Post by
soundandfury on Nov 04, 2021 11:46am
They are basically a slave of their hedge counter party
They are kept alive by the banks for one purpose ...........so the banks can steal the cream off the top of sgy oil profits
Comment by
fortunefavorsus on Nov 04, 2021 11:50am
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
Comment by
Baystboy07 on Nov 04, 2021 12:02pm
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