|
|
Enron Mail |
Thanks for the update. On the potential issues side, what do you mean by
weekly mark to market? Don't you mean daily? Doug Leach 01/29/2001 07:11 AM To: Jeffrey A Shankman/HOU/ECT@ECT cc: Subject: Orion Refining Having a meeting today with Enron representatives from legal, tax, underwriting, accounting, trading controls, finance, trading and origination to discuss the merits and risk of the Orion inventory financing. If I have overlooked any positives or negatives below, please advise.Will keep you posted. ---------------------- Forwarded by Doug Leach/HOU/ECT on 01/29/2001 07:08 AM --------------------------- From: Doug Leach 01/29/2001 06:54 AM To: Michael A Robison/HOU/ECT@ECT, John Viverito/Corp/Enron@Enron, Michelle Bruce/HOU/ECT@ECT, Brent A Price/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, James W Lewis/HOU/EES@EES, David Gorte/HOU/ECT@ECT, Stephen H Douglas/HOU/ECT@ECT, Jerry Seade/NA/Enron@Enron, Jim Goughary/HOU/ECT@ECT cc: Marc De La Roche/HOU/ECT@ECT, Larry Lawyer/NA/Enron@Enron, John L Nowlan/HOU/ECT@ECT Subject: Orion Refining In preparation for our meeting today please find below a list of the positive aspects and potential issues related to the Orion inventory financing. Positive Aspects Confidentiality Agreement signed Spread on Enron's money Hedging opportunities Retain title to inventory for securitization Strength of current equity owners Experienced management Access to market information Storage and blending opportunities Contango play Spot and term product purchase Crude and feedstock sale Export cargo arbitrage Orion keeps crack spread risk Wide light/heavy crude spread Good coker and hydrotreating capabilities Reformer project Crude supply contract with Mexico/Venezuela Good inbound/outbound logistics Recent success Potential issues Insure that there are no liens against Orion impacting Enron's title to crude and refined products Address environmental issues at refinery site Commitment from equity owners Weekly true up on yields Weekly MTM on inventory write ups/downs Accounting/payables/receivables/lock box issues Evaluate hedging risk Address shortage of hydrogen Review reformer project plans Review Orion's operations including planned and unplanned maintenance Review insurance and chartering policies Current financials Insure that Jack Stanley has no interest in Orion Which Enron entity should be contracting party Review all tax issues Personnel requirements Exit strategy
|