Message-ID: <24269989.1075845078249.JavaMail.evans@thyme> Date: Wed, 2 May 2001 11:00:06 -0700 (PDT) From: bob.m.hall@enron.com To: sally.beck@enron.com Subject: Enron in the News: Enron Producer Services Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: bob.m.hall@enron.com@ENRON X-To: Beck, Sally , <"leslie.reeves@enron.com:beth.apollo"@enron.com> > X-cc: X-bcc: X-Folder: \Beck, Sally\Beck, Sally\Inbox X-Origin: BECK-S X-FileName: Beck, Sally.pst this is interesting ------------------------------------------------------------------- E-mailed by: Dow Jones Interactive (R) Server Software Folder: Enron in the News ------------------------------------------------------------------- Headlines: Enron Producer Services ------------------------------------------------------------------- Enron Producer Services Apr. 1, 2001 Oil & Gas Investor Page 12 Copyright (c) 2001 Bell & Howell Information and Learning Company. All rights reserved. Copyright Hart Publications, Inc. Apr 2001 Enron, the country's largest marketer of natural gas and a business partner of independent producers since 1985, is expanding its services to a complete menu that will help producers more efficiently manage their entire business. Thanks in part to technical advances such as wellhead measurements that are more accurate than ever and strategic partnerships with application service providers (ASPs), Enron Producer Services can now deliver any technical or back-office service necessary for natural gas production and accounting. From its traditional menu of transportation, gas treating and processing, risk management and financing options to asset, risk and capital management, and now a full complement of information-technology and backoffice services, Enron Producer Services can deliver any service a producer needs to focus on managing the growth of a competitive and profitable business. For the first time, Enron enables producers to choose any service, from pipeline connection to royalty payments-to begin and end at the wellhead in one seamless transaction. APPLICATION SERVICE PROVIDERS Enron Producer Services helps producers reduce overhead costs by eliminating the need to maintain administration, accounting and information-technology staffs. Enron can supply the trained personnel, equipment and facilities to perform administration, accounting and financing duties such as E&P accounting, joint venture accounting, revenue accounting, financial transaction processing, expenditure authorizations, tax payments, regulatory filing, royalty payments and full production accounting. Outsourcing such back-office responsibilities to Enron and its strategic partners will result in higher productivity, lower costs and improved customer relationship management. All financial information resides securely in one integrated system, yet the producer has no need to make a long-term investment in costly technology infrastructure or personnel-intensive backoffice services. Growing companies can thus focus on their core business while Enron ensures the producer has secure, real-time access to its financial data anytime and anywhere. Through its business partners, Enron Producer Services can supply all forms of state-of-the-art industry hardware, software, services and highly trained technical professionals. Bob Tretiak, chief executive officer and president of Applied Terravision Systems, one of the business partners, says, "The business relationship between Enron and ATS will facilitate a dramatic change in the production operations of an upstream petroleum company by providing new operating efficiencies, flexibility and other significant benefits-thus allowing a company to focus on its core competencies." Enron has the ability to provide producers with crucially accurate, real-time information about the quality, quantity, composition, destination and ownership of the natural gas they recover. Enron guarantees realtime and accurate data delivery, thus enabling producers to make the decisions that will directly lead their business to achieve its full potential. For example, a business partner with Enron Producer Services, Hanover Measurement Services, uses leading-edge technology to electronically meter and monitor natural gas production of large and small wellheads at thousands of facilities on a 24-hour basis. With such accurate and real-time information, producers can manage their day-to-day operations more efficiently than ever before. For one Houston-based organization that owns more than 5,000 miles of pipeline and transports approximately 2.5 billion cubic feet of gas per day, Hanover reduced lost and unaccounted-for gas to 0%-a significant eight-- figure savings for calendar year 2000. Hanover is also developing an Internet-based system to provide secure, real-time management and transmission of gas measurement information-offering accurate energy measurement and the reliable transmission of that information tailored to meet each customer's specific needs. The system allows Enron Producer Services to capitalize on economies of scale and offer the most cost-effective measurement services to the industry. BUILDING THE FUTURE Enron Producer Services also has the experience and expertise to provide all the commodity risk management services that producers need to stabilize their cash flow and earnings. Using a custom, strategic combination of caps, floors, swaps, collars and other risk-management tools from Enron, producers can reduce their company's exposure to volatile prices, enhance shareholder value and thereby attract more investors and lenders. Enron has the capital resources, the infrastructure and the desire to help producers maximize business potential and exceed their goals. It can customize a menu of its value-- added services and pricing plans to suit any producer's needs, thereby reducing overhead and streamlining back-office tasks so producers can concentrate on building their core business. Enron Producer Services will partner with producers to help efficiently manage their day-today operations and back-office infrastructure, thus allowing them to attain their long-- term goals for business growth, profitability and competitive success. Working with Enron Producer Services has several immediate benefits: it eliminates overhead, it provides accurate, real-time information and measurements on a daily, not a monthly, basis, positioning their production to be responsive to the hourly transactions demanded by the power market. It further capitalizes a producer's operations-both technologically and financially-to afford the company better business decisions. In this way, Enron is helping producers to reap greater benefits from their commodity, effectively leverage their core capabilities, gain efficiencies, find opportunities, and therefore profitably respond to an increasingly complex and competitive natural gas market. The Enron Producer Services team represents an experience level in wellhead transactions of more than 35 years for Enron. No other company has combined the physical commodity with the technology, resulting in a wellhead-to-burnertip transaction with no further distributions necessary when producers receive their production payment. This powerful combination of the physical and the technical creates an immediate impact on the producer's bottom line, today and for the future. Enron has created the Wellhead Desk to help customers manage their physical commodity. The service is a comprehensive suite of products inclusive of nominations, scheduling and balancing. The Wellhead Desk is capable of managing all of a producer's commodity needs, ranging from logistics to physical risk mitigation strategies. Customers will interact directly with the Wellhead Desk and it will act as an account manager for customers. Enron will interface with various internal business units to maximize value for producers. "In this time of capital constraint, Enron offers a convenient one-stop shop for the producer community allowing them to focus on their core competency-developing reserves. The value extracted from developed reserves can be maximized when associated company infrastructure costs (i.e., accounting, scheduling, marketing, etc.) can be minimized," says jean Mrha Beach, vice president, Enron Upstream Products. Whether the producer is large or small, Enron can provide a fee-based service on request, which will be both affordable on a cost basis and profitable on an earnings basis. In the mind of Enron Producer Services, the producer truly is No. 1. For more information about Enron Producer Services, contact: Linda Roberts - 713-3454972 Midcontinent/Permian Basin linda.roberts@enron.co m Jill Zivley - 713-853-1791 Texas and Gulf Coast onshore jill.t.zivley@enron.co m Gary Bryan - 713-853-6784 Gulf Coast and Gulf of Mexico gary.bryan@enron.com Eric Le Dain - 403-974-6741 Canada eric.ledain@enron.com Mark Whitt - 303-575-6473 Rocky Mountain mark.whitt@enron.com --- What Enron Delivers Enron Producer Services is the complete resource for any service a producer needs to be successful. * Commodity Management Services: Purchasing, Transport, Marketing, Market Analysis, Risk Management, Gathering, Reservoir Analysis, Scheduling * Asset Management Services: (Onshore and Offshore): Well Connections, Measurement, Production Facilities, Compression Services, Treating and Processing, Gathering Systems. * Financing Services: Capitalization (Equity Injection, Debt Capitalization, Mezzanine Financing), Volumetric Production Payments, Asset Financing, Capital or Operating Lease Structures, Financial Engineering, Advisory Services, Cash Flow Management via Risk Management Products. * Process Enhancement Services: Fee-Based Back-Office Services (Financial Accounting, Royalty Payments, Regulatory Filings, Working Interest Allocations, Nominations and Balancing, Confirmations), Physical and Financial Transaction Processing, Technological Resources (Hardware Support and Upgrades, Software Development, Software Support and Upgrades). * Bundled Services: Accounting, Asset and Commodity Management, Enron Trading/Risk Management Portfolio OGI0111800029 To view all headlines in the folder Enron in the News, go to http://enehou-dj01.corp.enron.com/browsearticles.asp?folderid=8 To go to the front page of Dow Jones Interactive Intranet Toolkit Server Software, go to http://enehou-dj01.corp.enron.com/ ------------------------------------------------------------------- For assistance, contact Dow Jones Customer Service by e-mail at djip.itkhelp@dowjones.com or by phone at 800-369-7466. 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