Most of the US North America natural gas production is hedged for 2014 and 2015, which is the siginificant piece. The Canadian natural gas production is really not hedged. Most of the other naturgal gas production is in SE Asia and most of this is linked to oil prices. Effectively, TLM has about 55% of its production in liquids or natural gas that is linked to oil. The other 45% of its production is North America dry gas -- Marcellus (~65%), Canada (~25%) and Eagleford (~10%). I don't see any big pop in cash flow if natural gas prices shoot up due to the hedges already in place that limit the upside at maybe $4.50 mmcf/d.
TLM already has already sold $200M non-core Canadian assets, which counts toward the $2 billion. It is apparent that TLM will sell its midstream assets in the Marcellus. My hunch is it might receive $800M+/-. TLM said on the conference call that it was expecting to announce 1 or 2 asset sale transactions in the 4th quarter.
Thanks for your feedback. I've been very unimpressed with Hal. He screwed around way too long trying to sell assets and deemed offers received too low. I wonder what kind of offers (if any) Hal can expect now? He's really put TLM in a real pickle. Spending big capex way above cash flow with little too show in the way of return. So much for "...living within our means."