Message-ID: <19561245.1075840899955.JavaMail.evans@thyme>
Date: Thu, 21 Jun 2001 21:58:00 -0700 (PDT)
From: scott.josey@enron.com
To: louise.kitchen@enron.com
Subject: RE: Balance Sheet Review
Cc: c.thompson@enron.com, jesus.melendrez@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: quoted-printable
Bcc: c.thompson@enron.com, jesus.melendrez@enron.com
X-From: Scott Josey <Scott Josey/ENRON@enronXgate@ENRON>
X-To: Louise Kitchen <Louise Kitchen/HOU/ECT@ECT>
X-cc: C John Thompson <C John Thompson/ENRON@enronXgate>, Jesus Melendrez <Jesus Melendrez/ENRON@enronXgate>
X-bcc: 
X-Folder: \ExMerge - Kitchen, Louise\'Americas\Regulatory
X-Origin: KITCHEN-L
X-FileName: louise kitchen 2-7-02.pst

Louise,

A detailed discussion of all of the assets currently under management by EC=
R is being prepared by Jesus Melendrez and is near completion. I am meeting=
 with Pam Becton in the morning to review the various off balance sheet veh=
icles.  The assets that are in active divestiture process are CGAS and Juni=
per.  An agent has been engaged for the Juniper assets.  We are in discussi=
on with a group on CGAS.  We expect both of these transactions to close by =
year end but hopefully in the 3rd quarter.  The Preston I & II VPPs were sy=
ndicated into Brazos in December '00 and January '01, respectively.  The Cr=
escendo ($7.5 MM) VPP was syndicated into Brazos in December '00.  The rema=
inder of the Crescendo VPPs should be moved into Brazos by year end or 1Q'0=
2 once a second VPP transaction occurs.  The KCS VPP ($159 MM) is set to cl=
ose and fund no later than 6/27 according to Tim Proffitt. Hanson is an acc=
rual and may be sold by year end if no other drilling occurs. Ameritex, Cyp=
ress, Sam Gary/Bonne Terre, Vastar, Texland are assets that are still in de=
velopment. Crescendo, Westwin, Nutech and Preston Equity are recent transac=
tions (< 1yr old).  Several options are being reviewed on Mariner - (i) sal=
e or merger with another company, (ii) IPO, provided Enron gets its debt re=
paid and 75% of its equity sold at an enterprise valuation of $500 MM or gr=
eater (the MEGS pipeline asset would be included in this option), or (iii) =
continue to develop the asset.  We will make our recommendation on Mariner =
once Allan Keel completes his analysis.

I recognize that this explanation is brief.  Let me know if you need additi=
onal information or would like to meet to discuss further. =20

Scott  =20
 -----Original Message-----
From: =09Kitchen, Louise =20
Sent:=09Thursday, June 21, 2001 9:08 AM
To:=09Josey, Scott
Subject:=09Balance Sheet Review

I am trying to get a grip on the projected balance sheet (including any off=
 balance sheet items  JEDI, Trutta, Condor, Hawaii) for end of year.

You have the following on the balance sheet - which ones are you working on=
 removing?

Those I am looking at are:-

=09 Ameritex  =09=09$4.4
=09Crescendo=09 =09  3.2
=09Crescendo=09   =09450,00 =20
Crescendo=09    =096.0
=09Crescendo VVP    =09200,000
=09Crescendo VVP   =09 500,000
=09Cypress=09    =0921.7
=09Cypress=09   =09 4.8
=09Hanson=09=09  =09  1.7
=09Hanson=09=09     =09400,000
=09Juniper=09=09     =098.6
=09Juniper=09=09     =0912.9
=09KCS VPP=09     =09159.0
=09Mariner=09=09     =09130.0
=09Mariner=09Common=09363.0
=09Mariner Warrants=0924.5
=09McGarett K/CGAS=0930.0
=09Nutech Energy=09=094.2
=09Preston I Equity=09=09569,000
=09Preston II Equity=09=09350,000
=09Sam Gary/Bonne Terre=097.2
=09Sam Gary/Bonne Terre=094.7
=09Sam Gary/Bonne Terre=09209,000
=09Texland(R)=09=095.7
=09Texland(R)=09=093.8
=09Vastar(R)=09=09980,000
=09Westwin Energy=095.0
=09Westwin Energy=092.5
=09Crescendo VPP=097.5
=09Preston I VPP=09=0936.7
=09Preston II VPP=09=0922.8
=09Crescendo VPP=09500,000