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Enron Mail |
Hunter
Did you know that the Extrinsic value of the Northern Border Trasport from Ventura to Chicago has increase from 4.7 Million to 7 Million over two months. Lavo -----Original Message----- From: Sullivan, Colleen Sent: Tuesday, February 13, 2001 10:32 AM To: Keavey, Peter; Cuilla, Martin; Holst, Keith; Allen, Phillip; Shively, Hunter; Neal, Scott Cc: Lavorato, John Subject: EXTRINSIC VALUE WORKSHEET John Lavorato expressed concern last week that we may be falling into the same trap again regarding the extrinsic value in our transportation books. I prepared a spreadsheet summarizing the EXTRINSIC VALUE ONLY (in total and $/MMBtu) that were in each of the books as of 12/5/00, 1/2/01 and 2/1/01. Hopefully this will provide you with the information necessary to determine if this is, in fact, happening Please note the following facts:: CENTRAL: * The NB Ventura to Chicago capacity's extrinsic value has increased signficantly both in total dollars and in $/MMBtu. This may need review. * Note that, although the ANR & NGPL capacities to Consumers have decreased in total dollar extrinsic value, the $/MMBtu value is very high. This may need review. * The new capacity--NGPL Midcon to Chicago has an extremely high $/MMBtu value--$.2227/MMBtu. This may need review. WEST: * The West added two new deals--the extrinsic value is so minimal there is no impact here. * There were 3 capacity deals that, in December, had no extrinsic value--they have all increased in value but they appear to be properly valued now. * The PGT capacity was sold, obviously showing no extrinsic value any longer. * The EPNG Perm to Valero capacity decreased in value, both in total extrinsic dollars and $/MMBtu. EAST: * All capacity from Rayne to Leach decreased in total extrinsic dollar value, but the $/MMBtu increased on all except the longest term Rayne to Leach deal. * All capacity from Onshore to Rayne increased in total dollar value, both in total and $/MMBtu. The net impact of these two changes was a net increase of approximately $267,000, but $/MMBtu mostly saw net increases. * A new transaction on Tennessee accounted for the other $266,000 in extrinsic dollar value increase. Here is your attachment: If you have any questions, please advise.
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