Argus forward curves through Morningstar Commodity Data
Houston, 20 March 2012
Global energy price reporting agency Argus and independent investment research provider Morningstar, Inc. today announced that Argus North American electricity and natural gas forward curves are now available through Morningstar Commodity Data (formerly LIM). Morningstar offers software solutions to access, manage and analyze energy data, and is the second enterprise data management provider to introduce Argus forward curves since the service was launched in January 2012. With the addition of Argus, Morningstar now offers access to more than 5,000 forward curves spanning the global over-the-counter (OTC) and exchange-traded commodity markets.
Argus’ new suite of services provides: North American Natural Gas Forward Curves, North American Electricity Forward Curves, Electricity/Natural Gas Correlation Curves and Electricity Forward Heat Rate Curves. The new services provide a minimum of seven years forward monthly values for all major natural gas and electricity markets across North America.
“We are delighted to have Morningstar as a vendor for the Argus forward curves services,” Argus Media chairman and chief executive Adrian Binks said. “Argus’ new forward curves provide an authoritative and independent source of valuation for electricity and natural gas markets across North America. We believe these services will offer Morningstar’s customers a robust risk management tool to support investment and trading decisions.”
Argus forward curves are a useful tool for all energy trading functions, including the front, mid and back office. They can also be used to support investment decisions. Forward curves can be used in mark-to-market accounting as well as in numerous analytical applications such as value-at-risk, potential future exposure, regressions and scenario analyses.
“We are excited to add the Argus forward curves to our commodity research platform,” said Liz Kirscher, president of Morningstar’s data division. “These curves offer an additional tool for investors to use throughout the entire risk-management process from pre-deal research to post-deal valuation.”
Argus uses data from multiple market sources to produce curves for liquid locations and forward terms. Argus uses completed transactions and market bid-offer spreads to assess price at liquid points. Statistical techniques using time and locational spreads are employed to determine value at illiquid locations.
Argus forward curve methodologies are available online at: www.argusmedia.com/Methodology-and-Reference
Request more information or access the Argus webinar: North American Electricity Forward Curves
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Argus Media is a leading provider of price assessments, business intelligence and market data on the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer and transportation industries. It is headquartered in London and has offices in Houston, Washington, New York, Portland, Calgary, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev, Santiago and other key centers of the energy industry. Argus was founded in 1970 and is a privately held UK-registered company.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 375,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has more than $180 billion in assets under advisement and management as of Dec. 31, 2011. The company has operations in 27 countries.