Surge Energy Inc (Alberta) T.SGY

Still not happy with the hedges

[twinjett]

Looks like for first quarter 2022 they have 7500 barrels a day hedged at $69.61 Canadian. When you convert this to USA dollars it is only $54.08 a barrel. Now using a average oil price of 80.00 barrel we are loosing 26.00 per barrel per day. At 7500 barrels a day hedged X loss of 26.00 our loss per day is $49140.00 loss per day X 90 days in a quarter = total loss for qtr of17,550,000 USA dollars or in Canadian dollars of 21,937,500 Does my math sound correct?

[fortunefavorsus]

I believe you are looking at floor pricing and with current oil prices hedges are way above that.  They have 4,000 swaps at $75.27 and 2500 that could trade up to $71.88 and 1000 that could trade up to $88.40.  

[twinjett]

Thanks I find hedges very confusing.

[ppp]

Also don't forget SGY don't get wti prices. It gets between WCS western can select and Alberta light.  WCS trades at about a 12 dollar discount to WTI at the moment.

[zack50]

SGY has a new "Hedging Strategy" for 2022. The hedges for 2021 were, as we all know, horrendous... in the vicinity of $47 WTI... forced upon Surge by the major chartered banks. That's all DONE! To give you an idea of how that translates in terms of CF, here's an example: * Unhedged CF for Jan./21... ~$  7M * Unhedged CF for Jan./22... ~$28M That's a significant