SUBSCRIBER NOTE: Methodology change for M2MS Gas

Platts is changing its methodology effective January 2, 2014 for M2MS Natural Gas North America (M2MS Gas). Under the current methodology, Platts editors produce daily market-on-close assessments of forward natural gas markets, known as Platts-ICE Forward Curve Natural Gas (PFC Gas). To create the assessments, editors use ICE activity data, broker quotes, trade data reported by market participants, and market knowledge of pricing fundamentals such as locational spreads and heat rates. The PFC Gas assessments are used as inputs by the Platts quantitative team to derive the M2MS gas forward curves. Under the new methodology, PFC Gas will no longer be an input to the M2MS gas forward curves. Rather, M2MS Gas curves will be produced by the Platts quantitative team using ICE preliminary settlement data, ICE activity data, broker quotes, and market knowledge of pricing fundamentals such as locational spreads and heat rates. While the methodology will change, subscribers will continue to receive the same product in the same format as they do now. M2MS Gas will look identical. There are no technology-related changes or delivery format changes. For questions, please contract Mark Callahan at mark.callahan@platts.com or at 713-658-3211.