Last quarter ECA reported NG production of 2.877 billion cubic feet per day at a realized price of $3.86 and that they lost $431 million.
Why are they pumping that much gas? If they would pump less they would lose less money and retain more of their reserves.
They are contractually obligated to deliver that amount of gas. Lucky buyers got it cheap, but maybe we will be selling at 4.25 next Q.
Even at $4.25 they will lose about $350-400 million this quarter. They need more than $7.00 to male profit.
June NG is currently trading at $3.98 - CDN NG is at $3.30
They hedged about 50% of their production