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Enron Mail |
BUSINESS HIGHLIGHTS
Global Risk Management Operations Operational Risk Management was the topic of an information session held la= st=20 week for all managers and above in ENW who support trading operations for E= A,=20 EIM and EGM in Houston, Portland and Calgary. Operations professionals, wh= o=20 manage risk book reporting and analysis, confirmations, physical product=20 scheduling and cash management reaffirmed their roles in effectively=20 accessing, managing and mitigating operational risk. This focus on=20 operational risk management will ensure the quality of EWS' earnings, and= =20 support a platform for continuing growth across all commodities in 2001. Steel Origination=20 Since its inception in September, the steel group has grown to over 40=20 people. They have contacted the majority of the key industry players and= =20 received positive feedback. Additionally, the group has executed both=20 physical and financial trades and has 10 products posted on EnronOnline. Steel prices are at a 20-year low, several large producers have recently=20 filed for bankruptcy protection, and capital is scarce. The industry needs= =20 both liquidity and price risk management. At this time, Enron is the only= =20 company offering these products. A middle-market group has recently been=20 formed, which will allow the originators to focus on longer term deals with= =20 embedded capital. The biggest challenge is bringing the "old economy "=20 incumbents up to speed on derivatives. There may also be some credit issues= .=20 Stay tuned for cash flow and earnings. MANAGING DIRECTOR & VICE PRESIDENT APPOINTMENTS Congratulations to the new Managing Directors and Vice Presidents in=20 EA/EIM/EGM. Managing Director =01) Commercial Phillip K. Allen, West Gas Trading Timothy J. Detmering, Corporate=20 Development Joseph M. Deffner, Treasury & Funding=20 Timothy N. Belden, West Power Trading William D. Duran, Generation=20 Investments Phillip R. Milnthorp, Canada Origination=20 Christopher F. Calger, West Power Origination =20 Managing Director =01) Commercial Support Sally W. Beck, Energy Operations Management=20 Vice President =01) Commercial =20 Albert E. McMichael, Jr., Gas Commodity Structuring Christopher Mahoney,=20 Liquids Trading Kevin J. McGowan, Coal Niamh Clarke, Liquids Trading Lloyd D. Miller, Portfolio Management Joh= n=20 A. Zufferli, Canada Power Trading Derek J. Davies, Canada Origination Per A. Sekse, Global Risk Markets =20 Rogers Herndon, East Power Trading Mark D. Davis, Jr., East Power Trading Mark Tawney, Weather Trading =20 Michael D. Grigsby, West Gas Trading=20 Paul Devries, Canada Origination Barry L. Tycholiz, West Gas= =20 Origination Mark Whitt, West Gas Origination Christopher H. Foster, West Power Trading Frank W. Vickers, East Gas=20 Origination =20 Vice President =01) Commercial Support Laura Scott, Canada Accounting Richard C. Sherman, Transaction Support= =20 Georganne M. Hodges, Trading, Origination & Power Plant Accounting=20 Vice President =01) Specialized Technical=20 Peter C. Keohane, Canada Legal Elizabeth A. Sager, Physical Trading =20 Pinnamaneni V. Krishnarao, Research Group Richard B. Sanders, Litigation Travis McCullough, Finance Origination & Mergers/Acquisitions Weekly EnronOnline Figures Below are figures for EnronOnline as of January 12, 2001. * Total Life to Date Transactions < 560,000 * Life to Date Notional Value of Transactions < $340 million=20 IN THE NEWS The Energy Power & Risk Management/Risk 2000 Commodity Derivatives Rankings= =20 have been announced and once again Enron is at the top of the list. Our=20 rankings are: Number 1 in the following categories: North American Natural Gas - Nymex Look-alike Swaps North American Natural Gas - Basis Swaps North American Natural Gas - Nymex Look-alike Options North American Natural Gas - Basis Options UK Natural Gas - Options UK and EU Electricity - Swaps (UK) UK and EU Electricity - Swaps (Europe) UK and EU Electricity - Options (UK) Number 2 in the following categories: Gasoline - Swaps (Americas) North American Electricity - Swaps (North American - Eastern) North American Electricity - Options (North American - Eastern) Weather Derivatives - North American Swaps Weather Derivatives - North American Options Congratulations to all of the commercial teams responsible for this great= =20 showing! NUGGETS & NOTES "There is always a way, if you're committed." - Mike McConnell/President &= =20 CEO-EGM "We don't have any direct competitors. It's more fun to sell when you're n= ot=20 being shopped. Are you with me? " - Brad Dunn, Vice President - Steel=20 Origination-EIM WELCOME New Hires ENA - Bart Burk, Catalina Cardenas EGM - Shereka Jefferson, Armando Lira Transfers EGM - Wayne Kimball EIM - Kimberly Bergen, Jay Boudreaux, Cedric Burgher, Kristen Hanson, Lauri= e=20 Lee, Douglas Parsons GLOBAL FLASH UK Gas Update This week the Bacton- Zeebrugge Interconnector surprised the market by=20 switching flow direction from UK Import to Export despite European spot=20 prices being lower than UK prices. The Interconnector's operating rules=20 allow this to happen at present. Several shippers are lobbying to have thes= e=20 rules amended to be able to react more quickly to market forces. This flow= =20 direction switch coincided with the recent cold snap increasing demand=20 substantially to 430mcm which in turn has resulted in a surge in prompt UK= =20 prices. =20 EOL activity during this period has been particularly active as we benefit= =20 from the increased volatility in the market.=20 Enron has several fuel switching options at our Teesside installations whic= h=20 we use to protect our positions. Fine weather in Japan Over the New Year, Enron Japan completed a weather transaction with BTM,=20 which acted as a broker to the deal. The deal, whereby we bought the optio= n,=20 involved a Jan/Feb average temperature call with a maximum payout of 500 mi= ll=20 JPY. The transaction acted as a trigger leading to further transactions. = =20 While not a major deal financially, this deal is significant as it offers a= n=20 indication that the Japanese weather market is developing and is growing in= =20 size. Takuro Shioda in our Tokyo office did a great job during the=20 negotiations. =20 TPS Gains ISO 14001 Accreditation On 30th November Teesside Power Station gained accreditation to the=20 internationally recognised Environmental Management System (EMS) ISO 14001= =20 standard. ISO 14001 is an international standard that specifies the requirements for = an=20 environmental management system that TPS had to meet in order to achieve=20 third-party certification. The accreditation will encourage cultural change= =20 by establishing disciplines that ensure policy objectives are met and a=20 continual improvement in environmental performance is achieved. LEGAL STUFF The information contained in this newsletter is confidential and proprietar= y=20 to Enron Corp. and its subsidiaries. It is intended for internal use only= =20 and should not be disclosed.
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