Hedging: A note from Raymond James - Nov 16

[dan_s]

RJ published a report this morning showing all the upstream companies that they cover and how much oil and natural gas they have hedged.

Per the report:
"Conclusion: As 2021 is rapidly approaching, operators have chosen to increase their exposure to oil prices and decrease their exposure
to natural gas prices relative to years past. So far, our E&P coverage universe has hedged 43% of oil volumes and 53% of gas volumes with the
average oil swap price falling precipitously against a nice bump in the average natural gas swap price. The names with the least hedges in place
that would benefit the most from a commodity rally next year are the following: APA, CLR, COG, EOG, and MNRL. When parsing particular names,
it seems like the larger the company, the less oil has been hedged. Bottom Line: The average E&P has roughly 50% or less of their commodity
exposure hedged for next year so oil & gas prices will continue to have a significant impact on the bottom line for most companies."

Send me an email if you'd like to read the full report: dmsteffens@comcast.net