U.S. E&Ps Seen Cutting Exposure to 2021 Natural Gas Prices, but Boost Oil Hedging

摘要

U.S. producers have decreased their exposure to natural gas prices and boosted it for oil heading into 2021, which could have a signifcant impact on the bottom line, according to Raymond James & Asso- ciates Inc. Analyst John Freeman said in a note Monday the exploration and production (E&P) companies covered by Raymond James had hedged 53% of their gas volumes and 43% of their oil, “with the average oil swap price falling precipitously against a nice bump in the average natural gas swap price.”