Texaco Press Release - Texaco Forms Business Team to Extend Involvement
FOR RELEASE: WEDNESDAY, SEPTEMBER 13, 2000
HOUSTON, Sept. 13 - Texaco announced today that it is expanding the company's commodity price risk management services for energy commodities by forming a marketing team that will offer hedging instruments to domestic producers and users of energy products.
The new team will work in conjunction with both Texaco Natural Gas Inc., which will provide quoting and trade management for natural gas, and Texaco International Trader Inc., which will provide quoting and trade management for crude oil, refined products and natural gas liquids hedging instruments.
The team will be based in Houston, with derivative trading support in Houston, New York and London and will be staffed by David Glover, Rich Kieval and David Simpson, all of whom recently joined Texaco to head this new initiative.
Commenting on the announcement, W. Robert Parkey, Jr., President of Texaco Natural Gas Inc.- Commercial Energy Group, said, "This new initiative will help further diversify and balance our natural gas business, that has traditionally been more end-user focused, by offering our customers Texaco's commodity risk management services."
"For crude and refined products, this team complements our collaboration with international customers by offering hedging instruments to U.S. producers, refiners and transportation companies," added Robert C. Oelkers, Vice President of Texaco Inc. and President of Texaco International Trader Inc. "For example, this service offers transportation companies, such as airlines, a financial tool they can use to help manage fluctuations in fuel prices."
Glover and Kieval most recently marketed risk management instruments for Statoil. Prior to Statoil, they were key members of Enron's risk management marketing team. Simpson also joins Texaco from Statoil where he was a member of the risk management marketing group. Prior to Statoil, he led the energy marketing group at TOTAL Minatome.
Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: incorrect estimation of demand for risk management services; decreased availability of hedging instruments; worldwide and industry economic conditions; inaccurate forecasts of crude oil, natural gas and petroleum product prices; increasing price and product competition; price fluctuations; higher costs, expenses and interest rates; and foreign exchange rate changes. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 24, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.
Updated: September 2000