Major Hedging Profile Changes Expected in Upstream Q1 Results Season

| By Mark Young

The sudden, dramatic fall in oil prices has forced many oil producers to adjust every aspect of their 2020 plans. Capital spending has been slashed while some acquisition or divestment plans have been put on hold.

Hedging strategies are also under the microscope – understandably so, as some producers will be far better protected than others.

Despite releasing full details of year-end hedging positions in annual results notices just a few weeks ago, a number of producers this week sought to reassure their stakeholders by announcing a new, updated version of their portfolio because oil prices have fallen so far and so quickly.

The details from three such companies can be found in the following announcements:

Towards the end of this month, companies will begin to release Q1 2020 results, and hedging positions for the industry at large will be made public. From this data, Evaluate Energy’s hedging database will be able to provide users, on a contract-by-contract basis, with a full picture of:

  • How far the world’s upstream producers have had to alter their hedging strategies since the end of last year.
  • How well companies are protected should the oil price stay low
  • How well some companies have managed to negotiate new positions to lock in revenue for the rest of 2020 and beyond.

For more on the data available in Evaluate Energy’s hedging database, click here.

For a free, no-obligation demonstration of the product, click here to contact us.

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