Crude price drop tests Continental hedging bravado

摘要

Leading Bakken tight oil producer US independent Continental is at risk of paying a high financial price and may have put its growth plans into question after it dropped all of its oil price hedges. Continental removed all its oil hedge positions for 2014, next year and 2016 during the third quarter of this year, saying it was preparing to take advantage of an imminent oil price recovery. The move netted a one-time gain of $433mn (WPA, 7 November, p7).