Post by
JamesT on Jan 15, 2023 12:31pm
Did cpg hedge for 2023?
Anyone know? And at what price? 2022 hedges hurted the bottom line for the majority of the year. Hopefully they hedge when oil was at $130 last year but I wouldn't be surprised if it was around mid $70s.
Comment by
jleer42 on Jan 15, 2023 2:24pm
Go to their website, hedges are laid out in the most recent presentaion. Basically 20% hedged for Q1 and at these prices there will be a hedge gain. Mostly collars, but some 3-way collars and swaps as well. Collars are $91.00/$105.43. Hedges for Q2-Q4 are at better prices than Q1
Comment by
JamesT on Jan 16, 2023 1:57pm
Hedged at $91-$105 CAD/ppb. Thats like $67-$78 USD per barrel. *facepalm* management. Why even hedge at these prices. Idiots! Why not put in the hedge in Q2 when oil was $120+
Comment by
jleer42 on Jan 16, 2023 2:26pm
Dang! I totally missed those were CAD... If it is WCS and not WTI then it is still good. I can't see which though. My other Canadian holdings list their hedges in USD/WTI.
Comment by
JamesT on Jan 16, 2023 2:42pm
Its not WCS. Management clearly said in the conference calls that price that cpg sells at closely resembles wti and not wcs. I know they have a hedging policy but anyone can likely tell you that $67 usd/barrel is likely a bottom.
Comment by
Moemoney42 on Jan 16, 2023 2:27pm
The reality is these new hedges are higher than previous ones and only half of the Q4-22 volumes - going forward as previously noted, the hedges are higher, but the volumes are less (1/2 of Q1 & Q2) in Q3 so there's room to capture alot of the upside IMO