Ahem did you really think they would bring in more revenue for gas? Prices will go up but demand will go down. NO DUH!>.> AS expected revenue falls from US sales.
Everyone knows there's an over supply problem. And everyone who bought I assume knows already they are going to have sales problems. But at the very least they have hedges for the price decline. That is the smart move.
It's all good they paid down more than expected :).
Inflation should hit us more a lot in 2010 and drive gas/oil/gold/silver/food up sky high even more I'd say at least 20-50% from these prices.
If EROC is willing to export they can make even more money than in the US market later on. Hopefully they will export once prices recover and say, "since you have so much reserves fine, we will produce for the rest of the world."
They don't have to cut production do they? How is global supply of gas going?
Hold it out and buy it lower,if it drops a chunk later today. Or if you want wait for FED to crash the commodity market yet again to get bond buyers.
Better not buy it for short term play this needs at least 1+ year to fully gain momentum. >.>
If you look at the balance sheet/income statement I am guessing the net losses are from BUYING hedges.
It seems they need to sell or use them before they can profit from it.
Unrealized gains and loses from commodity derivatives can they use it in the future? Did they gamble on the markets too much? If they can then ahem they need to put it in the asset column. It's pretty much insurance. If they are losing money on this then they are paying too much for insurance.
Hmm well if they can profit from that and its actually an asset then all is well. They need to just make that clear.
If you don't count that part you can say they made a about 23 million. I'm betting the losses are just insurance and they can use them up later on. The wording is a bit misleading >.> they need to make it more clear.
Don't count both derivatives and you have about 5 mil profit. Take all hedging away and about break even.
Meh they need to stop with the hedging of too much inflation will come and they still hedge? They can make more money without that junk later on. That is my only criticism of them too much safety.