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Enron Mail |
BUSINESS HIGHLIGHTS
Enron Industrial Markets Enron Industrial Markets announced the signing of definitive agreements wit= h=20 Huntco, Inc. under which over a 15-year period Enron will provide inventory= =20 price risk management services and will eventually provide more than 600,00= 0=20 tons per year of hot-rolled, cold-rolled and galvanized steel products to= =20 Huntco Steel. The agreements provide Enron access to Huntco=01,s network o= f=20 steel distribution centers nationwide. The agreements also provide for Enr= on=01, s acquisition of Huntco=01,s cold rolling and certain coil pickling operati= ons=20 in Blytheville, Arkansas. These transactions with Huntco have the potential to fundamentally change t= he=20 way steel is bought and sold in the United States. It gives Enron immediat= e=20 access to physical steel and positions Enron geographically to serve the=20 steel industry in a variety of ways. In addition to providing physical=20 products on both a spot and term basis, EIM=01,s goals for the steel indust= ry=20 include developing commodity risk management products, providing structured= =20 finance products and establishing the market-making capabilities that Enron= =20 has brought to the natural gas, power and other commodity markets. Enron North America-Upstream Products Upstream Products has partnered with Duke Energy Field Services (DEFS) to= =20 close a 20-year NGL exchange and transportation deal with Formosa=20 Hydrocarbons and Williams Energy Field Services to handle raw make product= =20 from the Williams Markham plant. Formosa Hydrocarbons is building a 40,000= =20 BPD fractionator to handle this and other Gulf Coast NGL production. The= =20 accompanying pipeline will be known as the Seabreeze pipeline system and wi= ll=20 be constructed by DEFS. Texas Brine LLC will provide NGL storage services f= or=20 Formosa Hydrocarbons on this system. Primary production for this system is= =20 coming from the Boomvang Nansen field in the deepwater GOM and will be the= =20 first deepwater GOM production to come onshore in Texas.=20 Upstream Products has also worked to arrange a 20-year transportation lease= =20 agreement on the Dean Pipeline (owned by TEPPCO) for refinery grade propyle= ne=20 service to be utilized by Formosa Plastics. Coupled with this transaction,= =20 Enron Clean Fuels has entered into a propylene storage agreement with Formo= sa=20 Plastics to utilize ECF=01,s Mt. Belvieu storage facilities. In addition, = Enron=20 Global Markets has been able to amend its current transportation agreement= =20 with TEPPCO to prematurely terminate a take-or-pay obligation and realize= =20 additional transportation revenues from interim NGL production coming from= =20 the Williams Markham to be delivered to Mt. Belvieu. =20 Upon close, Upstream Products was monetized out of its initial position by= =20 DEFS and retained a risk-free net profits position on the Seabreeze Pipelin= e=20 going forward for an additional 20,000-40,000 BPD of excess capacity on the= =20 system. ENA West Power Southwest Power, an ENA affiliate, signed a 222MW 15-year tolling agreement= =20 with Allegheny Energy Supply for all of the output of Southwest's Las Vegas= =20 expansion project, scheduled for completion in September, 2002. With the= =20 tolling agreement done and construction underway, the project will now be= =20 marketed to qualified generators. IN THE NEWS =01&To truly understand Enron=01,s Jeffrey Skilling =01) the hypersmart,=20 hyperconfident chief executive of what may now be the largest energy tradin= g=20 company on the planet =01) head to your local video store and check out tha= t=20 classic American cinema, Wayne=01,s World. At 15, Skilling helped launch a= =20 no-budget television station in Aurora, Illinois =01) the very thing that M= ike=20 Myers and Dana Carvey so famously spoofed on Saturday Night Live and in two= =20 movies. The TV skit even begins with a sketch of a teenage cameraman, the= =20 role of the real-life Skilling.=018 =01)-- Randall Lane, Worth Magazine. Ma= y 2001. Calgary, Alberta -- Enron Canada has settled its lawsuit with NGX, Canadian= =20 Enerdata, OM Gruppen and Richard Zarzeczny, regarding the compilation and= =20 methodology for calculating the Alberta natural gas price indices published= =20 by the Canadian Gas Price Reporter. By the terms of the settlement there= =20 will be a joint press release issued regarding the settlement, which is to = be=20 the only public communication regarding the matter unless agreed to by all= =20 parties. Otherwise the settlement is confidential to the parties. =20 Accordingly, there is to be no formal or informal discussion with media,=20 colleagues, competitors, counterparties or otherwise. WELCOME New Hires EGM - Salil Pradhan, Randy O=01,Conner, Ricardo Charvel, Greg Fields, Ken= =20 Newman, John Ashman, Rick Cantrell, Tim Klaiber, Trevor Woods,=20 EIM - Tim Asterman, Maxine Leclaire, Jerry Newton, Philip Siewert, Janamo= n=20 Johnson, Darralyn Briskey, Theodore Rogers,=20 ENA - Rae Meadows, Tiffany Winship, Adrianne Engler, Kimberly Yates, Jacki= e=20 Verity, Transfers (to or within) ENA =01)Christa Winfrey, Mario Alonso, Paul Rizo-Patron, Nick Ploitis, Mist= i=20 Day, Robert Cothran, Susan Wilson, Diane Cutsforth, David Owen EGM =01) Mark Friedman, John Groves, Deirdre McCaffrey, William Windle EnronOnline Statistics Below are the latest figures for EnronOnline as of May 9, 2001. * Total Life to Date Transactions < 963,575 * Life to Date Notional Value of Transactions < $579 billion NUGGETS & NOTES Reminder: Brown Bag Lunch, Thursday, May 17 at 11:30 AM in 5 C2. The speak= er=20 is Michael L. Miller discussing Principal Investments. =01&Historically, Newsprint has been sold under strong relationships as a h= ighly=20 differentiated, branded product to =01&very discriminating=018 buyers at ne= wspaper=20 publishers. EIM believed differently. By the end of March, EIM had succeed= ed=20 in closing on its 2nd Newsprint mill, making it the 7th largest Newsprint= =20 manufacturer in North America. Remarkably, in just 2 months, EIM=01,s News= print=20 team has succeeded in closing $100MM total notional value =01&Enron commodi= ty=20 style=018 fixed price contracts with terms of 1 to 5 years=01(..and they sa= id it=20 wasn=01,t a commodity.=018 Rodney Malcolm =01) Vice President, Forest Products Sales and Marketing Travel Tip of the Week: Book flights 7 days in advance. The cost savings= =20 can be considerable if you plan ahead =01) at least 7 days. For example: Houston to Portland Less than 7 days: $ 1,652 7 day advance ticketing $ 324 Congratulations to Kimberly and Eric Thode, director of ENA Public=20 Relations. They are the proud parents of Whitney Marie, born on May 3. Sh= e=20 weighed 8 lbs. 8 oz. Congratulations to proud parents Nettelton and Louise Kitchen, COO, Enron= =20 Americas. Their son, Scott William, was born on May 9 and weighed 9 lbs.1 o= z. NEWS FROM THE GLOBAL FLASH Enron closes major coal deal in Germany After almost six months of negotiations, Enron's coal team has signed a=20 contract with Stadtwerke Bremen to supply this major German municipality wi= th=20 coal until 2006. Under the deal structure, Enron will deliver a total of 4.= 6=20 million tonnes of coal - equivalent to an overall contract volume of almost= =20 $200 million (DM 440 million). The agreement represents Enron's first significant long-term coal supply de= al=20 in Germany. The annual contractual volume amounts to around 3% of total=20 German coal imports and provides us with continuous volume flow in Northern= =20 Germany, enabling us to grow our position in the market. Parallel to this deal, Enron also entered into a separate agreement with HM= S=20 Bergbau Agentur, a company specialising in Polish exports. Under this=20 agreement, HMS will be the handling agent and a potential supplier of Polis= h=20 coal to us over the lifetime of the contract. Congratulations to the whole team involved: Sven Becker, Manfred Ungethum,= =20 Cornelia Luptowitsch, Peter Bradley, Jez Peters and Michael Schuh. 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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