Commodity Hedging Overview September 10, 2014 The following information is current as of September 10, 2014. Eagle Rock undertakes no obligation to update the information included in this presentation as of any future date.
Hedge Update Recent Activity The Partnership has entered into the following commodity hedges since its last hedging update on July 30, 2014. In order to convert a portion of its existing proxy hedges into direct NGL hedges, these hedges…
Robust Hedging Profile Includes Hedgeable Volumes Crude, Condensate and NGLs (C2) (1) Ethane and Natural Gas (1) 100.0% 100.0% 90.0% 90.0% 86.3% 85.2% 80.0% 75.3% 75.2% 80.0% 72.2% 70.0% 70.0% 64.2% 60.0% 60.0% 50.0% 50.0%…
Commodity Hedging Agreements Term Monthly Swap Price / Ceiling Total Year Underlying Type Start End Quantity Floor Price Price Months Quantity Units 2014 NYMEX WTI swap Jan-14 Dec-14 30,000 98.25 12 360,000 Bbls 2014 NYMEX WTI swap…
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 objectives 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 Management…
Hedging Processes and Controls Risk Management Committee The Risk Management Committee is currently comprised of the following: Chief Executive Officer Senior Vice President, Geosciences and Reservoir Engineering (Chair) Senior Vice…
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 segregated…
Hedging Methods Quantities Hedged Eagle Rock treats as hedgeable volumes the expected future production from proved reserves adjusted as follows: The proved reserves quantities are adjusted downwards to account for expenses and…
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; however,…
Special Issues Use of Proxy Hedges When applicable, Eagle Rock hedges its hedgeable volumes with derivatives that are based on the same or similar commodity. It hedges crude and condensate with crude oil hedges, and natural gas with…
Loading...
