Post by
filefish on Sep 27, 2021 1:09pm
Rising tide
Does a rising tide of energy prices lift all boats?
Not in the case of PPR which has a case of hedges heavily in the red for the next 15 months.
What a shame.
Comment by
Anthdino on Sep 27, 2021 1:11pm
Thought they were only hedged for about 50% .
Comment by
Justhalffull on Sep 27, 2021 1:25pm
Yes, about 50% hedged. Forced to do so my their lenders. But about 1675 bbl hedge on 3 way collar comes off Dec 31 2021, so that will help a bit. The increase in oil and gas prices should allow them to increase their CF for the balance of 2021 by some limited extent, however.
Comment by
filefish on Sep 27, 2021 1:35pm
Maybe enough to drill another well, which is desparately needed. Doesnt matter if oil or gas, both payout very good returns now.
Comment by
Justhalffull on Sep 27, 2021 2:30pm
Oops. Just noticed that the 1700 or so hedge that is expiring will be replaced by a 1150 and 1250 bbl hedge for 1st and 2nd half of 2022. Better hops the NG sales cover the hedging losses.
Comment by
filefish on Sep 27, 2021 3:02pm
They will be pissing away lost profit on 40% of their 2022 NG volumes. Fortunate that they are collars and not calls. Bottom line is that they need to drill new wells and get their production up over 5kboe/d.