HedgingOnce you pay down a good amount of debt, do you really need to do as much hedging?
Here is a comment from the monthly report that shows they are slowing down their hedging.
One reason may also be because of the Cascades Generating plant Peyto is supplying in 2023, they don't have to hedge that portion.
Some people did very well this week, I kind of waffled. PEY and CR were iffy with little to work with. Others seemed to be flying. Eric's fund purchases seem to have an impact before we know what is going on and then he is gone the same way once prices get ratios higher and they can find better value. Flog it afterwards and voila you are pricing the markets in the catalogues.
One thing I did was raise some cash and buy long calls on ARC, VET and PEY. Have more exposure with more cash available.
June to Sept is going to be hazy at best unless earnings in the oil and gas make everyone else in the investing world notice.
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Activity Levels and Commodity Prices The current projected drop in the futures price of natural gas from March 31, 2023, to April 1, 2023 is unbelievable (Figure 3). Right now, that one day drop is $USD1.80/MMBTU and seems very unlikely to me. Which makes hedging next summer (Figure 5) difficult to stomach and one of the reasons we’ve slowed down our hedging pace. While the market is projecting supply/demand to be balanced by next summer, that season’s price continues to climb higher each week, implying less and less conviction to that thesis.