Post by
itsalie on Apr 28, 2022 5:22pm
too much hedging?
For 2022, we have entered into hedges on approximately 40% of our net crude oil exposure utilizing a combination of a 3-way option structure that provides price protection at US$57.76/bbl with upside participation to US$67.51/bbl and swaptions at US$53.50/bbl. We also have WTI-MSW differential hedges on approximately 25% of our expected net Canadian light oil exposure at US$4.43/bbl and WCS differential hedges on approximately 70% of our expected net heavy oil exposure at a WTI-WCS differential of approximately US$12.28/bbl.
Comment by
topdown99 on Apr 28, 2022 5:40pm
Those hedges were in place over a year ago , pressure from the banks in 2019/20 forced high debt company's to hedge forward production . If you want to confirm for yourself check Q1 2021 report which lists those hedges already in place last year . The 2021 hedges were way lower prices , at least with these ones they have participation up to $67/b