The Merger Between Houston Natural Gas Company - 1077 Words

Enron’s history dates back 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 named itself â€Å"HNG/InterNorth Inc.† and built a large headquarter complex in Omaha, much of it being formed with pink granite (locally dubbed as the â€Å"Pink Palace†). Six months after the reorganization of the company, Samuel Segnar, the company’s first CEO, departed--paving way for Kenneth Lay (HNG’s former CEO) to replace Segnar. The next year, Lay received the post of chairman. Following Lay’s entrance into HNG/InterNorth Inc ., chapter two began with a running start. Soon after Kenneth Lay’s takeover, he moved the headquarters to Houston and changed the company name. Originally, with his secretary Nancy O’Neil, they selected the name â€Å"Enteron† (spelled as EnterOn). After consultation, they were informed that enteron was an approximation of the word â€Å"intestines† in greek. The name was quickly abbreviated to Enron. This error was found only after all stationary, business cards, and other items were printed. So no matter the rate of the change, there was already aShow MoreRelatedHistory And Formation Of Enron966 Words   |  4 PagesFormation of Enron 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 theRead MoreEnron And Its Innovative Growth1409 Words   |  6 Pagesinnovative growth: After a merger in 1985, between two relatively small regional companies Houston Natural Gas Co., and InterNorth Incorporated, Enron Corp was formed. Enron Corporation became one of the biggest energy, and service company across the united states. Following this merger, Kenneth lay, who was at the time the CEO of Houston Natural Gas, also became the CEO of the newly formed Enron Corp. With his savvy skills already adopted in the smaller regional natural gas company, Kenneth Lay, was readyRead MoreEnron Was A Successful Multi Billion Dollar Company1555 Words   |  7 PagesEnron was a company that operated one of the largest natural gas transmissions networks in North America. At the top of its game, Enron was a successful multi-billion dollar company that marketed electricity and natural gas. Enron also provided financial and risk management services to consumers around the globe. Because of its success, Enron left many people astonished when it declared bankruptcy in December 2001 . Twenty thousand employees were left without jobs and most had lost their entireRead 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 MoreThe Enron Scandal And Its Impact On The Business World1320 Words   |  6 Pagesprofits and success as a company. This is the controversial issue that led to the Enron scandal and ultimately the fall of this company. Enron Corporation was an energy company, and in the peaks of their success, they were the top supplier of natural gas an d 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 NebraskaRead MoreExecutive 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 Kenneth Lay, who was the Chief Executive Office of Houston Natural Gas, became the CEO andRead MoreEthical Ethics And Corporate Ethics Essay1306 Words   |  6 Pagesare right or wrong. Many company executives are unethical, because their number one goa l is not to satisfy customers, or clients; Instead their number one goal is to make as much profit as they can no matter what. What this type of companies fail to realize is that there is long-run and short-run profit maximization. A company can maximize its profits by in the short-run by being unethical; however, in the long-run, the bad publicity, lawsuits, etc. will make the company suffer plenty in both theRead MoreEnron Corporation : The Largest Energy Trading Essay1131 Words   |  5 Pagesis the largest energy-trading located in Houston, Texas. It was founded by Kenneth L. Lay in 1985. Enron has been form through the merger between Houston Natural Gas and InterNorth Incorporation and initially named it as HNG/Inter-North Incorporation, before renames it as Enteron. In 1986, the company name has been shortened to Enron Corporation. At the beginning of the operation, Enron only involved in the transmission and distribution of electricity and gas throughout the United States. A fter thatRead MoreThe Gas Of Houston Natural Gas1953 Words   |  8 PagesEnron 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 1984Read MoreEnron And The Natural Gas Industry1542 Words   |  7 PagesEnron Background: Enron, based in Houston, Texas, was founded by Kenneth Lay as an energy and pipeline company in 1985 from the merger of two natural gas pipeline companies, Houston Natural Gas and InterNorth. The impetus for Lay to start Enron was the deregulation of the natural gas market in the mid 1980’s, which relaxed the rules on natural gas prices and allowed for more flexible agreements between natural gas producers and pipeline managers. These changes essentially eliminated the practice