GREY:WFREF - Post by User
Post by
peplareon Dec 15, 2014 9:21pm
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Post# 23233724
Hedges from release
Hedges from releaseLong Run's 2015 capital budget will support production of 35,000 Boe/d to 36,000 Boe/d based on net capital expenditures of $165 million and the flexibility to reallocate the timing of certain projects during the year. Based on these parameters, we anticipate funds flow from operations to range from $200 to $210 million in 2015. Should commodity prices improve, the Company intends to use additional funds flow to accelerate debt repayment and improve financial flexibility. For 2015, Long Run has placed hedges on approximately 35% of our 2015 production balanced between oil and natural gas. Approximately 50% of our oil production is hedged for the first quarter of 2015 at an average floor of approximately WTI US$91.60, which will assist in supporting our funds flow from operations. Long Run's risk management philosophy is to hedge approximately 35 to 50% of our annual production volumes