Post by
Farmer12 on Sep 08, 2021 10:54am
NG prices
NG Nymex futures prices really jumping this morning, especially this fall and winter futures. Even futures prices extending out to the spring of 2023 are being goosed a bit. No matter how you spin this, it is positive for Arc. Their timing for buying Seven Generations was perfect. They can swallow the whale without too much indigestion. These prices are too sweet to last so I expect the hedging gurus are studying the tea leaves to determine a course to lock in minimum cash flows for several quarters, even possibly several years? This should put a floor under the Arc stock price and really help the risk/reward calculation.
Comment by
sunsurfer11 on Sep 08, 2021 1:16pm
we are likely entering into a high inflation decade..they should just let the hedging die altogether..no requirement to protect balance sheet anymore. let it ride
Comment by
Robertboblaw on Sep 08, 2021 5:27pm
My thoughts exactly. No more than 30 or maybe 40% of total production should be hedged. Ever. That should be enough to protect cash flow in times of rough patches. Still gives enough exposure when prices come roaring back. Imo. GLTA
Comment by
Robertboblaw on Sep 08, 2021 6:47pm
Blank posts again?? I was saying I agree with other posters in the past, the banks are calling the shots with arc's hedge book. I don't expect their hedging strategy will change much going forward. I expect they'll be at least 45 or 50% hedged for the foreseeable future. It's really a shame imo. GLTA