June 5, 2020 www.encorenergy.com Phone: 402-905-4000 or 855-4NATGAS

Market Update is a weekly publication of Encore Energy Services, Inc. and is designed to provide industrial and commercial customers with the latest “Market News” in the natural gas in-dustry. The information contained herein is intended as general busi-ness information. This publication contains forward-looking material and is not intended for a specific business situation. If you would like copies of previous reports, please visit our web-site or contact your Sales Manager.

U.S. Gas Rotary Rig Count for:

Week ending 05-29-20

This Week 77 Last Week 79 Last Year 184

Physical Spot Prices – June 4, 2020

Price Change

Natural Gas Equivalent

Natural Gas – H. Hub $1.822/MMBtu -$0.005 $1.82 Propane – Mont Belvieu $0.506/gal +$0.046 $5.53 Crude Oil – WTI Cush $37.410/bl +$3.700 $6.45 No.2 Heating Oil – NYH $37.550/bl +$4.660 $6.45 No.6 Resid. – G. Coast $32.650/bl +$5.040 $5.19 Cent App Coal (prev. day) $34.250/ton -$0.650 $1.37 Change is from previous week

Futures Pricing At the close of business Thursday, June 4, 2020 the future strip prices were as follows:

This

Week Last

Week Last

Month Last Year

06/04/2020 05/28/2020 Change 05/04/2020 Change 06/04/2019 Change NYMEX near month $1.822 $1.827 -$0.005 $1.993 -$0.171 $2.416 -$0.594

NYMEX 12-month strip $2.431 $2.425 +$0.006 $2.683 -$0.252 $2.643 -$0.212

NYMEX Winter strip $2.788 $2.762 +$0.026 $2.984 -$0.196 $2.794 -$0.006

NYMEX Summer strip $2.520 $2.544 -$0.024 $2.644 -$0.124 $2.529 -$0.009

Near month range for the week = $1.742 - $1.866 Current near month is Jul ‘20 Summer strip is Apr ‘21 – Oct ‘21 12-month strip is Jul ‘20 – Jun ‘21 Winter strip is Nov ‘20 – Mar ‘21

Near-Month Natural Gas Futures Prices (NYMEX) through June 04

Temperature Forecast Jun 12 through Jun 18, 2020

Storage Report

For the week ending May 29, 2020, natural gas storage reported by the Energy Information Administration (EIA) was (in Bcf):

This Week Last Week Last Year 5 Yr. Ave. Change this week: +102 Bcf Change for the same week last year: +118 Bcf

Inventory vs. 1 Year ago: +39.0% Inventory vs. 5-Yr. Ave: +18.4%

Working Gas in Storage Compared to 5-Year Range

For more information on anything addressed in this report, please contact your Sales Manager. Sources: NOAA, EIA, NYMEX and Baker Hughes

2,714 2,612 1,952 2,292

Daily Nat Gas Use For U.S. Power Production (last 60 days)

Last 52 week Average = 31.6 Bcf/day Last 30 day Average = 28.5 Bcf/day

% of U.S. Demand = 36% % of U.S. Demand = 39%

Weekly Natural Gas Market Update