Workshop Session I

Michael Hansen, SGA Consulting Services

• The Physical System and Gas Purchasing
  - Who are the players?
  - What are their roles?
  - How did we get to where we are today?
  
• Basic Terms

• Gas Supply

 

• Gas Transportation
  - Discounting on pipelines
  - Pooling points, pricing points
  - Imbalances
  - Penalties
  - Cash-outs
  - Capacity release
  - Price differentials
  - Pricing methods

Workshop Session II

Financial Aspects of Buying and Selling Gas
Dan Conrath,  Risk Management Inc.(RMI)

Developing the Infrastructure

- Risk mitigation (market, administrative, credit)

- Defining Risk Management

- Identifying, controlling and minimizing exposure to adverse energy commodity price movement

Risk Management Tools

- NYMEX Futures Exchange

- OTC Clearing products

- Futures contracts, strips, bid terminology

- Options - definitions, explanation,

  - Financial swaps (OTC

Pricing Alternatives

- Available pricing alternatives (physical, exchange-regulated, OTC)

- Index and fixed pricing

- Cap and collar pricing

- Hedging objectives

Workshop Session II  (continued)

Market Analysis

- Fundamental, technical and historical analysis

- Natural gas consumption trends, inventory, rig counts, supply sources

Workshop Session III
Dan Conrath , RMI

Budgeting and Hedging Strategies

- Budget methodology

- Price plan creation

- Creating price and time triggers

- Sample hedge plans

 Hedge Application Strategies and  Practical Examples

- Hedging instruments

- Futures hedging example/results

- Cap hedging

- Costless collar hedging example/results

- Futures w/put hedging

- Call spread hedging example/results

- 3 Way limited participation collar

- Case Studies

       Industrial hedge analysis

       Storage hedge analysis

       Price model hedge analysis