To view this protected post, enter the password below:
Request media interview
Invite to speak
Book Your Enverus ESG™ Analytics Preview Today
Let’s get started!
We’ll follow up right away to show you a quick product tour.
Let’s get started!
We’ll follow up right away to show you a quick product tour.
Let’s get started!
We’ll follow up right away to show you a quick product tour.
E&P Oil Hedges Provide Some Cover During a Perfect Storm
In the wake of the concurrent COVID-19 demand shock and OPEC+ supply war, E&P hedge books will provide vital liquidity on the path to recovery. Enverus’ latest analysis reveals 2.5 MMbbl/d of aggregate 2020 oil-hedge volume among publicly traded North American E&Ps at an effective hedge price above $50 WTI. Most oil-weighted E&Ps have hedged between 25% and 90% of anticipated oil production for the year. We estimate the value of these financial-derivative assets (in conjunction with gas and NGL hedges) exceeds 10% of respective enterprise values for the majority of E&Ps.
Estimated Oil Production Hedged in 2020
Hedged oil volumes decline by 85% after 2020. If oil prices fail to recover by year-end, 2021 could prove even more challenging for E&Ps than 2020.
The full report was jointly authored by recently-united Drillinginfo and RS Intelligence teams. For information on how to access the report and the datasets associated with it, please contact your Enverus account manager.
Enverus uses cookies to personalize our services and provide customized information to enhance your experience. By continuing to use the website, we understand that you accept their use.