Obsidian Energy Ltd T.OBE

When will the current quarter results will be out?

[Sultan77]

Novice investor here :)

Given the higher oil prices, will we see increased revenue this quarter?
Or are they still selling at a price they've hedged before?

Also would anyone know when they will be reporting the current quarters results? sometime in May?

[JohnJBond]

About half of the oil OBE sells today, is hedged - meaning they locked in the price about a month ago.    The other half is sold at the daily price. The price today is higher than it was a month ago, so the total revenue from oil sold today will be higher than it was a month earlier. Prices change each day.     There are about 90 days in each quarter. 

[perstrudent]

I thought a lot of the hedges dropped after Feb into March 1?

[Hendrick3]

I just checked the most recent presentation and the significant hedges are in place until end of March at about 7500 bbls per day at $108.75 CDN, it drops down to 500 in April at $115. Not exactly punitive hedges although they will cost something. There is a possibility they have hedged more in the intervening period but of course there is no information to suggest that. 

[JohnJBond]

What you are seeing here is what the hedge book looks like when the policy is to hedge about 50% one month out. Since we are now in March, they likely have at least 7500 hedged for April.

[Sultan77]

Thank you for the reply!

[Hendrick3]

Just to be clear though the half hedged position is for March, correct? I didn't see very much for April or thereafter or did something change in the last few days?

[JohnJBond]

OBE's policy has been to hedge about 50% of its oil, but to do it on a short term basis - ie one month out. I assume that policy has not changed. Remember the WTI price you see quoted on TV is the price for the closest (most heavily traded)  futures contract.    ie, right now the quote is US$110.18, but that is not todays price, that's todays price for the futures