Post by
NWOntario on Oct 10, 2021 9:24am
Small Cap Hedging
Can anyone provide insight into the realistic hedging options that a company like Athabasca has available. Do companies offering the hedges use a monthly average etc, when WTI is at the levels currently being experienced where there is momentum etc, are $70 hedges actually available? I imagine the short term vs long term hedges are quite different as longer term security means paying the price of lower hedges. But how low? Eric Nuttal has been very clear in his posts that $70 is probably the realistic floor and $80 is to early for longer term sustainable pricing. Without discussing the momentum drivers of countries/industry switching from gas to
oil, hurricane season, a cold winter etc as speculation drives the pricing up or down. What would a small company like Ath actually have at their access for
6-12 month hedges. I feel like we are continually disappointed at earnings due to hedging and the actual lack of FCF being generated due to our expectations with Eric's illustration charts. If we come down to earth about the Q3 2021, what should we be expecting?
Comment by
Nothingmatters on Oct 10, 2021 5:34pm
Thats why i bought in heavy... i was thinking they are doing an assest sale. My biggest fear or stock dilution (upto an extent). So this deal is not that bad according to me...In this price environment, ath is cheap definitely.