Post by
WINDGOD46 on Nov 09, 2021 3:28pm
Hedging Weights on WCP
With 38 % of production hedged at $65, WCP is suffering a substantial loss in revenues leaving on the table $18/b at the current WTI price. Hedging is coming down to 17% of production in 2022 and to 5% in 2023. And to the extent they pay down debt they will be under less pressure by their creditors to hedge in the future. Perhaps that is what is holding the sp back, but eventually WCP will overcome.
Comment by
barneyj44 on Nov 09, 2021 4:04pm
Thanks for the hedging scenario Windgod46. At least we finished flat instead of red. Lol
Comment by
Merc55 on Nov 09, 2021 4:31pm
Remember that WCP trades at a premium to others as per RBC. Always in their report and they justify it by saying great assets and management team. $10.00 estimate from RBC
Comment by
Indicator on Nov 09, 2021 7:54pm
FWIW ... Hedging holding things back makes some sense ... also Nuttal mentioned in his last BNN appearance there is a "rumour" of WCP perhaps making a purchase. That gives me some pause.
Comment by
MigraineCall on Nov 10, 2021 9:25am
With only about 7 1/2 weeks left in 2021, 38% is almost behind us., and17% of 2022 is negligible in the big picture.