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Strategies & Market Trends : IPPs and Merchant Energy Co.s -- Ignore unavailable to you. Want to Upgrade?

To: Braincramp who wrote (112)	9/20/2002 8:55:00 PM
From: Larry S.	Respond to of 3358

Darwinism in the IPP sector - shore up balance sheets early!: Energy Cos That Shored Up Finances Early Better Off - S&P DOW JONES NEWSWIRES NEW YORK -- Energy companies such as El Paso Corp. (EP) that moved early this year to strengthen their balance sheets have a better chance of maintaining or restoring their investment-grade credit than those that got a late start, Ronald Barone, managing director at Standard & Poor's (X.SDP), said Friday. Dynegy Inc. (DYN) and Williams Cos. (WMB) are two examples of companies that waited too long to begin shoring up their finances, Barone told Dow Jones Newswires on the sidelines of an energy industry meeting in New York. "They had a leg up," Barone said of the companies that moved early. "That's not to say that they're immune." Energy companies have suffered a slew of credit downgrades since the start of the year as rating agencies have grown increasingly uncomfortable with the amount of debt trading companies have carried. At the same time, weak power prices, limited access to capital and a distrust of trading companies following the collapse of Enron (ENRNQ) have weighed further on the sector. The financial markets will accept a limited number of asset sales and equity issuances, so the companies that reach the market first will have a better chance of making sales at the price they are seeking, Barone said. The price of assets will also decrease as more go up for sale, he added. It may take time for companies to raise the much-needed cash through asset sales, which could lead to the purchase of unstable companies by more secure ones, according to Barone. "There are a number of players, and only the strong survive," Barone said. Efforts by a number of energy industry groups to create more uniform accounting standards and codes of conduct are positive steps on the industry road to recovery, but they alone won't be enough to restore the confidence of lenders and investors, Barone said. "It's an applaudable effort," Barone said. "It may not be the end-all, cure-all."

To: Braincramp who wrote (112)	9/21/2002 7:18:14 AM
From: KyrosL	Read Replies (1) \| Respond to of 3358

Here are MIR debt maturities as given by the CEO in Lehman power conference a couple of weeks ago: 2003 Mirant Corp. CSFB 364-day Term Loan (was Revolving Credit Facility) 1,125 Jul-03 West Georgia Generating Company Facility 140 Dec-03 Amortization of debt at other subsidiaries1 297 various in 2003 TOTAL FOR 2003 1,608 2004 Mirant Corp. Citibank C Credit Facility 450 Apr-04 Mirant Corp. Convertible Senior Debentures (put option) 750 Jun-04 Mirant Corp. Senior Notes 200 Jul-04 Mirant Americas Energy Capital (has a Mirant Corp. guarantee) 150 Sep-04 Mirant Americas Generation – Credit Facility 300 Oct-04 Amortization of debt at other subsidiaries1 241 various in 2004 Gas Prepay (in working capital, not notes payable) 190 Oct-04 TOTAL FOR 2004 2, 656 Mirant Americas Development Capital2 375 Apr-04 Mirant Canada Energy Marketing 46 June-03