Hedges will make a big difference this year

[dan_s]

Excluding the majors, U.S. upstream companies have ~53% of their 2020 oil hedged.

Those with lots of hedges will book very large mark-to-market gains in the first quarter.

I talked to David Fowler, President of Ring Energy today. He will be speaking at our Dallas luncheon on Thursday. Ring has ~50% of their 2020 oil hedged at $50/bbl, even if WTI averages $30 for the rest of this year, they should be able to live within cash flow from operations. Most of their leasehold is held by production.