ETP +has long stated they are only trying to cover commodity risk with their hedges. The contango market has provided them with several quarters of positive hedging results, but they are changing their gas positions.
This will be the last year where they will actually own much of the storage gas. M. Kimbrill stated this is to reduce volatility in quarter to quarter results and caused by the simple fact that they can "rent" storage space for a quaranteed fee that provides about the same income without the need for hedges. Several of the contracts were changed/expired this year and the biggest one expires next year.
Mr. Kimbrill stated that they clean up their financials and still get the same inclome since the winter spring price differential is an average of $3 (his numbers). ETP has not gone short on NG. They historically have bought gas to sell in the Winter.