RE:RE:RE:RE:RE:Next level of enhanced shareholder returnsWell, it's hard to say if they made a good decision or bad decision on the hedging. I'm sure if oil plummented to $30 a barrel and TVE was able to still sell 22,000 barrels at $70 we'd say it was really great!
Here's what they did in Q2 - They have 2-way WTI collars on 22,000 barrels of production. They average out to a floor of $69 and a ceiling of $89. So they will always get a minimum price of $69, but will also only get a maximum of $89. For this pleasure, they paid $1.75 million dollars.
Again, these hedges may have been mandatory as a debt condition. So don't be too quick to blame management if you don't like it!
Cheers,