North American E&Ps Risk Financial Stress

North American E&Ps risk financial stress having missed the price hedge window Many North American exploration and production (E&P) companies – particularly small and mid-size firms risk financial stress, as just 11% of 2016 production is hedged, according to analysis by IHS. The “IHS Energy North American E&P Peer Group Analysis: Hedging Protection Set to Plunge in 2016,” assessed the amount of oil and gas hedging protections in place for 48 small, midsize and large North American E&P companies for the second-half of 2015 and full-year 2016. Overall hedging for second-half 2015 was largely unchanged from previous IHS analysis the North American E&Ps have 28% of total production hedged for the remainder of the year. The weighted-average hedged prices the group has in place for 2016 are $69.04 per barrel (Bbl) of oil and $3.83 per thousand cubic feet (Mcf) of gas. The small and mid-sized E&Ps increased 2016 hedging the most during the first-half of 2015, while the large E&Ps rema
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