RE:RE:RE:The question I want to see answered...DooX800 wrote: Hedged oil is gauranteed at a certain price for a fee, $5/bbl if I recall. So oil hedged at $55 in a market that’s selling for $35, the seller gets $50, if it was to go for $100, the seller gets $95. Most oil companies do this to an extent. Don’t believe most of what is said on these boards, as most are not familiar with the oil business. Yes CP has done some things wrong but production continues to increase as well as the assets, market value will most certainly catch up. This Sandy fellow is less then credible and with .3% of shares, most on this board own more than that. He has a hidden agenda, don’t fall for it.
That’s not how hedges work. You first have outright hedges (
x number of barrels sold at
y fixed price), and then you have 3-way collars, with a floor and a ceiling. CPG has both, and if oil prices remain north of $60, they will have hedging losses in the 9 figures. I actually don’t blame them for this; they were trying to be prudent and conservative.
As for Sandy, he has made clear what his agenda is: he wants the stock to go up. How exactly is it hidden? You don’t have to trust him or love him, but you do have to appreciate the fact that at least he is doing something to shake CPG up. Investors have been crying out for some public activism, which has been sorely missing in the Canadian oil patch.