ytd p & l responsibility for upstream and bhlp with deal clarification !
louise ,
attached is the worksheet for both second quarter and ytd gross margin numbers for upstream and bridgeline , broken out by originator and project .
please read the following bullet points that explain the derivation of gross margin and primary contributors to each :
? j . m . huber - was a producer netback transaction which transported distressed rockies gas and transported it on medicine bow and trailblazer , landing the gas at ngplok - gage . this gage gas was sold to the central desk and the west desk kept the segmentation optionality associated with the transport . the transaction was booked in fourth quarter , 2000 and was attributed to mark whitt . he received credit for this transaction in eoy prc . at the time of the transaction , mark reported to me .
i have this transaction because ena acquired trailblazer transport on behalf of j . m . huber . the ferc approval certificate for the trailblazer transaction was not approved until second quarter , 2001 . the $ 5 . 8 mm reflects the p & l associated with just the assignment of the trailblazer transport , the remaining p & l associated with this producer netback deal was captured last year .
? transmission congestion contract - ( tcc ) is the right to collect , or the obligation to pay , the day - ahead congestion rents associated with one ( 1 ) megawatt ( " mw " ) of transmission between a specified point of injection ( " poi " ) and specified point of withdrawal ( " pow " ) . the day - ahead congestion rents are determined by the difference in the congestion component of the day - ahead prices at the pow of the tcc and the congestion component of the day - ahead prices at the poi of the tcc , for each hour of the effective period .
i have this transaction because the transmission origination group reported to me last year . the group was ultimately disbanded and reallocated . maria tefel and peter bennett , both analysts , calculate the associated p & l from these congestion contracts . these contracts end in november 2001 .
note : all transactions in executive are p & l generated last year , but for various reasons could not be declared . i handle all the administrative and tracking to make sure that the p & l shows up for ena ' s behalf . in addition , the expected budget for upstream products of $ 30 mm does not include executive since that p ecs , $ 16 mm ; wellhead desk , $ 2 mm ; producer ecommerce , $ 4 mm
? formosa
upstream products partnered with duke energy field services ( defs ) to close a 20 - year ngl exchange and transportation deal with formosa hydrocarbons and williams energy field services to handle raw make product from the williams markham plant . formosa hydrocarbons is building a 40 , 000 bpd fractionator to handle this and other gulf coast ngl production . the accompanying pipeline will be known as the seabreeze pipeline system and will be constructed by defs . texas brine llc will provide ngl storage services for formosa hydrocarbons on this system . primary production for this system is coming from the boomvang nansen field in the deepwater gom and will be the first deepwater gom production to come onshore in texas .
upstream products has also worked to arrange a 20 - year transportation lease agreement on the dean pipeline ( owned by teppco ) for refinery grade propylene service to be utilized by formosa plastics . coupled with this transaction , enron clean fuels has entered into a propylene storage agreement with formosa plastics to utilize ecf ' s mt . belvieu storage facilities . in addition , enron global markets has been able to amend its current transportation agreement with teppco to prematurely terminate a take - or - pay obligation and realize additional transportation revenues from interim ngl production coming from the williams markham to be delivered to mt . belvieu .
upon close , upstream products was monetized out of its initial position by defs and retained a risk - free net profits position on the seabreeze pipeline going forward for an additional 20 , 000 - 40 , 000 bpd of excess capacity on the system .
bieniawski negotiated with hilgert for 10 % of the gross margin associated with formosa . bieniawski negotiated with texas brine to provide the ngl storage services for formosa hydrocarbons . this storage capacity was key to formosa hydrocarbons to handle the ngl production expected and anticipated from the gom .
since john goodpasture , ecf , refused to acknowledged any value associated with the propylene storage agreement they entered into with formosa plastics ( negotiated by hilgert / bilberry ) , i granted out $ 500 k in origination from executive which was dispensed 90 % ecs and 10 % storage . based on conservative assumptions , i expect this transaction to generate a minimum of $ 2 . 5 mm ( p . v . ) for ecf .
theoretically , the $ 3 . 825 mm next to chris hilgert ' s name should be shared with mike bilberry , but since the enron value associated with formosa was much greater than the p & l reflected in upstream products , please keep this in mind .
? hubbard was a compression transaction closed in 2000 . the mtm value recognized upfront for this transaction was based on minimum , guaranteed load profiles for the electric horsepower . with this compression transaction , there is significant accrual earnings potential if the electric compressor is run at a higher load profile because the shippers pay in mmbtu to the compressor owner , who then gives the natural gas to ecs llc where it is monetized . mark knippa closed this transaction and is responsible for coordinating with carol carter the accrual opportunities for ena .
? pluto / megs - when i was examining my capital charges for 2001 , i assigned lisa druzbik to analyze all accounting , cashflows and capital charges associated with this project . although the gross margin associated with this transaction is not originated , she did a great job creating the project proforma and helping me reassign this deal to ecr / mariner .
? tennessee gas pipeline was the virtual compression deal closed at the end of second quarter by chris meyer . a " virtual compression " deal maintains the contractual obligation to fulfill the physical delivery of molecules and circumvents the need for running compression . the wellhead desk sold 1 . 25 bcf to tennessee and will deliver it into a storage facility , providing adequate pressure not to run their " expensive " electric compression during the summer for storage withdrawals . ena captured value by selling gas above market and also received intra - month flexibility for the delivery of the gas into storage .
you have already received a memorandum from john grass to me discussing his accomplishments ytd for the wellhead desk and producer ecommerce . if you need further clarification , please let me know . i know this email is long , but the devil is in the details . i will discuss the $ 1 mm in origination associated with bhlp as well as my accomplishments in a follow up email .
mrha
i
ytd p & l responsibility for upstream and bhlp with deal
clarification !
louise ,
attached is the worksheet for both second quarter and ytd gross margin numbers for upstream and bridgeline , broken out by originator and project .
please read the following bullet points that explain the derivation of gross margin and primary contributors to each :
? j . m . huber - was a producer netback transaction which transported distressed rockies gas and transported it on medicine bow and trailblazer , landing the gas at ngplok - gage . this gage gas was sold to the central desk and the west desk kept the segmentation optionality associated with the transport . the transaction was booked in fourth quarter , 2000 and was attributed to mark whitt . he received credit for this transaction in eoy prc . at the time of the transaction , mark reported to me .
i have this transaction because ena acquired trailblazer transport on behalf of j . m . huber . the ferc approval certificate for the trailblazer transaction was not approved until second quarter , 2001 . the $ 5 . 8 mm reflects the p & l associated with just the assignment of the trailblazer transport , the remaining p & l associated with this producer netback deal was captured last year .
? transmission congestion contract - ( tcc ) is the right to collect , or the obligation to pay , the day - ahead congestion rents associated with one ( 1 ) megawatt ( " mw " ) of transmission between a specified point of injection ( " poi " ) and specified point of withdrawal ( " pow " ) . the day - ahead congestion rents are determined by the difference in the congestion component of the day - ahead prices at the pow of the tcc and the congestion component of the day - ahead prices at the poi of the tcc , for each hour of the effective period .
i have this transaction because the transmission origination group reported to me last year . the group was ultimately disbanded and reallocated . maria tefel and peter bennett , both analysts , calculate the associated p & l from these congestion contracts . these contracts end in november 2001 .
note : all transactions in executive are p & l generated last year , but for various reasons could not be declared . i handle all the administrative and tracking to make sure that the p & l shows up for ena ' s behalf . in addition , the expected budget for upstream products of $ 30 mm does not include executive since that p ecs , $ 16 mm ; wellhead desk , $ 2 mm ; producer ecommerce , $ 4 mm
? formosa
upstream products partnered with duke energy field services ( defs ) to close a 20 - year ngl exchange and transportation deal with formosa hydrocarbons and williams energy field services to handle raw make product from the williams markham plant . formosa hydrocarbons is building a 40 , 000 bpd fractionator to handle this and other gulf coast ngl production . the accompanying pipeline will be known as the seabreeze pipeline system and will be constructed by defs . texas brine llc will provide ngl storage services for formosa hydrocarbons on this system . primary production for this system is coming from the boomvang nansen field in the deepwater gom and will be the first deepwater gom production to come onshore in texas .
upstream products has also worked to arrange a 20 - year transportation lease agreement on the dean pipeline ( owned by teppco ) for refinery grade propylene service to be utilized by formosa plastics . coupled with this transaction , enron clean fuels has entered into a propylene storage agreement with formosa plastics to utilize ecf ' s mt . belvieu storage facilities . in addition , enron global markets has been able to amend its current transportation agreement with teppco to prematurely terminate a take - or - pay obligation and realize additional transportation revenues from interim ngl production coming from the williams markham to be delivered to mt . belvieu .
upon close , upstream products was monetized out of its initial position by defs and retained a risk - free net profits position on the seabreeze pipeline going forward for an additional 20 , 000 - 40 , 000 bpd of excess capacity on the system .
bieniawski negotiated with hilgert for 10 % of the gross margin associated with formosa . bieniawski negotiated with texas brine to provide the ngl storage services for formosa hydrocarbons . this storage capacity was key to formosa hydrocarbons to handle the ngl production expected and anticipated from the gom .
since john goodpasture , ecf , refused to acknowledged any value associated with the propylene storage agreement they entered into with formosa plastics ( negotiated by hilgert / bilberry ) , i granted out $ 500 k in origination from executive which was dispensed 90 % ecs and 10 % storage . based on conservative assumptions , i expect this transaction to generate a minimum of $ 2 . 5 mm ( p . v . ) for ecf .
theoretically , the $ 3 . 825 mm next to chris hilgert ' s name should be shared with mike bilberry , but since the enron value associated with formosa was much greater than the p & l reflected in upstream products , please keep this in mind .
? hubbard was a compression transaction closed in 2000 . the mtm value recognized upfront for this transaction was based on minimum , guaranteed load profiles for the electric horsepower . with this compression transaction , there is significant accrual earnings potential if the electric compressor is run at a higher load profile because the shippers pay in mmbtu to the compressor owner , who then gives the natural gas to ecs llc where it is monetized . mark knippa closed this transaction and is responsible for coordinating with carol carter the accrual opportunities for ena .
? pluto / megs - when i was examining my capital charges for 2001 , i assigned lisa druzbik to analyze all accounting , cashflows and capital charges associated with this project . although the gross margin associated with this transaction is not originated , she did a great job creating the project proforma and helping me reassign this deal to ecr / mariner .
? tennessee gas pipeline was the virtual compression deal closed at the end of second quarter by chris meyer . a " virtual compression " deal maintains the contractual obligation to fulfill the physical delivery of molecules and circumvents the need for running compression . the wellhead desk sold 1 . 25 bcf to tennessee and will deliver it into a storage facility , providing adequate pressure not to run their " expensive " electric compression during the summer for storage withdrawals . ena captured value by selling gas above market and also received intra - month flexibility for the delivery of the gas into storage .
you have already received a memorandum from john grass to me discussing his accomplishments ytd for the wellhead desk and producer ecommerce . if you need further clarification , please let me know . i know this email is long , but the devil is in the details . i will discuss the $ 1 mm in origination associated with bhlp as well as my accomplishments in a follow up email .
mrha
i