Subject: EOTT Earnings Release
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 23 Feb 2000 07:52:00 -0800 (PST)

------------------------------------------------------------------------------
------------------------------------------------------------------------------
------------------------------------------

To all employees:

EOTT announced its financial results for the fourth quarter of 1999 today.  A
full copy of the press release is attached.  Results set out in the press
release include that recurring operating income nearly doubled to $10.5 
million
in the most recent quarter from $5.3 million in the same period in 1998.  
Crude
oil lease volumes increased significantly in the fourth quarter of 1999 
compared
to last year, with the North America-East of the Rockies segment volumes up 
26%
to an average of 406,600 barrels per day.  Acquisitions made in late 1998 and
early 1999 were the primary reasons for the growth in recurring operating 
income
and lease volumes.  As a result of the realization of operating synergies from
recent acquisitions, recurring operating expenses declined to $35.7 million in
the fourth quarter of 1999 from $40.7 million in the third quarter of the same
year.

For the full year 1999, EOTT reported net income of $7.6 million before
non-recurring items and the cumulative effect of the accounting change, or 
$0.30
per diluted unit, compared to a loss of $4.1 million, or $(0.21) per diluted
unit, in 1998.  In total, EOTT reported a loss of $2.2 million, or $(0.09) per
diluted unit, before the cumulative effect of an accounting change.

1999 was a turnaround year for EOTT's operations, with recurring operating
income up  nearly five-fold over the prior year.  With our increased scale and
scope from recent acquisitions and our continuing success in reducing 
operating
costs, we believe we are well positioned for 2000.

 While there were some very positive aspects to our fourth quarter 
performance,
the overall results were disappointing due, in large part, to the negative
financial impact of certain unauthorized activities which occurred in our
now-discontinued NGL activities in the mid continent region.  You may rest
assured that the company intends to take swift and thorough legal action 
against
the individual responsible for these activities, but you also need to be aware
that these events will likely spark the curiosity of many within our industry.
Accordingly, it is almost certain that EOTT employees will receive phone calls
and inquiries from business acquaintances and counterparties wanting to know
more about the unauthorized activities mentioned in our earnings release.

These matters are extremely sensitive and  potentially damaging to the 
company's
reputation, and any indiscreet or unauthorized comments by EOTT personnel 
about
these matters may only serve to harm the company's position.  Accordingly, I 
am
asking that EOTT employees refrain from discussing  the unauthorized 
activities
discussed in our earnings release with people outside of our company.  
Generally
speaking, any media or other external inquiries or requests for information
about any item(s) mentioned in our earnings release should be referred to Dave
Schafer with the Enron GPG Communications Group, at 713-853-6758.  Susan Ralph
and our Credit Department will be responsible for handling any questions which
may come in concerning the company's financial strength or credit posture, and
Dana Gibbs will be responsible for addressing any specific questions which may
come in concerning any effect which any of these matters may have upon any
specific commercial transaction(s)  to which EOTT is a party.  If there are 
any
questions about any of these guidelines, or if you become unsure of how to
handle any particular situation, please contact your supervisor or EOTT's 
Legal
Department right away.

I am extremely angered by these unauthorized activities, not only because of 
the
effect they have had on our 1999 results, but also because of the unfair way
they have undermined countless hours of hard work  by hundreds of good and
dedicated EOTT employees in 1999. These events are unfortunate, but they will
not have a lasting effect upon our company.  EOTT's underlying earning power
remains strong and our prospects for the future remain bright.

Your adherence to the guidelines set forth above will assist EOTT in getting
through this difficult, but passing, situation.  Thank you in advance for your
help.

And finally, I want to take this opportunity to thank all EOTT employees for 
the
tremendous job you have done in lowering our expenses and levels of spending
throughout the organization.  Your initiatives, suggestions and cooperation in
this area will be a major factor in helping EOTT strive to attain its 
financial
goals for 2000.

Mike

(See attached file: EOT 4Q99 Earnings v7.doc)

 - EOT 4Q99 Earnings v7.doc