Glossary
Hedge, Hedging: The use of derivative commodity and interest rate instruments to reduce ἀnancial exposure to commodity price and interest rate volatility.
Master Limited Partnership (MLP): A limited partnership business that is publicly traded on an exchange such as the New York Stock Exchange. MLPs have one or more general partners who manage the business and assume its legal debts and obligations.
Natural Gas Liquids (NGL): Liquid hydrocarbons that are extracted and separated from the natural gas stream. NGL products include ethane, propane, isobutane, butane and natural gasoline.
Partnership Units: The ownership interests owned by partners – the investors – in a partnership; similar to owning shares of stock in a corporation.
Risk: Exposure to uncertainty.
Units of Measure:
Mcf = Thousand cubic feet
Bbls = Barrels (42 U.S. gallons)
MMcf = Million cubic feet MBbls = Thousand barrels
Bcf = Billion cubic feet
MGal = Thousand gallons
MMBtu = Million British thermal units
BBtu = Billion British thermal units