RE:RE:RE:RE:Hedging lossesIronically enough TOU has plenty of bad nat gas hedges, but they came with companies that took them on due to too much debt and thus over hedges before selling out to Tourmaline on the cheap.
For those piling on Quint, calling mortgage insurance an inverted analogy, Uncut is correct in saying that highly levered mortgages (and by extension O&G producers) need them, so less indebted companies are both superior investments and are free from outside interference in tough times. You can't get a low down-payment without mortgage insurance, and overlevered companies like Peyto were required to hedge by bankers under threat of having bank lines pulled/cut. Job-loss insurance and the like are often added to major loans, so the analogy is appropriate.
So what does this mean for shareholders today? My guess is 5-7 months of underperformance due to these terrible hedges (approx. $1.85/share anchor to NAV), followed by a cash-flow snowball beginning with Q4 results. The new reserves report, also to be released in early 2023 will another late Christmas gift. If you're selling today I'd be royally ticked off, but patience will be rewarded.