RE:If you thought Q3 Was Good...Trapped wrote: Hedges drop from ~40% to ~27% in 2022. About to go into beast mode!
Trapped, I'm not sure I agree with your math here. I'm seeing their oil/condy hedges drop from about 50% in Q4 2021, to 39% for all of 2022 (assuming nothing gets added or subtracted). Gas hedges drop from ~45% in Q4 to 33% in 2022. Their presentation graph seems to agree with this (pg 27).
Also, does anybody know how the sold floor hedges work? Theyve indicated they have 34,247 bbls of oil/condy hedged for next year which I would assume compirses of:
23,767 at ceiling/floor of $60.52/$49.52 and
Swap 10,479 at $46.90
Total hedged: 32,247
How then does the "sold floor" hedges of 13,767 @ $41.55 work? Why are these volumes not included in the hedge volumes totals for 2022 above?
Based on my quick math, if these current oil/condy prices were to hold, I would say the extra ~9k bbls of oil/condy hedges coming off the hedge books, pls the *slightly* improved hedge prices for oil/condy next year, they might lose $150mm to maybe $200mm less in hedge losses in 2022 than they are currently. Anyone else come up with something similiar? I'll take it but to be fair those are still gonna be some costly hedges. GLTA