RE:RE:RE:RE:How did they lose all their money?Most of the hedging provisions are probably against Euro Nat Gas. The price is now about 8 USD per Mmbtu over the stike price and volumes are heavy till 2022 when they lighten up a bit.
The hedges were put on when European gas prices were very weak due to Covid and were probably necessary in order to maintain credit lines.
This is the reason why all Oil companies want to tell creditors where to go. And it is also the reason that commodity prices will remain strong.
There are a lot of major companies in much worse positions than VET
geemonet wrote: I understand how hedging will diminish profits when prices go up... but they blew ALL the FCF on derivatives.... like... did someone hit the wrong button on a keyboard when executing a trade or something? Makes no sense thay they can have almost 100 million in fcf and the debt goes up... like... what the hell?