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Encana Corporation T.ECA

Encana is an independent oil and gas producer with key assets in the Permian, Eagle Ford, Montney, and Duvernay areas. At the end of 2018, the company reported net proven reserves of 726 million barrels of oil equivalent. Net production averaged 361 thousand barrels of oil equivalent per day in 2018 at a ratio of 43% oil and natural gas liquids and 57% natural gas.


TSX:ECA - Post by User

Comment by cashtango00on Jul 29, 2020 6:45pm
228 Views
Post# 31340501

RE:How do we lose for hedging?

RE:How do we lose for hedging?They didn’t lose on the hedge. They gained 365m.  The 600m you are referring to is them having to mark to market their hedge book.  Last quarter they had a billion dollar gain because oil fell off a cliff so the hedges were worth more in relation to the market. As the price of oil recovers, the intrinsic value of those hedges falls so they value them against the current strip pricing. It’s not a realized gain or loss, it’s a valuation adjustment of their intrinsic value.  If oil dropped to 20 at the time of the q3 reporting, there would be a huge gain again.  
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