Gross Processing Margin


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Gross Processing Margin

The gain or loss one realizes by taking a long position in a commodity and a short position on a finished product made from that commodity. This allows the investor to create an artificial position on the price of making the finished product. The gross processing margin measures how successfully one does this. See also: Crack spread, Crush spread.
References in periodicals archive ?
50 per MMBtu budgeted 2008 benchmark price, natural gas midstream gross processing margin and operating income in 2008 would increase or decrease, respectively, by $12.
00 per MMBtu budgeted 2007 benchmark price, natural gas midstream gross processing margin and operating income in 2007 would increase or decrease, respectively, by approximately $3 million for the last three months of the year.
The company's 2005 results also reflect increases in commodity prices and favorable gross processing margins in its gathering and processing segment.