Average Natural Gas Price per Mcf
Average natural gas price is, as one would expect, the price companies pay for natural gas. For companies that report this metric as a part of their financial filings, natural gas is a major input to their operations. Because the price of natural gas can vary dramatically with commodities market movements these companies will often hedge the risk of unexpected price movements by investing in commodities futures. By doing so they are able to effectively lock in a price for the commodity over a given time period and avoid unexpected increases in the commodities' price. As such, it can be useful to compare the average price these companies pay for the natural gas to determine which companies are able to reduce these costs most effectively.