It is hard to see why this stock keeps showing weakness in the face of positive announcements like this one about Conoco today:
(COCB) Conoco Invests in HoustonStreet Exchange to Expand Web-Based
Trading of Energy Commodities
HOUSTON, Apr 17, 2000 (BUSINESS WIRE) --
Global Energy Company Commits Equity Investment, Trading Volume and
Strategic Guidance to Houstonstreet.com's Crude Oil, Refined
Products and Natural Gas Trading Platforms
Conoco (NYSE:COCA)(NYSE:COCB) today announced an equity investment in
HoustonStreet Exchange, the first fully Web-based exchange and portal for
trading wholesale energy products. The investment marks a major
commitment by
Conoco to trade crude oil, refined products (such as heating oil,
gasoline and
jet fuel) and natural gas on HoustonStreet's Web-based energy trading
site,
HoustonStreet.com.
The investment amount was not disclosed.
As part of the deal, Conoco will provide strategic guidance on continued
site
enhancements, based on user feedback and changing market dynamics.
Conoco's
commitment to trade on HoustonStreet.com will add a significant amount of
trading volume to the site.
"We considered a number of energy exchanges, but ultimately chose
HoustonStreet
because they are setting the standard for providing a real-time trading
forum,"
said Rick Oshlo, Conoco's vice president and general manager for supply
and
trading. "This partnership puts Conoco on the cutting edge of emerging
technologies, and allows us to maximize the potential business benefits
of the
Internet by reducing the overall cost of acquiring and trading crude oil,
refined products and natural gas."
"We are very excited about this e-entry into the commercial trading of
energy
commodities," Oshlo said, adding that this represents the second major
e-commerce step Conoco has taken in less than a week. Conoco is one of 14
founders in the giant global procurement exchange for energy and
petrochemical
companies announced April 11.
Other major energy companies that recently committed capital, liquidity
(the
ability to consistently trade with multiple active buyers and sellers)
and
strategic guidance to HoustonStreet include international energy and
utilities
company, Vivendi S.A.; Sithe Energies Inc.; Williams Energy Marketing &
Trading
Co.; and Equiva Trading Company, the U.S. trading arm for Shell, Texaco
and
Saudi Aramco's downstream alliances, Equilon and Motiva.
"To have Conoco, one of the leading integrated energy companies in the
world,
select HoustonStreet validates not only our technology, but also our
vision for
the future of real-time business-to-business exchanges," said Brian King,
vice
president, crude oil and refined products at HoustonStreet. "Our
partnership
with Conoco will leverage our ability to provide efficiencies that extend
well
beyond the trading floor."
HoustonStreet Exchange said it benefits from these relationships through
increased trading activity on the exchange, strategic guidance on site
enhancements, the capital to continuously improve the site and services
offered,
as well as expansion of its reach into other markets.
"Energy companies such as Conoco benefit because their traders can use
HoustonStreet.com to gain a view of the market's depth and breadth, as
well as
information such as weather services and worldwide energy news that
allows them
to keep abreast of market developments," King said. "Conoco also will be
able to
provide direct feedback aimed at enhancing functionality and improving
information and services available through HoustonStreet.com."
Conoco (NYSE:COCA)(NYSE:COCB), with revenues of $27 billion, is a major,
integrated energy company active in more than 40 countries.
Designed by traders for traders, HoustonStreet Exchange represents the
first Web
portal for the trading of wholesale energy products, providing an online
trading
engine that allows traders to buy and sell their energy products faster,
more
efficiently and more easily than in the past. HoustonStreet Exchange is a
majority-owned subsidiary of BayCorp Holdings Ltd. (AMEX:MWH).
This press release contains forward-looking statements. There are a
number of
important factors that could cause these forward-looking statements to be
materially inaccurate. These factors include, without limitation, that
(i)
energy traders may be unwilling or unable to use Internet-based energy
trading
systems, including HoustonStreet.com, (ii) HoustonStreet.com may not be
able to
operate profitably, (iii) technological or systems outages could occur,
(iv)
competitors with greater financial, marketing or other resources could
emerge,
(v) performance is contingent upon successful completion of design and
implementation of the crude and refined products site,(vi) market
acceptance of
HoustonStreet.com cannot be predicted and (vii) HoustonStreet.com may be
unable
to fully realize the strategic benefits afforded by the Conoco
relationship.
HoustonStreet.com is a registered service mark of HoustonStreet Exchange.
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
-0-
CONTACT: Conoco, Houston
Carlton W. Adams, 281/293-1043
www.conoco.com
KEYWORD: TEXAS
INDUSTRY KEYWORD: E-COMMERCE
ENERGY
INTERNET
OIL/GAS
UTILITIES
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