Reborn Capital Empire

Chapter 226: Enron's connections

Chapter 226 Enron's connections

…

The next day Guo Shouyun came to the headquarters of Pan Pacific Group again after having breakfast. This 22-story, 180,000-square-meter commercial building in downtown San Francisco was built in the 1980s and had been the headquarters of Pacific Power and Natural Gas.

"Boss, morning!"

"Boss, good morning!"

Passing employees greeted each other respectfully, and while nodding, Guo Shouyun took the elevator straight to the 22nd floor, and followed the sign on the door to find his office. The office is divided into inner and outer rooms, the outer room is about 40 square meters, which is reserved for the secretary's office. The inner space is about 100 square meters, not too big, but enough.

After briefly getting acquainted with the office environment, Guo Shouyun, who was not very demanding, directly asked Wendy to call and find Jeff Durant.

The CEO, who had been notified yesterday, obviously had already prepared everything. Not long after Wendy's call came in, he had already sat in front of Guo Shouyun.

"boss!"

"sit!"

After pointing to the sofa opposite the reception area, the two sat down. Wendy served them coffee, and the atmosphere of the conversation intensified.

"I brought you here mainly for one thing...!"

"Solving the company's financial problems?"

"That's right!" Guo Shouyun nodded.

"Boss, before I start, I have to tell you some bad news. The company just got a call from Enron, Dali, El Paso, and they're raising the price of their natural gas by $1.20 per million British thermal units, Electricity sales price increased by $0.5 per kilowatt hour. And they also said that with the increase in energy supply prices, the possibility of continuing to increase prices is not ruled out!" Jeff Durant said angrily and helplessly.

As the former chief financial officer of Southern California Edison, he has seen this kind of thing so many times in the past year that he is close to numbness.

"How much will the price increase bring us?" Guo Shouyun said calmly. He had expected that Enron's allies would raise the price of natural gas and electricity after he bought two companies in Southern California and the Pacific, but he didn't expect these guys to be so impatient.

“We have 10.37 million electricity customers, and 6.78 million natural gas customers. When they raised prices, they increased our monthly losses by $125 million. The most important thing is that it is now approaching mid-May, and the peak summer electricity consumption season will be approaching. Here it is. If the price of electricity and natural gas supply continues to rise, then our losses will continue to increase.” Jeff Durant worries.

Now Pan Pacific Energy Group's monthly floating loss is close to 500 million US dollars, and the price increase of the Enron Allies directly increases their floating loss to 600 million. If Enron continues to increase prices, the loss value is likely to exceed 700 million, 800 million, 900 million, or even 1 billion. Although Guo Shouyun made more than 10 billion in gold futures, he couldn't help but suffer such a large loss.

"Enron's looting of California's energy market must be stopped!"

Guo Shouyun was decisive.

"Boss, it's not easy to do." Jeff Durant shook his head, "It's too difficult. We worked hard when we were in the Pacific Ocean. It's a pity that Kenneth Lee is in Washington, especially the Federal Energy Commission's The influence is too strong.”

"Specifically?" Guo Shouyun said.

After agreeing, Jeff Durant continued: "Although Kenneth Lee is the chairman and CEO of Enron, he is more focused on Washington, that is, the political world. People who know him say that he is more He is like a politician rather than an entrepreneur. However, he does have superb communication skills. With the platform of Enron, he has made many influential friends in Washington. Among them are the Walker brothers, the former bosses of Exxon Oil Company, Retired Admiral Herbert Winock, Nixon Secretary of the Interior Roger Morton, etc."

"Particularly Pinkney Walker, one of the Walker brothers, who was appointed by President Richard Nixon to manage the Federal Energy Commission, although he had only 18 months, Kenneth Lee, who was his deputy at the time, relied on his own Impressed by his talent, he was appointed by Nixon's White House office as Deputy Energy Secretary of the Interior Department, a position that helped Kenneth Lee amass a rich network of contacts that helped him tap into those who were influenced by the administration's policies at the time. Natural gas and electricity trading markets, and laid the foundation for Enron’s rapid growth. And now it is because of Kenneth Lee’s influence in the federal energy system that the proposal to cap electricity prices is so difficult to pass within the government.”

Guo Shouyun nodded clearly.

"In addition to Kenneth Lee, companies that benefit from the energy crisis are also exerting their influence. That's the key difficulty!"

"Yes. In addition to energy trading companies such as Enron, Dalizhi, and El Paso, power companies such as Duke Energy, Myron, Canada Power, Baoying, and even some natural gas production companies are all in the energy crisis for their benefit. Played the role of looters with an astonishing network of connections. The electric and natural gas utilities they 'looted' have limited influence in Washington because of past policies and closed state energy markets. Over the years, the loss is staggering!"

"Are all western states affected by the energy crisis?"

"Yes! California, Washington, Oregon, Nevada, Ihoda, Utah, Arizona, the closer you get to California, the more severe the impact of the energy crisis."

After Guo Shouyun nodded, "Enron and Dalizhi have raised the prices of electricity and natural gas again. Will other electricity and utility companies be affected as well?"

"Of course. It would be illegal if they treated them differently and only raised prices for Pan Pacific. That would be a better solution."

Hearing this, after thinking for a moment, "The issue of rising electricity and natural gas supply prices will be discussed here for the time being. How to solve it, I will find a way. Now let's talk about the company's financial problems."

Jeff Durant cheers up, and the biggest thing Pan Pacific lacks right now is money. A year of California's energy crisis wiped out decades of accumulation by both companies.

“During the three-month corporate reorganization period, power companies only need some administrative expenses. But the utilities are the big ones. Buying the rising electricity and gas, and upgrading the aging power supply equipment and gas transmission equipment. , all require huge amounts of money. On a monthly basis, about an additional monthly expenditure of about 820 million US dollars.”

"The construction cost of the energy trading website, as well as the entire company's administrative, pension, logistics and other expenses, is about 123 million US dollars per month. Without accounting for mergers and acquisitions, the entire Pan Pacific company will have a revenue of 17.127 billion US dollars. On the basis, an extra $943 million per month is required to maintain the normal operation of the entire company! …Is this calculation okay?”

Looking at the document that Guo Shouyun handed over, and after reading it in detail, Jeff Durant nodded.

"Before the California energy crisis, the net profit of the two companies could be maintained at about 1.8 billion US dollars, and now...!" Jeff Durant sighed.

Guo Shouyun smiled, "Don't be discouraged, the energy crisis in California will always pass. As for the funds, I have already prepared them. Three days later, the first $3 billion will be credited to the company's account. There is also a second and third investment.”

Now the entire Pan Pacific Energy Group shares are in his hands, and the investment is not involved in equity disputes, so Guo Shouyun can invest without hesitation.

Although $3 billion is a lot, Jeff Durant, who knows Guo Shouyun's financial situation, is not surprised that he can come up with so much money.

"...1 billion of the $3 billion is kept in the company's finances to meet the company's normal expenses. The remaining $2 billion is used as an investment!"

"Investment?" Jeff Durant asked in surprise.

"Not bad!" Guo Shouyun nodded affirmatively. According to the gambling agreements he signed with Goldman Sachs, Morgan, Citi and Bank of America. If within half a year, Pan Pacific loses more than 2 billion US dollars~www.wuxiaspot.com~ they have the right to buy all the shares from Guo Shouyun with half of the company's actual value.

Now that Enron and its allies are raising the price of electricity and natural gas, Pan Pacific Energy's revenue from energy and utilities alone could cost the company more than $2 billion in losses for up to three months. Even if Guo Shouyun intends to continue to acquire other public utility companies, this loss value will come faster. So he has to create revenue for the company outside of energy and utilities to balance the bills. One of the best ways is to invest, or speculate.

"I am personally responsible for this matter. Your task is to maintain the company's finances and cooperate with Jonathan's integration of the company!"

Jeff Durant nodded. He knew the big boss's talent in investment, so he wisely didn't ask more.

"Dong dong...!"

Just then, there was a knock on the door.

"Boss, Mr. Douglas is here!" Wendy pushed in the door and said.

"Please come in."

The latter nodded and turned to let Barber Douglas, who was standing outside, come in.

"Didn't disturb your work, did you?"

Seeing Guo Shouyun and Jeff Durant sitting on the sofa, the gray-haired visitor laughed.

"It's okay, we're done talking."

Guo Shouyun stood up with a smile.

"Boss, if it's okay, then I'll go first!"

After nodding with Barber Douglas, Jeff Durant said.