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<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>This is an interesting conversation as we are reviewing our purchase agreements currently.</span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>1. Are you hedging any or all of your natural gas</span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>Yes, we’re hedged 50% for the 25-26 winter (Dec. – March 2026). This resulted in a small premium for December but due to the crazy price increases at the end of January 2026, we have saved ~$9,000 so far this winter.</span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>We have a high risk tolerance and generally purchase index gas for the remainder of the year. We were on a fixed price contract previously and this is the first year that we went index and hedged. For the majority of 2025 index was low and stable so we were coming in under the fixed price of $4.20/GJ we had been paying previously. </span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>We had the same scenario as Humber take place in that we were purchasing from Shell and when they got out of the market we brought on Jupiter to help us manage our pool</span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>2. Do you see natural gas being volatile or stable for the next 4 to 5 years?</span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>Generally it has been relatively low cost and stable, but with the weather this January and February have sparked a review of our purchase agreements. We have one property locked into a purchase agreement with a third-party supplier, the majority of our properties are in the pool managed with Jupiter, and we have a single facility on Enbridge system gas. </span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>This allowed us to do a cost comparison across all three strategies, and we have noticed that system gas is consistently less expensive than either of the other two agreements. </span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>3. Are you working with a natural gas advisory service company to help procure gas? If so, which one?</span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>We work with Jupiter as well. </span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>We are looking to see if any other organization has noticed anything similar and if you are considering abandoning your pool in favor of switching back to system gas. </span></p>
<p class=”MsoNormal”><span style=”font-family: ‘Times New Roman’,serif;”>Looking forward to hearing what is going on elsewhere this year. Happy to setup calls and chat about this.</span></p>
