NYMEX Plus Basis

“Basis” is a financial term and is associated with the physical transportation of a commodity from a trading hub to another point. With natural gas, basis is the contractual cost of delivering your natural gas to your local utility company from the NYMEX natural gas trading point at Henry Hub, LA. A NYMEX plus Basis product, also known as a fixed basis, or basis contract, fixes this difference in locational value, while the commodity cost is left open to float with the NYMEX market price or be locked in at later times.

Contract Price = Natural Gas Price + Basis Adder

 

Natural Gas Price:

Indexed to gas futures prices (typically NYMEX) determined either through monthly settlement prices or executed price locks, expressed in $ per Dth (or therm or MMBtu)

 

Basis Adder:

Fixed for the contract term, expressed in $ per Dth (or therm or MMBtu)

 

Many of Amerex’s clients who anticipate declining or fluctuating market prices use this purchasing strategy as a means to capture value by managing gas price locks which may achieve a lower price over time than that offered by a fixed price product. Amerex continuously monitors the forward curve of gas prices on behalf of our clients, keeps those clients informed on market conditions and makes recommendations according to the agreed-upon strategy. When managed correctly, this product can help avoid risk and capture lower price opportunities.

To learn about additional natural gas products, visit one of the links below or contact us to explore how a NYMEX plus Basis structure may help your business.


Monthly NYMEX Settlement Prices

  2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Jan $2.56 $4.99 $6.15 $6.21 $11.43 $5.84 $7.17 $6.14 $5.81 $4.22 $3.08 $3.35 $4.41 $3.19 $2.37 $3.93  
Feb $2.01 $5.66 $5.78 $6.29 $8.40 $6.92 $8.00 $4.48 $5.27 $4.32 $2.68 $3.23 $5.56 $2.87 $2.19 $3.39  
Mar $2.39 $9.13 $5.15 $6.30 $7.11 $7.55 $8.93 $4.06 $4.82 $3.79 $2.45 $3.43 $4.86 $2.89 $1.71 $2.63  
Apr $3.47 $5.15 $5.37 $7.32 $7.23 $7.56 $9.58 $3.63 $3.84 $4.24 $2.19 $3.98 $4.58 $2.59 $1.90 $3.18  
May $3.32 $5.12 $5.94 $6.75 $7.20 $7.51 $11.28 $3.32 $4.27 $4.38 $2.04 $4.15 $4.80 $2.52 $2.00 $3.14  
June $3.42 $5.95 $6.68 $6.12 $5.93 $7.59 $11.92 $3.54 $4.16 $4.33 $2.43 $4.15 $4.62 $2.82 $1.96 $3.24  
July $3.28 $5.29 $6.14 $6.98 $5.89 $6.93 $13.11 $3.95 $4.72 $4.36 $2.77 $3.71 $4.40 $2.77 $2.92 $3.07  
Aug $2.98 $4.69 $6.05 $7.65 $7.04 $6.11 $9.22 $3.38 $4.77 $4.37 $3.01 $3.46 $3.81 $2.89 $2.67 $2.97  
Sept $3.29 $4.93 $5.08 $10.85 $6.82 $5.43 $8.39 $2.84 $3.65 $3.86 $2.63 $3.57 $3.96 $2.64 $2.85 $2.96  
Oct $3.69 $4.43 $5.72 $13.91 $4.20 $6.42 $7.47 $3.73 $3.84 $3.76 $3.02 $3.50 $3.98 $2.56 $2.95 $2.97  
Nov $4.13 $4.46 $7.63 $13.83 $7.15 $7.27 $6.47 $4.29 $3.29 $3.52 $3.47 $3.50 $3.73 $2.03 $2.76 $2.75  
Dec $4.14 $4.86 $7.98 $11.81 $8.32 $7.20 $6.89 $4.49 $4.27 $3.36 $3.70 $3.82 $4.28 $2.21 $3.23 $3.07  
Avg $3.22 $5.39 $6.14 $8.62 $7.23 $6.86 $9.03 $3.99 $4.39 $4.04 $2.79 $3.65 $4.41 $2.66 $2.46 $3.11