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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 gas producers are hedging their commodity price risk on a regular basis, indicating that many oil and gas producers are not mitigating their exposure to volatile oil and gas prices.

The Crude Oil & Natural Gas Hedging Study, a report released today by Mercatus Energy Advisors, highlights the findings of a study conducted to reveal the current hedging and risk management practices of independent oil and gas producers.  

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
  • 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
  • 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 complete results of the study can be downloaded via the following link: Crude Oil & Natural Gas Hedging Study.

About Mercatus Energy Advisors:

Mercatus Energy Advisors is the leading, independent energy hedging & risk management advisory firm serving energy consumers and producers across the globe. 

Learn more at www.mercatusenergy.com

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