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I'm glad Mark came to the same conclusion regarding valuation - Mitch seemed to indicate a much higher number. I hope Mark understands that the "hole" in '04 is highly unlikely given the demand and competitve positions.
-----Original Message----- From: Hayslett, Rod Sent: Thursday, November 01, 2001 1:28 PM To: Howard, Kevin A. Subject: FW: nwn FYI -----Original Message----- From: Wadlington, Mark Sent: Thursday, November 01, 2001 1:11 PM To: Taylor, Mitch; Terp, Brian; Wadlington, Mark; Donahue, Jeff Cc: Hayslett, Rod; Desai, Jayshree Subject: nwn still waiting for the formal pubcomps and acqcomps from JPMorgan and SSB. I spent years in NY doing the math though and spoke to Rod for his help (he had great color). The answer is 8-10x ebitda. as an extra check, we put in another multiple for the duke/westcoast deal (approx. 1.7x rate base). Same answer both times. EV 2.0-2.3 (with a sales hat maybe 2.5), equity value 1.6-1.8. I wouldnt push the sales hat too far though, the duration of contracts on this pipeline do not favorably compare to those on most pipelines in general -- in other words, you could be staring at a "hole" in '04. (Once I get the precise numbers from the bankers, I'll plug them in -- the answer shouldnt change more than 5%). What's the next step for me? Want me to forward to muller/jeff golden? Regards Mark << File: nwn.xls <<
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