Enterprise Products Partners L.P. Message Board

doogoo1 1 post  |  Last Activity: Mar 21, 2013 9:30 AM Member since: Oct 12, 2001
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  • doogoo1 doogoo1 Mar 21, 2013 9:30 AM Flag

    Your actually speaking out off of both sides of that forked tounge...

    You say CHKs hedge is a negative... and then you point out that spring is here and imply that warmer weather will cause an increase of storage and a decrease in price...

    But if the price drops the hedge becomes a huge bonus

    CHK has about 50% of its production hedged a bit below the current price...

    So any moron can see that CHK is protected if prices drop and has money to make if nat gas increases.... not to mention they can ramp up production and take advantage of a spike up on two fronts... selling gas at higher prices and hedging into the future at a higher price...

    Then their production increase will flatten out prices that makes all their hedges look good

EPD
60.460.27(+0.45%)Jun 17 4:01 PMEDT