RE:RE:RE:RE:Hedging with a PurposeKelt divides the company nto 3 "plays" but in financial point of view, they have 2: gas prone (Oak, Pouce Coupe West, other) and oil prone (Wembley, Charlie Lake, other).
Gas prone is a third of production but hardly generates any cashflow at the moment - ironically, Kelt focused here in the first half of their capex budget, and hardly hedged at all. If I were them I would hedge more in '25, and I would not spend more capex than the plays can generate on their own. Also, Oak is more liquids but then its station2 who knows what they'll get for that NG.
Oil prone is 2/3, ~ 50% liquids (if 1/3 is 12%, 2/3 50%, total = 37-38%) for 2024 and generates all the cash.
Interesting observation: the upside from higher natgas prices is the same for natural gas prone and oil prone. Why? Because they more or less produce the same amount of natural gas. The upside from increasing production from oily plays though is much higher. Why? Because it also produces oil in addition to natural gas.
So investing in both plays equaly ie maintain the NGL % makes no sense whatsoever.