Nucor praised for pursuing natural hedge

iron ore
Nucor hopes natural hedge will counter the heat of high gas prices

A recent deal between North Carolina-based steel maker Nucor and Calgary-based natural gas producer Encana might serve as a model for other companies seeking to hedge their energy exposure through acquisitions of physical assets, say market observers. On November 6, Nucor revealed it was buying a 50% working interest in certain US natural gas wells operated by Encana. The steel maker said it expected to invest $3.64 billion in the gas assets over the lifetime of the agreement, which it estima