Encana Corporation T.ECA

How do we lose for hedging?

[Bluejaysoilcomp]

one line it says there are hedge gains of $365M but the other line, it says there are hedge losses of $679M.. How is it possibly we lose money from our hedging..

[cashtango00]

They didn’t lose on the hedge. They gained 365m.  The 600m you are referring to is them having to mark to market their hedge book.  Last quarter they had a billion dollar gain because oil fell off a cliff so the hedges were worth more in relation to the market. As the price of oil recovers, the intrinsic value of those hedges falls so they value them against the current strip pricing. It

[ariesleaf]

BUY OR BE BOUGHT MERGE OR GO PRIVATE............./?

[cashtango00]

Ovv can’t buy anything now.  They always buy at the top of the market.  They have too much debt already and their equity valuation is too low.  Bad management. 

[BarbarousRelic]

You can say that again.  Suttles said in 2018 that the corporate priority was strengthening the balance sheet. Then came out of left field to acquire Newfield at what was, once again, a market top.  Another example of managements lack of credibility poor judgement, and why this name is so heavily punished by the street.