RE:RE:RE:RE:RE:WTI up $4.51 BTE down?dllscwbysfn wrote: Johnny Doe, FX is not hedging .Hedging comes with a gaurantee. What we have here is called gambling or maybe an educated guess and I do hope they get it right. If it goes wrong it could go very wrong because what would the debt be if the loonie drops into the ,62 -.64 range.
We make more money when the Cad$ is weak but our debt gets worse,right?
Maybe one of you smart people can figure out if we are better off with a stronger or weaker cad.$
why are you addressing this at me? I'm quite aware that fx and hedging are different things. Gambling on what? Hedging is a risk management game. We see less hedges in 2023 at much higher prices. Do you mean gambling on the timing of debt repayments? Ya, they could get that wrong. I hadn't realized until this Q that the debt was denominated in US funds but knowing that it seems to me how they managed this Q was smart. The company was also in a buyback "deficit" which was discussed on the board back in April/May. They had a commitment to return 25% of 2022 fcf to shareholders, which they're doing by buybacks. But they got started late. By the time they started, probably closer to 35% fcf needed to go to buybacks to meet the 25% commitment. I asked IR about that and they confirmed. Not the 35% number, the annual 25% and the company having to overbuy if you will