Deal-contingent hedges make shift

摘要

Private equity firms involved in the acquisition of oil and gas assets are starting to add deal-contingent hedges that provide certainty over their required equity contributions by locking in oil prices through the sign-to-close period. With the US shale industry back in vogue since oil prices stabilised above US$50 last December, oil exploration and production companies are streamlining operations by hiving off non-core assets.