OTCPK:AETLF - Post by User
Comment by
ufoolmeon May 26, 2015 7:23am
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Post# 23763849
RE:RE:Hedge gain about gone
RE:RE:Hedge gain about goneYou're right. Reduce that derivitave amount by $450,000 or so. The whole point of the exercise was to show that the closing of the hedge book will, in the end, cost them.
I see they have now put back on 2 hedges, one for 500 bbl for Q4 2015 at $60.80, and one for 200 bbls for Q1 2016 at $57.90.
If they sold their hedges to take the gain, they had to be anticipating a rebound in oil prices. If that is the case, why put on these two hedges? If oil goes above $60 by any significant amount, these will be derivative losses to put on the books.
Looks to me that right around $60 is their magic number. Anything lower than that they cannot tolerate, so they had to hedge to ensure they survive. Just my opinion, but hey, everyone has one, so I will too.