RE:RE:What will the banks do now?ariesleaf wrote
I think the Bank's are looking at added more hedges so you will never see regular dividends or share buy back. Any few extra dollars Banks want to be first.
-------------------------------------------------------------------------------
You might want to learn to add a little bit bumpkin. Hedging at oil in the high 70s and 80s is not the same as they hedging they did in the 40s. Even if they were forced to do some hedging at these oil prices which is a good thing they will still be making a lot of money which could help pay down debt very quickly and then lead to a dividend.
A lot of people think of Hedging as a bad thing. Surge had bad hedges this year because they hedged at low prices to survive and then oil prices took off. If they hedge now at these prices and then oil prices tank next year the same people who complain about hedges now will be saying that management were fools for not hedging all production at $80.
At these oil prices which are way higher than the past 5 or 6 years i would hedge at least one third of production no matter what anyone says. Hopefully Surge have been doing that.
Better safe than sorry.