SUBSCRIBER NOTE: Methodology change for PFC Natural Gas

Platts is changing its methodology, effective January 2, 2014, for the Platts-ICE Forward Curve Natural Gas (North America). Under the current methodology, Platts editors produce daily market-on-close assessments of North American forward gas markets known as the Platts-ICE Forward Curve Natural Gas (PFC Gas). To create the assessments, editors use IntercontinentalExchange (ICE) activity data, broker quotes, trade data reported by market participants, and market knowledge of pricing fundamentals, such as basis relationships and heat rates. Under the new methodology, Platts editors will no longer produce these editorial assessments. PFC Gas will be derived by the Platts quantitative team. Under the current methodology, 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 M2MS Gas. Rather, M2MS Gas 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 basis relationships and heat rates. PFC Gas will be produced from the M2MS Gas forward curves. Platts is making these changes because forward gas markets have matured and become significantly more transparent since PFC Gas was launched in 2003. Forward-market settlement data and price indications are now widely available. While the methodology will change, subscribers will continue to receive the same products in the same format as they do now, via Platts Market Data. PFC Gas and the M2MS Gas forward curves 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.