The rise in the price of gas. Do companies lose?

Aren't many companies locked into a certain price on a contract when they sell gas? If so, don't they lose out when the price goes up? For example, if they were locked into a $3.50 per unit selling price, what would happen if gas increased to $7.50 a unit? They could lose a lot of income.

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Permalink Reply by bo boboski on November 27, 2014 at 2:57am

I doubt very much if they would lock in a selling price. They do lock in a certain amount of gas going into the pipelines/processing plants/midstream deals that they must abide by, so when the price drops, they still cant just quit producing,they have to send it, regardless.  If the price goes to $7.00  they may want to send more!

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