Marcellus Shale operators in Pennsylvania are familiar with the Delaware River Basin Commission (DRBC) and the Susquehanna River Basin Commission (SRBC), the interstate regulatory agencies that manage water resources in eastern and central Pennsylvania, but currently don’t have to deal with a similar organization in the western half of the state. However, that may soon change.
Collar
Articles from Collar
Rockies Producer Locks in $6.00/MMBtu CIG Floor
Denver-based Teton Energy Corp. initiated a costless collar gas hedging program for 2007 that is intended to improve financial flexibility by locking in a portion of revenues and cash flow in the event that gas prices decline. The strategy should allow Teton to develop its long-lived producing assets and increase borrowing under its credit facility with BNP Paribas.
December 1, 2006
Industry Briefs
Devon Energy said it has a costless price collar on about 655,000 MMBtu/d of its 2003 gas production with a floor price of $3.34 and a ceiling of $5.11. It also locked in a price of $2.94 for 141 MMcf/d of 2003 gas production. If the monthly gas price indices are outside of the ranges set by the floor and ceiling prices in the various collars, Devon and the counterparty to the collars will settle the difference, the company said. Any settlements will either increase or decrease Devon’s gas revenues for the period. Devon also has collared oil volumes of 54,000 b/d with an average floor price of $22.26/bbl and an average ceiling of $28.14.
February 24, 2003
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