Mots clés associés :
Swaps |
| Cabot to hedge more than a fourth of its natural gas production | |
| | |
|
Cabot Oil and Gas: 4Q14 earnings and big changes for 2015 (Part 5 of 6) (Continued from Part 4) Natural gas hedges
Cabot Oil and Gas Corporation (COG) has ~157.5 billion cubic feet (or bcf) of natural gas production hedged for 2015. This represents ~28% of its 2015 natural gas volumes at the mid-point of its guidance range.
Natural gas swaps
Of the hedged volumes, natural gas swaps account for 86.6 Bcf at a weighted average price of $3.95 per thousand cubic feet (or Mcf).
A swap is a derivative instrument used to hedge against the price of a commodity, which in this case is natural gas. Producers agree on a fixed price, which for COG is $3.95, for the hedged portion of their production in order to lock in or fix their cash flows. This way, E&P (exploration and production) companies can hedge their exposure to a volatile price environment.
Natural gas collars
COG has hedged the remaining 70.9 Bcf of the hedged volumes with natural gas collars. They have a weighted average floor of $3.87 per Mcf and a weighted average ceiling of $4.35 per Mcf. A collar limits the hedged portion’s downside as well upside.
Upstream companies usually enter into collars to protect their downsides.
Other companies who have hedged portions of their 2015 natural gas production include Southwest Energy (SWN) and Chesapeake Energy (CHK). These companies, including COG, are components of the Energy Select Sector SPDR ETF (XLE) and make up ~3% of the ETF. They’re also a component of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and make up ~3% of the ETF.
Continue to Part 6 Browse this series on Market Realist:
|
|
|
Cabot Oil & Gas Corporation
|
|
|
CODE : COG |
ISIN : US1270971039 |
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Cabot Oil & Gas est une société d’exploration minière de pétrole basée aux Etats-Unis D'Amerique. Cabot Oil & Gas est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 10,2 milliards US$ (9,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 26 mars 2004 à 10,00 US$, et son plus haut niveau récent le 14 janvier 2022 à 22,20 US$. Cabot Oil & Gas possède 460 786 236 actions en circulation. |