HCS Energy Consulting's Managing Partner, Harry Stahel, has some final “then and now” thoughts on oil price strips from a year ago. With E&P investors more focused on long-term basin profitability, HCS Energy Consulting works with clients to strengthen their hedging profiles and protect their cash flow. In a simple comparison of the futures prices in early January 2018 & 2019, we see in the chart below that the strips for the 2020-2026 time period are both in the $50-$55 price range. Although market liquidity drops the further we go out, the $50-$55 range is both a floor below which E&P investors get nervous, and a range where traders will transact. Hmmm. Coincidence? How can we help you strategically structure your hedging portfolio? Contact us today to learn more about our planning and forecasting services that combine operational, contractual, commodity, and capital issues into smart, risk-adjust financial decisions.
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