Post by
Oil2018 on Feb 03, 2021 10:31am
Hedging
I remember bte having torque when wti raised significantly. Is hedging holding it back?
Comment by
2020oilgamble on Feb 03, 2021 10:36am
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Comment by
2020oilgamble on Feb 03, 2021 4:52pm
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2020oilgamble on Feb 03, 2021 5:21pm
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Comment by
Maxmoe on Feb 04, 2021 12:02am
I have also pointed out a major and purposeful flaw with the nutsac chart. He uses $60 oil which is at least a 10% premium to reality when prepared that chart but he uses "strip" prices for nat gas because the strip is low. So, the right side of the chart is gassy names. Translation ....his next move is into gassy names and his charts will use LNG export prices. Haha.
Comment by
2020oilgamble on Feb 04, 2021 6:38am
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Comment by
TrendSwapper on Feb 03, 2021 7:00pm
That and oil is going higher. 2022 is going to be the great rebound, back to 100+.
Comment by
Hendrick3 on Feb 03, 2021 7:06pm
Just to reiterate my understanding of the hedge position. They are less than 50% hedged in a collar arrangement that protects them below $45 WTI ( guarantees $45) but they are effectively capped at $52 (the excess goes to the counterparty). The rest floats with the market. Is that correct? It seems people are making a pretty big deal on a fairly modestly out of the money hedge.
Comment by
Unlucky13 on Feb 03, 2021 8:16pm
The hedges were for survival. They are not great. They get $52 to the upside and are losing money right now. They protest themselves to the downside and get at least $45 on half. They panicked and had no choice but to lock in at such low rates.
Comment by
Owlseye1 on Feb 03, 2021 8:22pm
TD Bank thinks hedging was great ideal and 55.00 oil is a real game change for BTE so l will listen to the pro's instead of all the hot air!
Comment by
TrendSwapper on Feb 03, 2021 8:45pm
Explain, in great detail, how we are loosing money at $56 oil?
Comment by
topdown99 on Feb 03, 2021 9:51pm
And keep in mind , (WTI=$52/brl) at $23 million times $7/brl equals $161 million added to FCF