Commodity Hedging Overview November 16, 2011 The following information is current as of November 16, 2011. Eagle Rock intends to provide updates to this information quarterly to the extent of changes within the quarter. Eagle Rock…
Table of Contents Hedge Update Hedging Objectives Hedging Processes and Controls Risk Management Policy Risk Management Committee Internal Controls Hedging Methods Commodities Hedged Quantities Hedged Types of Derivatives…
Hedge Update: Recent Activity Since the Partnerships most recent commodity hedging update dated October 27, 2011, Eagle Rock entered into the following hedging transactions: WTI crude swaps covering 45,000 barrels per month in…
Summary Hedge Positions Includes Both Upstream and Midstream Hedgeable Volumes Crude, Condensate and NGLs (C2) (1) Ethane and Natural Gas (1) 100% 100% 80% 80% 60% 60% 102% 85% 40% 80% 78% 80% 40% 75% 67% 59% 20%…
Derivative Portfolio Eagle Rocks full commodity derivative portfolio as of November 16, 2011 is shown on the following page. In some cases, Eagle Rock entered into transactions to offset previous transactions. In the cases where the…
Commodity Hedging Agreements (as of 11/16/11) term monthly swap price / year underlying type start end quantity floor price ceiling price months total quantity units segment 2011 NYMEX Henry Hub collar Jan-11 Dec-11 84,739 7.50 8.85 12…
Hedging Objectives Eagle Rocks management recognizes that commodity price volatility can cause significant changes in cash flow, and these changes can affect Eagle Rock's ability to achieve its distribution objective and also its…
Hedging Processes and Controls Risk Management Policy Eagle Rock has a Risk Management Policy that sets forth the limits that have been previously approved by its Board of Directors and is amended from time to time. The Risk…
Hedging Processes and Controls Risk Management Committee The Risk Management Committee is currently comprised of the following Chief Executive Officer Senior Vice President, Chief Financial Officer and Treasurer (Chair) Senior…
Hedging Processes and Controls Internal Controls Eagle Rock maintains extensive internal controls to ensure the proper execution, valuation and reporting of derivative transactions. As part of these controls, Eagle Rock has…
Commodity Hedging Methods Quantities Hedged Eagle Rock bases its volumes available for hedging on its expected future production. For the Upstream Business, the expected future production is derived from expected future production…
Commodity Hedging Methods Types of Derivatives Used Eagle Rock generally uses put options, costless collars, and fixed price swaps to achieve its hedging objectives. There are other hedging strategies that use more than two options;…
Special Issues Use of Proxy Hedges When applicable, Eagle Rock hedges its future volumes with derivatives that are based on the same commodity. In some cases, however, Eagle Rock believes it is better to hedge future changes in the…
Special Issues Midstream Business Short Natural Gas Position Eagle Rocks Midstream business has a long and a short physical position in its expected future natural gas production streams. The long position is derived from its…
Loading...
