RE:RE:RE:RE:Q1 hedging gain?This is why no one can discuss anything with you.
You don't read what was posted and then you repeat what you already said.
We know ARX lost 2 billion in hedging. Lots of companies lost a lot on hedging.
They could hedge $6.00 gas when it was $10.00 and $6 was just an example.
Maybe they hedged $3 gas when it became obvious that NG was going to drop and they did it at $6.
I know they have $3 heding in place from before and it runs until 2024./ 2025
Maybe Bibbiy is right....maybe it is best to ride the price swings and let the market average the price out instead of hedging. Thats cool....we'll see. At least unlike BIR, ARX has 40% condy.
Yes they can shut in Sunrise gas and idle those plants to save costs but don't they get some gas out of the liquids wells too? Don't they have to sell that? Don't they have contracts to fill?
If they can shut in NG and just sell the liquids for a while that would be ok but can they?
When gas prices are low if they can shut the plant and optimize it with electric motors now is the time to do it. The prices won't stay low forever and even if they do its better to be running at low costs. The ESG is a bonus.
GLTA ARX BULLS.
MyHoneyPot wrote: 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