What You Will Learn:

1. How to use futures contracts, options, swaps, trigger deals and EFPs to protect your company from natural gas, oil and electricity price risk.
2. How physical and cash settled futures contracts, over-the-counter energy swaps, and physical forward contracts are traded.
3. 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. 
4. 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.
5. What basis risk is and how basis and delivery risk can destroy your hedging program.
6. How to structure profitable energy and electric power transactions without exposure to price risk, and what “trading around assets” means.
7. A summary of industry clearing procedures and deal contract language.
8. The difference between brokers, traders, dealers, market-makers, marketers and wholesale energy merchants.
9. Why most energy and power traders prefer to execute hub-referenced transactions instead of doing point-to-point deals. 
10. How electricity futures and derivatives are impacting the forward electric power markets.
     

You Will Also Learn:

1. How basis trading, volatility trading, structured transactions and EFPs work, and how over-the-counter energy dealers make markets.
2. How heat-rate-linked power transactions can effectively convert natural gas futures, options, swaps and other financial instruments into electric power derivatives.
3. The Master Energy Trading Equation and why trading energy is different from trading financial products and other commodities.
4. 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.
5. How to hedge energy price risk with NYMEX options contracts.
6. 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.
7. The put-call option parity equation, synthetic option positions, and how to delta hedge.

Seminar Agenda

Day One

• Overview of energy & electric power forward markets, terminology, price risk and the basics of energy and electricity trading.
• Liquidity risk, funding risk, credit risk and a brief discussion of Mark-to-Market accounting.
• What futures contracts are, and why and how they evolved.
• How physically-settled energy futures contracts are traded on both the NYMEX trading floor and electronically through the new NYMEX CME Globex platform.
• How cash-settled energy futures contracts are electronically traded on the ICE Futures Exchange and why the crude oil futures contract has been wildly successful.
• How the NYMEX futures exchange & its new computer trading system operates.
• Futures-related account maintenance, margin deposits, clearing and cash management issues.
• How buyers and sellers hedge natural gas price risk with NYMEX futures contracts.
• How to hedge electricity price risk with NYMEX natural gas futures contracts.
• What basis is, and what the different types of price spreads are.
• What basis risk is, and how it can destroy your futures hedge.
• How traders "basis trade" and why it works.

Day Two

• The fundamentals of fixed-for-floating swaps, basis swaps, exchange indexed swaps, and contracts-for-differences.
• How over-the-counter dealers and institutional energy brokers operate.
• How electronic marketplaces such as ICE and NYMEX's Clearport Services work, how an Internet marketplace differs from an Internet futures exchange, who the CFTC and the United Kingdom's FSA regulates, and why these issues are important.
• The difference between financial and physical basis ("fin" and phys").
• Why so many industry participants use trigger deals.
• What EFP's are, and how and why this powerful tool is used by sophisticated traders.
• How the wholesale energy trading equation is defined, and what its implications are.
• How this equation underlies the structure of energy trading books.
• Puts and calls / Basic option terminology and concepts.
• The difference between exchange-traded, over-the-counter and physical energy options.
• What American, European and Asian style options are.How to create price caps and collars with exchange-traded options.
• How to calculate annualized volatility and why the BSM does not accurately price energy and electricity options.
• What the option Greeks are, and the basic concept of delta hedging.
• How to buy and sell volatility.
• Two examples of structured energy transactions.

Your Instructor - New York City and Philadelphia

John Adamiak is President and Founder of PGS Energy Training and is 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 14 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.

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.

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

Why Choose PGS?

PGS seminars are known for their clear explanations and in-depth content. Register for a PGS program today, and team up with the leader in electric power and energy education. Join over 12,000 energy and financial professionals who have already attended one or more of PGS's proven courses. View Past Seminar Attendees

Hotel & Seminar Information

This two-day seminar will be held at the hotels listed below or can be conducted on-site at your facilities. 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 2:30 PM. The program includes continental breakfast, lunch, and coffee/cookie breaks for each day. Attendees also receive a professionally produced seminar manual of over 500 slides that can serve as a valuable office reference. Dress is casual for all seminars. 

Courtyard Marriott Houston by the Galleria
2900 Sage Road
Houston, Texas 77056
Telephone 1-713-622-3611
View Hotel Website

PGS Energy Training has secured a limited number of Courtyard Marriott hotel rooms at a special discounted rate. Please dial 1-713-622-3611 and mention the PGS Energy Training event for your discounted rate. Please sign up early to receive your special room rate. This Courtyard Marriott frequently sells out.

Registration Fee & Discounts

Register Now and invest in your future. The price for this comprehensive two-day seminar is $1,495 (USD).

• Additional attendees and government employees receive a 10% discount.
   
• Sign up for 4 or more classroom seats during the same month and all attendees will receive a 20% total discount. ( If you plan to register 4 or more classroom seats, but want attendees to pay by separate credit cards, register one party now and mention this fact in the "Comments" section of the registration form. We will manually subtract the 20% discount from the first registrant's seminar fee. Tell other parties in your group to mention your name when they register, and we will give them the 20% discount as well.) Please call 412-521-4737 for more information.
  

Payment & Cancellations

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, Diners Club, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 43 Fawnvue Drive, Suite 700 • Mckees Rocks, PA 15136. Cancellations can be made up to three (3) business days prior to the start of the seminar for a full refund. No refunds will be made thereafter, but credit will be given toward future workshops. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at 412-521-4737.

CPE Credits

This group live seminar is eligible for 12.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

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.