RE:problemshenty46 wrote: problem with peyto is that if ng prices rise more, their hedging losses also increase, and if it falls ungedged portion is impacted, and next years ng prices are trading near 5 dollars, from the present 9 dollars.
Money is mobile. Hedges only delay the impact of commodity price shifts. Nobody complains when ng price falls but they all cry foul when price increases. There will come a time when higher priced hedges are layered in, and ng prices will find a new equilibrium and Pey sp will lag, yes, but not forever. If you are a long term pey investor, none of this variance matters. Otherwise, buy a competitor with no hedges. Nothing forcing people to hold pey if they don't like the risk mitigation strategies. Maybe they are just impatient.............. Let's look at this from different perspective. Had pey not implemented hedging, company could have been bankrupted by extended pandemic. Simple. The hedges are why pey is still standing. Today some medium term pain before the long term gain. Ride it out or buy a diff company.