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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (19941)	3/8/2003 12:17:36 PM
From: quehubo	Read Replies (1) \| Respond to of 206121

Jim_P, this is a risk I identified to in a general manner with investing in utilities. I suspect their will be more winners and losers revealing their hands over the next few quarters as a result of their exposure to NG prices. Potential exposures include NG costs, #2 oil costs, Emissions allowances, etc. I think the weather and the lack of drilling / production response over the last 3 months really caught allot of people off guard. Remember El Nino talk in early January, if drilling had picked up rapidly from January 1 and the weather had been mild since then we would be in a whole different world right now. Perhaps even if the VZ situation had not jacked up oil prices fuel switching could have started allot earlier. The difference between ~550 bcf and 900-1000 bcf in storage on April 1, will make a world of difference this Summer and next Winter. I suspect the confluence of circumstances that brought this together was not anticipated by many.

To: jim_p who wrote (19941)	3/8/2003 10:22:09 PM
From: RWS	Respond to of 206121

Judging from the press release I'd say others have the same plans for Monday as you. RWS

To: jim_p who wrote (19941)	3/8/2003 10:22:25 PM
From: energyplay	Read Replies (1) \| Respond to of 206121

Jim p and other RRI holders - I wonder if the banks were pushing them to get out of the trading business, and RRI management was telling the banks they had everythig under control...and then this blow up. I get the feeling RRI may have had to close out some longer term long postions - for maybe late summer or next winter, which they thought could go up a lot, and that made the loss larger. They might have been upset with having to do that, and wrote a different and longer press release. Then the press release goes back and forth between legal and P.R., gets shorter and more terse, and finally getrs cut loose. Nobody senior looked at the last cut hard enough, or they kept remembering the longer verision, and did not see thatt the shorter version makes them look dumb. Alternative spin is someone in management wants to get rid of people associated with trading, and this makes it much easier. Watch and see if not only the trading group goes, but some other executives decide to pursue other ventures. Possible good news here is they are out of trading, lowering risk, and possibly lowering their borrowing costs. My guess is we are only a few days away from a re financing announcement.