OTCQX:GXOCF - Post Discussion
Post by
traderlong2 on Jan 03, 2019 3:47pm
finally here
Good hedges in play
glta
Risk management
In the first quarter of 2019, Granite has 800 barrels per day of oil hedged at an average price of approximately $85.85 compared with a fourth quarter 2018 average of 1,200 bbl per day at $72.68 (assumes an exchange rate of 77 Canadian cents to $1 (U.S.)). The company is also receiving improved pricing relative to WCS (Western Canadian Select) market prices as a result of its direct-to-refinery sales agreement. This agreement has the added benefit of ensuring the company's access to market when many producers are facing increased pipeline apportionment and associated pricing risks.
Outlook
Granite continues to position itself to take advantage of more positive market conditions. The company has industry-leading capital efficiencies and operating costs, which, in depressed price environments, will outperform peers. Granite also currently has approximately 200 bbl per day of oil production shut in, which is being repressurized by the company's EOR scheme. This production can be brought on stream quickly, when appropriate, to take advantage of improved prices for no incremental capital. The company has the flexibility to act quickly and will adjust its capital program and allocation of free cash flow accordingly to maximize shareholder value.
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