Fletcher J. Sturm

Fletcher J. Sturm, known throughout Enron as “Fletch,” was a Senior Trader of Natural Gas Derivatives at Enron Capital and Trade who later managed the Midwest/Southeast Power trading group within Kevin Presto’s East Power organization. Beyond his trading responsibilities, Sturm distinguished himself as the author of “Trading Natural Gas: A Nontechnical Guide,” published by PennWell Books in 1997, which became a widely-referenced industry textbook on natural gas derivatives trading. His expertise in both the practical execution and theoretical foundations of energy derivatives made him a respected voice on the Enron trading floor and within the energy industry.

Sturm’s email archive in the Enron corpus contains approximately 3,580 emails spanning December 1999 through November 2002, documenting his work across natural gas derivatives, power trading operations, EnronOnline product development, and the company’s transition to UBS Warburg following bankruptcy.

Career at Enron

Natural Gas Trading Origins

Before joining Enron, Sturm worked at NationsBanc trading natural gas derivatives. At Enron Capital and Trade, he established himself as a Senior Trader of Natural Gas Derivatives, managing what was known internally as the “FT-Central” trading book. In 2000, he brought on Robyn Menear as his assistant on the FT-Central book, requesting that she be set up with EOL stack manager, product manager, and website transaction capabilities to support the desk’s operations.

His signature terms from the email corpus reveal the structure of his daily work: “roundtable” for the Traders Roundtable meetings, “fundamental” for Fundamental Analysis sessions, and “position” for Desk Position meetings. These recurring meetings formed the backbone of trading floor coordination at Enron. Sturm’s most frequent conversation topics underscore this meeting-driven culture, with the Desk Position meeting in room 3125b accounting for 282 email threads, Mid Market meetings with Ed Baughman generating 276 threads, Fundamental meetings producing 264 threads, and the Traders Roundtable with Jeff Shankman comprising 252 threads.

Transition to Power Trading

By January 2002, Sturm had transitioned from natural gas to power trading, taking charge of the Midwest Power group under Kevin Presto’s leadership. In an email dated January 28, 2002, Presto described Sturm’s position clearly: “Fletch Sturm (works for me and runs the MW power group) will be following up with you or Allen.” This transition reflected Enron’s practice of developing traders across commodity classes to build versatile expertise.

His responsibilities in the power organization extended to regional curve validation. On February 1, 2002, Presto assigned specific traders to validate power curves across different regions: Chris Dorland for the West, Doug Gilbert-Smith for ERCOT, Dana Davis for the Northeast, and Fletch Sturm for the Midwest/Southeast territory. This assignment placed Sturm among the core group of traders responsible for maintaining accurate market valuations across Enron’s entire power trading footprint.

“Trading Natural Gas: A Nontechnical Guide”

Sturm’s most enduring contribution to the energy industry may be his authorship of “Trading Natural Gas: A Nontechnical Guide,” first published by PennWell Books in 1997. The book covered cash markets, futures, options, and swaps in natural gas trading, providing an accessible entry point for industry professionals seeking to understand derivative instruments without requiring an advanced quantitative background.

The book’s utility was demonstrated repeatedly within Enron itself. In June 2000, when a colleague inquired about resources for understanding collars and other derivative structures, Sturm responded: “My book does go into some option detail (not really collars since they’re a combination of the tools I discuss) and plenty of swap transactions.” He continued to field requests for the book well into 2001, advising colleagues that it remained available through amazon.com, Barnes & Noble, and the PennWell website.

Beyond Enron, Sturm contributed to industry education through seminars covering fundamental and technical trading aspects, including instruction on complex derivative transactions. This educational role complemented his trading work and established his reputation as someone who could both execute sophisticated trades and explain the underlying mechanics to others.

The book proved sufficiently valuable that PennWell released a second edition (ISBN: 9781593705034) updating the content to address developments in electronic trading, power market deregulation, and the shale revolution that transformed North American natural gas markets in subsequent years.

EnronOnline Innovation

Sturm was an early and active participant in developing EnronOnline’s capabilities, both as a trading tool and as a customer-facing platform. In January 2000, just weeks after EOL’s launch, he reached out to Louise Kitchen with ideas for enhancing the platform: “I mentioned an idea to Jeff Shankman the other day about providing some charting and other types of tools to EOL users and he asked me to get with you. He said you were already working on some additions to the website. I would really like to participate in the development of these tools…”

Real-Time Analytics Development

By March 2000, Sturm had moved beyond suggestions to actual implementation. Working with an IT developer, he built a spreadsheet application that could receive live prices from EOL, using this data feed to create a real-time matrix showing spread relationships between different gas locations. The tool incorporated variable cost analysis, net present value calculations, and other analytical features that traders found valuable for decision-making.

Sturm understood the strategic implications of these tools. As he wrote in March 2000: “If we can develop an EOL-dependent application that is helpful to our customers in terms of how they make trading decisions, it will reinforce the importance of using our site over our competitors.” This insight into the competitive value of platform stickiness anticipated strategies that became standard in electronic trading.

He put these tools to practical use in customer relationships. During a trip to Chicago with colleague Hunter Shively, Sturm demonstrated the capabilities to NICOR, a major gas utility: “We brought up this idea and they were excited about being able to more clearly see daily cash spreads, hedge MTD and BOM PBR price with Gas Daily swaps, storage utilization logic, etc.” This customer engagement exemplified how Enron traders combined platform innovation with client relationship development.

New Product Development

Sturm contributed to expanding the products available on EnronOnline. In June 2000, he worked with Melba Lozano on launching Daily Basis Swaps, pushing for clarity in product descriptions: “The description you sent to me yesterday seems a little confusing…Floating price A: Gas Daily midpoint for Henry Hub, Floating price B: Gas Daily midpoint for __________. Run this by everyone ASAP so we can activate these products.”

In November 2000, he coordinated with John Lavorato on launching new power products, working to implement pop-up window advertising on EOL to announce the offerings. This cross-functional work spanning trading, technology, and marketing demonstrated the integrated approach Enron took to product development on its electronic platform.

Key Correspondents

Sturm’s communication patterns reveal his position within Enron’s trading hierarchy and his connections across the organization. His most frequent correspondents were fellow traders and the management chain in the power organization.

The heavy correspondence with Kevin Presto reflects Sturm’s direct reporting relationship to the East Power VP. The pattern of communication with regional traders like Dana Davis (Northeast), Doug Gilbert-Smith (ERCOT), and Lloyd Will demonstrates the collaborative structure of Enron’s power trading operations, where regional specialists coordinated on positions and market intelligence.

Senior leadership interactions included John Lavorato, who oversaw broader trading operations, and Jeff Shankman, who hosted the Traders Roundtable meetings that appear prominently in Sturm’s calendar. His early outreach to Louise Kitchen regarding EnronOnline tools shows his willingness to engage executives outside his direct reporting chain when he saw opportunities for platform improvement.

UBS Warburg Transition

When Enron filed for bankruptcy in December 2001, Sturm was among the traders who transitioned to UBS Warburg as part of the asset sale that preserved portions of the trading operation. His role in this transition extended beyond simply accepting a position with the new organization; he actively participated in the effort to retain key personnel and maintain trading capabilities.

Employee Recruitment

Sturm took a hands-on role in securing commitments from valued employees during the uncertain transition period. In January 2002, he reported to Kevin Presto on recruiting Russell Ballato: “Put Russell down as 100%. He’s in San Antonio this weekend… I talked to him last night… I personally guaranteed him $10k and gave him 50-50 odds on the 1-year contract we talked about yesterday. He’s in either way.” This willingness to make personal financial commitments to retain talent demonstrated both confidence in the UBS deal and investment in maintaining team cohesion.

Management Responsibilities

During the transition, Sturm assumed additional management duties when Presto was unavailable. On February 5, 2002, Presto designated Sturm among those who would represent East Power in UBS legal discussions: “I will be out Wednesday through Friday on vacation. Please have Dana Davis, Fletch Sturm, Rob Benson, Andy Zipper, and Doug Gilbert-Smith represent East Power in my absense.”

The transition also involved difficult conversations about hiring constraints in the reorganized business. When approached about a TVA trading position, Sturm offered a candid assessment of post-bankruptcy realities: “I’ve talked with Kevin about adding another term-trading position on my desk (TVA, the one we spoke about), and we’re still not sure at this stage if that’s the best place to allocate talent just yet. For sure, when business is up to the level it was before the crash last year, that’s definitely somewhere we’ll need to add…” He acknowledged that “the dust is still settling (i.e. shuffling people and positions)” as the organization found its footing under new ownership.

Email Activity

Sturm’s email volume provides insight into his work intensity and the rhythms of trading floor activity at Enron.

The dramatic peak in January 2001 coincided with heightened natural gas market volatility and the California energy crisis, events that generated intense trading activity across Enron’s commodity desks. The sustained activity through late 2001 and into 2002 reflects Sturm’s involvement in both managing positions through the bankruptcy and coordinating the transition to UBS Warburg.

Legal Status

Fletcher Sturm does not appear in Department of Justice filings or SEC enforcement actions related to Enron. No evidence in the email corpus or secondary sources suggests involvement in the accounting fraud or market manipulation schemes that led to criminal charges against other Enron employees. He appears to have been a legitimate commodities trader who transitioned successfully to UBS Warburg when Enron’s trading operations were sold and continued his career in energy trading.

See Also

• Kevin Presto — Vice President, East Power Trading; Sturm’s direct manager
• Louise Kitchen — President of Enron Net Works; EnronOnline leader
• John Lavorato — Senior trading management
• EnronOnline — Electronic trading platform Sturm helped develop

References

This article draws on 3,580 emails from Fletcher Sturm’s Enron mailbox spanning December 1999 through November 2002. Secondary source verification from PennWell Books confirms his authorship of “Trading Natural Gas: A Nontechnical Guide” and his prior experience at NationsBanc.

Note: The original research request referenced “Frank Sturm,” but all primary and secondary sources confirm the subject’s name as Fletcher J. Sturm, known as “Fletch.”