Post by
jdeis2 on Oct 25, 2021 2:58pm
Please Make It Stop Already
OK MHP,
you have made your point that the paper losses on hedging will pile up over the next while. This is the nature of hedging in a rising price environment......
The revenues will GO THROUGH THE ROOF with higher oil, gas and condensate prices ......and will be somewhat offset with hedging losses......but NET NET ARX profit will be far better off with a $85 oil price than we would with a $50 which is where "experts" were predicting back when hedges were put on......
hedging is operational insurance to cover certain fixed and expected costs in opertations that the company deems important enough that they MUST have pricing certainty in the environment that was only 12-18 months ago
So I have 2 asks of you:
1)Tell us why you didnt have a problem with these hedges 12 months ago, or 10 months ago, or 8, or 6, 4 or even 2 months ago but now these hedges are the work of the devil??
2) On behalf of most of this board, we thank you for pointing out the hedging issue (however you have failed to mention that corporate revenues will rise a greater amount than hedging losses as oil rises, I hope oil hits $110 next quarter, some more losses but far greater gains) .....But for the love of God, could you stop repeating your SAME MESSAGE for the 20th, 30th, 40th time?
No one owns the board or it's content, but please dig up some new info so we dont have to read your rant another 20 times . stating essentaily the same thing
Jiim
GLTA
Comment by
Shaleguy on Oct 25, 2021 3:33pm
FYI. They are not paper losses. It's real money.