RE:Before everyone just assumes its a bad quarterI was trying to start a conversation regarding the upcoming quarter... Any comments or anyone who actually noticed this info in the paragraphs below on their 4th quarter reults? It implies they are ahead of last year by 815 million in hedge gains and capex ex cuts... Am I reading this right? If so they could end up showing a profit in my opinion in this and coming quarters.
BullishBaytix wrote: Dont forget about the new hedges they put on at the start of January. As per their 4th quarter results, these paragraphs outline how they had gains from hedging of about 197.5 million for the entire year of 2015 ($16.5 millon per month avg)..... But for the first 2 months of 2016 they already had 152.2 million (76.1 millon per month avg).... this coupled with their 100 milllion/year (approximately) reduction in capex for 2016 means to me that they are going to show a profit first quarter as these derivatives gains and capex reductions will more than outweigh the approximately $35/barrel avg sales..... this is excluding any writedowns (and hopefully they are all out of the way now)....... Read below.
We realized financial derivative gains of $30.4 million in Q4/2015 and $197.5 million for the full-year 2015. These gains were primarily due to crude oil prices being at levels significantly below those set in our fixed price contracts
For 2016, we have entered into hedges on approximately 45% of our net WTI exposure with 19% fixed at US$61.50/bbl and 26% hedged utilizing a 3-way collar structure (as described in the table below). We have also entered into hedges on approximately 35% of our net WCS differential exposure and 41% of our net natural gas exposure. The unrealized financial derivatives gain with respect to our hedges as at February 25, 2016 was $152.2 million