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Hedges in 2018: Winners, Losers and Middlemen

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   |    Thursday,January 04,2018

As oil prices continue to rally entering 2018, E&Ps with zero or minimal hedges are on track to rake in more money per barrel than companies who have hedged larger portions of their production.

We took a look at which operators stand to gain the most if oil prices remain above the $60 mark.

Oil Price Trend - 6 Month Period:

Source: Nasdaq.com

Who Stands to Gain from $60 Oil?

Winners - Companies who have zero or minimal hedges currently in place include:

• Anadarko Petroleum - 0% hedged

• Apache - 0% hedged

• ConocoPhillips - 0% hedged

• Continental Resources - 0% hedged

• Exxon - 0% hedged

• Ring Energy - 0% hedged

• Approach - 8.3% hedged

• Energy XXI Gulf Coast - 8.6% hedged

• LINN Energy - 9% hedged

• PDC Energy - 10% hedged

• Murphy Oil - 16.2% hedged

• Newfield - 16.5% hedged

• Panhandle - 17.8% hedged

• Devon - 19% hedged

Rice Energy and Stone Energy also had low hedges, but both companies have been acquired (by EQT and Talos Energy, respectively)

Losers - Companies with more expansive hedge portfolios include:

• Gastar Exploration - 70% hedged

• WPX Energy - 65.3% hedged

• Halcon Resources - 62.7% hedged

• Encana - 60% hedged

• Enerplus - 58% hedged

• Parsley Energy - 55.4% hedged

• Callon Petroleum - 55% hedged

• EP Energy - 52% hedged

• Whiting - 51.9% hedged

Middlemen - Companies with small to medium-sized hedge portfolios include:

• Swift Energy - 21% hedged

• Bill Barrett - 21.8% hedged

• Abraxas - 24.1% hedged

• Crescent Point - 25% hedged

• Baytex Energy - 26% hedged

• Penn Virginia - 28.1% hedged

To learn more about purchasing our comprehensive hedge data, contact Shale Experts at 713-876-7700 or via email.