RE:Nat Gaswe're not "overhedged" - hedges for Q3, per MD&A, are 260MMbtu/d, so that's about 43,000 bb/d equivalent; Q3 gas production was around 85,000 bb/d equivalent, so we're about 51% hedged.
the hedges will have a "paper" loss but these are still sales, so still cash flow, be it at lower prices, and the other half of the production is basically priting cash at these prices; since the hedges are non-cash "losses", they don't hurt nearly as much, of course, since most folks these days look at cash flow metrics more so than accounting profit
note on VII hedging policy, they mention "up to" 65% hedging strategy, but clearly, into Q4 that's not quite there, with gas being hedged 51% roughly, and liquids heding about 35,000 bb/d, if I recall correctly; out of 87,000 bbd condensate and 134,000 bbd liquids overall, the hedges are actually relatively low; if they stick to the system, it'll work out just fine, it will do what it's supposed to - put a floor under cash flow risk; if we go up from here, it'll be more paper losses on the hedged position, but unhedged production will print money, and with growing production profile and old hedges rolling off and new hedges coming in higher, presumably (on gas) we should be in incrementally better shape going forward; can't go making 240,000 bbd going forward without some sort of safety net