RE:2023 HedgesYou actually came around to our way of thinking. Pointing out the bad hedges were rolling off and they are lowering the debt.
We have been telling you this forever, instead of harping on the old news of the VII Gen lousy hedges.
Of course you always have to stretch things by making a ridiculous prediction of a Q1 rerating during a time when all prices have been dropping like stones.
MyHoneyPot wrote: The hedges for 2023 are significantly better.
- The liquids hedges are reduced 50%, and are close to the money and higher prices no issues there.
- The gas hedges are resonable.
A big turnaround from 2022 and should add between 500 and 600 million in FCF, this hedging reduction will significatly offset some of the lower prices we have seen.
Also in addition to the hedge losses would be a higher percentage paid in royalites because of the higher realized prices last year, and the losses atributed to hedging.
In Q1 expect a rerating for ARC, a company that is 40% liquids and will have significantly more FCF than TOU.
IMHO