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Due to the uncertainty of the timing of events and changes in conditions, what the price of natural gas will be in any given month is typically unknown. If it’s cold and demand is high, prices may increase. If a price increase coincides with the monthly trading cycle, prices for the next month’s gas may also be high. Hedging is means of reducing the risk of financial loss caused by price fluctuations.
Learn about the hedging tools SEMI employs and about risk management in the natural gas industry in general by viewing the following presentation.
To view this presentation, you’ll need Adobe Acrobat Reader. Don’t have it? Get it by clicking here.
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