Glossary

Glossary

3D Seismic Imaging: a process that uses acoustic energy, similar to sonar, to determine the density and topography of underground rock formations

At the Market: typically in reference to an equity offering where new shares are created and issued at market prices based on demand

Backwardation: the market condition where the price of a forward or futures contract is trading lower than the predicted spotprice

Contango: the market condition where the futures price of a commodity is higher than the expected spot price

Distributable Cash Flow: please see MLP 201 – Understanding MLP Cash Flows and Financial Reporting for a detailed explanation

Horizontal Drilling (Directional Drilling): a drilling technique that involves manipulating a drill bit underground so that it changes direction, please see MLP 301 – Shale Revolution for a detailed explanation

Hydraulic Fracturing: a process in which a mixture of water, sand, and other chemicals is pumped into a well at a very high pressure to break up delicate shale rock, please see MLP 301 – Shale Revolution for a detailed explanation

Hydrocarbons: a general term for crude oil and natural gas, encompassing all organic molecules with a molecular structure containing exclusively carbon and hydrogen atoms

Incentive Distribution Rights: please see MLP 201 – Incentive Distribution Rights for a detailed explanation

Investable Weight Factor: the float, or percent of units available for public trading

Liquefaction: the process in which natural gas is converted from its gaseous state to a liquefied state

Proppant: according to the EPA, “a granular substance such as sand that is used to keep the underground cracks open once the hydraulic fracturing fluid is withdrawn”

Regassification: the process in which liquefied natural gas in converted from its liquid state to its gaseous state

Shale: fine-grained sedimentary rock composed of silt and clay, characterized by its many breakable thin layers. As it relates to energy, hydrocarbons can be found in these layers.

Take-or-pay contract: a contract between a seller and buyer mandating that a buyer must purchase a certain amount of goods or services or pay a penalty

Total Return: price appreciation plus yield

West Texas Intermediate: a grade of crude oil typically extracted from Texas that is commonly used as a pricing benchmark

 

Acronyms

ATM: At the Market

AUM: Assets Under Management

DCF: Distributable Cash Flow

DOE: Department of Energy

E&P: Exploration and Production

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

EIA: Energy Information Administration

EPA: Environmental Protection Agency

EPS: Earnings Per Share

ETF: Exchange Traded Fund

ETN: Exchange Traded Note

ETP: Exchange Traded Product

FERC: Federal Energy Regulatory Commission

FFO: Funds From Operations

FINRA: Financial Industry Regulatory Authority

IDR: Incentive Distribution Right

IEA: International Energy Agency

IPO: Initial Public Offering

IWF: Investable Weight Factor

LNG: Liquefied Natural Gas

LPG: Liquefied Petroleum Gas

M&A: Mergers and Acquisitions

MLP: Master Limited Partnership

MQD: Minimum Quarterly Distribution

NAV: Net Asset Value

NGL: Natural Gas Liquid

NGV: Natural Gas Vehicle

NYSE: New York Stock Exchange

PLR: Private Letter Ruling

PPI: Producer Price Index

PTP: Publicly Traded Partnership

PUD: Proved Undeveloped Reserves

REIT: Real Estate Investment Trust

RIA: Registered Investment Advisor

RIC: Regulated Investment Company

SEC: Securities and Exchange Commission

UBTI: Unrelated Business Taxable Income

WTI: West Texas Intermediate

 

Units of Measure

  • C: Hundreds (100)
  • M: Thousands (1000)
  • MM: Millions (1,000,000)
  • B: Billions (1,000,000,000)
  • T: Trillions (1,000,000,000,000)
  • Bbl: Barrel, equal to 42 US Gallons
    • MBbls: One thousand barrels
    • MMBbls: One million barrels
    • MBbls/d: One thousand barrels per day
    • MMBbls/d: One million barrels per day
  • Btu: British thermal unit, a measurement of the energy content of natural gas
    • MBtu: One thousand British thermal units
    • MMBtu: One million British thermal units
    • MBtu/d: One thousand British thermal units per day
    • MMBtu/d: One million British thermal units per day
  • CF: Cubic feet, a volumetric measurement for natural gas at 60 degrees Fahrenheit and 14.73 psi of pressure 
  • CCF: One hundred cubic feet of natural gas
  • MCF: One thousand cubic feet of natural gas
  • MMCF: One million cubic feet of natural gas
  • BCF: One billion cubic feet of natural gas
  • TCF: One trillion cubic feet of natural gas
  • CCF/d: One hundred cubic feet of natural gas per day
  • MCF/d: One thousand cubic feet of natural gas per day
  • MMCF/d: One million cubic feet of natural gas per day
  • BCF/d: One billion cubic feet of natural gas per day
  • TCF/d: One trillion cubic feet of natural gas per day
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