Oil is now a lot more valuable for ARXQ4 the realized hedging loss for Oil was 102 million dollars, one of the lowest oil hedge loss in 2022.
102 million dollars in 2022 oil hedge loss equates to $12.62 a boe it costs.
2023 Hedges
In 2023 at $82.50 WTI hedge losses would be 20 million a quarter.
This means in 2023 ARX will get $10.13 more for every boe of oil.
How does that impact ARX resources as a company. It adds $2.50 to every boe in value to ARX based on q4 production numbers.
Kakwa Production at Will (25 DUCS) - Q1 ARX will continue Kakwa Production Expansion
Kakwa production is going to ramp up and that will ramp up ARX's condensate production, and with improved cash flow from reduced hedging losses, Kakwa will become more of a cash call than it is already.
IMHO