RE:RE:RE:Good move acquiring VelvetTerribleEng wrote: The volumes on the collars are pretty much immaterial after Q3 22. I don't consider the basis deals to be a hedge, but some diversification in delivery. The actual basis spread is pretty at around $1.10, some other producers have $1.4+ basis deals so the diversification costs are reasonable.
This equates to $4.75mmbtu in CAD for next Jan, or not materially different from the Jan AECO futures which are trading at $4.33CAD/GJ
There are hints all over the presentation that they will enter into oil hedges as part of their investor capital return program. I am guessing dividends, as hedges don't make much sense for an NCIB.
They have a unique chance to enter into oil hedges now. Hopefully they will not miss the chance.