Harry Stahel, Reese Energy Consulting’s Director of Strategic Planning and Financial Forecasting, has some final “then and now” thoughts on oil price strips from a year ago. With E&P investors more focused on long-term basin profitability, REC works with clients to strengthen their hedging profiles and protect their cash flow. In a simple comparison, we see in the chart below that the strips for the 2020-2026 time period are both in the $50-$55 price range. Although market liquidity drops the further we go out, the $50-$55 range is both a floor below (which makes E&P investors nervous) and a range where traders will transact. Hmmm. Coincidence? While you’re here, learn more about our planning and forecasting services that combine operational, contractual, commodity, and capital issues into smart, risk-adjust financial decisions.
Posted on January 23, 2019