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Enron Mail |
Enron's Lay on Speculation on Cabinet Post: Comment (Correct)
12/13/0 14:49 (New York) (Corrects spelling of Cheney in fifth paragraph.) Houston, Dec. 13 (Bloomberg) -- Following are comments from Enron Corp. Chairman and Chief Executive Kenneth Lay on speculation he may be appointed to George W. Bush's Cabinet. Enron said today Jeffrey Skilling, the company's president and chief operating officer, will take over from Lay as chief executive in February. Lay said he will remain chairman. On going to Washington: ``It's flattering to be rumored about. That's all those are are rumors. I plan to stay at Enron. I plan to stay in Houston.'' He said the appointment of his successor coincidently occurred at around the same time the U.S. Supreme Court issued the ruling that likely will pave the way for a Bush administration. ``I'm a strong supporter of President-elect Bush and Vice President-elect Cheney, and I hope that we can start to call them that. They are both good friends, and I have been a very strong supporter for a very long time. I hope to continue to support them as much as I can -- from Houston.'' --By Margot Habiby in Dallas, (214) 673-3834, or mhabiby@bloomberg.net, through the Princeton newsroom (609) 279-4000/pjm Story illustration: To compare Enron's share price and earnings history with competitors, see {ENE US <Equity< RV <Go<}. Company news: ENE US <Equity< CN Enron's Lay and Skilling: Lay's Plan to Leave CEO Post 12/13/0 14:59 (New York) Houston, Dec. 13, 2000 (Bloomberg) -- Kenneth Lay (left), chairman and chief executive of Enron Corp. and Jeffrey Skilling, chief operating officer, talk with Bloomberg's Suzy Assaad via satellite about Lay's decision to leave his post as CEO of the world's largest energy trader and Skilling's role as his replacement. Skilling will succeed Lay on Feb. 12 and Lay will remain chairman. 01:41 Lay: the possibility that Lay will assist Governor Bush 00:44 Lay discusses his decision to leave his CEO post. 01:23 Skilling: the energy-trading market and business focus 01:02 Skilling and Lay discuss the outlook for gas prices. For company information see ENE US <Equity< CN, BQ. For related news see the following NI codes: WNEWS, GOV, POL, ELECT, EXE, COS, CMD, NRG, OIL, GAS, OIE, PIP, UTI, US, TX, DC. For more on the Bloomberg Forum see BFM. For more Bloomberg Multimedia reports see AV. -- Bloomberg Multimedia (609) 279-4455 (TZ/SB) Running time 4:50. -0- (BN ) Dec/13/2000 19:59 GMT Enron Names Skilling CEO, Says Lay to Remain Chairman (Update5) 12/13/0 14:53 (New York) Enron Names Skilling CEO, Says Lay to Remain Chairman (Update5) (Adds Rebecca Mark's departure from Enron in ninth to 10th paragraphs.) Houston, Dec. 13 (Bloomberg) -- Enron Corp. named as chief executive officer its President Jeffrey Skilling, who helped make the Houston-based natural-gas pipeline company into the largest competitor in the growing energy-trading business. Skilling, 47, succeeds Ken Lay as chief executive. Lay, 58, said he will remain as chairman, a position he has held since February 1986, and has no plans to serve in the presidential administration of Texas Governor George W. Bush, as some news reports suggested. Enron's revenue will more than double this year, possibly topping $90 billion, largely because of Lay's and Skilling's efforts to exploit deregulation of U.S. natural gas and power markets, analysts and investors say. Enron has focused on arranging sales and purchases of energy for large buyers such as utilities and corporations. ``I'm glad to see that Ken Lay had the presence of mind to allow Jeff, who's really been running the show for a couple of years anyway, to go ahead and take over,'' said Donato Eassey, a Merrill Lynch analyst. ``Jeff has worked hard to position this company to be an energy exploiter in an era of new technology.'' Skilling joined Enron in 1990 after leading McKinsey & Co.'s energy and chemical consulting practices. He became Enron's president and chief operating officer in 1996. He will keep those posts after becoming chief executive. Stock Soars Enron shares fell $1.69 to $75.50 in midafternoon trading. The stock has doubled in the last 12 months as Enron's energy trading strategies continued to pay off. The company's earnings have risen by more than 30 percent in each of the last four quarters. ``The best time for the succession to occur is when the company is doing well,'' said Lay, who said revenue could top $90 billion this year, up from about $40 billion in 1999. ``Enron is doing extremely well now.'' Skilling's biggest competitor for the CEO's spot was Rebecca Mark, who helped Enron expand outside the U.S. and led the company's efforts to build a global water company. In August, Mark, one of the highest-ranking women in U.S. business, resigned from Enron's board and quit as chairman and chief executive of Azurix Corp., a water company formed by Enron two years ago. Azurix's performance never matched expectations, and its share price plunged, preventing the company from using its stock for acquisitions as the company had originally planned. Mark and another high-ranking Enron executive, Vice Chairman Joseph Sutton, focused on buying or building large projects such as power plants while Skilling moved the company to focus on trading, a business that requires far fewer assets. Sutton resigned in October as Skilling's strategy won out. Big Profits Record-high natural gas prices and Enron's move to switch its electricity, gas, oil and commodities trading business onto the Internet have helped boost earnings and revenue. In November 1999, the company opened EnronOnline, an Internet site where buyers and sellers of commodities can conduct business with Enron. The site handled $280 billion in transactions in its first year, and now manages $2.4 billion in trades each day. Enron sells everything from paper pulp to space on fiber-optic telecommunications networks on the site. Skilling ``has been driving the evolution of this company from an asset-based pipeline company to something no other company in the world is,'' said David Fleischer, a managing director of Goldman, Sachs & Co., which has put Enron on its list of top 30 stocks. ``It's a company that is now growing on its intellectual capital and providing products and services to energy companies.'' --Stacie Babula in the Princeton newsroom (609) 279-4013, or sservetah@Bloomberg.net, Margot Habiby in Dallas at (214) 673-3834 or at mhabiby@Bloomberg.net and Jim Kennett in Houston at (713) 335-5595/alp Story illustration: To compare Enron's stock performance to its industry group, see {ENE US <Equity< COMP <GO<}. Enron's Lay on Speculation on Cabinet Post: Comment (Correct) 12/13/0 14:49 (New York) (Corrects spelling of Cheney in fifth paragraph.) Houston, Dec. 13 (Bloomberg) -- Following are comments from Enron Corp. Chairman and Chief Executive Kenneth Lay on speculation he may be appointed to George W. Bush's Cabinet. Enron said today Jeffrey Skilling, the company's president and chief operating officer, will take over from Lay as chief executive in February. Lay said he will remain chairman. On going to Washington: ``It's flattering to be rumored about. That's all those are are rumors. I plan to stay at Enron. I plan to stay in Houston.'' He said the appointment of his successor coincidently occurred at around the same time the U.S. Supreme Court issued the ruling that likely will pave the way for a Bush administration. ``I'm a strong supporter of President-elect Bush and Vice President-elect Cheney, and I hope that we can start to call them that. They are both good friends, and I have been a very strong supporter for a very long time. I hope to continue to support them as much as I can -- from Houston.'' --By Margot Habiby in Dallas, (214) 673-3834, or mhabiby@bloomberg.net, through the Princeton newsroom (609) 279-4000/pjm Story illustration: To compare Enron's share price and earnings history with competitors, see {ENE US <Equity< RV <Go<}. Venezuela's PDVSA Plans $600 Mln Natural Gas Plant (Update1) 12/13/0 14:18 (New York) Venezuela's PDVSA Plans $600 Mln Natural Gas Plant (Update1) (Updates from seventh paragraph.) Caracas, Dec. 13 (Bloomberg) -- State oil company Petroleos de Venezuela SA said it plans to build a $600 million natural gas complex in the western part of the country, replacing several outdated facilities. Construction of the plant, which would produce liquid natural gas, is expected to start in mid-2001, with production slated for 2004, said PDVSA officials. The plant would be located in the western state of Zulia. ``We haven't decided whether to finance the project alone or through a joint venture,'' said Nelson Nava, director of development for PDVSA Gas, the company's natural gas unit. ``We will work out the program during the first quarter of 2001.'' PDVSA is betting that natural gas prices will remain high, ensuring a ready market for liquid natural gas and ethane. PDVSA, whose sole shareholder is the government, is planning to build a similar plant in the eastern part of the country as well. ``We've already started engineering work on the project,'' said PDVSA Vice President Domingo Marsicobetre. Venezuela, with about 147 trillion cubic feet in reserves, is counting on private companies to help develop its reserves and boost natural gas exports. Meanwhile, talks are continuing with Enron Corp. about a proposed $556 million natural gas liquefaction plant to be built in eastern Venezuela, said Nava. Under the existing proposal, PDVSA could take up to 25 percent stake in the plant. Negotiations between the two sides have been continuing for about a year. ``We're still in talks with Enron,'' but delays have arisen due to the government's tardiness in coming up with a pricing policy for natural gas exports, said Nava. An agreement is now expected in the first quarter, he said. The plant would produce 2 million metric tons a year of liquefied natural gas by 2004. The plant, planned for Jose in the eastern state of Anzoategui, is slated to export LNG to the U.S. Venezuela hopes to triple natural gas production and double proven reserves, already the world's seventh largest, in the coming years as demand for the commodity surges. Enron Names Skilling CEO, Says Lay to Remain Chairman (Update3) 12/13/0 11:9 (New York) Enron Names Skilling CEO, Says Lay to Remain Chairman (Update3) (Updates share price in last paragraph.) Houston, Dec. 13 (Bloomberg) -- Enron Corp., the world's largest energy trader, named President and Chief Operating Officer Jeffrey Skilling as chief executive, succeeding Kenneth Lay, who will remain chairman. Lay, 58, has been chairman and CEO since February 1986. The management changes will be effective Feb. 12. Lay backed Texas Governor George W. Bush's campaign for president, and was mentioned in the Houston Chronicle and in other news media as a possible appointee to Bush's Cabinet. Lay and Skilling both said today that Lay won't be joining the new administration. ``I am particularly happy that Ken and I will continue running the company together, and that he has put the rumors of his possible departure to Washington, D.C., to rest,'' Skilling said. Enron's stock has doubled in the last 12 months as Lay and Skilling's energy trading strategies continued to pay off. The company, which had 1999 revenue of $40 billion, could top $90 billion this year, Lay said. ``The best time for the succession to occur is when the company is doing well,'' Lay said in an interview. ``Enron is doing extremely well now.'' The company's revenue has surged, in part because of record- high natural gas prices and Enron's moving its electricity, gas, oil and commodities trading business onto the Internet. In November of last year, the company opened EnronOnline, an Internet site where buyers and sellers of commodities can conduct business with Enron. The site handled $280 billion in transactions in its first year, and now manages $2.4 billion in trades each day. Enron sells everything from paper pulp to space on fiber-optic telecommunications networks on the site. Lay transformed Houston-based Enron, once just a gas pipeline company, into an international power-plant and energy-project developer, and the leader in the growing business of arranging sales of electricity and other types of energy between large consumers. Skilling, 47, joined Enron in 1990 after leading McKinsey & Co.'s energy and chemical consulting practices. He became Enron's president and chief operating officer in 1996. Shares of Enron fell 81 cents to $76.38 in late morning trading. --Stacie Babula in the Princeton newsroom (609) 279-4013, or sservetah@Bloomberg.net and Margot Habiby in Dallas at (214) 673- 3834 or at mhabiby@Bloomberg.net/alp Story illustration: To compare Enron's stock performance to its industry group, see {ENE US <Equity< COMP <GO<}.
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