- Hedging by oil companies has increased with Q2 results, Goldman Sachs analysts say, noting 22% of 2020 oil production is now hedged among the producers it covers, compared to just 9% after Q1, at an average price of ~$55.50/bbl.
- Goldman says that places 2020 hedging of oil and liquids production roughly in-line with historical averages at the midpoint of the year.
- Occidental Petroleum (NYSE:OXY) accounts for more than half of the pickup in oil hedging in 2020, as it initiated a hedge program ahead of its Anadarko acquisition, Goldman says, adding that when excluding OXY, other covered producers are hedged below historical averages.
- Argus Media reports Pioneer Natural Resources (NYSE:PXD) had hedged 72K bbl/day as of Aug. 2, a third of its production in this year's H1, vs, about a fifth of its 2019 output hedged as of May 3; the company says it intends to hedge up to half its production.
- Whiting Petroleum (NYSE:WLL) has hedged 59% of its output for the rest of this year and 19% for H1 2020, according to Argus.
- Smaller companies such as Laredo Petroleum (NYSE:LPI) have been even more aggressive, Argus says; LPI has hedged 95% of its production at a weighted-average floor price of $60.42/bbl for the rest of this year and 75% of next year's production at $58.79/bbl.