RE:RE:RE:Q1 hedging gain?Arc can never recoup the money that they lost in the last round of hedging. Over 2 billion dollars were lost and will never be recovered.
Bibby ARX CFO said that a strong balance sheet is that best hedge against low prices, and i believe birchcliff is on the same page as that, and Eric Nuttall advocates that.
You can't hedge gas at 6 dollars when gas is trading below two.
The best hedge that ARX has against low gas prices is Kakwa, and we will see if management does the right thing and ramps up Kakwa production.
How long does it take to pay for gas plant expansion at 2 dollar gas at sunrise, with higher interest rates arc should be getting better return on capital, sunrise is a money pit.
They should not add hedges here, it would be utter stupidity.
IMHO