Post by
PUNJABI on Feb 24, 2022 6:06pm
Poor hedges again.
For 2022, we have entered into hedges on approximately 41% of our net crude oil exposure utilizing a combination of a 3-way option structure that provides price protection at US$57.76/bbl with upside participation to US$67.51/bbl and swaptions at US$53.50/bbl. We also have WTI-MSW differential hedges on approximately 25% of our expected net Canadian light oil exposure at US$4.43/bbl and WCS differential hedges on approximately 70% of our expected net heavy oil exposure at a WTI-WCS differential of approximately US$12.28/bbl.
Not bad for 2023
For 2023, we have entered into hedges on approximately 9% of our net crude oil exposure utilizing a 3-way option structure that provides price protection at US$71.00/bbl with upside participation to US$88.18/bbl
Comment by
riski on Feb 24, 2022 7:29pm
Pretty standard. All oil companies are pretty much the same for hedges except MEG.
Comment by
ROIcrusader on Feb 25, 2022 9:07am
Cardinal Resources is another fully unhedged Canadian producer (CJ). Hedges are def a double edge sword and many times a condition of financing. GLTA