RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Hedges....Peyto added to their hedge as H1 unfolded. They obviously got prices that were a fair bit better than $0.89, but for whatever reaso they still weren't anywhere near US$2.50.....
Yasch, are you implying they did not got price anywhere near US$2.50 or you read it somewhere?
If they forward sold 20,000 mBtu/d in March 2020 and locked $US0.89, their position in the basis is reduced from 257,000 mBtu/d to 237,000 mBtu and it implies they sold these 20,000 mBtu/d at $US1.43 + $US0.89 = $US2.32 mBtu, which is where the 2021 futures strip was trading back in March 2020.
As time progressed and Natgas future prices raised, they continued to sell their long position on the NYMEX, thus reducing their basis position that gradually became a short position on AECO.
"...Peyto (thankfully!) left 55,000 mmbtu/d unhedged for Q2 & Q3/21, which means they're getting US$3 right now on that amount by selling at spot. That should help the average returns quite a bit...."
Yes, these 55,000 mBtu/d basis are still exposed to the fluctuations of NYMEX contracts with corresponding expiry!