RE:Money saved with hedges off in 2023The "losses" are a bit misleading. It more accurately represents opportunity cost if you remember high school economics. If you COULD have sold your oil at $100, but due to your hedge you "only" get $80 is it really a "loss"? You didn't cut a cheque to anybody. But you did earn less than you "could" have. To make the accounting reported more confusing, companies show sales of 100 and a loss of 20 for a "net" of 80. It would be just as mathematically correct, and better reflect reality, if they just reported revenue of $80, which is what they received, and no loss if $20, which they didn't have. But, to spin to your point, you are correct, that as the hedges run off there will be fewer reported hedging losses. However, if oil drops from 100 to 80, net , which is what drives cash flow, the result will be identical to 100 oil hedged to 80! . No "extra" cash flow unless oil prices are higher than whatever the outgoing expired hedges were priced at. Clear as mud? Isn't accounting fun?
jdmecomber wrote: I think I am reading this report right. Baytex has lost $284,816,000 in 2022 with its hedges so far????
So we're looking at an extra $80,000,000 of free cash flow a quarter for 2023?