RE:Cpg hedges SoundandFury
WTI Oil is in heavy backwardation - spot and front month quite a bit more expensive than later months.e.g. Dec WTI is still around $80.
The way I think it works is they receive spot or front month for all thier production but then have
to report a non-cash finacial (hedge) loss end of quarter. This amount will be the average of the remaining 2022 months strip prices minus thier hedge price (~$88 cdn) on the barrels hedged.
i.e. you have to look at the average remaining 2022 strip price and use that number to calculate the
hedge loss - that won't be as bad as using the front month or spot in this case.
Hope that is correct and makes some sense.