Hedges will make a big difference this year
Posted: Mon Mar 09, 2020 6:18 pm
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.
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.