Section III discusses how price floors
can be used strategically by rivals to peg downstream prices at artificially high levels and thereby realize a competitive advantage.
L], which is a price floor
defended by government stock purchases.
23) The incremental block of output that is appropriate for establishing competitive price floors
will generally differ from the "entire quantity" of demand used to compute TELRIC estimates.
The imputation methodology leads to the following imputation rule: price floors
are determined by summing the incremental cost of the LEC's service and the contribution (price - incremental cost) contained in the price of monopoly building blocks the competitors buy to provide a competitive service, as shown in the formula below where PL is the price for the LEC's competitive service, ICL is the corresponding incremental cost, PA is the rate for the access service (monopoly building block) used by competitors and ICA is its corresponding cost:
373 (1911) in which the Supreme Court established the rule that it is per se illegal for manufacturers to set minimum price floors
for resellers of their products.
These collars cover 70 MMcf/d, with a price floor
Denbury" or the "Company") today reported that the natural gas price floors
that the Company has with Enron include a price floor
for 2002 with a strike price of $4.
0 million of costs associated with the price floors
in accordance with Financial Accounting Standard No.
The Company's existing natural gas price floors
have an average price of approximately $3.
10 per MMBtu of natural gas, before giving effect to existing price floors
This PV-10 value excludes any benefit that may be derived from the higher price floors
that Denbury has purchased relating to this acquisition.
Although the acquisition initially appears to have a high finding cost above our historical levels, with our price floors
protecting any unforeseen commodity price weakness and the upside potential that our engineers and geologists have already identified, we expect to show an excellent rate of return on these acquisitions.