QUESTION: Send to your favorite counterparty. Enron Receives Dynegy $1.5B Cash Infusion Tues. >DYN ENE By Christina Cheddar 11/14/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Dynegy Inc. (DYN) provided Enron Corp. (ENE) Tuesday with the $1.5 billion cash infusion envisioned in the companies' merger agreement, a Dynegy spokeswoman said. Dynegy received preferred stock and other rights in an Enron unit that owns the Northern Natural Gas pipeline in return for its investment. The cash infusion, which was made with the assistance of Dynegy's largest shareholder, ChevronTexaco Corp. (CVX), is aimed at providing Enron with additional cash liquidity to support its core energy marketing and trading operations. The rights provide Dynegy with the option to acquire the pipeline unit should the two companies fail to complete their merger. The deal, which still needs shareholder and regulatory approval, is expected to close within the next six to nine months. Dynegy is acquiring Enron for 0.2685 of a Dynegy share, or about $10 billion based on the recent price of Dynegy shares. The acquisition of Enron by its smaller rival follows a series of disclosures about Enron's financial dealings with partnerships run by some of its corporate officers. The dealings are under investigation by the Securities and Exchange Commission and at the center of more than a dozen of shareholder lawsuits. During the last month, Enron watched as its share price sunk to a small fraction of its earlier levels as shareholder confidence in the trading company evaporated. As credit-rating agencies began to cut Enron's debt ratings threatening the company's investment-grade status, the company scrambled to raise additional cash to shore up its balance sheet and protect confidence in its business. Industry experts viewed Dynegy's cash infusion as one way the companies sought to bolster confidence in the energy trader's liquidity, and protect its most valuable business. In a conference call earlier Wednesday, Enron said its core energy trading business has been temporarily hurt by the uncertainty created by recent events. According to Dynegy spokeswoman Jennifer Rosser, the preferred stock Dynegy has received for its investment in Enron is convertible into the common stock of the Enron pipeline unit. Dynegy also has the right to convert the preferred stock into Enron shares if it desires, the spokeswoman said. For example, if Enron were to cancel its merger with Dynegy in order to accept a higher bid from another suitor, Dynegy might decide to convert its preferred shares into Enron stock in order to reap the profits created by an increase in Enron's stock price, Rosser said. In either case, Dynegy wouldn't be required to pay any additional consideration. Dynegy was able to make the cash infusion after ChevronTexaco, of San Francisco, made an investment in Dynegy. If the acquisition closes as anticipated, ChevronTexaco, which owns about one-fourth of Dynegy, plans to make an additional $1 billion investment in the combined company. ChevronTexaco also has the right to purchase an additional $1.5 billion in Dynegy stock in the first three years following the close of the acquisition. Enron officials said they are monitoring the energy market's reaction to the cash infusion, and hopes it will restore the confidence of its counterparties. Enron remains on a credit watch at the credit-rating agencies. Moody's Investors Service and Standard & Poor's each have Enron rated one notch above speculative grade.
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ANS: Enron Receives Dynegy $1.5B Cash Infusion Tues. >DYN ENE
Hello Susan - This is Bobby here at Enron. I work in retail power in EES. We met ages ago here in Houston. I started working here at Enron a month ago. I work on 6 but make it to 31 and 32 from time to time to talk to people there. Hope things are good on your end. Bobby ps. If you see Joel Bennett around, tell him I said hi. (I can't remember which floor he's on.)
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answer: hello susan
Sally - We would like to begin tracking & measuring volumes transacted and settled in the retail business - by commodity. Can we discuss how to get our arms around this and when we can begin to see weekly, monthly, quarterly data? Thanks - Dan
Answer: Retail Business Commodity Volumes
Here is an email: Ina could not get us into the new building tomorrow, so we will not get together after work. We will plan on going out as a group after we move over. Mike
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A: We will not be going out with Tych's group
Q: The current schedule is : Oct : Kam (I forgot what topic you were going to do) Nov : John - a revisit of OA (this time with a working overhead) Dec : skip - I suggest we skip Dec since there will be quite a few vacations taken, holidays, etc. For the other topics, why don't you decide among yourselves, who is going to do what and when. Please just let me know so that I can be sure we have things scheduled for Jan going forward. Let me know if you have questions. Greg
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A: Brown Bag schedule
Here is an email: "Depillo, Raymond V." <Raymond.Depillo@pseg.com> writes to the NYISO_TECH_EXCHANGE Discussion List: A quick question on operations. First, thank you to the ISO for updating the HAM prices. Second - I have a question regarding dispatch. I notice now that HAM prices in NY City are in excess of $1,000. Which to me, given a bid cap, implies that everything capable of running will be dispatched. Yet, when I look at the dispatcher notices, I see that both the Gowanus and Astoria CT blocks are running out of merit for the ISO (note - not local security). How can this be - certainly the HAM prices indicate these units should be running for economics and setting price. I hope we are not going to see the cost of these units in our uplift charges. I look forward to a response from the ISO Ray
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Real - Time operations