Clayton Energy

Energy Services • Supply • Management • Consulting

Clayton Supply Portfolio Management

Clayton Energy provides a complete Portfolio Management program that emphasizes long-term value over today's commodity price. The result is lower long-term costs for our members.

Highlights

At Clayton Energy, we start each day by pulling up the electronic data from all the pipeline meters for our Member Network partners. We also review the weather forecast for the next day and the week ahead and correlate the degree days to demand. We buy gas or adjust storage by 8 am each day for the following day or the weekend. This morning activity minimizes and usually eliminates any pipeline penalties, also helping to optimize member storage.

We also provide long term forecasts for our members, based on historical demand so we have the information required to provide long term hedges and make long term storage commitments.

We have developed several tools to provide attractive long-term pricing. We purchase NYMEX contracts, buy long term supplies at major pipeline points, and are currently working directly with producers to purchase long term supply packages tied to the futures market. Rather than engage in risks associated with speculative pricing, we ensure all of our long-term supplies are matched with our customer loads.

It is our practice to buy daily gas to manage the variations in load for our members. By buying daily gas, we avoid purchase of excessive storage. We supplement our daily gas with firm priced monthly gas, long term hedges, and storage. As a result of our balancing efforts, we have never been short on supply for a day, a week, or a month. We know how important it is for our members to keep gas coming when it is cold--and to reduce stored supply when it is warm.

Some small utilities still prefer to go it alone. Their suppliers typically ask them to pick a number to hedge. We take a different view. We work hard to create an integrated program of storage, offsets with other members, futures, daily gas, and monthly gas to manage price. It's a balanced program that produces attractive end results for our members. As a result, our pricing is far below many of the utilities that are still going it alone.

Clayton Energy • Wahoo, Nebraska • (402) 443-1500 • info@claytonenergy.com
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