RE: NET LOSS 84 MILLION BUCKS H2 is Pants11 Aug 2021 12:13
I have a different opinion on this.
"When producers hedge aggressively, they cap profits if prices rally further and increase their costs due to expensive buying of derivatives.
Some 53 oil producers tracked by consultancy Wood Mackenzie have hedged about 32% of expected 2021 production volumes, less than the same time a year ago. That group currently has combined losses of $3.2 billion in the first quarter on hedge contracts, WoodMac said.
Hedging programs are expensive, analysts said, and producers said investors would rather see them boost production at higher prices than take a chance on additional hedging."
This could be a good reason for DEC shares being so cheap.