Hedging Gas Tumbles to 30% of Output on Prices: Energy Markets
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Natural gas companies are slashing their hedging of future output as prices tumble, raising the prospect of declines in drilling and production.
About 30 percent of next year’s gas has been hedged, down from approximately 50 percent this year, according to analysts at Canaccord Genuity, RBC Capital Markets and Raymond James. Gas fell 27 percent so far in 2010 and settled at $4.066 per million British thermal units this week on the New York Mercantile Exchange, the lowest level in nine years for this time of year.