RE:RE:Q1/2021: REALIZED Hedging LOSSES: $ 20.8 Million !!!Man I'm glad I have the screaming crayon scribe on ignore. It's so annoying I can barely read it. By the way realized hedging losses are not real cash losses unless they are buying or selling futures naked. As long as the have actual production to fill those contracts, the "losses" are foregone profits, not a cash loss. If the cash cost of production exceeds the sale price of the oil, that's a cash loss. And Chris, please review reductum ad abdurdum. I'm purposely making an absurd exaggeration to make a point.
Chris007 wrote: LOL...I thought for a second that ATH decided to surprise us by releasing earnings early...
I did a quick CTRL-F and pasted the text into the Baytex Q1 earnings which I already had open and realized this comes from pg 16...no wonder it sounded so familiar
Eigen337 wrote: "We recorded total financial derivative losses of $106.8 million for Q1/2021 compared to total financial derivative gains of $122.8 million in Q1/2020. Realized financial derivative losses of $20.8 million for Q1/2021 were primarily a result of the market prices for WTI settling at levels above those set in our derivative contracts. Unrealized losses of $86.0 million for Q1/2021 is primarily a result of the increase in forecasted crude oil pricing used to revalue our WTI and WCS contracts in place at March 31, 2021 relative to December 31, 2020 along with the valuation of new contracts entered during the period. The fair value of our
financial derivative contracts resulted in a net liability of $107.7 million at March 31, 2021 compared to a net liability of $21.7 millionat December 31, 2020."
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REALIZED hedging LOSSES are REAL CASH LOSSES flowing in the Income Statement !!!
This is my opinion only.
Eigen337