RE:RE:Kelt the Opportunity is revealing itself..
I am not sure over the long haul that hedging ever makes any money, in fact i would say generally their are losses associated with hedging.
So my take is the best hedge is a strong balance sheet, because Kelt is going to execute their plan regardless of the price, and their balance sheet gives them the flexibility to do it.
I have seen diasters as the product of hedges, and many companies get forced to hedge at the wrong time when the balance sheet is offside.
So i believe in opportunistic hedging, with the focus being the balance sheet.
That my opinion for all its worth.
P.S. hedges can be very complicated, if all the tools are deployed, and it should be a cost center tracked for performance. There are many ways to hedge, commodity options are only one example. (balance sheet, ducs, materials, reserves, etc)
MHP
IMHO