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Gold/Mining/Energy : Big Dog's Boom Boom Room

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From: 8bits	9/26/2006 6:35:45 PM
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FWIW the following NG companies have hedged a substantial portion of their Natural Gas Production for 2006: ECA (Encana) More than 90 percent of 2006 gas sales has floor price protection. To help assure strong financial performance, EnCana put in place, during the fourth quarter of 2005, put options on about 1.6 billion cubic feet per day of 2006 planned gas sales at an average strike price of NYMEX $8.42 per thousand cubic feet. All in, about 93 percent of EnCana’s forecast 2006 gas sales is hedged with a combination of put options and fixed price hedges with an average price of NYMEX $7.30 per thousand cubic feet. encana.com CHK (Chesapeake) Chesapeake has hedged a substantial level of its production through 2008 in order to capture attractive returns from recent acquisitions and to help secure strong margins and profitability on the company's drilling program. The following tables compare Chesapeake's hedged production volumes (including only swaps and also including the hedges assumed in the CNR acquisition) as of July 27, 2006 to those as of June 5, 2006. Swap Positions as of July 27, 2006 Natural Gas Oil Quarter or Year % Hedged $ NYMEX % Hedged $ NYMEX 2006 3Q 93% $8.85 87% $64.83 2006 4Q 87% $9.50 86% $65.64 2006 Total Remaining 90% $9.17 87% $65.25 2007 Total 72% $9.88 73% $71.42 2008 Total 57% $9.37 63% $71.45 Swap Positions as of June 5, 2006 Natural Gas Oil Quarter or Year % Hedged $ NYMEX % Hedged $ NYMEX 2006 3Q 93% $8.85 84% $63.90 2006 4Q 86% $9.50 85% $63.76 2006 Total Remaining 89% $9.17 84% $63.83 2007 Total 69% $9.86 56% $68.79 2008 Total 55% $9.34 48% $69.50 Depending on changes in oil and natural gas futures markets and management's view of underlying oil and natural gas supply and demand trends, Chesapeake may either increase or decrease its hedging positions at any time in the future without notice. news.morningstar.com Any others..? Looks like CHK has a cash cow for a while.

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