Program

Agenda

Thursday, November 19

8:00 a.m. - noon Morning Session

Why We Hedge: Introduction and Overview
Ed Kennedy, Senior V.P. Energy, Hencorp Futures LC

The Markets have undergone dynamic changes in the last five years. Price risk, basis risk, and credit risk must be all be considered in a successful hedging program. This session will review these risks as well as review the slate of hedging products available today.

Counterparty Credit Risk Understood
Conventional Fixed Price Futures and Options
OTC Clearport Financially Cleared Products

Henry Hub Swap
Locational Basis Swaps
Index Swaps

Options Demystified
This session will focus on efficient use of calls and puts to give you the knowledge you need to incorporate these tools into your natural gas price risk management program. Mr. Kennedy will draw on his 20 years of energy hedging expertise to provide insights on what option strategies to use in both bull and bear markets. Among the topics to be discussed are:

Options Refresher

A Quick Review of Calls and Puts
Intrinsic Value
Time Decay
Implied volatility

Options in Your Hedging Program:

Price Protection for your Supply Needs
Price Protection for your Production
Managing Storage: Maximizing the Spread while Minimizing the Cost
Price Protection for your Production

A Look at Several Real-World Option Case Studies

noon     Lunch

1:00 - 5:00 p.m.     Afternoon Session

A Multidimensional Approach to Hedging Natural Gas Price Risk
     Tom Saal, Senior V.P. Energy, Hencorp Futures LC

There is an abundance of market information available to natural gas traders each and every day. The key is knowing which signals to follow and what signals to ignore, ultimately helping you to answer the question: Where's the Market Going?" Be on hand as Mr. Saal reveals the data and clues produced by the market that help him and his clients make prudent trading decisions each day.

Utilizing Information Provided by the Market
Fundamental Supply-Demand Balance Approach
Time-Basis (Spread) Analysis and the Value of Storage
Commitments of Traders Report

Who's Doing What? Hedger versus Speculator Trading Behavior
Disaggregated Commitments of Traders Report: A Look Inside this Newest Piece of Data

Equally important, however, is the ability to communicate the basis of your hedging decisions to your management. This workshop will not only train you how to read the market, it will also give you the tools to explain those decisions to others in your organization.
Managing natural gas price risk also involves deciphering the signals provided by the market and using it to your advantage. In these afternoon sessions, Mr. Saal will reveal the technical tools he uses to analyze and follow the market.

Technical Analysis Refresher

Moving Averages
Stochastics
Bollinger Bands
and Fibonacci Retracements

5:00 - 6:00 p.m. Networking and Cocktail Reception hosted by Hencorp Futures LC (at Magnolia's Hotel Bar)

Friday, November 20

8:00 a.m. - noon Morning Session

A Multidimensional Approach to Hedging Natural Gas Price Risk (continued)
Tom Saal, Senior V.P. Energy, Hencorp Futures LC

An Introduction to Market Profile
Devised by Chicago Board of Trade "Pit" trader and technician Pete Steidlmayer, Market Profile analyzes a market's "fair value" using its recent history of its price action plotted versus time. In this session, Mr. Saal will provide an overview of this powerful tool and explain how it can be utilized effectively to manage natural gas price risk.

The ABC's of Market Profile
- From Barchart to Market Profile
- Horizontal and Vertical Pricing
- Normal Distribution of Prices
- The Initial Balance
- Value Area and Day Structures
- Trend Day "Space"
- Minus Development
- From Short-Term to Long-Term Applications

noon Workshop Concludes

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