Post by
Canadaforoil on Apr 30, 2021 1:42pm
Not correct to use the words loss
These companies locked in a selling price, knowing their costs. So they aren't losing money, just not making as much profit. Give them credit for locking in profits and cash flow. So some profit is forfetited, I hate using the word loss, it seems intentional to misdirect. As a shareholder, I prefer locked in profit and cash flow. Don't berate me, just my opinion.
Comment by
mlcb2525 on Apr 30, 2021 2:40pm
I think the hedging of most Cnd O&G companies was prudent. They needed to lock in a price that would support their capex, dividends in some cases and possibly due to requiremnents from debt holders. The people who are crying about hedging would be first one's to complain if no hedges had been put in place and oil had not rallied.
Comment by
Maxmoe on Apr 30, 2021 2:59pm
Absolutely correct. There were , mercifully, hedges in place a year ago and unhedged production was shut down. No point producing at a cash loss. The screeching a year ago about needing more hedging was deafening.