Message-ID: <20622710.1075852693023.JavaMail.evans@thyme>
Date: Tue, 9 Oct 2001 11:34:38 -0700 (PDT)
From: caroline.abramo@enron.com
To: john.arnold@enron.com
Subject: RE: Ospraie swaption
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thanks again.. seems like swaptions always get messed up - according to fred (and gas dailies according to me).. will figure out a better procedure.. how we (marketers) can keep track of process and prevent errors... to me its a just lost $ to enron....we are all responsible. 
 
on the eog confo call now...
think prices bottom in 4Q.. looking to lift hedges.  see recovery in CY02 
4Q- 40-50% hedged now; CY02- 20%...
 
on shut ins- rigs went from51 to current 41.. look for it to be 35
 
company very healthy.. organic growth.. reduced debt / equity from 55%- when they split from ENE (which was second worst in peer group) to 29% now which is best.
 
will continue to buy back shares.

-----Original Message-----
From: Arnold, John 
Sent: Monday, October 08, 2001 7:47 PM
To: Abramo, Caroline
Subject: RE: Ospraie swaption


sounds like it's clean from your side.   I HATE SWAPTIONS!!

-----Original Message-----
From: Abramo, Caroline 
Sent: Sunday, October 07, 2001 11:36 PM
To: Arnold, John
Cc: Dyk, Russell; Zivic, Robyn
Subject: FW: Ospraie swaption


hi.. just so you know exactly what happened here..

ospraie sold us a 4.70 swaption.. exercisable into a swap.. expiry 3/27/01.. 5/month cal02 
on 3/27/01.. market close is 4.78.. 
we called Mike Maggi.. asked if he was exercising swap.. yes, he was 
we asked if we had to do anything in the system.... no was the reply. 
we call ospraie.. tell them we exercised the swap. 
reconciling position report with ospraie for the hundreth time this month.. notice we are out 5/month on swaps... we had not previously been pulling deals from the system... just going by deal tickets. 
we go through system for a week.. can not find deal.. that is where we are now. 
deal needs to be found or recreated.

 
if you have some time (or if you like slow torture).. read my other note.. 
better news coming.. promise.

 
 

-----Original Message----- 
From: Abramo, Caroline 
Sent: Sun 10/7/2001 9:32 AM 
To: Bailey, Derek; Nelson, Michelle 
Cc: Dyk, Russell; Zivic, Robyn 
Subject: Ospraie swaption


Errol- A swap between Enron and Tudor for Cal02 at 4.70 must be booked as soon as we figure out that there is no possibility it is in the system.
 
Derek/Michelle- this deal not being included in the system should be throwing off Ospraie's MTM.  This swap is at 4.70.. they are short 60 contracts..currently Cal02 is around $3.. which should result in $1M more positive P&L for Ospraie and $1M less for us.  
 
This must be settled first thing Monday.
Caroline