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Author: DMCSween Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 169  
Subject: Re: Basic Laws Date: 4/30/2012 12:01 PM
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Jandctl,

Help me out here...I don't have a lot of experience analyzing hedge positions and what they ultimately mean to the company.

Based on what you wrote above, should I take away that UPL will sell 184.1 billion cubic feet at $4.43 for 2012? This seems like a good thing given that the current spot price is ~ $2.00. Correct?

Next thing I want to know is UPL's cost structure compared to the hedge price and the current spot price. Will $4.43 result in a loss for them?

I'm wondering how UPL will fare in an environment of prolonged (4-5 yrs) of ~$2.00 natural gas.

Any help is appreciated....

Thanks!
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