A look at the two companies that will emerge from the Chapter 11 bankruptcy reorganization of Enron Corp:
By Associated Press
Published February 21, 2004
CrossCountry Energy Corp.
Assets:
2,600-mile Transwestern Pipeline, which transports gas from West Texas, Oklahoma, eastern New Mexico, the San Juan Basin in northwestern New Mexico and southern Colorado to California, Arizona and Texas markets.
Half-ownership (with El Paso Corp.) of Citrus Corp., a holding company that owns the 5,000-mile Florida Gas Transmission pipeline from southeast Texas to Florida.
A less than 2 percent interest in Northern Border Partners, which transports natural gas from Canada to the Midwest.
Financial projections: Combined net income from its interests in those three assets in 2002 was $78.1-million, according to bankruptcy court filings. Future net income expected to be $121-million to $159-million in 2004-06.
Estimated worth of the assets: Ranges from $1.409-billion to $1.571-billion.
Employees: 1,200.
Management: Chief executive Stan Horton, 53. Horton began his career in 1973 as a staff economist for Florida Gas Transmission Co. A year later Kenneth Lay, Enron's founder and former chairman and CEO, joined Florida Gas as an executive in charge of new energy ventures.
By 1984 Lay was CEO of Houston Natural Gas, which bought Florida Gas and Transwestern Pipeline. Horton came to Houston in 1985 to run those pipelines when the merger of Houston Natural Gas and InterNorth in Omaha created Enron. He rose to CEO of Enron's pipeline group.
Horton, one of the few top Enron managers to continue working for the company after it went bankrupt in December 2001, has not surfaced as a target in various criminal and regulatory investigations. He is named as a defendant in shareholder lawsuits seeking recompense from executives who pocketed millions from stock sales, high salaries and bonuses.
Assets: More than 9,600 miles of natural gas transmission and distribution pipelines, 56,000 miles of electric transmission and distribution lines, and 2,100 megawatts of electric generating capacity located in 14 countries. 6.5-million LPG (liquefied petroleum gas), gas and electricity customers. Assets can be grouped in three business segments:
Natural gas services
Nine city gas distribution companies in South Korea providing service to more than 2-million customers.
LPG distribution businesses in Venezuela and South Korea providing service directly or through distributors to 2.2-million customers.
Six separate transportation businesses in South America putting out 3.2-billion cubic feet per day of natural gas over 6,000 miles of pipelines.
Natural gas liquids extraction, fractionization, refrigeration and storage facilities in Venezuela.
Power distribution: Elektro. Provides retail electricity delivery to about 1.7-million customers in Sao Paulo and Mato Grosso do Sul, Brazil, through subsidiary Elektro, a Brazilian local electricity distribution company. Concession area covers 223 municipalities in Sao Paulo and five municipalities in Mato Grosso do Sul, encompassing about 56,000 miles of distribution lines. Elektro is the third-largest local electricity distribution company in Sao Paulo and the seventh-largest in Brazil.
Power generation: Expected to consist of ownership interests in 10 power plants with a total generating capacity of 2,100 megawatts. Prisma's ownership percentage will represent generating capacity of 1,180 megawatts. The plants are in Argentina, Brazil, the Dominican Republic, Guam, Guatemala, Nicaragua, Panama, the Philippines, Poland and Turkey.
Financial projections: Expect net income of $112.8-million to $233.2-million in 2004-06.
Estimated worth of assets: $713-million to $918-million.
Employees: 9,000, including 4,000 employed by joint ventures.
Management: Chief executive Ron Haddock, 63. Appointed to Enron's board in July 2002. Executive chairman of Prisma and employee of an affiliate of Prisma. President and CEO of FINA Inc. 1989-2000. Joined FINA in 1986 as chief financial officer. Before that, was with Exxon 23 years in engineering and management positions. Currently on boards of Elektro, Alon Anergy USA, Southwest Securities and Safety Kleen.
