RE:Take care of your Pennies!MHP..while I am as choked about their unecessary/over the top risk mgmt as anyone, reality is the risk mgmt (relating to future delivery) was marked to market at the date their audit field work completed which would place the NG and Oil prices somewhat near the max highs we are seeing now...
What that means for subsequent q's is that if there is any decline from the high commodity prices, then we should be seeing some hedging gains..obviously if prices keep going higher from here on out then some more losses...
All in all, less concerend about the existing risk mgmt going forward as were rolling it off..i'd be more concerend if they were piling into a bunch of new hedges whihc I am not seeing as of yet..