Matt Lenhart

Matt Lenhart was a natural gas trader at Enron North America (ENA) who specialized in Western basis trading, focusing on the PG&E pipeline system and California natural gas markets. He joined Enron through the company’s Associate/Analyst Program in 2000 and quickly established himself as a basis trader on the West Desk, working under manager Mike Grigsby. Lenhart’s trading activity concentrated on Western United States natural gas basis spreads, particularly positions on the PG&E pipeline corridor from Kingsgate to Malin.

Lenhart’s email archive captures his progression from rotational program participant to established trader, as well as the West Desk’s operations during Enron’s final months in late 2001.

Career at Enron

Associate/Analyst Program

Matt Lenhart entered Enron through the company’s formal university recruiting pipeline, the Associate/Analyst Program, which placed promising graduates into rotational assignments across various business units. By June 2000, he was receiving company-wide communications about these programs and was assigned to the West Desk in the natural gas trading division.

The rotational structure was designed to give new hires exposure to multiple areas of Enron’s business before settling into a permanent role. However, Lenhart found his place quickly on the West Desk and resisted rotation when it came time to move. In July 2000, when asked about his rotation schedule, he pushed back: “Do I need to rotate? I wasn’t planning on rotating right now. I have been given new responsibilities on my desk and I don’t want to rotate and give those up.” His advocacy proved successful, and he remained on the West Desk rather than cycling through additional assignments.

West Desk Basis Trader

By mid-2000, Lenhart had transitioned from a trading support role to a full basis trader position. Basis trading involves taking positions on the price differential between natural gas at different geographic locations or delivery points, rather than on outright price levels. Lenhart’s focus was the Western United States, particularly the spread between Canadian import points and California delivery locations.

His primary markets included the PG&E pipeline system, with key trading points at Kingsgate (a Canadian border interconnect) and Malin (an Oregon interconnect that serves as a major pricing hub for California-bound gas). He also traded broader California basis markets and Western natural gas spreads.

By September 2001, Lenhart had firmly established himself in the role. When considering whether to pursue a marketing position in Denver, he ultimately declined: “I am enjoying my role on the desk. I think the opportunity that you have given me as a basis trader is too good to give up.” This decision reflected both his satisfaction with trading and his sense that the position offered meaningful career development.

Trading Operations

Daily Workflow

As a West Desk trader, Lenhart operated within a structured daily routine common to Enron’s trading floors. He participated in Pre-Bid meetings from 3:00 to 5:00 PM and attended Portland Fundamental Analysis Strategy Meetings held on Tuesdays at 1:00 PM PDT. These sessions provided market intelligence on Western pipeline capacity, expansion projects, and supply-demand fundamentals.

Lenhart managed his positions using several internal systems. He tracked risk through Excel reports linked to the “west desk tab” on Enron’s natural gas risk management website. For deal entry, he used the TAGG system, and he monitored the PG&E eTrans notification system for capacity release announcements that could affect his trading positions. Daily broker reports came from Michelle Akers, while Fran Chang in Enron’s Portland office provided western price data.

Position Management

Trading basis positions required careful attention to risk limits. Lenhart operated under Value at Risk (VAR) constraints that governed how much exposure he could take. In October 2001, his manager Mike Grigsby provided guidance on position sizing after Lenhart’s positions had grown substantially: “You are doing a great job making the markets PG&E and Malin, but your positions are getting too large. Do not stop yourself out today in one move, but rather begin a methodical plan to reduce your risk.”

This feedback illustrated the balance traders had to maintain between capitalizing on market opportunities and staying within risk parameters. Grigsby’s instruction to reduce positions gradually rather than in a single move reflected standard practice for managing basis positions without creating adverse market impact.

Bidweek Trading

A significant portion of Lenhart’s activity centered on “bidweek,” the period near the end of each month when physical natural gas contracts are negotiated for the following month’s delivery. During bidweek, trading volumes typically increased as buyers and sellers locked in supply arrangements. Lenhart conducted both internal desk-to-desk trading within Enron and external trades through brokers.

West Desk Team

Organization and Culture

The West Desk was one of several trading desks within Enron North America’s natural gas division. Mike Grigsby managed the desk, overseeing a team of approximately 15-20 traders and support staff. The group maintained a close-knit culture that extended beyond the trading floor, including team dinners and social events.

Grigsby set clear expectations for his team’s commitment. In an October 2001 memo to the desk, he emphasized: “We need to know that each employee will be here every day to create the consistency needed to outperform the rest of the market.” This reflected the high-pressure nature of trading operations where continuous market coverage was essential.

Key Colleagues

Lenhart worked most closely with several other traders on the West Desk. Jay Reitmeyer was a fellow trader with whom he collaborated on technical matters; both requested write access to the natural gas risk management website together. Phillip K. Allen was a senior trader on the desk from whom Lenhart sought guidance on accessing reports and systems.

Eric Bass was both a colleague and close friend. The two shared a Louisiana background and maintained a personal relationship outside work hours. Their friendship was evident in casual email exchanges that mixed work topics with personal conversation.

Other West Desk team members included Frank Ermis, Randall L. Gay, Keith Holst, Tori Kuykendall, Susan M. Scott, Matt Smith, Steven P. South, Jason Huang, and Mog Heu. Support staff included Anne Bike, desk coordinator Ina Rangel, Jane M. Tholt, Patti Sullivan, and Jason Wolfe.

Crisis Period

Trading During Enron’s Collapse

By November 2001, as Enron’s financial crisis accelerated toward bankruptcy, trading conditions on the West Desk had deteriorated significantly. When asked about trading volumes during this period, Lenhart acknowledged the slowdown: “Mostly internal trading. Bidweek starts today, so we will see if physical volume picks up.”

The shift toward predominantly internal trading reflected counterparty concerns across the energy industry. External customers were reluctant to trade with Enron given uncertainty about the company’s ability to perform on contracts. This left traders like Lenhart executing primarily book-squaring trades with other Enron desks rather than building new external business.

Job Search

With Enron’s future increasingly uncertain, Lenhart began actively seeking employment elsewhere in late November 2001. Friends offered to connect him with contacts at other energy trading firms. When preparing to network, he described his experience succinctly: “Tell him I trade west basis in the natural gas market.”

This job search occurred in the final weeks before Enron’s December 2, 2001 bankruptcy filing. Like many of his colleagues on the trading floor, Lenhart faced the sudden end of what had been a promising career trajectory at one of the country’s largest energy companies.

Key Correspondents

Lenhart’s email patterns reflect the operational nature of his role, with communications concentrated among West Desk colleagues and trading support functions.

Career Timeline

Legal Status

Matt Lenhart was not charged in connection with any Enron-related criminal or civil proceedings. As a junior trader focused on basis positions in the natural gas market, he was not among the executives or traders cited in Department of Justice or SEC enforcement actions related to Enron’s collapse.

See Also

• Mike Grigsby — Manager of the West Desk
• Phillip K. Allen — Senior West Desk trader
• Eric Bass — Fellow West Desk trader

References

This article draws on Matt Lenhart’s email archive in the Enron corpus, spanning June 2000 through November 2001. Key sources include internal communications about the Associate/Analyst Program, West Desk operational emails, position management guidance from Mike Grigsby, and correspondence during the November 2001 crisis period.