| Key Terms |
Definition |
| Contract 1 |
A futures contract specifying the earliest delivery date. Natural gas contracts expire three business
days prior to the first calendar day of the delivery month. Thus, the delivery month for Contract 1
is the calendar month following the trade date.
|
| Contract 2-4 |
Represent the successive delivery months following Contract 1.
|
| Futures Price |
The price quoted for delivering a specified quantity of a commodity at a specified time and
place in the future.
|
| Natural Gas |
A gaseous mixture of hydrocarbon compounds, the primary one being methane.
|
| NGL Composite Price |
The natural gas liquids (NGL) composite price is derived from daily Bloomberg spot price data for natural gas liquids at Mont Belvieu, Texas, weighted by gas processing plant production volumes of each product as reported on Form EIA-816, "Monthly Natural Gas Liquids Report."
|
| Spot Price |
The price for a one-time open market transaction for immediate delivery of a specific
quantity of product at a specific location where the commodity is purchased "on the spot"
at current market rates.
|
Definitions