RE:PPR hedges causing poor performanceThe two real bad hedges (47.60 and 52.25) are for just 1000 bbls or so and expire June 30.
The next hedge is a three way collar at 40.00 b 50.00 b 64.25 on 650 bbls till end of 2021.
On July 1 2 additional 2 additional 3 way collars kick in at 40 / 50 / 55 on 300 bbls and 35 / 42.50 / 62.10 on 725 bbls. The rest of our 4000 day will fetch market prices so long as they don't put on any more. As long as oil stays above about 47.50 we should be ok. Problem with these 3 way collars is if you get a large drop in crude price, your hedging losses double if the lower priced put goes in the money. Kind of a no win situation on the 3 ways. You actually want to lose money on these hedges, because if you do, you will make more than double the loss on the oil sold above the upper band. Guess Q2 will be a bit better, and q3 better still. If oil falls back to under $40 bucks, I think we will be toast.