Energy costs are likely one of your company’s largest expenses. With prices volatile, it’s vital to have a plan in place to control costs. SEMI can develop and implement risk management plans tailored to your company’s needs to help ensure a more predictable and steady natural gas price.

We help clients lower their energy costs and minimize risk by identifying when it’s a good time to buy natural gas and when it’s not. As a SEMI customer, you’ll have the ability to lock in fixed pricing when favorable opportunities exist. In addition, we can convert fixed price positions to floating market prices for a nominal fee. Take a look at the options we offer.


Not sure what call options and collars are? See our Glossary of Terms for information.

* Derivatives are financial instruments that “derive” their value from an underlying fundamental; in this case, the price of natural gas. Derivatives can range from being quite simple to being complex. Traditionally, most derivatives are traded on the over-the-counter market, which is essentially a group of market players interested in exchanging certain derivatives among themselves, as opposed to through a market like the NYMEX.

** A hedging strategy is created to reduce the risk of losing money. A marketer who plans on selling natural gas in the spot market for the next month may be worried about falling prices and can use a variety of financial instruments to hedge against the possibility natural gas being worth less in the future.