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Enron Mail |
Kim,
Stewart and I met with Tom Lee (tomlee@ncpa.com; 916.761.4220) of NCPA yesterday. NCPA is looking to restructure a power deal with Calpine and a gas basis deal with Pan Canadian. The following summarizes the gas transaction and the re-structuring as proposed by Tom. Current Gas Structure Term: January 1, 2002 - December 31, 2002 Quantity: 5,000 MMBtu/d Delivery Pt.: PG&E City-Gate Price: NYMEX + $3.37/MMBtu Re-Structuring Option 1 Extend the term through 2004. What is the blended basis? Re-Structuring Option 2 (Kim, please note that the following structure is Tom Lee's creation). ENA assumes NCPA's position for Q2 2002 only (April-June): 5,000 MMBtu/d @ PG&E City-Gate @ NYMEX + $3.37/MMBtu. ENA buys 3 puts from NCPA involving 5,000 MMBtu/d @ PG&E City-Gate over a 3 year term ending 2004: a) Exercisable on Dec 15, 2001, ENA has the option to put 5,000 MMBtu/d to NCPA in Q1, Q3 and/or Q4 of 2002. b) Exercisable on Dec 15, 2002, ENA has the option to put 5,000 MMBtu/d to NCPA in Q1, Q2, Q3 and/or Q4 of 2003. c) Exercisable on Dec 15, 2003, ENA has the option to put 5,000 MMBtu/d to NCPA in Q1, Q2, Q3 and/or Q4 of 2004. What is the strike price? Re-Structuring Option 3 (Kim, this is my idea. That is, I think this makes more sense than Tom's). ENA assumes NCPA's position for Q2 2002 only (April-June): 5,000 MMBtu/d @ PG&E City-Gate @ NYMEX + $3.37/MMBtu. ENA sells NCPA 5,000 MMBtu/d of gas at PG&E City-gate for calendar years 2002 through 2004 except for Q2 2002. Given that we are absorbing the $3.37/MMBtu basis for Q2 2002, what is the all-in fixed price for this sale? Tom is looking for an answer ASAP. Is the above confusing enough? Call me if we need to talk about this. Laird
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