RE:RE:They are basically a slave of their hedge counter party Totally agree...we have seen the majority of oil companies come out with cash flow allocation (X to dividends...Y to debt pay down and Z to stock buy backs)...Surge not doing so means the banks are forcing debt pay down...figure oil hedges are probably with same counterparties as debt...so they are on a short leash which is unfortunate for equity holders like us...GLTA
fortunefavorsus wrote: So you figured out that most oil companies will lose money on their hedge positions in 2022 at current prices. SGY hedge positions are much better in 2022 and who is to say we don't average $70 oil next year? They will still generate enough free cash flow to pay down debt, pay a dividend and maybe buyback stock. I