Birchcliff Energy Ltd T.BIR

Question

[fishcarrier]

Does anyone have a bit of an idea how Birchcliff sells some energy at a higher price "THROUGH FINANCIAL INSTRUMENTS" ? How does that work?

[Aldan007]

Hi Fishcarrier, I have answered a similar question about basis swaps a couple of years back. These are just example numbers that don't reflect today's reality. I hope this gives you some understanding how it works. Below is my understanding about how the Basis Swaps work and what the purpose is. With these financial instruments a party can get exposure to a price at a different hub

[fishcarrier]

Thanks so much Aldan. So I take it that when AECO price is extremely low, BIR can make a swap quite profitably if HH is giving a good price for the gas.