Reduce Natural Gas Basis Volatility
Our Managed Portfolio Service is a targeted approach that helps customers manage their basis price risk through modified-cost averaging and pooling. Basis can vary widely based on location due to local supply and demand factors. The program can cover all or just some of the total usage volumes at a facility. The objective of MPS is to proactively manage basis risk through a structured, algorithmic approach using time diversification.
Customers have three options:
- Management of total usage – this allows the program to care of any changes in usage, even when usage exceeds monthly nominations.
- Management of specific nominations – this allows the customer flexibility to decide what volume will be run through the program and what volume they will manage on their own.
- Management of incrementals – for customers who want to lock in basis costs, MPS can help manage incremental costs.
Program benefits include:
- Proactive transportation management
- Added value of pooling
- Cover your basis costs for all usage, just your nominations or cover your incrementals as part of a greater strategy
- Eliminates cash-outs
- Access to transparent online reports
- Location-specific programs such as Illinois Storage and Wisconsin Transportation