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A Look at Earnings from Transocean and Devon

Thinking Ahead: the reason you exclude "losses" from hedges is that they are not really losses! They sold their production at $9/mcf but could have sold it for $10 had they not hedged. They did not "lose" a $1/mcf, they just lost the opportunity to make more. The whold financial accounting of hedges is ridiculous and that's why most everyone ignores losses due to hedges. Again, they didn't "lose" anything. On a cashflow basis they are printing money!