Municipal Asset Management
Revelation Energy Resources, LLC (Revelation) currently manages risk, supply purchases, pricing options, credit requirements and hedging strategies for several municipalities in the State of Tennessee.
Revelation manages risk portfolios via use of live NYMEX screens, live basis accounts and futures accounts.
Revelation tracks daily fluctuations in the cash market by utilizing the Intercontinental Exchange (ICE).
Revelation utilizes financial reports and daily publications to determine the daily and long-term trends in futures pricing and cash prices. We do this by analyzing storage, technical trend factors, firm transport contracts, rig counts, weather trends, commitment to trader’s reports, and industrial manufacturing statistics. In addition, we are in the market trading each day, so we have a good handle on the trends in the market by virtue of live trades and fresh market intelligence.
Revelation purchases daily, monthly, and long-term natural gas supplies based on the needs and requirements of each municipality. Revelation will sit down with you, analyze your potential supply needs, and structure a program to buy supply that fits your load profile and economic requirements.
In most cases, Revelation can buy supply for your municipality with no prepayment obligations and under standard industry credit terms. All municipalities will need to furnish audited financial statements to Revelation’s suppliers prior to finalizing the supply contracts and will need to provide yearly updates thereafter.
Revelation buys your daily, monthly and seasonal physical gas purchase needs on the pipelines that transport natural gas to your municipality’s citygate. Revelation watches prices throughout the day, the week, and the month, and decides when it is the best time to buy supply with your input. Revelation charges a monthly fee for providing this service.
– Hedging Strategies: Revelation provides market intelligence and options concerning strategies to hedge and can set up the options/futures accounts if you wish. Revelation can execute triggers and will watch to make sure the execution is done properly.
– Pool Management: Revelation can operate the pools on each pipeline to move volumes in and out of the pools and can arbitrage values at each pooling point.
– Capacity: Revelation can evaluate, manage, and market excess pipeline capacity for you each month.
– Evaluation of Credit: This is the dominant issue in our business right now and we continue to monitor this very closely. We are very aware of the effect that credit has on your business.
We believe that municipalities benefit by utilizing Revelation to gain market intelligence, and enhance management and control over gas supply and price fluctuations – which allows you and your staff more time to expand and enhance your core business.