RE:RE:RE:RE:When oil hits $80-$90, I wonder which companies SMART enoughThere's protecting the Company (and CEOs paychecks) and then there's protecting SHAREHODERS. They are 2 different things.
Do you buy insurance on your house??? Why?
All just my opinion/view/thinking
SHayden wrote: CVE can manage in a low pricing environment for a lot longer than most other companies. Also you talk so much about wanting profits, yet you want then to also take an action that will make them less profitable. CVE has a good enough plan on how to protect the company in a low price environment. At this point your just flip flopping on non issues.
RagingBull3 wrote: IMHO, it's the fear of oil price crash and the Debt that's holding back share prices in this sector. This sector can't take another oil price crash. It's been 7+ years....DEBT coming DUE.... Time is running out for many.....that is time is running out for Shareholders.... Companies/management will just "restructure" and continue on while Shareholders left holding the bag.
I view hedges as "insurance" not for making money. Hedges cost, no free lunch. CEO continue to get their Pay Checks and Bonuses no matter what happens to the Share Price ususally. Hedges are for Shareholder, protect them from the Boogeman (Debtholders).
Eliminate the Risk Debtholders have on the company, Shares Worth a lot more in my eyes.
Until then, this risk keeping share prices down.
All just my opinion/view/thinking.
SHayden wrote: CVE is unlikely to lock in much if any hedges. Also more often than not hedges are a money losing operation for producers.
RagingBull3 wrote: to LOCK IN Profits (lock in most of their oil production at $80+ and lock in expenses....to lock in Cash Flow and Profits)????
I would be seriously thinking of locking in some Profits/Cash Flow even now. I'm not sure how Hedges work, but if they can do what I said above, that is what I would be looking for in a company to do.
Once Cash Flow and Profits SECURED..... Then it's simple to plan for Debt repayment, Dividends, CapEx......etc.
If oil price crash, cut back on production to what's Secured at High prices. If oil price rockets higher, well we secured debt repayments so FREE to increase dividends, CapEX, Production..
All just my opinion/view/thinking.