I'm glad Mark came to the same conclusion regarding valuation - Mitch seemed to indicate a much higher number.  I hope Mark understands that the "hole" in '04 is highly unlikely given the demand and competitve positions.

 -----Original Message-----
From: 	Hayslett, Rod  
Sent:	Thursday, November 01, 2001 1:28 PM
To:	Howard, Kevin A.
Subject:	FW: nwn

FYI

 -----Original Message-----
From: 	Wadlington, Mark  
Sent:	Thursday, November 01, 2001 1:11 PM
To:	Taylor, Mitch; Terp, Brian; Wadlington, Mark; Donahue, Jeff
Cc:	Hayslett, Rod; Desai, Jayshree
Subject:	nwn

still waiting for the formal pubcomps and acqcomps from JPMorgan and SSB.  I spent years in NY doing the math though and spoke to Rod for his help (he had great color).  The answer is 8-10x ebitda.  as an extra check, we put in another multiple for the duke/westcoast deal (approx. 1.7x rate base).  Same answer both times.  EV 2.0-2.3 (with a sales hat maybe 2.5), equity value 1.6-1.8.  I wouldnt push the sales hat too far though, the duration of contracts on this pipeline do not favorably compare to those on most pipelines in general -- in other words, you could be staring at a "hole" in '04.  

(Once I get the precise numbers from the bankers, I'll plug them in -- the answer shouldnt change more than 5%).  What's the next step for me?  Want me to forward to muller/jeff golden?

Regards
Mark

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