Member Info for Pelle

Last time they got it right was many years ago when oil was 100.
After last miss autumn 2018 they hired new hedge person.
But I guess it’s several person involved in decision and AB have final decision.
I always been in favour build up more and more hedges and extend horizon.
More stability and no panic hedge.

At current situation I would argue bite the lemon, hedge at current levels 2-3 months and make basically +- 0 FCF
And hope for better oil prices in summer

Hello Londoner
You have good memory:-)
But I didnt expect they sit on theit hand completely 2 months with no additional hedging.
Even 50-60 oil would be very profitable for Enquest and stability
In last couple of years both times oil crashed we had minimum of hedging.

Hopefully oil can recover in summer to 50-60 and maybe alot more next year

Hopefully deal is 2 months vacation for all oil companies, zero production.
Then they can come back motivated in June with 100+ and try catch up

https://www.cnbc.com/amp/2020/04/06/russia-saudi-arabia-are-very-close-to-an-oil-production-deal-rdif.html?__source=iosappshare%7Ccom.apple.UIKit.activity.PostToTwitter&__twitter_impression=true

GKB, just need 50-60 oil for 25p.
Think in summer we back there

GKB, what buy in price you need?

Hi Modestus,
I was thinking about interest rate on loans.
In Sweden we pay around 1,5% only.
If now inflation arrives over next years these interest rates will go up also I assume.

FAKE NEWS!

Modestus, interesting.
Will this create higher interest rate in future?
5-10% would break most households

Hello E,
Yes thanks, Saudi exports to US is less then 500k so it wont solve anything.
Its just a game now before they actually decide something how to solve it for worlds best and their own best interest.

Romaron
I was also think about those Tariffs, what would effect be on brent price?
Hope someone can explain simple

Hi Squif, yes I can also see Europe switch to Swedish model during next 1-2 months.
And people will still be careful and practice social distances.
How’s with normal factories in UK, people still go work there?
And office workers work from home?
Our office is open but basically empty and most work from home.

Good morning Squif,
What Swedish model?
Agree with you 50 oil in that time frame and hopefully World is more normal with or without corona.
Think Trump also in future will allow a higher price, before he complained at 70+.
This might be higher and stable in future to secure future production for further demand increases above 100 mill barrels per day.

https://www.ft.com/content/5f4704e9-0942-4707-97c0-eba79f4fcbb8?shareType=nongift

https://www.google.se/amp/s/www.bloomberg.com/amp/news/articles/2020-04-04/norway-may-join-oil-output-cuts-for-the-first-time-since-2002

My first impression when I heard about Monday meeting.
How will they manage prepare so fast?
Thursday seems better.

There post on Swedish forum, that Norway will cut also

https://www.di.se/nyheter/konspirationsteoretiker-branner-mobilmaster-i-storbritannien/

GKB, is this something you have insight in?
Burning down 5g antennas because they cause Corona

Squif, was file useful for you?
You agree with my assumptions?
Of course oil price we need update frequently:-)

There several reasons why it got worse there.
They also had champions league match near there and even half the players got infected.
Atalanta won and it was the opposite of social distancing

https://www.google.se/amp/s/time.com/5799586/italy-coronavirus-outbreak/%3famp=true

Hi Londoner,
You write so long it’s hard for my get a grip:-).
It sounds about right what you say.
Your government will be safe as they did what everyone else did except Sweden.
It will be very interesting see these test in next weeks how widely the spread been already.

If volatility in oil prices is too much noise for Enq they should stabilise it with hedging. Specially when we not long ago had 65-70 that would put the company in final stability within 6-9 months.