Enron Timeline
This chronology traces Enron’s transformation from a regional pipeline company to America’s seventh-largest corporation by revenue, and its subsequent collapse in what became the largest bankruptcy in U.S. history at the time. The timeline documents key innovations like the Gas Bank and EnronOnline, the accounting manipulations that concealed billions in debt, and the criminal prosecutions that followed.
Origins: 1985-1995
The formation and early years of Enron, from the merger that created the company through the foundational innovations that set its strategic direction.
Houston Natural Gas Merger
InterNorth acquires Houston Natural Gas for $2.3 billion, creating the company that will become Enron
Ken Lay Becomes CEO
Kenneth Lay maneuvers into the chairman and CEO position of the merged entity
Company Renamed Enron
The merged company is officially renamed Enron Corporation with headquarters in Houston
Valhalla Scandal Discovered
Apple Bank security officer alerts Enron auditors to suspicious transactions by oil traders Louis Borget and Thomas Mastroeni
Arthur Andersen Recommends Firing
Arthur Andersen recommends firing the Valhalla traders; Ken Lay rejects the recommendation and retains them
Valhalla Traders Fired
Full scope of $1.2 billion in unauthorized oil trading discovered; traders fired; Enron nearly bankrupt
Gas Bank Created
Jeff Skilling’s Gas Bank concept implemented, transforming Enron into an energy trading intermediary
Skilling Joins Enron
Jeff Skilling leaves McKinsey to become chairman and CEO of Enron Finance Corporation
Mark-to-Market Approved
SEC approves mark-to-market accounting for Enron’s gas trading contracts
Rise: 1996-2001
Enron’s explosive growth through trading, technological innovation, and increasingly aggressive accounting practices.
California Deregulation
California Governor Pete Wilson signs AB 1890, deregulating electricity markets
Skilling Named President and COO
Jeff Skilling rises to President and Chief Operating Officer, second-highest position in the company
Chewco Partnership
Andrew Fastow and Michael Kopper create Chewco to buy out CalPERS’ JEDI interest, keeping $600 million in debt off balance sheet
LJM1 Partnership Created
Enron board waives ethics code to allow Fastow to manage LJM Cayman L.P., first of his private equity funds
EnronOnline Concept Presented
Louise Kitchen presents EnronOnline vision to Enron Europe management committee
EnronOnline Launches
Web-based commodity trading platform goes live with North American natural gas
Nigerian Barges Deal
Enron books $12 million from sham sale of barges to Merrill Lynch with oral buyback promise
LJM2 Partnership Created
Fastow raises external capital for LJM2 Co-Investment L.P., larger successor to LJM1
Raptor I Created
First of four Raptor special purpose entities created to hedge merchant investment losses
Stock Price Peak
Enron stock hits all-time high of $90.75 per share; market cap reaches $70 billion
California Crisis Begins
California ISO declares first Stage 1 emergency due to reserve deficiency
EnronOnline Dominates
Platform processes $336 billion in transactions, becoming world’s largest e-commerce site by volume
Skilling Named CEO
Jeff Skilling becomes Chief Executive Officer while Ken Lay remains Chairman
Blockbuster Deal Terminated
Blockbuster ends video-on-demand partnership after less than one year
Pacific Gas & Electric Bankruptcy
PG&E files for Chapter 11, one of largest utility bankruptcies in U.S. history
"Asshole" Analyst Call
Jeff Skilling calls analyst Richard Grubman “asshole” on quarterly earnings call
Crisis: August-December 2001
The six-month collapse from Skilling’s resignation through bankruptcy filing.
Skilling Resigns as CEO
Jeff Skilling unexpectedly resigns after only six months as CEO; Ken Lay resumes CEO role
Sherron Watkins Memo
VP Sherron Watkins sends seven-page memo to Ken Lay warning Enron “might implode in a wave of accounting scandals”
Employee Stock Options Granted
Enron board grants special stock options to all employees at $36.88 per share
Raptor Structures Unwound
All four Raptor entities unwound, crystallizing approximately $710 million in losses
Third Quarter Loss Announced
Enron announces $618 million loss and $1.2 billion reduction in shareholder equity
Credit Downgrades Begin
Moody’s and other agencies begin downgrading Enron’s credit rating
Fastow Removed as CFO
Andrew Fastow removed from CFO position; Jeff McMahon replaces him
401(k) Lockdown Begins
Employees locked out of retirement accounts during administrator change
Dynegy Merger Announced
Dynegy announces plan to acquire Enron for approximately $9 billion
401(k) Lockdown Ends
Employee access to retirement accounts restored after blackout period
Earnings Overstatement Disclosed
Enron reveals it overstated earnings by nearly $600 million since 1997
Downgrade to Junk Status
Moody’s, S&P, and Fitch downgrade Enron debt to below investment grade; Dynegy terminates merger
Stock Closes at $0.26
Enron stock price falls to 26 cents, down 99.7% from August 2000 peak
Bankruptcy Filing
Enron files for Chapter 11 bankruptcy protection, then largest in U.S. history with $63.4 billion in assets
Mass Layoffs
Approximately 4,500 employees terminated in Houston in first wave of layoffs
Aftermath: 2002-2006
Criminal investigations, prosecutions, regulatory reforms, and the eventual convictions of Enron’s top executives.
Enron Task Force Formed
Department of Justice announces formation of specialized investigative unit
Arthur Andersen Indicted
Enron’s auditor indicted for obstruction of justice for destroying documents
Arthur Andersen Convicted
Jury convicts Arthur Andersen; firm surrenders CPA license August 31
Sarbanes-Oxley Act Signed
President Bush signs landmark corporate governance reform legislation
Michael Kopper Pleads Guilty
First major Enron executive to plead guilty; agrees to forfeit $12 million and cooperate
Fastow Indicted
Andrew Fastow indicted on 78 counts of fraud, money laundering, and conspiracy
Ben Glisan Pleads Guilty
Enron Treasurer pleads guilty to conspiracy; first executive imprisoned
Fastow Pleads Guilty
CFO pleads guilty to two counts of conspiracy, agrees to cooperate and forfeit $29.8 million
Kenneth Rice Pleads Guilty
Enron Broadband Services CEO pleads guilty to securities fraud
Nigerian Barge Convictions
Four Merrill Lynch and Enron executives convicted in Nigerian barges case
Andersen Conviction Reversed
U.S. Supreme Court unanimously reverses Arthur Andersen conviction on grounds of improper jury instructions
Richard Causey Pleads Guilty
Chief Accounting Officer pleads guilty to securities fraud weeks before trial
Lay-Skilling Trial
56-day trial of Enron’s chairman and CEO in federal court in Houston
Lay and Skilling Convicted
Jury convicts Ken Lay on all counts and Jeff Skilling on 19 of 28 counts
Ken Lay Dies
Former CEO dies of heart failure while awaiting sentencing; convictions later vacated
Skilling Sentenced
Jeff Skilling sentenced to more than 24 years in prison (later reduced to 14 years)
Task Force Disbanded
Enron Task Force dissolves after nearly five years and 22 convictions
See Also
- Enron Bankruptcy - The December 2001 collapse and its immediate aftermath
- Enron Task Force - The DOJ investigation that prosecuted 36 defendants
- Ken Lay - Enron’s founder, chairman, and CEO
- Jeff Skilling - President and CEO who transformed the company
- Andrew Fastow - CFO who created the fraudulent partnerships
- Stock Price Collapse - The 99.7% decline from peak to bankruptcy
- California Energy Crisis - The 2000-2001 crisis that damaged Enron’s reputation
- Sarbanes-Oxley Act - Federal legislation enacted in response to Enron
References
This timeline draws on dates documented in the Enron email corpus and verified through secondary sources including U.S. Department of Justice press releases, SEC filings, congressional testimony, court records, and contemporary news coverage. Where exact dates are available from primary sources, they are used; where only approximate dates are documented, month and year are provided.