RE:RE:RE:WTI PricingOn the hedges,
With respect to liquids, with WTI pulling back, wouldn't the unrealized, as well as the realized heding losses drop into Q4 and going forward, as the older hedges roll off and WTI gets depressed? The reduction of the realized portion of hedging losses going from Q3 to Q4 would then increase the CF and FCF, no? If that's righ, then that could be another few million bucks not only to profit but also to the kitty, making Q4 look even better. In other workds, I would think that with rising WTI from Q1 to Q3 they would have bookked more hedges at higher prices, so if they're 65% hedged going into Q4, the higher average hedge price combined with the dropping WTI should translate into more realized (i.e. cash) as well as unrealized profit, as it is more than half the total production, I would think..
On the gas front, presumably the exact opposite would be true (i.e. increased net loss and reduction in CF, but as gas is a much smaller fraction of overall revenue than liquids, the impact of the dry gas price increases should be considerably less than that of WTI, resulting in effectively a net cash (realized) as well as unrealized income profit (or reduction of loss).
so in effect, seems to me, with dropping WTI and climing gas price, the net of all the heding positions should have a positive impact on the the overall cash flow as well as net income, unless I'm missing something..