RE:Please explainIt's an oddity of accounting , BTE has some hedges that keep their max price at $55/bbl for 40% of production until Dec 2021 . With WTI at $65 , BTE is loosing the difference on that production and those unrealized estimated "losses" were calculated and charged against AFF . The amount of $85 million was charged causing the paper loss . Since it was based off 9 months remaining in the year , the Q2 report will only be considering 6 months so the charge will be smaller too .
Revenues were up , production is up , debt was paid down , costs are down , working capital improved , all in all , a decent Q . Without that "unrealized" charge , BTE would have posted $50 million in earnings .