Post by
geemonet on Aug 16, 2021 10:33am
How did they lose all their money?
Seems like they made money from selling oil but then lost it all on derivatives... can some one explain this? Who takes all the profits outta the company?
Comment by
Tommy123 on Aug 16, 2021 10:34am
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Comment by
Quintessential1 on Aug 16, 2021 10:45am
Hedging aka the banks. Hedging will cause some losses when commodity prices are rising but but allow for gains when the commidity prices are falling, In the end it will avergae out. In the meantime that was quite an EPS beat. If they can increase production like they say they can and there are no more mechanical failures it should be a better Q3.
Comment by
geemonet on Aug 16, 2021 10:52am
I understand how hedging will diminish profits when prices go up... but they blew ALL the FCF on derivatives.... like... did someone hit the wrong button on a keyboard when executing a trade or something? Makes no sense thay they can have almost 100 million in fcf and the debt goes up... like... what the hell?