Sprague provides a complete menu of individually tailored structured products (such as price collars and ceilings) that are custom designed to your specific requirements. Presently, we offer these products to individual customers who consume more than 2,500 Dths in a given month and other customers on a program specific basis.
Price Collar. Generally, this is a fixed Basis product where the NYMEX price is guaranteed to be within an established range of prices (price floor and ceiling). There are many different kinds of traditional and accelerated Collar Products. We will gladly work with you to determine the product and price range that best meets your requirements.
Allows the opportunity to float with the market but within a pre-established range of prices.
If the market were to drop below your established floor price – your price would be above market
Price Ceiling. This is a fixed Basis product where you establish where to cap your NYMEX price (otherwise known as a “ceiling” price. No matter where NYMEX settles, you will be assured that you will never pay more than your established ceiling price. This is like an insurance policy where you establish your price.
Excellent product for bearish customers in volatile markets who want price protection and want the opportunity to float with the market. You can also fix or lock your price at a later date if you desire.
During periods of extreme market volatility, this product may be pricey.