1 min read

Crude Oil & Natural Gas Hedging Study Results

 

Today we are releasing the results of our Crude Oil & Natural Gas Hedging Study. The study was conducted to reveal the current hedging practices of independent crude oil and natural gas producers. The study captures the views of senior executives from thirty-eight, independent oil and gas producers in the United States, Canada and Australia.


Key Findings of the Study:

  • 41% of study participants regularly hedge their crude oil and natural gas production, while 29% said they never hedge their production.
  • 36% of the participants stated that their CEO, president or CFO makes their company's hedging decisions.
  • Swaps and collars are the most popular hedging instruments utilized amongst study participants.
  • Only 34% of the participants indicated that establishing stable and predictable cash flow is the most important goal of their hedging activities.
  • 67% of the study participants said that they would characterize the success of their company's current and past hedging initiatives as good or excellent.
  • The majority of the participants which indicated that they hedge on a regular basis stated that, on average, they hedge 51-71% of their current PDP

The results of the study are available for download via this link.  If you have any questions or comments about the study please contact us.

1 min read

Mercatus Energy Advisors Publishes Oil & Gas Hedging Study

Study Finds Less Than Half of E&P Companies Regularly Hedge Their Commodity Price Risk A new study finds that less than half of crude oil and natural...

Read More
The Fundamentals of Oil & Gas Hedging - Put Options

4 min read

The Fundamentals of Oil & Gas Hedging - Put Options

This post is the third in a series where we are exploring how oil and gas producers can hedge their exposure to crude oil, natural gas and NGL...

Read More
Fuel Price Risk Management & Three-Way Collars

3 min read

Fuel Price Risk Management & Three-Way Collars

As energy trading and risk management advisors, we regularly receive inquiries regarding if, when and how a company might hedge their exposure to...

Read More