was a company formed in Nebraska during the 1930’s and owned one of America’s largest pipeline networks. In 1985, Sam Segnar, the CEO of InterNorth bought out Houston Natural Gas for $2.4 billion. A year later in 1986, Segnar