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Natural Gas Hedging Program Analysis Ryan Pamplin Global Energy Sourcing December 18, 2009
Today’s Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
Hedge Basics
Physical vs. Financial Hedge
Existing Program Objectives
Existing Hedge Program
Price Volatility – Catastrophic Events
Existing Hedge Program
Existing Program Initial Strategic Plan
Existing Hedge Program Example January 2010 $/MCF Average Price = $8.77
Existing Hedge Program
Existing Hedge Program
Existing Program Results $MM
Existing Hedge Program Results
Existing Hedge Program Analysis Pros – Reasons to Hedge ,[object Object],[object Object],[object Object],[object Object],[object Object],Cons – Reasons Not to Hedge  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Program Proposals
Natural Gas Hedging Analysis
Stable Gas Prices Ahead?
Not So Fast…
Accounting Treatment Guidelines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Appendix A ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Appendix A  (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Program Proposals

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Natural Gas Hedging Presentation