HedgesDoes anyone have a good understanding of CPG's hedges?
Seems in 2015 hedged 42,488 b/d (assumed each qtr?) at $96.42 CDN so the value of the hedge is difference between this and a realized price of WTI in cdn dollars? So if I assume $55 average oil price WTI US and 85 cent dollar then $475.2 mln cdn hedge value.... or $8.53 per boe with average production of 153,911 b/d in2015. With these assumptions is this correct? Anyone thanks.
(This idea of growing production is misleading...same with Surge a bit I noticed. Average prodduction will go up even if they add what they produce in 2015 given that it is an average over previous year. I have their production ending down at 152,143 b/d Dec 2015 but that will be up "on average over 2014". The challenge is 2016 where this type statement can't easily be repeated.)
Also I was suprised at how the royalty per boe drops in 2016 in the RBC report. WTI price assumptions are certainly high by the brokers but possible. I guess if the bank uses those for lending then the brokerage houses same?
(Debt definetly goes up but by how much depends on your assumptions. The problem is not 2015 but with most companies 2016 if oil stays below $65 wti)