Message-ID: <19811706.1075845303873.JavaMail.evans@thyme> Date: Thu, 17 May 2001 20:52:58 -0700 (PDT) From: 40enron@enron.com Subject: EnTouch Newsletter Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: ENA Public Relations@ENRON X-To: All_ENA_EGM_EIM@ENRON X-cc: X-bcc: X-Folder: \Shively, Hunter S.\Shively, Hunter S.\Deleted Items X-Origin: SHIVELY-H X-FileName: Shively, Hunter S..pst BUSINESS HIGHLIGHTS Enron Industrial Markets Enron Industrial Markets announced the signing of definitive agreements with Huntco, Inc. under which over a 15-year period Enron will provide inventory price risk management services and will eventually provide more than 600,000 tons per year of hot-rolled, cold-rolled and galvanized steel products to Huntco Steel. The agreements provide Enron access to Huntco's network of steel distribution centers nationwide. The agreements also provide for Enron's acquisition of Huntco's cold rolling and certain coil pickling operations in Blytheville, Arkansas. These transactions with Huntco have the potential to fundamentally change the way steel is bought and sold in the United States. It gives Enron immediate access to physical steel and positions Enron geographically to serve the steel industry in a variety of ways. In addition to providing physical products on both a spot and term basis, EIM's goals for the steel industry include developing commodity risk management products, providing structured finance products and establishing the market-making capabilities that Enron has brought to the natural gas, power and other commodity markets. Enron North America-Upstream Products Upstream Products has partnered with Duke Energy Field Services (DEFS) to close a 20-year NGL exchange and transportation deal with Formosa Hydrocarbons and Williams Energy Field Services to handle raw make product from the Williams Markham plant. Formosa Hydrocarbons is building a 40,000 BPD fractionator to handle this and other Gulf Coast NGL production. The accompanying pipeline will be known as the Seabreeze pipeline system and will be constructed by DEFS. Texas Brine LLC will provide NGL storage services for Formosa Hydrocarbons on this system. Primary production for this system is coming from the Boomvang Nansen field in the deepwater GOM and will be the first deepwater GOM production to come onshore in Texas. Upstream Products has also worked to arrange a 20-year transportation lease agreement on the Dean Pipeline (owned by TEPPCO) for refinery grade propylene service to be utilized by Formosa Plastics. Coupled with this transaction, Enron Clean Fuels has entered into a propylene storage agreement with Formosa Plastics to utilize ECF's Mt. Belvieu storage facilities. In addition, Enron Global Markets has been able to amend its current transportation agreement with TEPPCO to prematurely terminate a take-or-pay obligation and realize additional transportation revenues from interim NGL production coming from the Williams Markham to be delivered to Mt. Belvieu. Upon close, Upstream Products was monetized out of its initial position by DEFS and retained a risk-free net profits position on the Seabreeze Pipeline going forward for an additional 20,000-40,000 BPD of excess capacity on the system. ENA West Power Southwest Power, an ENA affiliate, signed a 222MW 15-year tolling agreement with Allegheny Energy Supply for all of the output of Southwest's Las Vegas expansion project, scheduled for completion in September, 2002. With the tolling agreement done and construction underway, the project will now be marketed to qualified generators. IN THE NEWS "To truly understand Enron's Jeffrey Skilling - the hypersmart, hyperconfident chief executive of what may now be the largest energy trading company on the planet - head to your local video store and check out that classic American cinema, Wayne's World. At 15, Skilling helped launch a no-budget television station in Aurora, Illinois - the very thing that Mike Myers and Dana Carvey so famously spoofed on Saturday Night Live and in two movies. The TV skit even begins with a sketch of a teenage cameraman, the role of the real-life Skilling." --- Randall Lane, Worth Magazine. May 2001. Calgary, Alberta -- Enron Canada has settled its lawsuit with NGX, Canadian Enerdata, OM Gruppen and Richard Zarzeczny, regarding the compilation and methodology for calculating the Alberta natural gas price indices published by the Canadian Gas Price Reporter. By the terms of the settlement there will be a joint press release issued regarding the settlement, which is to be the only public communication regarding the matter unless agreed to by all parties. Otherwise the settlement is confidential to the parties. Accordingly, there is to be no formal or informal discussion with media, colleagues, competitors, counterparties or otherwise. WELCOME New Hires EGM - Salil Pradhan, Randy O'Conner, Ricardo Charvel, Greg Fields, Ken Newman, John Ashman, Rick Cantrell, Tim Klaiber, Trevor Woods, EIM - Tim Asterman, Maxine Leclaire, Jerry Newton, Philip Siewert, Janamon Johnson, Darralyn Briskey, Theodore Rogers, ENA - Rae Meadows, Tiffany Winship, Adrianne Engler, Kimberly Yates, Jackie Verity, Transfers (to or within) ENA -Christa Winfrey, Mario Alonso, Paul Rizo-Patron, Nick Ploitis, Misti Day, Robert Cothran, Susan Wilson, Diane Cutsforth, David Owen EGM - Mark Friedman, John Groves, Deirdre McCaffrey, William Windle EnronOnline Statistics Below are the latest figures for EnronOnline as of May 9, 2001. * Total Life to Date Transactions > 963,575 * Life to Date Notional Value of Transactions > $579 billion NUGGETS & NOTES Reminder: Brown Bag Lunch, Thursday, May 17 at 11:30 AM in 5 C2. The speaker is Michael L. Miller discussing Principal Investments. "Historically, Newsprint has been sold under strong relationships as a highly differentiated, branded product to "very discriminating" buyers at newspaper publishers. EIM believed differently. By the end of March, EIM had succeeded in closing on its 2nd Newsprint mill, making it the 7th largest Newsprint manufacturer in North America. Remarkably, in just 2 months, EIM's Newsprint team has succeeded in closing $100MM total notional value "Enron commodity style" fixed price contracts with terms of 1 to 5 years?..and they said it wasn't a commodity." Rodney Malcolm - Vice President, Forest Products Sales and Marketing Travel Tip of the Week: Book flights 7 days in advance. The cost savings can be considerable if you plan ahead - at least 7 days. For example: Houston to Portland Less than 7 days: $ 1,652 7 day advance ticketing $ 324 Congratulations to Kimberly and Eric Thode, director of ENA Public Relations. They are the proud parents of Whitney Marie, born on May 3. She weighed 8 lbs. 8 oz. Congratulations to proud parents Nettelton and Louise Kitchen, COO, Enron Americas. Their son, Scott William, was born on May 9 and weighed 9 lbs.1 oz. NEWS FROM THE GLOBAL FLASH Enron closes major coal deal in Germany After almost six months of negotiations, Enron's coal team has signed a contract with Stadtwerke Bremen to supply this major German municipality with coal until 2006. Under the deal structure, Enron will deliver a total of 4.6 million tonnes of coal - equivalent to an overall contract volume of almost $200 million (DM 440 million). The agreement represents Enron's first significant long-term coal supply deal in Germany. The annual contractual volume amounts to around 3% of total German coal imports and provides us with continuous volume flow in Northern Germany, enabling us to grow our position in the market. Parallel to this deal, Enron also entered into a separate agreement with HMS Bergbau Agentur, a company specialising in Polish exports. Under this agreement, HMS will be the handling agent and a potential supplier of Polish coal to us over the lifetime of the contract. Congratulations to the whole team involved: Sven Becker, Manfred Ungethum, Cornelia Luptowitsch, Peter Bradley, Jez Peters and Michael Schuh. LEGAL STUFF The information contained in this newsletter is confidential and proprietary to Enron Corp. and its subsidiaries. It is intended for internal use only and should not be disclosed.