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Description |
This formula displays Gross Manufacturing Margin (GMM) of NYMEX Propane and Natural Gas. This is an alternative method of calculating a 1:1 Frac Spread. |
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Formula |
GrossManufacturingMargin=begin retval = Scale(NG# - PNmmBtuPerGallon, SPREAD_SCALE) end |
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Parameters |
None. |
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Return Value |
The Gross Manufacturing Margin. |
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Examples |
GrossManufacturingMargin
This call returns the GMM. |
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Comments |
Once the price of Propane is converted to the price per mmBtu, a Frac Spread can be calculated by subtracting the price of Natural Gas from the adjusted price of Propane. This method yields the Gross Manufacturing Margin. |
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