This proven program is for energy and electric power 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.
What You Will Learn
- How
to use futures contracts, options, swaps, trigger deals, ''The Master
Energy Hedging Equation'' and other techniques to create customized risk
management solutions to protect your company from natural gas, oil and
electricity price risk, basis & LMP risk, delivery risk and
volumetric (intermittency) risk.
- How physical and cash settled
futures contracts, over-the-counter energy swaps and physical forward
contracts are traded and the purposes served by these markets.
- How
the ICE and CME-NYMEX futures exchanges and electronic marketplaces
function, and what the differences are between ICE OTC, ICE Futures, CME
Globex, CME Clearport Services and The Nodal Exchange.
- How ''cash margining'' is done with a futures exchange, its cash management impact and the role of the Clearinghouse.
- What
the differences are between a futures commission merchant (''FCM''),
over-the-counter broker, trader, market-maker, power marketer and
wholesale energy merchant.
- What basis risk is, and how basis, spread, LMP and delivery risks can blow up your energy and electricity hedges.
- Why Trigger Deals are so popular, and what the difference is between the financial and physical basis (''fin'' and ''phys'').
- How
to structure profitable energy, electric power, and petroleum
transactions without exposure to price risk; and how to financially turn
one commodity into another.
- How to make money by buying
valuable energy options from your customers and suppliers, and how your
company may be missing a significant financial opportunity.
- Why ''extendible'' deals can be profitable, and how energy trading floors ''trade around assets.''
- What the terms ''Contango'' and ''Backwardation'' mean.
You Will Also Learn
- What
The Master Energy Trading Equation is, and why trading energy and
electricity is different from the trading financial products and other
commodities.
- The many different types of energy and electricity
trading, why traders specialize, and the different ways energy traders
can get an ''edge'' on the competition.
- What the rationale,
concepts and mechanics are for basis trading, spread trading, trading
around assets and structured transactions.
- The fundamentals of
energy and electricity options, the implications of high energy price
volatility, and why merchant energy and electric power assets are
valuable Call options.
- How to hedge energy and electricity price
risk with CME-NYMEX options contracts, cash settled OTC options and
physical peaking options; and how to create price caps, price floors and
''no cost'' collars.
- How to calculate annualized volatility,
the fundamentals of pricing options and why the Black and Black-Scholes
models need to be modified to price energy and electricity options.
- The put-call option parity equation, synthetic option positions and how to delta hedge.
- What Tolling Deals, Asset Optionality, and the petroleum industry's ''Carry Trade'' are, and how they work.
- Why
a merchant fossil fuel generating plant is a call option on the spot
spark spread, and you will learn a simple rule that will optimize your
daily decisions on whether to use or idle an electric generator, storage
facility or transportation asset.
- How heat-rate-linked power
transactions can effectively convert natural gas futures, options, and
swaps into electric power financial instruments which can then be used
to manage electricity risks or structure profitable transactions
(optional additional class material offered at 4:30 pm on Day 1).
Who Should Attend this Seminar
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.
Prerequisites and Advance PreparationThis fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar.
Program LevelBasic level. This fundamental course begins with basic material and then proceeds to the intermediate level.
Delivery MethodGroup-live.
Each Class is Limited to First 20 Registrants
Your Instructor
John Adamiak
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.
Please fill in your name and email to receive the Seminar Agenda of this event.
Venue
NYC Torch Club (NYU Campus)
18 Waverly Pl, 10003
New York, NY, USA
View Seminar Location Website
Because of the diversity of hotels found in the area, PGS Energy Training will not be holding a block of sleeping rooms with one particular hotel.
The seminar will start promptly at
8:00 AM and will finish at
4:30 PM on the first day. On the second day, the seminar will resume at
8:00 AM and will finish at
2:00 PM.
The program includes continental breakfast, lunch and coffee breaks on
the first day and a continental breakfast and coffee breaks on the
second day. Attendees also receive a professionally produced seminar
manual that can serve as a valuable office reference. Dress is casual
for all seminars.