Hedges - (based on 90,000 boe)WTI was approximately $82.50 in Q4, this means in terms of condensate/oil when you caculate hedging losses and include royalities caculated at %14.1 percent, the loss will be $10.93 US/boe.
So even though the price of oil was $82.50 effectively the price the company sold it for was $71.57 U.S. (With Hedging considered, a 11 dollar per boe cost is expensive price to pay for hedges when oil is $82.50)
What happens in Q4
In Q4 the hedging loss will be 104 million dollars with an associated royality cost of about 14.6 million in Q4. $10.93 US/boe
What happened in Q3?
In Q3 with WTI of $91.43 the hedging loss was 130 million, add 14% for royalities make the loss closs to $150 million canadian. That is about $13.819 U.S. boe.
What will happent in Q1-2023?
If oil averaged 82.50 in Q1 2023 under the new hedges, the total loss per boe would be about $2.46 U.S.
So going forward in 2023 even if oil dropped to 74 dollars ARX would generate the same revenue per boe as Q4 2022, and anything above 74 WTI would be increase oil and condensate revenue compared to Q4.
IMHO