Natural Gas Markets

For a large utility, created a business plan to form a non-regulated subsidiary to enter retail gas markets nationwide. The plan included regulatory analysis, margin analysis, target markets, switch rates, financial pro formas, risk assessment, operational plan for end-to-end customer processing and systems assessment.

Result: The client launched what is now one of the largest gas marketing firms in North America.

For a large Wall Street Investment Bank, performed due diligence in support of their purchase of an interstate gas pipeline. Work included analysis of shipper agreements, pipe on pipe competition, engineering studies, organizational review, regulatory analysis and vetting financial assumptions and models.

Result: The client successfully acquired an interstate gas pipeline.

For a large independent power producer, developed a gas purchasing and pipeline transportation capacity strategy. The strategy included analysis of capacity and basis values across multiple regions as well as storage, NYMEX and production zone values. Additional variables such as wholesale power prices, heat rates and more were included in the overall models developed.

Result: The client utilizes our risk matrix and models to acquire physical gas supply in a manner that maximizes profitability.