RE:RE:RE:What I find funnyGood morning Drifter133, ResearchSeeker and HighOctane89 !
Here is the page 13 of Nov presentation with bottom note :
(1) WTI 3-way options consist of a sold put, a bought put and a sold call.
In a $62/$78/$96 example, Baytex receives WTI+$16/bbl when WTI is at or below $62/bbl;
THEY PROTECT THE DOWN PRICE WTI AVG. PRICE
Baytex receives $78/bbl when WTI is between $62/bbl and $78/bbl;
COMPARE TO 2022 IT'S ALREADY 14,7% HIGHER (78$/68$, base on the avg. price)
Baytex receives WTI when WTI is between $78/bbl and $96/bbl; and Baytex receives $96/bbl when WTI is above $96/bbl.
My understanding is, the 3 way prices in the presentation are avg. price.
So as Drifter133 wrote
2023 Hedges so far 3-way option (2) Jan 2023 to Dec 2023 2,000 bbl/d US$55.00/US$66.00/US$84.00 WTI They protect the down price at 66$. 3-way option (2) Jan 2023 to Dec 2023 2,500 bbl/d US$60.00/US$75.00/US$91.54 WTI They protect the down price at 75$. It's 10,3% higher compare to the avg. price of 2022 at 68$ 3-way option (2) Jan 2023 to Dec 2023 2,500 bbl/d US$65.00/US$85.00/US$100.00 WTI They protect the down price at 85$. It's 25% higher compare to the avg. price of 2022 at 68$ 3-way option (2) Jan 2023 to Dec 2023 2,500 bbl/d US$65.00/US$85.00/US$106.50 They protect the down price at 85$. It's 25% higher compare to the avg. price of 2022 at 68$ Let me know if you understand it like me !?