Veren Inc T.VRN

Hedges

[filefish]

Good thing CPG is 45% hedged thru the remainder of this year.
The reduction in price of WTI has now brought their current hedges into play.
Hopefully, we will find out that they have added more at a decent price in 2023 since the last report.

[filefish]

I listened to the Q2 conference call again. This call was at the end of July. They stated that they were positioning hedge volumes at approx 20% of production in 2023 using collars. Given the steep decline in oil prices since then, wonder if they will reconsidered this %. A question to ask for sure at their next report. In the past their hedges were in the 40-50% range. I would feel a lot more

[Anschutz]

Agree with your comment that dividends should be monthly.

[Carbonbull]

Latest presentation say they have 20 percent hedged in quarter 1 and 2 , suspect that is higher now , paticularily good hedges in 2nd quarter locking in higher prices

[filefish]

Yes, they are at 20% as of Sept presentation with floor at US$68 in 2023 Q1 and US$81 in Q2. We can only hope more were added since then. That should provide a cushion to the stock price decline. Meanwhile the share repurchases have declined drastically and this has removed some of the daily price support.

[Marty57]

Filefish, I have to disagree with you on hedging for 2023.  My hope is that CPG does not increase their hedged volume next year.  And especially do not enter into hedges now that prices have spiked downwards.  The supply demand situation for oil is such that oil prices will likely be very strong in 2023.  IMO it is better to take your chances with market price for the great