3 way hedges

[setliff]

dan, just how much is our exposure here.

http://www.bloomberg.com/news/articles/ ... o.headline

[dan_s]

BCEI and CPE have some 3-way collars. They just set a downside limit, or floor for the puts. I take this into consideration in my forecast models.

You can find a table of their hedges at the bottom of the forecast models for each company.

3-way collars have been around for a long time. This is not some new "scheme" to trick investors, as the article seems to imply.

[setliff]

<BCEI and CPE have some 3-way collars. They just set a downside limit, or floor for the puts. I take this into consideration in my forecast models. >

that's good enough for me, thx

jim

[bobs]

do most of the companies we follow have a bunch of 3 way hedges including GST?
Thansk

[dan_s]

As I have posted here many times before. You can find a table of each company's hedges at the bottom of the forecast models on the EPG website or you can just go to their latest 10-Q or to their most recent presentation. On each company's website there is an Investor Tab. All companies are showing their hedges in their presentations these days.

BTW there is nothing "evil" about 3-way hedges. They have been used for may years. It lowers the cost of the hedges up front and limits the counter parties exposure to low prices.

[dan_s]

The tables shown in the company presentations are easier to understand than what is in the 10-Q.