Floor

El Paso Buys Put Options to Manage Exposure to Gas Prices

Houston-based El Paso Corp. last Tuesday said it purchased put options, which place a floor price on part of its natural gas production to manage the company’s exposure to volatile prices.

November 22, 2004

El Paso Buys Put Options to Manage Exposure to Gas Prices

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.

November 17, 2004

El Paso Buys Put Options to Manage Exposure to Gas Prices

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.

November 17, 2004

Canadians See Gas Prices Firm, Compared to Oil Price ‘Bubble’

While convinced the oil price is a bubble ready to burst at any time, Canadians see a firm floor holding up under natural gas — and not least because it is a struggle to maintain their contribution to the North American “continental market.” Consensus forecasts north of the border draw a sharp contrast between the oil and gas markets.

August 23, 2004

Canadians See Gas Prices Firm, Compared to Oil Price ‘Bubble’

While convinced the oil price is a bubble ready to burst at any time, Canadians see a firm floor holding up under natural gas — and not least because it is a struggle to maintain their contribution to the North American “continental market.” Consensus forecasts north of the border draw a sharp contrast between the oil and gas markets.

August 23, 2004

Industry Briefs

Kerr-McGee Corp. has added hedge positions for 2004 sales. They include 100,000 MMBtu/d with a floor price of $5/MMBtu and a ceiling price of $6.06/MMBtu for the first quarter; 565,000 MMBtu/d through fixed-price swaps at an average price of $4.75 for the second quarter; and 575,000 MMBtu/d through fixed-price swaps at an average price of $4.75 for the third and fourth quarter. With the additional hedges, Kerr-McGee has hedged approximately 70% of its projected 2004 U.S. oil volumes at an average WTI price of $27.69/bbl and approximately 70% of its 2004 North Sea oil volumes at an average Brent price of $25.99/bbl. Approximately 75% of the projected 2004 U.S. gas sales have been hedged through a combination of fixed-price swaps and costless collars. Details on Kerr-McGee’s oil and gas hedges for the remainder of 2003 and for 2004 are available at www.kerr-mcgee.com/guidance.html.

December 10, 2003

Floor Collapses Under Cash, Futures; Most Spot Points Lose 40-50 Cents

Huge declines of 40 to 50 cents were seen in Friday’s cash market as futures prices finally gave way to significant downward pressure that had been mounting all week, pulling down the cash market with it.

October 20, 2003

House Dem Tries to Strip OCS Inventory, CZMA Appeal Proposals from Energy Bill

Rep. Lois Capps (D-CA) on Wednesday offered a motion on the House floor that directed conferees on the national energy bill to strike provisions calling for the federal government to inventory oil and natural gas resources in the Outer Continental Shelf (OCS), and to respond to appeals of state permitting decisions under the Coastal Zone Management Act (CZMA) within a compressed time frame. The House postponed a vote on the motion until next Wednesday.

October 9, 2003

Raymond James: Low NGL, Distillate Inventories Put Floor Under Gas Prices

From the triple-digit weekly gas storage injections in the last three EIA storage reports, analysts at Raymond James & Associates calculate that there has been a 3-4 Bcf/d decrease in gas demand from fuel switching and a 0.75 Bcf/d increase in gas supply because of gas liquids being left in the gas stream due to low liquids margins.

June 23, 2003

Raymond James: Low NGL, Distillate Inventories Put Floor Under Gas Prices

From the 125 Bcf weekly storage injection reported by EIA last week, analysts at Raymond James & Associates calculate that there has been a 3-4 Bcf/d decrease in gas demand from fuel switching and a 0.75 Bcf/d increase in gas supply because of gas liquids being left in the gas stream due to low liquids margins. However, those two factors will be impacting the gas market for only a short period, because of low NGL and fuel oil/distillate inventories, the analysts said in their Energy Stat of the Week. The analysts also noted the “equilibrium gas price” now appears to be somewhere between $5-7/MMBtu.

June 17, 2003