Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (72251)	9/28/2006 6:42:42 PM
From: 8bits	Respond to of 206087

"Why can't other E&P's not hedge like CHK?" Most have to some extent generally to cover loans for purchases however CHK and ECA have been the biggest hedgers that I have found so far for 2006. CHK is also heavily hedged for 2007 and 2008, see links below. Were they just lucky to close their hedges at the right time? CHK's timing was quite good. Maybe, they did sell most of them after the bitterly cold weather earlier this year, so they caught the upswing well. "Can we conclude that they will be able to do as well in the future with their hedging strategy?" Unknown, however they have a good portion of hedges into 2008. "CHK's counterparty lost a huge amount of money." Indeed. "I suspect that the demise of Amaranth not only removes a major player in the hedging trade but also will scare others out of this business. One of the consequences may be that the LT future prices come down it will be much more difficult to hedge NG going forward profitably for producers like CHK." Quite possibly but given NG's volatility we may see players entering the market heavily again if NG has a run. The guy trading for Amaranth clearly was not doing. XEC Message 22852545 XTO Message 22852436 CHK and ECA Message 22851696