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Fundamentals of Energy and Electricity Trading and Hedging

Presented in partnership with: PGS_Logo

This proven program is for professionals who are looking for a comprehensive and clearly explained understanding of natural gas, oil and electricity financial instruments, the markets they trade in, and how these powerful tools can be used to manage risk and structure profitable transactions.

Includes a discussion of the major market changes that are occurring as the result of the Dodd-Frank Act and the CME-ICE decision to list many of their OTC swaps as energy swap futures contracts. 

What you will learn: 

  • How to use futures contracts, options, swaps, trigger deals and EFPs to protect your company from natural gas, oil and electricity price risk.
  • How physical and cash settled futures contracts, over-the-counter energy swaps, and physical forward contracts are traded.
  • How the NYMEX futures & options markets operate, and how electronic marketplaces and electronic futures exchanges such as ICE, NYMEX CME Globex, and NYMEX Clearport Services work.
  • How buyers and sellers can use natural gas futures and options to create price hedges, price caps, price floors, and "no-cost" collars to manage both natural gas and electricity price risk.
  • What basis risk is and how basis and delivery risk can destroy your hedging program.
  • How to structure profitable energy and electric power transactions without exposure to price risk, and what "trading around assets" means.
  • A summary of industry clearing procedures and deal contract language.
  • The difference between brokers, traders, dealers, market-makers, marketers and wholesale energy merchants.
  • Why most energy and power traders prefer to execute hub-referenced transactions instead of doing point-to-point deals.
  • How electricity futures and derivatives are impacting the forward electric power markets.

Topics include:

  • How basis trading, volatility trading, structured transactions and EFPs work, and how over-the-counter energy dealers make markets.
  • How heat-rate-linked power transactions can effectively convert natural gas futures, options, swaps and other financial instruments into electric power derivatives.
  • The Master Energy Trading Equation and why trading energy is different from trading financial products and other commodities.
  • The basics of energy and electricity options, the implications of high energy price volatility, and why energy and electric power assets are really options in disguise.
  • How to hedge energy price risk with NYMEX options contracts.
  • How to calculate annualized volatility, the fundamentals of pricing options and why the Black Scholes model doesn't work for pricing energy and electricity options.
  • The put-call option parity equation, synthetic option positions, and how to delta hedge.

Instructor

John Adamiak

President and Founder
PGS Energy Training

John Adamiak is President and Founder of PGS Energy Training and an expert in energy derivatives and electric power markets. Mr. Adamiak is a well-known and highly effective seminar presenter who has over 20 years experience in the natural gas and electric power industries. His background includes 15 years as a seminar instructor, 9 years of energy transaction experience, and 6 years of strategic planning and venture capital activities. John's academic background includes an M.B.A. degree from Carnegie Mellon University.

Fundamentals of Energy and Electricity Trading and Hedging Agenda

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FAQs


Who attends?

Among those who will benefit from this seminar include energy and electric power executives; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; plant operators; engineers; and corporate planners. Types of companies that typically attend this program include energy producers and marketers; utilities; banks & financial houses; industrial companies; accounting, consulting & law firms; municipal utilities; government regulators and electric generators.

Any prerequisites?

This fundamental level, group-live seminar has no prerequisites. No advance preparation is required before the seminar.

What is the dress code?

Casual.

What is the cancellation policy?

Cancellations for this program are eligible for a full refund, less a $150.00 administrative fee, if received at least 15 business days prior to the start of the program. Cancellations received after that date but at least 5 business days prior to the start of the program receive a credit in the amount of the registration fee, less a $150.00 administrative fee, to attend another Knowledge Center program within 13 months. Cancellations received fewer than 5 business days prior to the start of the program are not eligible for a refund or credit. 

Attendee substitutions from the same company may be made at any time.

In the event of a cancellation from a group discount, refunds or credits are issued beginning with the most heavily discounted price, minus a $150.00 administration fee.

"No shows" - or those who cancel within 15 days of the program - and have registered under the Invoice option, remain liable for the full program fee.

The Knowledge Center reserves the right to cancel/change programs, content, speakers or venue at any time. the Knowledge Center reserves the right to make portions of the program registration information available to program sponsors. the Knowledge Center will not be held liable for any costs incurred by registrant due to individual registration cancellation. In the event that a seminar is cancelled due to inclement weather, faculty cancellation or force majeure, the Knowledge Center will refund the registrant's tuition in full, however the Knowledge Center will not be liable for incidental or consequential out of pocket expenses incurred by the registrant. If you have questions regarding the Knowledge Center's refund, complaint or program cancellation policy, please call us at (434) 951-7786.

Registrant, as an individual person attending a Knowledge Center conference, seminar, or other program, hereby grants permission to the Knowledge Center to use and publish his or her image, likeness, or testimonials collected in connection with the program for advertising and trade purposes in connection with the Knowledge Center’s conferences, instructional, and/or marketing activities.

Continuing Education Credits

13.5 Hours
This live group seminar is eligible for 13.5 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. PGS Energy Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements. PGS telephone seminars are eligible for CPE credits only if seminar participants use the printed seminar slides - not the Internet posted slides.
13.5 Hours
PGS Energy Training is registered with GARP as an Approved Provider of continuing professional education (CPE) credits. PGS Energy Training has determined that this program qualifies for 13.5 credit hours. If you are a GARP CPE participant, please record this activity in your Credit Tracker at www.garp.org/cpe. Please inform PGS Energy Training that you are a GARP CPE participant upon seminar registration. The Global Association of Risk Professionals (GARP) is a not-for-profit membership association dedicated to preparing professionals and organizations for making better-informed risk decisions. GARP's membership represents more than 150,000 risk management practitioners and researchers at academic institutions, banks, corporations, government agencies, and investment management firms in 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and Energy Risk Professional (ERP) exam certifications recognized by risk professionals worldwide. Visit www.garp.org/cpe.