Northland Energy Trading, LLC is an over-the-counter derivates company, founded by Rich Larkin in 1998. Northland’s mission is to provide risk management tools to the clients of Hedge Solutions. These tools typically take the form of options, which are offered in customized increments depending on the needs of the client. Products for all commodities in the energy complex are offered: heating oil, gasoline, crude oil, natural gas, and propane.
Northland’s ability to offer less than standard contract volume (42,000 gallons) makes risk management accessible to small businesses. The time frame of coverage is also determined by the client, varying from a few days to several months.
 Calls, Puts, and Option Combinations
- End of Month – financially settled to the NYMEX futures price on the last business day of the contract month
- Daily Offset – written for a specific time period; financially settled on a daily basis to the NYMEX futures price; you specify the liquidation schedule (volume per day to be offset) up front
- Average Price Offset - financially settled on the last business day of the contract month to the average NYMEX futures price over the contract month
Basis Instruments
Northland can write options to settle against NYMEX futures or cash markets quoted by Platts and OPIS
- Rack Basis Guarantee – lock in basis at a specific rack location
Swaps
- Rolling Swap – financially settled on the last day of the contract month to the NYMEX futures price
- Bullet Swap – written to expire on a specific day; financially settled on the day of expiration to the NYMEX futures price
- Calendar Swap – financially settled on the last day of the contract month to the average NYMEX futures price over the contract month
- Crack Swaps – financially settled to the spreads between NYMEX crude, heating oil, and/or gasoline futures
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