Natural gas producers have already sold about 54 percent of their 2011 oil and gas production, a sign that they see little prospect that prices will rebound from their lowest level for any winter in the past nine years. This year's advance sales are up from 49 percent last year and 47 percent in 2009, according to Barclays Capital.
By selling output now, companies ensure they get paid today's prices for future production, protecting them from declines.
Story courtesy Fort Worth Star Telegram and Texas Energy Report.
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