Commodity price hedges are a true forward-looking indicator of revenue and understanding hedging positions is essential to accurately forecasting future activity levels, capital budgets, financial risk and cash flow of both the industry and individual companies.
Unfortunately, not every company reports its hedging position the same way and the advent of innovative financial products have made assessments difficult, lengthy and complex. Until now, analysts have had to dig through individual filings, create their own database and then decipher swaps, collars, knock-outs, puts, options and other derivatives.
The problem is that not every organization has the time, resources or expertise to properly evaluate a company’s hedge book, so they simply give up and assume everyone else is doing the same thing.
HedgeAware makes it easy for analysts, portfolio managers, lenders, executives and others to quickly assess an individual company’s hedging position and determine what it means for future revenue and cash flow.
Decision-makers using HedgeAware gain a fast, accurate assessment of how a company’s hedging strategy impacts its financial health and a more complete understanding of risk.
The HedgeAware solution consists of two elements:
E&Ps. Compare your hedging program to that of your peers. Gain insights into new strategies and learn from past mistakes. Gauge the future activity levels of your peers to help you forecast everything from oil prices to service costs.
Service Companies. Stay ahead of the competition and run your business more efficiently by anticipating your clients’ demand for services. Gain a deep understanding of their past capital and operational spending habits as well as their future financial health.
Analysts (financial, market, government). Identify which companies are well hedged and which are not. Spot plays or regions that are likely to see changes in drilling activity as a result. Anticipate the financial impact of a company’s hedging program on their earnings. Understand the delta between the price of oil and gas and the price at which the industry is hedged. Forecast the impact this delta will have on company decision making, financial performance, and how it will alter global markets while other analysts rely on the spot price.
BBG (Bill Barrett)
EOG (EOG Resources)
EP (EP Energy)
HK (Halcon Resources)
NFX (Newfield Exploration)
PDCE (PDC Energy)
PVAC (Penn Virginia)
QEP (QEP Resources )
RRC (Range Resources)
RSPP (RSP Permian)
SM (SM Energy)
WPX (WPX Energy)
WRD (Wildhorse Resource Development)