RE:I think that cccpg should limit any hedging going forwardThe hedges are already set to decrease every quarter going foward into 2022. And, the hedges are a debt strategy and not a cost strategy. I don't believe the company is bloated. They were totally sustainable at $50/wti - both in terms of costs, debts and potential capex to roughly maintain their current production. Having said that, CPG is going to take a significant impairement from hedging - there is no way around it. Their cash posiition is still excellent.
There are some companies that have been thrown a liferaft by $80-100 oil because they were in a bad spot. CPG's only real downfall was taking on aquisitions when the market wasn't sure they could repay the associated debt. We're in the era of repayment now. The debt is handled. Those fears were ultimately unfounded.
Moernoney42 wrote: this might be the reason why stock is not moving as much as it should be. saddled with high costs and their hedging percentage is high considering we are in an energy bull market now?
what do you people think?
this entire heavy reliance on hedging is due to the fact that they are bloated in costs and need have certainty in their future revenue numbers.
had they done what everyone else did. get rid of any and all unnecessary people. they wouldn't have been where they are now. instead, management decided to not only give them lifetime employement guarantees. they started an employee stock plan to reward them some more LOL
you can't make this spit up