RE:RE:VETs MO I believe is to rape the company Nothing sinister about it. They put these hedges in place several quarters ago when commodity prices were in the toilet. By pre-selling the products they can get higher hedge prices than the then current prices thus protecting against future low prices. Their guess was wrong so now they have to take the losses. As time goes forward they have less and less hedges at the low prices so the quarterly losses disappear. Most oil and gas companies all did the same thing as they were worried about extremely low prices continuing forward after COVID hit.
The key to take from this report is that they spent only half of the generated cash flow, production stayed flat and debt was essentially flat. So when the hedging losses diminish all of that free cash flow can pay down debt without any loss in production.