RE:RE:RE:RE:RE:RE:RE:RE:Kakwa is HappeningMostly agree with MHP...although my view is much simpler..you only hedge:
1) Capital - hedge cost base recovery..not profits or returns..agree quarterly rolloffs and not bought all at one time..lioke MHP thought of gradually building a 2 yr hedge quarter by quarter
2) Debt Servicing - agree that based on todays debt level no real requirement for any more hedging to protect debt servicing as its low enough already
All the other things you could hedge are variable (profits, dividend pymtt, materials cost) and thats where good mgmt is better able to control production/spending up or down based on what the commodity is doing much more effectively than a hedge..