EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Lesson 4 Activity

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Cash Price Activity

Familiarize yourself with one of the industry publications that reports physical, cash prices for natural gas. Inside FERC, Gas Daily and, OPIS do not allow their publications to be copied unless you have a subscription and receive prior permission.  Natural Gas Intelligence is another source that publishes the natural gas cash prices. These come directly from the electronic trading platform The Intercontinental Exchange (ICE). They are actual transactions for physical natural gas trades at the specified locations. ICE is based in Atlanta, GA. and they also own the ICE Futures Europe in London.

Unfortunately, NGI has stopped polishing their natural gas spot prices publicly. A sample of the data can be found here but it is out dated. 

For this assignment please visit this page. You will see six different locations on the top right map “NGI Nat Gas Spot Price Tracker”.

  1. Choose two of those locations plus Henry Hub (three in total)
  2. Find these three locations using the list menu on the left hand side of the map (“Daily” tab)
  3. Take a screenshot of the natural gas spot price graph for each of these three locations
  4. Report the “Daily Change” for each of these three locations
  5. Report the"Month/Month Change" for each of these three locations
  6. Explain the spot price changes in the last year according to the graph for each of these three locations

The Natural Gas Intelligence website is a great resource for when you work on your weekly Fundamental Factors for natural gas. You can indicate where cash prices are trading, and that may help you with your trading decisions.

Grading

This activity is due at 11:59 pm on Sunday, is worth up to 20 points on the EBF 301 grading scale. 

Fundamental Factors

The Fundamental Factors activity is due as usual this week, at 11:59 pm on Sunday, and is worth 30 points on the EBF 301 grading scale. Please refer to the Fundamental Factors Instructions for additional information and grading rubric.

Submitting Your Work

Cash Price Activity: Submit your work as a word processed document or PDF to the Lesson 4 Cash Price Activity in Canvas.

Fundamental Factors: Submit your work as a single word processed document to the Lesson 4 Fundamental Factors Activity in Canvas.