RE:RE:RE:RE:Natural gas continues to soarI agree that hedges are usually a good way to guarantee future losses for E&Ps: like insurance they're an expense except in a crisis. Nice to see prices for 2022 where they are, but more important to NPV are the long dated end of the curve finally moving, with AECO now at $3.50-$4 in 2025, year ago was $2-2.50.
KEL's hedges are I guess to protect returns on their capex: D&C and infrastructure spend. Growing production within FFO while staying debt free with a long runway of drilling locations.
Will be good to get specific well results from the 1H 2022 drilling program in the next few months. Bought some yesterday, I shouldn't be adding but...think NG may have finally turned the corner at the macro level? Been a tough decade being obsessed with NG producers.