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For producers we provide two valuable programs to optimize hedging strategies sure to fit in with the risk appetite of your corporate strategy and governance.
Designed for natural gas producers who desire a hedging approach designed to mitigate price volatility by making optimal decisions in a general Sell & Hold strategy.
Avoids multiple transactions and defers short-term speculative market activity.
Focuses on when and how to make hedging decisions in an overall strategy of cash flow management and volatility mitigation.
Components include:
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Designed for natural gas producers who desire a hedging program designed to optimize price through slightly more aggressive market positioning.
Strategies include shorter term market activity and low-frequency option use.
Focuses on getting higher net price above Index while also mitigating some of the inherent market volatility.
Components include:
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Transactional Assistance
Gelber has been working with producers and consumers of natural gas since we began business in
1990. We have developed a number of skills and the associated infrastructure to help with hedging transactions.
Because many producers are buying hedges from their bank, you may be a little unwilling to push them to give you fair pricing. Many bankers can take advantage of producers who don't have the leverage, scope, or resource to challenge the pricing on buying or unwinding hedges. We can help here and the savings is more than the costs. Some Gelber clients have us talk directly to the bankers on each transaction or from time to time. Other clients choose to leave us in the background.
We also have a tremendous amount of price and basis information including historical and forward basis prices for all regions. This is useful if your hedging transactions are not specifically at Henry Hub. Gelber studies basis information for Texas, Louisiana, Oklahoma, offshore Gulf of Mexico, Colorado,Wyoming, Kansas, California, Pennsylvania, Arkansas and others.
Gelber advises clients on the value of strips, put floors, and other market tools. We also advise on unwinding strategies. Our experience helps drive correct valuation and placement for zero cost collars and put/call strategies. NGLs are a growing focus of producers and hedging these liquids takes a bit of extra work and creativity to design a strategy that works.
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