RE:RE:RE:RE:Any Companies Smart Enough To Hedge at $85+ ??????CVE's share price drop from ~$40 to ~$2.50..... Tells a different story on company's grasp on risk management.
All just my opinion/view/thinking
Quintessential1 wrote: Hedges are risk management. If oil hits $100 then $85 hedges will not look smart. I'm not sure hedging is neccessary when your costs are obviously covered unless your creditors are forcing you to which is where debt repayment and deleveraging creditor control comes into play.
CVE's management seems to have a good grasp of this concept and appears to be striking a good balance of reducing creditor levearage while returning value to shareholders. I expect to see the former rise as the latter decreases and the share price can only benefit from both.
GLTA
mrbb wrote: i think some management panic a bit when the omicron showed up and hedged some into 2022. I know a friend who sold out of oil stocks after 2021 run up and miss out second (and more) run up
ChickenLittle13 wrote:
I was under the impression CVE was unhedged going into 2022. Since they still have to buy condensate to dilute the bitumen , limiting their upside w hedges and still paying spot+premium for condesante seems foolish.
Im actually blown away why so companies hedged so much into 2022 , drastic way to cut into profits. I'm sure these management teams are aware of the potential for oil shortages this year.