re : bridgeline cash and ar to all :
last night i spoke with trevor milhalik about the cash distribution which would normally occur at the end of the year . the most viable and quickest way to get the cash we felt was to increase the revolver from $ 35 mm to $ 70 mm because , as stated below , there exists significant current capital needs to fill the enron # 1 storage cavern . however , even still , this would only ensure a cash distribution at the end of december - the normal schedule for the partnership .
there may be one more possiblity . we could reapproach the board about the prior structure of levering up bridgeline in order to extract cash from the joint venture - it failed last year because texaco did not want the cash . it may different now that chevron is involved , but i doubt it . my guess is that senior management ( i . e . louise ) would have to put pressure on the appropriate channels . i would rather pay a " premium " to chevron / texaco for levering bridgeline than entering in a series of park - and - lend arrangements because we could get more cash up front . in addition , any park - and - lend arrangements could have negative earnings impacts contingent upon the shape of the nymex .
regards ,
jean
- - - - - original message - - - - -
from : redmond , brian
sent : friday , october 26 , 2001 9 : 44 am
to : kitchen , louise ; hodges , georganne
cc : colwell , wes ; mrha , jean ; washington , deanna
subject : re : bridgeline cash and ar
to all :
as of today , bridgeline has $ 14 mm of cash and expects to get $ 15 mm from the payment of oct receivables by the end of the month . they have fully drawn down the $ 35 mm revolver that we put in place earlier this year . trevor mihalik ( bridgeline cfo ) is preparing a cashflow forecast for bridgeline from now to the end of the year and next year .
bridgeline ' s major cash needs are to fund working capital ( payables and margin calls ) and to purchase gas that must be used to dewater the storage cavern ( enron # 1 ) that we contributed to the partnership . the dewatering process is now underway and will be completed mid - march 2002 . at a gas price of $ 2 . 50 and , working gas volume of 6 bcf , the total cash need for working gas will be approx . $ 15 mm .
we are working with bridgeline to find other sources of financing for the working gas that would enable them to make ( and accelerate ) the 2001 cash distribution to the partners . alternatives we are considering to fund the working gas : ( i ) increase the revolver from $ 35 mm to $ 70 mm , ( ii ) find third parties ( enron ? ) to enter into park - and - lend arrangements that would give bridgeline the physical gas they need to dewater the facility without having to pay cash for it . most options will require chevron / texaco approval , which may come at a price .
i will distribute the cash flow statement when i receive it and jean and i will meet with randy and trevor next week to discuss alternative financing / park - and - lend arrangements . i have been cloaking my questions on the need for cash under the guise of putting together the 2002 plan ( budget , headcount , capital needs , insurance requirements , etc . ) . we should adhere to this commercial context so that we don ' t provide leverage to bridgeline and chevron / texaco in any commercial discussions . i will admit , however , given the headlines , it does not take a genius to figure out we need cash .
regards ,
brian
- - - - - original message - - - - -
from : kitchen , louise
sent : friday , october 26 , 2001 8 : 46 am
to : hodges , georganne
cc : colwell , wes ; redmond , brian
subject : re : bridgeline cash and ar
brian redmond is working this
- - - - - original message - - - - -
from : hodges , georganne
sent : thursday , october 25 , 2001 5 : 06 pm
to : kitchen , louise
cc : colwell , wes
subject : fw : bridgeline cash and ar
importance : high
i am not sure when we received our last cash distribution from bridgeline but will check . should we pursue ?
- - - - - original message - - - - -
from : gruesen , karen
sent : thursday , october 25 , 2001 5 : 03 pm
to : hodges , georganne
subject : fw : bridgeline cash and ar
- - - - - original message - - - - -
from : schwarzbach , emily
sent : thursday , october 25 , 2001 4 : 41 pm
to : gruesen , karen
subject : bridgeline cash and ar
karen ,
the following are the bridgeline account balances as of 9 / 30 / 01 that you requested :
cash - $ 34 , 374 , 000
ar - $ 88 , 224 , 562
if you have any further questions or need additional information please let me know .
thank you .
emily
re : bridgeline cash and ar
to all :
last night i spoke with trevor milhalik about the cash distribution which would normally occur at the end of the year . the most viable and quickest way to get the cash we felt was to increase the revolver from $ 35 mm to $ 70 mm because , as stated below , there exists significant current capital needs to fill the enron # 1 storage cavern . however , even still , this would only ensure a cash distribution at the end of december - the normal schedule for the partnership .
there may be one more possiblity . we could reapproach the board about the prior structure of levering up bridgeline in order to extract cash from the joint venture - it failed last year because texaco did not want the cash . it may different now that chevron is involved , but i doubt it . my guess is that senior management ( i . e . louise ) would have to put pressure on the appropriate channels . i would rather pay a " premium " to chevron / texaco for levering bridgeline than entering in a series of park - and - lend arrangements because we could get more cash up front . in addition , any park - and - lend arrangements could have negative earnings impacts contingent upon the shape of the nymex .
regards ,
jean
- - - - - original message - - - - -
from : redmond , brian
sent : friday , october 26 , 2001 9 : 44 am
to : kitchen , louise ; hodges , georganne
cc : colwell , wes ; mrha , jean ; washington , deanna
subject : re : bridgeline cash and ar
to all :
as of today , bridgeline has $ 14 mm of cash and expects to get $ 15 mm from the payment of oct receivables by the end of the month . they have fully drawn down the $ 35 mm revolver that we put in place earlier this year . trevor mihalik ( bridgeline cfo ) is preparing a cashflow forecast for bridgeline from now to the end of the year and next year .
bridgeline ' s major cash needs are to fund working capital ( payables and margin calls ) and to purchase gas that must be used to dewater the storage cavern ( enron # 1 ) that we contributed to the partnership . the dewatering process is now underway and will be completed mid - march 2002 . at a gas price of $ 2 . 50 and , working gas volume of 6 bcf , the total cash need for working gas will be approx . $ 15 mm .
we are working with bridgeline to find other sources of financing for the working gas that would enable them to make ( and accelerate ) the 2001 cash distribution to the partners . alternatives we are considering to fund the working gas : ( i ) increase the revolver from $ 35 mm to $ 70 mm , ( ii ) find third parties ( enron ? ) to enter into park - and - lend arrangements that would give bridgeline the physical gas they need to dewater the facility without having to pay cash for it . most options will require chevron / texaco approval , which may come at a price .
i will distribute the cash flow statement when i receive it and jean and i will meet with randy and trevor next week to discuss alternative financing / park - and - lend arrangements . i have been cloaking my questions on the need for cash under the guise of putting together the 2002 plan ( budget , headcount , capital needs , insurance requirements , etc . ) . we should adhere to this commercial context so that we don ' t provide leverage to bridgeline and chevron / texaco in any commercial discussions . i will admit , however , given the headlines , it does not take a genius to figure out we need cash .
regards ,
brian
- - - - - original message - - - - -
from : kitchen , louise
sent : friday , october 26 , 2001 8 : 46 am
to : hodges , georganne
cc : colwell , wes ; redmond , brian
subject : re : bridgeline cash and ar
brian redmond is working this
- - - - - original message - - - - -
from : hodges , georganne
sent : thursday , october 25 , 2001 5 : 06 pm
to : kitchen , louise
cc : colwell , wes
subject : fw : bridgeline cash and ar
importance : high
i am not sure when we received our last cash distribution from bridgeline but will check . should we pursue ?
- - - - - original message - - - - -
from : gruesen , karen
sent : thursday , october 25 , 2001 5 : 03 pm
to : hodges , georganne
subject : fw : bridgeline cash and ar
- - - - - original message - - - - -
from : schwarzbach , emily
sent : thursday , october 25 , 2001 4 : 41 pm
to : gruesen , karen
subject : bridgeline cash and ar
karen ,
the following are the bridgeline account balances as of 9 / 30 / 01 that you requested :
cash - $ 34 , 374 , 000
ar - $ 88 , 224 , 562
if you have any further questions or need additional information please let me know .
thank you .
emily