Crazy to think we're coming up on 7 years on this thread.

$65 this morning

Raptor or boat lookin today? At least something with trucknutzzzz

jetch17 said:

---

$65 this morning

Raptor or boat lookin today? At least something with trucknutzzzz

---

Wife really wants one of those new Escalades

This will be fascinating to watch as most publics have pledged a life of conservation and no MOAR drilling.

CrazyRichAggie said:

---

jetch17 said:

---

$65 this morning

Raptor or boat lookin today? At least something with trucknutzzzz

---

Wife really wants one of those new Escalades

---

Def go for the chrome plated nutzzz for that

This seems like a reasonable number to hedge as much as possible

Most did that $20 ago for Cal 21. Best bet is you left between 40-20% of production unhedged and prices flows through on the unhedged bbls.

AustinAg008 said:

---

Crazy to think we're coming up on 7 years on this thread.

---

For real. I remember when the bottom fell out and our VP was saying we could make money at $65 oil. We all rolled our eyes and thought he was crazy.

So anyone seeing the benefit of these oil prices? Hell we're just getting squeezed even more with plant issues and supply so higher prices of sand and chemicals.

Nice!

I was in OKC this week and lots of oil trucks on the road moving equipment around.

There are thousands of jobs and families seeing the benefits.

Not to mention the people that are hired by the sand and chemical companies to meet the demand.

Get ready for a nice run up this week.

AustinAg008 said:

---

Get ready for a nice run up this week.

---

NM. Wishful thinking...

I think we're priced pretty optimal. If you need $70s to make it work you better either look at your cost structure or debt levels.

Cyp0111 said:

---

I think we're priced pretty optimal. If you need $70s to make it work you better either look at your cost structure or debt levels.

---

Hearing from my PE friends that there is a lot of grief over hedges they set in the upper 40s when oil was just first recovering.

One conversation was that the head of the whole fund was bemoaning 'who told them to set those hedges so low.' Nobody in the room had the guts to tell the head honcho it was his orders.

While there's some recovery happening right now, capital isn't moving around like it used to, and those how were caught in the downturn don't have a lot of unhedged capacity right now. I think prices continue to rise as demand improves, and decline curves rear their ugly nonconventional heads.

Most of what I'm hearing from clients is that new investment decisions will happen later this year. Going to have to keep being creative to find work if you are on the land side of things.

one MEEN Ag said:

---

Cyp0111 said:

---

I think we're priced pretty optimal. If you need $70s to make it work you better either look at your cost structure or debt levels.

---

Hearing from my PE friends that there is a lot of grief over hedges they set in the upper 40s when oil was just first recovering.

One conversation was that the head of the whole fund was bemoaning 'who told them to set those hedges so low.' Nobody in the room had the guts to tell the head honcho it was his orders.

While there's some recovery happening right now, capital isn't moving around like it used to, and those how were caught in the downturn don't have a lot of unhedged capacity right now. I think prices continue to rise as demand improves, and decline curves rear their ugly nonconventional heads.

---

How long do these companies usually hedge for?

I'm way downstream, the higher gas/diesel prices go the more we make as a company - and the inverse is true, so last year was rough.

Never hedged though and still haven't, so wondering what kind of financial play I could make to "lock in" gas prices. Basically, if they go way down again we would make money and if they go way up we would lose money - but net on both we would make the same as today.

We do over $400K a day in fuel sales.

It was almost exactly 1 year ago that Saudi announced they would flood the market to gain market share. Prices were significantly lower when they announced that than they are now, and demand is probably close to the same. Why would I believe Saudi won't do the same soon?

Premium said:

---

one MEEN Ag said:

---

Cyp0111 said:

---

I think we're priced pretty optimal. If you need $70s to make it work you better either look at your cost structure or debt levels.

---

Hearing from my PE friends that there is a lot of grief over hedges they set in the upper 40s when oil was just first recovering.

One conversation was that the head of the whole fund was bemoaning 'who told them to set those hedges so low.' Nobody in the room had the guts to tell the head honcho it was his orders.

While there's some recovery happening right now, capital isn't moving around like it used to, and those how were caught in the downturn don't have a lot of unhedged capacity right now. I think prices continue to rise as demand improves, and decline curves rear their ugly nonconventional heads.

---

How long do these companies usually hedge for?

I'm way downstream, the higher gas/diesel prices go the more we make as a company - and the inverse is true, so last year was rough.

Never hedged though and still haven't, so wondering what kind of financial play I could make to "lock in" gas prices. Basically, if they go way down again we would make money and if they go way up we would lose money - but net on both we would make the same as today.

We do over $400K a day in fuel sales.

---

Username checks out.

It was more because I had a sock named, "The Zoo" (the message board) and "Premium" (the message board - both named after the TexAgs nomenclature).

A lot of that out there. It's somewhat an interesting situation but generally at the time (mainly PE side) they were committing capex dollars given improved D&C and no one was signing off without hedges. 1-3 years at a declining % pdp is the norm

Fredd said:

---

AustinAg008 said:

---

Crazy to think we're coming up on 7 years on this thread.

---

For real. I remember when the bottom fell out and our VP was saying we could make money at $65 oil. We all rolled our eyes and thought he was crazy.

---

And now we celebrate >$60. I looked back, and Sunday's WTI high of $67.98 is the highest WTI futures have been since 10/23/2018.

BlackGoldAg2011 said:

---

Fredd said:

---

AustinAg008 said:

---

Crazy to think we're coming up on 7 years on this thread.

---

For real. I remember when the bottom fell out and our VP was saying we could make money at $65 oil. We all rolled our eyes and thought he was crazy.

---

And now we celebrate >$60. I looked back, and Sunday's WTI high of $67.98 is the highest WTI futures have been since 10/23/2018.

---

username checks out

one MEEN Ag said:

---

Cyp0111 said:

---

I think we're priced pretty optimal. If you need $70s to make it work you better either look at your cost structure or debt levels.

---

Hearing from my PE friends that there is a lot of grief over hedges they set in the upper 40s when oil was just first recovering.

One conversation was that the head of the whole fund was bemoaning 'who told them to set those hedges so low.' Nobody in the room had the guts to tell the head honcho it was his orders.

While there's some recovery happening right now, capital isn't moving around like it used to, and those how were caught in the downturn don't have a lot of unhedged capacity right now. I think prices continue to rise as demand improves, and decline curves rear their ugly nonconventional heads.

---

The only hedges we have out of the money are the RBL mandated ones. The rest are riding along well.

Cyp0111 said:

---

Price of taking on debt isn't just the interest rate

---

Yeah, cash on hand requirements that increase for going down a rating tier can be brutal.

News on the Ovintiv STX process:

https://www.reuters.com/article/us-ovintiv-divestiture-idUSKBN2B42DJ

Glad I didn't name who I was hearing when brought up before bc I was way off.

So much for $70. Looks like we may run down into the $50's. Outlets blaming inflation concerns. Guess I need to back out of the deal for the brand new lime green Malibu ski boat for this summer...

inflation is bullish crude.