With the attached note, all analysts' estimates posted on First Call are 
after the mark-to-market impact.  After third quarter earnings were released, 
we told the analysts few transactions would be marked-to-market at year end.  
As a result, we would expect mark-to-market to be negative in the fourth 
quarter also.

With Dain Rauscher's revisions, the concensus is $0.03 for the fourth quarter 
of 1999 and $0.24 for the full year.

Scott

---------------------- Forwarded by Scott Vonderheide/Corp/Enron on 
02/07/2000 02:22 PM ---------------------------


"Easterbrook, Mark" <MSEasterbrook@DainRauscher.com> on 02/07/2000 10:28:48 AM
To: "Scott D. Vonderheide (E-mail)" <svonder@enron.com>
cc:  

Subject: FW: B Aggr; REJIGGERING EOTT ESTIMATES TO REFLECT MARK-TO-MARKET




Mark Easterbrook, CFA
DRW-Equity Research (Dallas)
ph: 214-989-1408; fax: 214-989-1388
mseasterbrook@dainrauscher.com


-----Original Message-----
From: DRWMercury@dainrauscher.com [mailto:DRWMercury@dainrauscher.com]
Sent: Monday, February 07, 2000 7:43 AM
To: researchfinalnote@dainrauscher.com
Subject: EOT:B Aggr; REJIGGERING EOTT ESTIMATES TO REFLECT
MARK-TO-MARKET


Dain Rauscher Wessels
a division of Dain Rauscher Incorporated

  * We are adjusting our 1999 and 4Q99 earnings/DCF estimates to reflect
mark-
  to-market adjustments.
  * In 2000 mark-to-market accounting should have minimal impact on current
  estimates.
  * We are initiating our 2001 earnings/DCF estimates of $0.70/$1.60 per
unit.
  * The acquisition environment continues to look strong.
  * EOT units have not participated in the recent uptick in the MLP group.
We
  suggest investors buy at current prices.

  EOTT Energy Partners, L.P.
  NYSE:EOT
  Rating:        Buy
  Risk:          Aggressive
  Price Target:  $  20

  Feb 7, 2000

  Price:         $12.81
  52-Wk Range:   $19-$12
  Year End:      Dec

  Fiscal EPS       P/E
  1999E     $0.23    55.7x
  2000E     $0.65    19.7x
  2001E     $0.70    18.3x




  1999 = After mark-to-market impact



  Tr. 12 ROE:    4.10%
  3 Yr EPS Gr:   NM
  Shares Out:    24.00 million
  Book Value:    $3.75
  Market Cap:    $307.50 million


  DIVERSIFIED NATURAL GAS/MLPS
  Mark Easterbrook, CFA
  (214) 989-1408
  mseasterbrook@dainrauscher.com


  EOT:B-Aggr;REJIGGERING EOTT ESTIMATES TO REFLECT MARK-TO-MARKET

   Adjusting Estimates To Reflect Mark-To-Market: We are changing our 1999
  year-end and fourth-quarter estimates for EOTT Energy to reflect the
impact
  of mark-to-market (noncash adjustments to reflect current value of the
  contract portfolio). For the year, we are excluding the cumulative benefit
of
  $1.7 million (or $0.07 per unit) take in the 1Q99. However, we are
including
  the $2.8 million ($0.12 per unit) negative impact of mark-to-market for
the
  3Q99. So our 1999 earnings/distributable cash flow (DCF) estimates decline
to
  $0.23/$1.25 per unit from $0.40/$1.40. Our 4Q00 earnings estimates fall to
  $0.02 from $0.10 per unit, which assumes a $2.0 million negative impact
from
  mark-to-market. Our 2000 earnings/DCF estimate remains at $0.65/$1.55 per
  unit and we are initiating our 2001 estimates of $0.70/$1.60.
   Acquisitions Continue To Be In The Cards: We have seen the partnership
  quadruple the amount of pipeline miles it controls to 8,200 miles over the
  last 24 months. Continued success in integrating the Koch assets and the
  Texas-New Mexico Pipeline with the rest of the asset base should continue
to
  provide cost savings and build cash flow. Although management has laid low
  over the last six months on the acquisition front, we believe there are
  several opportunities within the sector. As we have suggested before, the
  consolidation going on within the major oil companies may fuel the
  consolidation within the crude oil transportation segment. Major oil
  companies are focusing on their strengths of E&P and retail, while
divesting
  noncore assets. In addition, the numbers of players in the crude oil
  transportation business continues to diminish.
  The balance sheet for EOTT is in good shape at a debt/capitalization
  percentage of 56%. EOTT could take on more acquisitions. With another
large
  acquisition we could see coverage of the distribution improve.
Unfortunately
  the unit price has fallen to unattractive levels to make acquisitions. If
the
  price of the units were to improve, we could see the partnership
aggressively
  go after other acquisitions.

Stock Opinion

  We consider the Enron support of $26 million for distribution through
March
  2001 as a safety net. Distributable cash flow should be able to cover the
  common distribution. We look for yield improvement in the EOT units to
9.5%
  yield, still a discount to the peer group but an improvement over the
current
  14.8%. Using this yield valuation and the current $1.90 distribution, we
have
  a 12-month price target of $20 per unit.
  The units have not reacted to the improvement in the MLP arena. Since the
  beginning of the year two short-term trends has subsided (tax-loss selling
  and Y2K concerns), which have helped the MLP group. Even interest rate
  concerns seemed to wain with the reduction of the long-term bond rates.
  However, EOT units have not participated in this move. We believe once the
  partnership reports 4Q99 results and discusses acquistiion potential the
  market may take notice. We recommend investors take advantage of the
weakness
  and purchase the EOT units.

  Company Description

  EOTT is a major independent marketer of crude oil in North America. Enron
  Corporation effectively holds a 44% interest in the partnership. The
  partnership owns or leases 440 trucks and owns 8,200 miles of intrastate
and
  interstate pipeline and gathering systems.


____________________________________________________________________________
__

  Dain Rauscher Incorporated managed or co-managed a public offering of the
  securities of EOTT Energy Partners, L.P. within the past three years.

  Additional information on the securities mentioned is available on
request.
  This does not purport to be a complete statement of all material facts
  related to any company, industry, or security mentioned. The information
  provided, while not guaranteed as to accuracy or completeness, has been
  obtained from sources believed to be reliable. The opinions expressed
reflect
  our judgment at this time and are subject to change without notice and may
or
  may not be updated. DRI, its officers, directors, affiliates, and/or
  employees (including the authors of this report) may from time to time
have a
  long or short position in publicly or privately issued securities of
  companies mentioned or derivatives thereof and may sell or buy such
  securities for their own or related accounts. This notice shall not
  constitute an offer to sell or the solicitation of an offer to buy, nor
shall
  there be any sale of these securities in any state in which said offer,
  solicitation, or sale would be unlawful prior to registration or
  qualification under the securities laws of any such state.
  Copyright 2000 Dain Rauscher Incorporated



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 - 0207000-EOT.pdf