slide1 n.
Download
Skip this Video
Download Presentation
Southern Energy, Inc.

Loading in 2 Seconds...

play fullscreen
1 / 13

Southern Energy, Inc. - PowerPoint PPT Presentation


  • 82 Views
  • Uploaded on

Southern Energy, Inc. “Natural Gas and Electricity: Looks Like a Good Marriage”. Pamela S. Pierce IPAA Luncheon November 8, 2000 Houston, Texas. Southern Company. Southern Company Official Sponsor of the PGA Tour. Southern Energy, Inc. Southern Company Official Sponsor of the

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Southern Energy, Inc.' - holland


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Southern Energy, Inc.

“Natural Gas and Electricity:

Looks Like a Good Marriage”

Pamela S. Pierce

IPAA Luncheon

November 8, 2000

Houston, Texas

slide2

Southern Company

Southern Company

Official Sponsor of the

PGA Tour

slide3

Southern Energy, Inc.

Southern Company

Official Sponsor of the

PGA Tour

slide4

Southern Energy, Inc.

  • IPO’d September 27, 2000 - NYSE Symbol SOE
  • $9.2 billion company headquartered in Atlanta (20% currently in public market)
  • A leading integrated non-regulated power provider with regionally based businesses in North America, Europe and the Asia-Pacific Region
  • Vertical integration of non-regulated electricity generation and distribution; marketing and risk management; and access/ management of gas and oil assets
slide5

Southern Energy, Inc.

  • Price range originally filed with SEC: $15 - $17 / share
  • Price range in last S-1 Amendment: $18 - $20 / share
  • Actual IPO price: $22 / share
  • Order book was 13.5 times oversubscribed
  • Goldman Sachs’ most oversubscribed $1+ billion IPO
  • Largest ever increase from initial filing range to offer price for all IPOs greater than $1 billion (excluding technology and telecom)
  • Expectations for a full spin-off from Southern Company within 12 months
slide6

Southern Energy, Inc.

Ref. Date 11/8/00

slide7

Southern Energy, Inc.

Ref. Date 11/6/00

slide8

Southern Energy, Inc.

ELECTRICITY GENERATION AND DISTRIBUTION

  • One of the leading non-regulated power producers in the U.S.
  • 14,000 MW of operating capacity in North America targeted to grow to 30,000 MW by 2004
  • Power assets in key population areas throughout the US
  • Worldwide capacity targeted to grow to 50,000 MW by 2004. Currently operating in Germany, England, Philippines, China, Trinidad and the U.S.
slide9
Q2’00 Gas Marketing Rankings*

(BCF/d)

1. Enron 27.1

2. Duke 11.2

3. Aquila 10.0

4. Coral 9.4

5. Sempra 8.4

6. Dynegy 8.3

7. BP Amoco 8.2

8. Reliant 7.9

9. TransCanada 6.4

10. Southern Energy 5.9

*Source: Gas Daily August 4, 2000

Southern Energy, Inc.

MARKETING AND RISK MANAGEMENT

Q2’00 Power Marketing Rankings*

(MM MWh)

1. Enron 127.4

2. American Electric Power 102.2

3. Duke 59.0

4. PG&E Energy 58.8

5. Southern Energy 46.1

6. Aquila 39.9

7. Reliant 35.9

8. Constellation 27.4

9. Dynegy 26.3

10. Edison Mission 24.6

*Source: Power Markets Week August 21, 2000

slide10

Southern Energy, Inc.

SOUTHERN PRODUCER SERVICES, L.P. -

ENERGY CAPITAL GROUP

  • Provide financing options for oil and gas companies to transact acquisitions, development drilling programs, monetization of existing assets and company recapitalization
  • Maximum flexibility to design customized financial structures including debt, equity and working interest
  • Provide marketing and risk management services to add value to physical commodities
  • $400 MM annual capital budget
  • Key drivers: the assets and the partners
slide11

Southern Energy, Inc.

ELECTRICITY DEMAND

  • 1999 annual U.S. electrical consumption 3,700,000 GW-hrs
    • Coal supplies about 55%
    • Nuclear supplies about 18%
    • Natural Gas supplies about 15%
    • Hydro supplies about 8%
    • Fuel Oil supplies about 4%
  • Electricity consumption grew by 5.4% during 1998, up from 3.2% annually from 1994-98
  • Electricity growth, upwards of 6% could occur due to greater dependence on electricity-consuming technology

Source: Edison Electric Institute and Simmons & Company

slide12

Southern Energy, Inc.

INCREMENTAL NATURAL GAS DEMAND

  • 5% Electricity Growth - 185,000 GW-hrs per year incremental demand
  • 185,000 GW-hrs x 8 mcf x 1,000 KW = 1,480 bcf
  • 1,480 bcf = 4.0 bcf
  • Average daily demand growth 2-4 bcf depending on weather and plant efficiency

Source: Simmons & Company (modified)

year

year

KW

1 GW

year

day

day

slide13

Southern Energy, Inc.

NATURAL GAS AND ELECTRICITY

A GOOD MARRIAGE?

  • Natural gas supply growth for 2001 on 50 bcfd produced in 2000 is estimated at 1.0 bcfd or 2%
  • With 5% electricity growth in 2001, need 2-4 bcf/day
  • Looks like a mismatch between natural gas supply and electricity demand

Source: Simmons & Company

ad