RE:RE:RE:RE:RE:RE:RE:RE:AECO prices very firmQuintessential1 wrote: "including removing the liquids hedging line??" Given the price of condy lately that is probably a smart play.
Given their hedging history it might be a smart play across the entire production line.
Now I know they have to keep a certain amount of hedging in place to satisfy creditors which is why paying down debt is so important. I also think they may have come out ahead in the long run with their hedging stratagy but, don't you think they should know for sure? Before the debt rolls off and they have the option they should put their own hedging numbers iinto a spreadsheet or two and try to figure out if they have come out ahead historically with their hedging stratagy or not. It would not only serve to reinforce their decision making processes for the future low debt (hedging not required) marketing plan but also reassure investors that they are taking the right course of action based on the numbers either way. If you don't know...you don't know for sure.
GLTA
MikeySwoosh wrote: wreckhouse wrote: Obviously lots can change between now and then though. At least Peyto should have some pain relief with the Cascade Power project looking for NG to make some steam end of summer . Was looking for updates but noting of real importantance was coming my way . BCRNW
As per their latest marketing report (which has changed quite a bit, including removing the liquids hedging line??), they suggest that Cascade power plant should be taking their gas in Q4 of next year.
I'm gonna steer clear of any discourse on the topic of hedging, as I've done so in the past, and it's clearly a devisive or frustrating topic (especially over the past handful of quarters). Condensate seems to be trading roughly in line with WTI again
https://www.tradingview.com/symbols/NYMEX-CC52%21/ after a tough summer discount due to SPR releases, as referenced in Peyto's Q3 report. Their WTI swaps from their most recent corporate presentation are averaging C$109.21 over 2023, which is a healthy number, and looks good when WTI is trading sub $80. Anyway, I'm more curious on why the info has been removed. As investors of Peyto, I think we all appreciate as much information as we can get (so that we can formulate our own spreadsheets), and through the president's report, corporate presentations, and insightful quarterly reports, we are generally well informed. The marketing report has provided very helpful clarity in the past couple of iterations, but I just couldn't help but notice the WTI swaps being removed in the latest one. The liquids % has seemed to diminish in the past few months as per the president's report, so I'm curious if Peyto is intentionally moving back towards higher dry gas production, either through their well selection or through their facilities, or if perhaps their more recent wells are just less liquid rich than they would have hoped for? There's obviously a price ratio that makes dry gas more profitable than NGLs, but what exactly is that? It would be nice to get more color on this from the management team.