RE:Different kind of risksMaybe someone can ask at the meeting conference call what is the requirement from loans to hedge. In other words how much impact / requirements from the loans are needed to hedge to make sure there is sufficient capital coming in.
We all know this is a requirement on many smaller companies, but not sure how much of a requirement with Peyto.
I believe Peyto likes to drill a well, and then hedge at certain prices to lock in the value they know what they will get on that well. After that it is all open season.
We all know in general Peyto has been ahead of the curve many years by hedging. It is just that in BULL PRICING MARKETS they are behind the curve but in essence prices rising is not a big concern.
Just while typing this oil was down 60c and now down $1.20US so try to figure out what to do on a daily, weekly or monthly basis.
Also, I don't believe all the lack of interest in oil and gas is related to the greenies. Many investors of the last 30 or 40 years (my first purchase was 5 shares of an oil stock at $120), are getting older and starting to move money to safer havens, diversifying and going for banks, REITS, untilieis and pipelines etc. They can't handle the volatility anymore, I find myself in that position also. If I can't make this go round I may not be here for the next one.
On the IV board PP posted some charts on inventories that are at historic lows, lack of new discovery wells offshore, big money wells etc. and NIMBY restrictions are starting to have an impact.
The world is shrinking as the population grows.