Houston-based El Paso Corp. said Tuesday it has purchased put options, which place a floor price on part of its natural gas production to manage the company’s exposure to volatile prices.
The put options involve a portion of El Paso’s 2005 and 2006 gas production, according to the diversified energy company. As a result, El Paso said it will receive a minimum of $6/MMBtu for 60 TBtu of 2005 gas production and 120 TBtu of 2006 production.
El Paso also reported that it had debt, net of cash, of $17 billion as of Sept. 30 of this year, down from approximately $22 billion in the year-ago period. The company said it would give further details about its balance sheet and other financial items during a December conference call that will take place in conjunction with the filing of its third quarter Form 10-Q at the Securities and Exchange Commission.
©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.
© 2020 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |