Trading Date. % Change from Last Week. 53 State Street 12 For further information contact: Jessie Hagger

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1 $ / MMBtu WEEKLY MARKET UPDATE Weekly Summary: The U.S. Energy Information Administration reported last week that natural gas storage increased by 89 Bcf. The injection for the same week last year was 49 Bcf while the five-year average injection is 75 Bcf. Total U.S. natural gas in storage stood at 1,432 Bcf last week, 37.6% less than last year and 26.6% less than the five-year average for this time of year. reinforced their commitment to reducing GHG emissions last Wednesday when the Energy Commission passed a mandate that requires homebuilders to include solar systems on all new single-family residences and low-rise apartment buildings starting in This policy is the first of its kind, and while it is expected to increase monthly mortgage payments by $40 on average, the cost savings are expected to outweigh this additional cost, lowering the typical utility bill by $80 monthly. Analysts estimate residential solar sales to increase 14% from due to the ruling. Meanwhile, ISO-NE achieved its own solar milestone. On April 21, 2018, for the first time ever, midday power demand dropped below overnight demand as solar output reached a record high. The increased penetration of renewables in CA has caused a new operational challenge for ISO grid dispatchers that other ISOs will also need to learn to manage. The swift growth in wind and solar resources is causing a frequent state of oversupply, which occurs when the system has too much generation without adequate realtime demand to meet it. Maintaining grid reliability requires ISOs to constantly match instantaneous power demand with supply. Renewables make this task more challenging as operators are unable to control output production in the same way as with a conventional power plant resulting in having to match variable supply with variable demand. During times of oversupply the lowest cost power resources are generally first selected to operate, but during extreme circumstances where reliability is at risk the ISO may have to request lower cost sources (often renewables) to curtail and begin to rely more heavily on generators that can ramp up and down quickly. Energy storage could likely play a larger role in balancing the grid in the near future avoiding this loss of carbon-free power. NYMEX - Annual s Henry Hub 2019 Henry Hub 2020 Henry Hub 2021 $3.00 $2.75 $2.50 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 NYMEX Summary Prompt Month: Front Month: : NYMEX Jun 2018 Jul 2018 Close () % Change from Last Week $ % $ % $ % $ % EIA Storage Summary Total (Bcf) Current levels vs Previous years (Bcf) % Difference - Current vs Previous years Injection/ Withdrawal : Storage Inventories This week 1, Same week - Last year 5 Year Average for this week 2,295 1, % -26.6% 53 State Street 14 oor Boston, Boston, MA MA

2 New Annual Forward s - Basis Algon Gates 2019 Algon Gates 2020 Algon Gates 2021 $2.00 $1.50 $1.00 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 Algon Gates, Basis Summary % Change % Change % Change % Change 2019 $1.692 $ % $ % $ % $ % 2020 $1.735 $ % $ % $ % $ % 2021 $1.748 $ % $ % $ % $ % $45.H.Internal_Hub $43 $41 $39 $37 $35 May-18 ISO-NE NEMA Power Movement $ $ % $ % $ % $ % 53 State Street 14 oor Boston, Boston, MA MA

3 Annual Forward s - Basis Transco Z 6 NY 2019 Transco Z 6 NY 2020 Transco Z 6 NY 2021 $1.00 $0.50 $0.00 Transco Zone 6 NY, Basis Summary % Change % Change % Change % Change 2019 $0.730 $ % $ % $ % $ % 2020 $0.640 $ % $ % $ % $ % 2021 $0.584 $ % $ % $ % $ % $44 N.Y.C - J $42 $40 $38 May-18 NYISO - Lower Hudson Valley Power Movement $ $ % $ % $ % $ % 53 State Street 14 oor Boston, Boston, MA MA

4 Annual Forward s - Basis Tetco M Tetco M Tetco M $0.15 -$0.05 -$0.25 Tetco M3, Basis Summary % Change % Change % Change 2019 $0.138 $ % $ % -$ % $ $0.055 $ % -$ % -$ % $ $ $ % -$ % -$ % $0.035 % Change 49% -3.3% % PJM East $32 $30 May-18 PJM BGE, Power Movement $ % % $ % $ % 53 State Street 14 oor Boston, Boston, MA MA

5 Annual Forward s - Basis SoCal Border 2019 SoCal Border 2020 SoCal Border 2021 $0.00 -$0.10 -$0.20 -$0.30 -$0.40 -$0.50 -$0.60 -$0.70 SoCal Border, Basis Summary % Change % Change % Change $ $ % -$ % -$ % -$0.217 % Change % $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % SP15 $32 $30 $28 $26 May-18 CAISO SP15, Power Movement $ % $ % $ % $ % 53 State Street 14 oor Boston, Boston, MA MA

6 Annual Forward s - Basis $0.08 $0.03 Houston Ship Channel 2019 Houston Ship Channel 2020 Houston Ship Channel $0.02 -$0.07 -$0.12 Houston Ship Channel % Change % Change % Change % Change $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % $ % Houston Zone $40 $38 $32 $30 $28 $26 May-18 ERCOT Houston Zone $ $ % $ % $ % $ % 53 State Street 14 oor Boston, Boston, MA MA

7 Annual Forward s - Basis NW Sumas 2019 NW Sumas 2020 NW Sumas $0.40 -$0.60 -$0.80 -$1.00 NW Sumas, Basis Summary % Change % Change % Change % Change $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % $0.00 Annual Forward s -Basis FGT Z FGT Z FGT Z $0.04 -$0.08 FGT Z 3, Basis Summary % Change % Change % Change % Change $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % $ $ % -$ % -$ % -$ % 53 State Street 14 oor Boston, Boston, MA MA