Friends sharing thoughts...

[drt4nrg]

The NG contract rollover is today or tomorrow, I believe, which can cause strange things to occur in dgaz pricing. It doesn't always happen, but what I've noticed is that often the price of the new current month contract will tend to adjust to the previous month's price fairly quickly. The Nov contract is 2.6 cents lower than Oct, so if this occurs with the current rollover, NG price will move up a few cents, causing about a 3% drop in dgaz. I am expecting the Henry Hub NG price to move back to 3.07 to 3.08 in the next couple days based on this. If others more knowledgeable about the futures impact on pricing can give addl info, it would be helpful. I wanted to give a quick heads up anyway and hopefully spark some discussion.

-Tim