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How did Enronās energy derivative contracts help natural-gas producers manage price risks?
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Enron scandal
The Enron logo outside the company's headquarters, Houston.
Enronās energy derivative contracts allowed natural-gas producers to manage price risks by fixing the selling price of their products through contracts negotiated by the company for a fee. By acting as an intermediary between producers and their customers, Enron enabled these producers to mitigate the financial uncertainty associated with energy-price fluctuations.1