Headwater Exploration Inc T.HWX

gas

[dropthegloves]

Does anyone know how much of the gas being delivered to Algonquin City Gate is unhedged. The spot price has sky rocketed

[commonsense9]

In the past they hedged as much as they could. Anybody's guess whether that is still true now that the winter price premium is so reduced. The rest they sell on short term contracts- at a higher price mid-winter... but they would never have sold much at the spot prices. quote=dropthegloves]Does anyone know how much of the gas being delivered to Algonquin City Gate is unhedged. The spot price

[dropthegloves]

This was in the 3rd quarter report To appropriately manage the volatility in our natural gas pricing Headwater has now entered a cumulative hedge position for the December 2020 through March 2021 period of 5,000 mmbtu/d that provides for an average fixed price of Cdn $7.81/mmbtu.

[ardbegoil]

Stupid move....CDH used to wait for spot pricing and received up to $23  per mmbtu....Thats the type of volatility HWX will be missing.....best to all

[longtermholder6]

Those hedges were put on when everyonr thought the world was ending.

[commonsense9]

That is not at all true. During the years of the best price premiums they hedged the bulk of it. And di well by it.  Sure, they got SOME of the astronomical prices. But just waiting on that for most of production would have been a disaster.

[commonsense9]

The AECO spot price is running over $4.00. If you have gas to sell in Alberta, try getting that.