re : from today ' s paper clayton ,
it translates into a credit risk for those on the other side of the hedge .
many producers have a long history of poor timing of hedges .
i could give you quite a long list . they definitely need a bright
adviser who will tell them the price of gas two years from now .
vince
clayton vernon @ enron
06 / 29 / 2000 01 : 02 am
to : vince j kaminski / hou / ect @ ect
cc :
subject : from today ' s paper
vince :
here ' s an amazing factoid in today ' s paper related to the issue of how much
money you can " make " ( sic ) by hedging :
. . .
other companies analysts say are saddled with hedges include el paso energy
corp . and coastal corp . , which are merging .
a coastal official declined to comment on the company ' s forward positions .
although el paso is known for its pipeline business , it produces gas as
result of its $ 6 . 2 billion acquisition last year of sonat . " more than 90
percent " of that gas is hedged through the rest of the year , said bruce
connery , vice president of investor relations . the forward contracts are for
$ 2 . 40 , he said .
hedging in the current market plays to the company ' s primary aim of meeting
investors ' expectations , connery said .
" our first goal is to deliver the earnings goal that we set out , and that
dictates that we hedge out commodity volatility , " he said .
. . .
$ 2 . 40 ? ? ? are you kidding ? ? ? ?
clayton
re : from today ' s paper
clayton ,
it translates into a credit risk for those on the other side of the hedge .
many producers have a long history of poor timing of hedges .
i could give you quite a long list . they definitely need a bright
adviser who will tell them the price of gas two years from now .
vince
clayton vernon @ enron
06 / 29 / 2000 01 : 02 am
to : vince j kaminski / hou / ect @ ect
cc :
subject : from today ' s paper
vince :
here ' s an amazing factoid in today ' s paper related to the issue of how much
money you can " make " ( sic ) by hedging :
. . .
other companies analysts say are saddled with hedges include el paso energy
corp . and coastal corp . , which are merging .
a coastal official declined to comment on the company ' s forward positions .
although el paso is known for its pipeline business , it produces gas as
result of its $ 6 . 2 billion acquisition last year of sonat . " more than 90
percent " of that gas is hedged through the rest of the year , said bruce
connery , vice president of investor relations . the forward contracts are for
$ 2 . 40 , he said .
hedging in the current market plays to the company ' s primary aim of meeting
investors ' expectations , connery said .
" our first goal is to deliver the earnings goal that we set out , and that
dictates that we hedge out commodity volatility , " he said .
. . .
$ 2 . 40 ? ? ? are you kidding ? ? ? ?
clayton