Bullboard - Stock Discussion Forum Tourmaline Oil Corp (Alberta) T.TOU

Alternate Symbol(s): TRMLF

Energy Oil & Gas E&P

Tourmaline Oil Corp. is a natural gas producer, which is focused on producing natural gas in North America. The Company is focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin. It operates in three basins, which include the Alberta Deep Basin, NEBC Montney Gas/Condensate and Peace River Triassic... see more

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Tourmaline Oil Corp (Alberta) > Aldan

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Post by idleweiss on May 04, 2022 9:33pm

Aldan

hi Aldan - thanks for clarifying that. Can you tell me how the hedging may involve cash. My understanding is that the company enters into a contract to sell gas (at say $4.00) and then the benchmark price goes up to say $8. The company has lost some money it could have made but where's the cash outlay? I don't know much about hedging so just asking.

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Comment by Aldan007 on May 04, 2022 9:50pm

Hi Idleweiss, there are different ways of implementing hedging or fix price strategies. As far as I know, most O&G companies use a hedging strategy that is decoupled from physical deliveries. Let's use your example above and let's assume a company hedges 10,000 mcf/d for 3 months. For example: The company sells and delivers its gas to AECO and gets 8 CAD per mfc/d this results in ...more

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