Post by
Atomicboy1 on May 11, 2015 9:10pm
For April to December 2015, approx 70% of oil hedged
As noted below, LRE has locked in 70% of there oil production. Has anyone done the math to figure out what the earnings per share will be for the rest of the year? As part of our ongoing risk management program, the Company continues to add financial hedges in order to further mitigate commodity price risk. For April to December 2015, approximately 70% of our oil production is hedged (50% hedged with an average WTI floor price of US$85.21/Bbl; 20% hedged at an average WTI price of C$73.17/Bbl). For April to December 2015, approximately 65% of our natural gas production is hedged with an average AECO floor price of $3.30/GJ. For 2016, we have hedged approximately 10% of our oil production with an average WTI price of C$77.53/Bbl and approximately 40% of our natural gas production with an average AECO price of $3.01/GJ. Read more at https://www.stockhouse.com/news/press-releases/2015/05/06/long-run-exploration-ltd-announces-2015-first-quarter-results#D43VjcEgHjAXxz9U.99
Comment by
canne on May 12, 2015 4:36pm
It must be tough being in charge these days. Reading the hedges in place, not only does one have to forcast the price, decide how much in the way of volume, and time to recovery in the oil & gas market but currency even factors into the mix. Some of the hedges have been put on in C$ and some are in US$... Hedge the oil,gas and currency and hope for some luck...
Comment by
iwpete on May 12, 2015 8:04pm
That $73C hedge is $59US and it's already underwater since oil is $61.30US
Comment by
Spilleren on May 13, 2015 7:43am
I think the interesting thing about this hedge and the small hedge for 2016 is that it indicates what management believes to be the survival break even price for the company. With the rig count still declining, obviously prices have to go higher than that. Trading at 26,000 per flowing barrel, I think that LRE is extremely cheap.