Creating value in the supplier/marketer relationship requires knowledge of both the market and potential counterparties, a pair of consultants said during a panel discussion moderated by New York Mercantile Exchange’s (Nymex) Joe Raia, senior vice president of marketing, at GasMart 2008 in Chicago last week.
Tag / Counterparties
SubscribeCounterparties
Articles from Counterparties
GasMart Panel: Value Means More than Price
Creating value in the supplier/marketer relationship requires knowledge of both the market and potential counterparties, a pair of consultants said during a panel discussion moderated by New York Mercantile Exchange’s (Nymex) Joe Raia, senior vice president of marketing, at GasMart 2008 in Chicago Wednesday.
Deutsche Bank, Wachovia Expand Presence in U.S. Gas Market
Demand for creditworthy counterparties and experienced risk management services has prompted Deutsche Bank AG and Wachovia Corp. to enter the U.S. natural gas trading and risk management business. Deutsche Bank reported last week that it hired a former El Paso Merchant Energy trading official and several additional gas trading professionals to anchor its operation.
Deutsche Bank, Wachovia Expand Presence in U.S. Gas Market
Demand for creditworthy counterparties and experienced risk management services, has prompted Deutsche Bank AG and Wachovia Corp. to enter the U.S. natural gas trading and risk management business. Deutsche Bank has hired a former El Paso Merchant Energy trading official and several additional gas trading professionals to anchor its operation.
Industry Briefs
Stone Energy said it has entered into gas put contracts with three separate counterparties covering 90,000 MMBtu/d of its 2004 Gulf Coast Basin production. The contracts set a 2004 floor price on the production of $3.50/MMBtu. Monthly payments are scheduled to be made by the counterparty if Nymex prices fall below the floor price. But Stone is able to fully participate in commodity prices above the floor price. The cost of the contracts, which totaled $2.4 million, will be amortized through earnings as the contracts settle. Previously, the company was unhedged for its 2004 natural gas production from the Gulf Coast Basin. The company continues to evaluate additional cost-effective hedging opportunities for its 2004 oil and natural gas production.
Industry Briefs
Stone Energy said it has entered into gas put contracts with three separate counterparties covering 90,000 MMBtu/d of its 2004 Gulf Coast Basin production. The contracts set a 2004 floor price on the production of $3.50/MMBtu. Monthly payments are scheduled to be made by the counterparty if Nymex prices fall below the floor price. But Stone is able to fully participate in commodity prices above the floor price. The cost of the contracts, which totaled $2.4 million, will be amortized through earnings as the contracts settle. Previously, the company was unhedged for its 2004 natural gas production from the Gulf Coast Basin. The company continues to evaluate additional cost-effective hedging opportunities for its 2004 oil and natural gas production.
Watson: Dynegy Could Sell $1B in Assets, but No ‘Knee Jerk Reaction’
Facing a possible double downgrade in its credit ratings that would test the $310 million worth of triggers in two credit financings, Dynegy Inc. Chairman Chuck Watson assured shareholders Friday in an annual meeting that the company would still have enough liquidity to operate. Even so, the board of directors approved Dynegy’s plan to sell some assets and look for ways to pump up its cash box by as much as $1 billion in the next year. No proposals were announced, but Watson insisted any sales will be well thought out. “There will be no knee jerk reaction,” he said.