WEEKLY MARKET UPDATE

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1 WEEKLY MARKET UPDATE Weekly Summary: The U.S. Energy Information Administration reported last week that natural gas storage decreased by 288 Bcf. The withdrawal for the same week last year was 137 Bcf while the five-year average withdrawal is 164 Bcf. Total U.S. natural gas in storage stood at 2,296 Bcf last week, 18.4% less than last year and 17.5% less than the five-year average for this time of year. The storage report ties for the second-largest withdrawal on record, matching that of the January 2014 polar vortex. This is the second record breaking storage decrease this winter, following the 359 Bcf withdrawal for the week ending January 5 th. While the NYMEX prompt-month futures contracts are at their highest in over a year, 2018 calendar-month prices beginning in March through the balance of the year average at only $2.96/MMBtu. The continued depressed pricing for the balance of 2018 typically indicates that the market expects production growth over the summer will be sufficient to off-set the potential lowest season-ending inventories since 2014, which will occur if storage pulls for the rest of the season are in line with historic 5-year averages. The current anticipated yearover-year increase in US production in 2018 is Tcf. YOY export demand growth is expected to consume about 440 Bcf of the expected production growth leaving only about 1 Tcf to replenish the storage deficit, which could result in a much tighter market over the next few months. Massachusetts has chosen the Northern Pass Hydro project to supply 9.45 TWh of hydroelectricity to the Commonwealth as their preferred option for long-term supply of clean energy. The 192 mile project, owned by Eversouce Energy, would deliver power from Hydro-Quebec dams to a substation in Deerfield, NH. Once completed, Northern Pass would provide about 17% of Massachusetts annual electric load, increasing the supply of clean energy in the state to 50%. Supporters anticipate reduced wholesale power prices, while several environmental groups fear the project will cause ecological destruction. The award of the contract is still contingent on contract negotiations and regulatory approval. A final decision is anticipated by April 25, NYMEX - Annual s Henry Hub 2018 (balance of) Henry Hub 2019 Henry Hub 2020 $3.40 $ / MMBtu $2.90 $2.40 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 NYMEX Summary Prompt Month: Front Month: : NYMEX Feb 2018 Mar 2018 Close () % Change from Last Week $ % $ % $ % $ % EIA Storage Summary Total (Bcf) Current levels vs Previous years (Bcf) % Difference - Current vs Previous years Injection/ Withdrawal : Storage Inventories This week 2, Same week - Last year 5 Year Average for this week 2,815 2, % -17.5% 1

2 Annual Forward s - Basis Algon Gates 2018 (balance of) Algon Gates 2019 Algon Gates 2020 $2.00 $1.50 $1.00 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Algon Gates, Basis Summary % Change % Change % Change % Change 2018 $1.750 $ % $ % $ % $ % 2019 $1.742 $ % $ % $ % $ % 2020 $1.769 $ % $ % $ % $ % $45.H.Internal_Hub $43 $41 $39 $37 $35 ISO-NE NEMA Power Movement % Change % Change % Change % Change $ $ % $ % $ % $ % 2

3 Annual Forward s - Basis $1.20 Transco Z 6 NY 2019 Transco Z 6 NY 2020 Transco Z 6 NY 2018 (balance of) $0.70 $0.20 Transco Zone 6 NY, Basis Summary % Change % Change % Change % Change 2018 $0.475 $ % $ % $ % $ % 2019 $0.415 $ % $ % $ % $ % 2020 $0.396 $ % $ % $ % $ % $46 N.Y.C - J $44 $42 $40 $38 $36 NYISO - Lower Hudson Valley Power Movement % Change % Change % Change % Change $ $ % $ % $ % $ % 3

4 Annual Forward s - Basis $0.30 Tetco M Tetco M Tetco M (balance of) $0.10 -$0.10 -$0.30 Tetco M3, Basis Summary % Change % Change % Change % Change 2018 $0.029 $ % $ % $ % -$ % $0.054 $ % -$ % $ % -$ % $ $ % -$ % -$ % -$ % $38 PJM East $36 $34 $32 $30 PJM BGE, Power Movement % Change % Change % Change % Change $ $ % $ % $ % $ % 4

5 Annual Forward s - Basis $0.10 $0.00 -$0.10 -$0.20 SoCal Border 2019 SoCal Border 2020 SoCal Border 2018 (balance of) -$0.30 -$0.40 SoCal Border, Basis Summary % Change % Change % Change $ $ % -$ % -$ % -$0.134 % Change % $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % $36 SP15 $34 $32 $30 $28 $26 CAISO SP15, Power Movement % Change % Change % Change % Change $ $ % $ % $ % $ % 5

6 Annual Forward s - Basis $0.08 $0.03 Houston Ship Channel 2019 Houston Ship Channel $0.02 -$0.07 -$0.12 Houston Ship Channel % Change % Change $ $ % -$ % -$0.049 % Change % Change -87.2% $ % $ $ % -$ % -$ % $ % $ $ % -$ % -$ % $ % $34 Houston Zone $32 $30 $28 $26 ERCOT Houston Zone % Change % Change % Change % Change $ $ % $ % $ % $ % 6

7 Annual Forward s - Basis $0.00 -$0.20 NW Sumas 2019 NW Sumas 2020 Houston Ship Channel 2018 (balance of) -$0.40 -$0.60 -$0.80 -$1.00 NW Sumas, Basis Summary % Change % Change % Change % Change $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % Annual Forward s -Basis $0.08 FGT Z FGT Z FGT Z (balance of) $0.04 $0.00 -$0.04 -$0.08 FGT Z 3, Basis Summary % Change % Change % Change % Change $ $ % -$ % -$ % $ % $ $ % -$ % -$ % $ % $ $ % -$ % -$ % $ % 7