hotlist and upstream products update - confidential dear louise ,
congratulations on your baby boy ! i hope the delivery was not too painful and please don ' t be upset with him since he wanted to share your birthday . happy belated 32 !
anyhow , on to business . needless to say , a lot has happened which is why this email is tardy . i apologize , but somehow i think your time has been occupied as well . the following has happened :
? john nowlan is dragging his feet on payment of the $ 1 . 25 in origination due to upstream products for the formosa transaction .
? i will cc : you on an email which will be my response to mr . goodpasture ' s assertion that ecf does not need to grant any origination for the storage contract negotiated on their behalf by chris hilgert and mike bilberry . goodpasture believes they will be " appropriately recognized thru the prc process . " in addition , he seems to think , incorrectly , that the overall value of the transaction was worth $ 50 million . perhaps i should show him my p & l .
? i am having a conference call with redmond and hart to resolve the bilberry title issue .
? i feel that delainey and dietrich are trying to shut down ecs within upstream products . i can not get any resources dedicated to price out the compression deals that i need to close . based on their lack of " capacity " as well as their prioritization queue ( i ' m at the bottom ) , i am being told by janet to negotiate with coops , munis , and other regulatory affiliates for generation , t & d , and site profile pricing . my intuition tells me that greg sharp is behind this directive and is influencing janet ' s perspective . ( when is was a v . p . of hpl , greg sharp had the compression group report to him and was led by mark courtney - also at ees . )
as an aside , i am very disappointed by the bureaucracy of this entire process . i have tried to be very flexible and at the same time , build a third party compression business . i understand that their are significant resource and pricing issues , but i need human capital dedicated to getting these deals done internally . the compression business is not pure retail nor is it pure wholesale . but i believe , that it is a commercial group that could provide significant p & l if given appropriate resources . i will be meeting with john lavorato today to discuss these issues .
? on monday , i presented to the corporate culture committee a report which highlighted some eoy 2000 prc statistics that globally represented enron . michelle cash had a hissy that i had access to this information and cindy olson had to step in and approve my access . in fact , i have attached the presentation given , but at the meeting , i picked up all the copies and shredded them . please be very careful with this file . i am meeting with michelle cash and human relations to be aware of all legal ramifications for any further prc / management research by business unit .
in addition , i met with billy lemmons and we are going to set up two small focus groups ( 10 employees each ) comprised of associates and analysts , who rated at least " strong " from the 2000 prc process . i would like to target some general management and meritocracy issues and get verbal feedback . i would like to present my findings to the corporate culture committee on june 6 .
? the attached hotlist file also has an " executive sheet . " this sheet represents any residual origination positions from last year that are under my responsibility . in addition , for the hotlist file , each business unit sheet has their p & l represented . this p & l combines accrual as well as mkt - to - mkt margin . this number will be different from the management report since that file represents accrual margin or " flashes " for the entire quarter . i am only representing " actualized " p & l thru april .
i do not know how you would like to represent bhlp . i am making the following recommendation :
ytd 2001 forecast in 000 s ( 10 , 829 )
ytd 2001 plan in 000 s ( 13 , 490 ) assumes a $ 56 million ebitda .
bhlp ebit variance $ 2 , 661
in addition , i could represent a quarterly representation as well .
? other issues :
i am also meeting with lavorato to get the var for the wellhead desk raised above 100 k to 1 million .
when trying to represent the p & l for the hotlist , i realized that it was inaccurate ( i . e . , ats warrants value incorrectly as well as other issues ) and i think now it is fairly clean . i have started re - scrubbing bhlp p & l .
the storage monetization structure is getting interesting . turns out the ets ( northern ) took significant earnings to the bottom line by monetizing their base gas and did not want us to meet with the ferc regarding our structure . ( the biggest concern of our customer list is regulatory - we wanted the ferc to " advise " us . it was steffes ' idea . ) however , we did find out that skadden arps wrote northern an opinion letter indemnifying them of potential regulatory risk .
sorry for the book , best regards ,
mrha
hotlist and upstream products update - confidential
dear louise ,
congratulations on your baby boy ! i hope the delivery was not too painful and please don ' t be upset with him since he wanted to share your birthday . happy belated 32 !
anyhow , on to business . needless to say , a lot has happened which is why this email is tardy . i apologize , but somehow i think your time has been occupied as well . the following has happened :
? john nowlan is dragging his feet on payment of the $ 1 . 25 in origination due to upstream products for the formosa transaction .
? i will cc : you on an email which will be my response to mr . goodpasture ' s assertion that ecf does not need to grant any origination for the storage contract negotiated on their behalf by chris hilgert and mike bilberry . goodpasture believes they will be " appropriately recognized thru the prc process . " in addition , he seems to think , incorrectly , that the overall value of the transaction was worth $ 50 million . perhaps i should show him my p & l .
? i am having a conference call with redmond and hart to resolve the bilberry title issue .
? i feel that delainey and dietrich are trying to shut down ecs within upstream products . i can not get any resources dedicated to price out the compression deals that i need to close . based on their lack of " capacity " as well as their prioritization queue ( i ' m at the bottom ) , i am being told by janet to negotiate with coops , munis , and other regulatory affiliates for generation , t & d , and site profile pricing . my intuition tells me that greg sharp is behind this directive and is influencing janet ' s perspective . ( when is was a v . p . of hpl , greg sharp had the compression group report to him and was led by mark courtney - also at ees . )
as an aside , i am very disappointed by the bureaucracy of this entire process . i have tried to be very flexible and at the same time , build a third party compression business . i understand that their are significant resource and pricing issues , but i need human capital dedicated to getting these deals done internally . the compression business is not pure retail nor is it pure wholesale . but i believe , that it is a commercial group that could provide significant p & l if given appropriate resources . i will be meeting with john lavorato today to discuss these issues .
? on monday , i presented to the corporate culture committee a report which highlighted some eoy 2000 prc statistics that globally represented enron . michelle cash had a hissy that i had access to this information and cindy olson had to step in and approve my access . in fact , i have attached the presentation given , but at the meeting , i picked up all the copies and shredded them . please be very careful with this file . i am meeting with michelle cash and human relations to be aware of all legal ramifications for any further prc / management research by business unit .
in addition , i met with billy lemmons and we are going to set up two small focus groups ( 10 employees each ) comprised of associates and analysts , who rated at least " strong " from the 2000 prc process . i would like to target some general management and meritocracy issues and get verbal feedback . i would like to present my findings to the corporate culture committee on june 6 .
? the attached hotlist file also has an " executive sheet . " this sheet represents any residual origination positions from last year that are under my responsibility . in addition , for the hotlist file , each business unit sheet has their p & l represented . this p & l combines accrual as well as mkt - to - mkt margin . this number will be different from the management report since that file represents accrual margin or " flashes " for the entire quarter . i am only representing " actualized " p & l thru april .
i do not know how you would like to represent bhlp . i am making the following recommendation :
ytd 2001 forecast in 000 s ( 10 , 829 )
ytd 2001 plan in 000 s ( 13 , 490 ) assumes a $ 56 million ebitda .
bhlp ebit variance $ 2 , 661
in addition , i could represent a quarterly representation as well .
? other issues :
i am also meeting with lavorato to get the var for the wellhead desk raised above 100 k to 1 million .
when trying to represent the p & l for the hotlist , i realized that it was inaccurate ( i . e . , ats warrants value incorrectly as well as other issues ) and i think now it is fairly clean . i have started re - scrubbing bhlp p & l .
the storage monetization structure is getting interesting . turns out the ets ( northern ) took significant earnings to the bottom line by monetizing their base gas and did not want us to meet with the ferc regarding our structure . ( the biggest concern of our customer list is regulatory - we wanted the ferc to " advise " us . it was steffes ' idea . ) however , we did find out that skadden arps wrote northern an opinion letter indemnifying them of potential regulatory risk .
sorry for the book , best regards ,
mrha