At the 2016 Platts Gas Storage Outlook conference, WTM showed that storage extrinsic value has two valuable components, not one:

• One, which is usually thought to be the only component, is derived from volatility
• The other is derived from intra-months peaks and valleys in expected cash prices

The latter can be even larger than the former, we have great examples to show this, but capturing the latter requires an accurate storage model of cash trading

The standard storage trading strategies of monthly baseloading along with picking off cash price opportunities can be shown to easily miss several cents per MMBTU per year of capacity. But these strategies are optimal to employ only if a storage model that maximizes extrinsic value does not exist. Now it does with the WTM storage model.