Nucor praised for pursuing natural hedge
A recent deal between North Carolina-based steel maker Nucor and Calgary-based natural gas producer Encana might serve as a model for other companies seeking to hedge their energy exposure through acquisitions of physical assets, say market observers.
On November 6, Nucor revealed it was buying a 50% working interest in certain US natural gas wells operated by Encana. The steel maker said it expected to invest $3.64 billion in the gas assets over the lifetime of the agreement, which it estimated
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