|
|
Enron Mail |
Melissa,
As you know, as of Jan 01, 2000 the Wellhead Portfolio has been segregated from the rest of HPLC's Physical Portfolio. As a result of this segregation, it has become much easier to analyze and manipulate this data so that monthly "accrual value" can be determined. This analysis has resulted in the realization that the Wellhead Potfolio creates approximately $275,000 of accrual value per month. The main drivers of this accrual value are deals that have rolled into evergreen status, accrual term deals, actual volumes greater than booked, half cent bid to mid spread, incorrect markings, and value withheld from MTM because of accrual costs. Of the above, Greg Sharp will receive value associated with evergreen/accrual deals, actual volumes greater than or less than booked, and deals incorrectly marked. Tom will keep value associated with his half cent bid to mid and accrual value needed to pay accrual costs (such as gas quality issues). The breakout of this value has been on average 60% to Greg and 40% to Tom. The following is a breakdown of 1st quarter accrual value. January- Total Accrual Value = $266,504 Greg's Value Tom's Value Evergreen Value = $140,750 Bid to Mid = $105,000 Accrual Value = $53,000 Accrual Costs = $13,000 Actual Volumes<Booked = $60,000 $118,000 Incorrect Marking = ($105,000) Total Value = $148,750 February- Total Accrual Value = $289,305 Greg's Value Tom's Value Evergreen Value = $145,000 Bid to Mid = $100,000 Accrual Value = $62,000 Accrual Costs = $13,000 Actual Volumes<Booked = $65,000 $113,000 Incorrect Marking = ($95,000) Total Value = $177,000 March - Total Accrual Value = $292,145 Greg's Value Tom's Value Evergreen Value = $147,000 Bid to Mid = $106,000 Accrual Value = $59,000 Accrual Costs = $13,000 Actual Volumes<Booked = $66,000 $119,000 Incorrect Marking = ($100,000) Total Value = $172,000 Let me know if you have any questions. Eric Enron North America Corp. From: Eric Bass 04/07/2000 02:00 PM To: Melissa Graves/HOU/ECT@ECT cc: Subject: Re: Wellhead Accrual Income Melissa, Here are the accrual values for Q1. More details to follow. Jan - $266,504 Feb- $289,305 Mar - $292,145 Eric Enron North America Corp. From: Melissa Graves 04/07/2000 01:51 PM To: Eric Bass/HOU/ECT@ECT cc: George Weissman/HOU/ECT@ECT, Gregory L Sharp/HOU/ECT@ECT Subject: Wellhead Accrual Income Eric, Per Greg Sharp, he and Tom Martin discussed the Wellhead Accrual Income numbers today, and Effective Q1 2000, Greg will begin recognizing this accrual income in his financials. It is my understanding that the new Wellhead Portfolio in Sitara assists you in calculating this monthly number (which is estimated at $170,000 per month). Could you please provide the detail behind this calculation, or if this data is pulled directly from Sitara, George and I could meet with you to become familiar with this data extraction process. Thank you, Melissa X39173
|