Blackstone Energy Services

Glossary of Terms

E&P Exploration and Production EDCQ For Gas, its the Estimated daily contract quantity. EFP See exchange of futures for physical EIA See Energy Information Administration EL NIÑO A periodic warming of the tropical Pacific ocean which affects weather around the world. Typical consequences of El Niño include increased rainfall in the southern US and drought in the western Pacific. Winter temperatures in the north-central states of the US are typically warmer than normal in El Niño years, and cooler than normal in the south-east and south-west of the country. However, its effects outside the tropical Pacific are unpredictable, and almost any definition would be disputed by meteorologists. The warmest and coldest winters in the north-eastern US since 1950 have both occurred during El Niño periods. The name of the phenomenon derives from the fact that it tends to appear around Christmas – El Niño means "little boy" in Spanish, the name commonly given to the infant Christ. ELECTRIC UTILITY An enterprise that is engaged in the generation, transmission and/or distribution of electric energy primarily for use by the public, and is the major power supplier within a designated service area. Electric utilities include investor-owned, publicly-owned, cooperatively-owned, and government-owned entities. EMBEDDED OPTION An option, often an interest rate option, embedded in a debt instrument that affects its redemption. Embedded options are usually, but not always, interest rate options; some are embedded in physical commodity contracts. EUROPEAN-STYLE OPTION An option which may only be exercised on its expiration date. EXCESS GAS A gas buyer may request the seller to deliver above the delivery capacity rate. The seller does not have to do so but if he does the buyer will normally pay a premium over the main contract price. EXCHANGE OF FUTURES FOR PHYSICAL (EFP) The conversion of a futures position into a physical position via simultaneous buy/sell transactions. EXCHANGE OF FUTURES FOR SWAPS (EFS) The conversion of a futures position into a swaps position via simultaneous buy/sell transactions. EXCHANGE OPTION An option giving the purchaser the right to exchange one asset for another. EXCHANGE-TRADED OPTION An option traded and cleared on an organised securities or derivatives exchange. Such options are usually, but not always, standardised by strike, maturity and underlying.