Energy Inc.

Energy Inc.Forging Growth in an

Uncertain World

New York Societyof Financial Analysts

Annual UpdateFall 1998

Energy Inc.

Energy Inc. is...

A diversified global energy concern Assets of $23.5 billion Total revenues of $21.0 billion Operating income of $1.8 billion

Crude oil production, refining, marketing Natural gas production, gathering, processing,

transportation Power production Gas, power, liquids marketing

NYSE Symbol “EI”

Energy Inc.

…a Worldwide...

INDONESIAOil and gas exploration and production

UNITED KINGDOMPower generation, marketing; natural gas marketing

Growth TargetsNORTH AMERICAOil and gas E&P, R&M; pipelines; power generation and marketing; environmental services

Worldwide HQ: Houston

ArgentinaGas E&P; pipelines; power generation and marketing

Energy Inc.

...Emerging Leader...

In 1997 Return on Capital Employed (ROCE), Energy Inc. moved ahead of other competitors and is in the rank of world performers. Note: ROCE computed

w/o minority interest

19%

20%

21%

22%

23%

24%

25%

26%

Energ

y Inc

.

Peer G

roup

Energy Inc.

…in Value Chain Development...

Oil and GasExploration

and Production

Gathering, Processing Pipelines

Refining

PowerGeneration

Natural Gasand PowerMarketing

Refined Products,Natural Gas

Liquids Marketing

Major Divisions

ChallengePartners

Energy Inc. N.A.

SuccessExploration

Bold Oil & GasEnergy Asia(Indonesia)

Energy del Sur(Argentina)

Energy Pipe, N.A.

Energy AsiaEnergy del Sur

Marginal Refining, N.A.Energy Asia

Energy Inc. Power

EastCan Power(Canada)

Energy, U.K.Energy del Sur

ChallengePartners

Challenge PartnersEurope

Gas Stream

Oil Stream

EnvironmentalServices

EcoServices, LLC

Energy Inc.

...Organized for Entrepreneurship.

..Energy Inc .

D r. G u rcan G u lenSpecial Advisor

C orp ora te C om m u n ica tion sCPR

G lob a l S tra teg ic P lan n in gCCA

C orp ora te Treasu ryCFO

K n ow led g e M an ag em en t D ivis ionCIT

H u m an R esou rce D eve lop m en tCHR

C orp ora te C ou n se lG C

S u ccess E xp lo ra tion

B o ld O il & G as

E n erg y P ip e , N .A .

M arg in a l R e fin in g , N .A .

New Ventures G roup

E n erg y In c . N .A .President

E as tC an P ow er

E n erg y U .K .

New Ventures G roup

E n erg y In c . P ow erPresident

E & P D ivis ion

R efin in g D ivis ion

P ip e lin es D ivis ion

New Ventures G roup

E n erg y A s iaPresident

E & P D ivis ion

P ip e lin es D ivis ion

P ow er D ivis ion

New Ventures G roup

E n erg y d e l S u rPresident

C h a llen g e P artn ers E u rop e

New Ventures G roup

C h a llen g e P artn ersPresident

New Ventures G roup

E coS ervices , L L CPresident

D r. M ich e lle M ich o t F ossCEO and Chairm an

C orp ora te S ec re ta ry

B oard o f D irec to rs

Energy Inc.

..to Meet Energy Needs in the 21st

Century...

0 200 400 600 800

LPG

Refini

ng

Oil1997

1996

1320 1340 1360 1380

Natur

al Gas

320 340 360 380 400 420

Worldwide production in mb/d (oil, refining throughputand LPG); mmcf/d (natural gas); and megawatts (electric power).

Energy Inc.

…and Create Value for

Shareholders. Energy Inc.

demonstrated one of the best performances in 1997 for Net Income per Share of Common Stock.

Our 432,000 shareholders and 16,100 employee-owners hold $25.59 per share of equity.

$0

$1

$1

$2

$2

$3

$3

$4

$4

$5

Energ

y Inc

.

Peer G

roup

Energy Inc.

We Care about the World of

Energy... Our philosophy--

Support market developmentMaintain the highest environmental

standardsMaintain strict corporate governance and

ethical standardsOperate profitably!

Energy Inc.

...and the World of People.

Our international community associations-- Habitat for Humanity Doctors Without Borders Nature Conservancy International

An Energy Inc. initiative-- Estudios de Energía, integrated masters

program in commercial practices for emerging professionals, Rio de Janeiro

Energy Inc.

Our Long-Term Business

Strategies Achieve reserves replacement through key frontier

investments Consolidate our natural gas businesses and focus on

the gas value chain Expand our electric power operations to add value Grow our liquids businesses in intermediate markets Establish a corporate-wide environmental audit Initiate a long-term energy business transition plan

for a sustainable future

Energy Inc.

Our Long-Term People Strategies Energy Inc. has achieved our 1997

performance while increasing our labor force by 3.5 percent

Our goals--Continue to build our human capitalEncourage creativity and innovationFoster diversity and intellectual enrichmentHave fun!