As Oil Rises, Shale Drillers With Few or No Hedges Stand to Gain
- At least 60% of 2018 Output hedged against falling price fears
- Anadarko, EOG, Continental are potential winners: Cowen Says
3 Charts to Know: Is Anarchy the Path to $80 Oil?
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As the price of oil rises, heavily-hedged shale drillers may find it harder to meet investor demands for payback, boosting the value of producers that haven’t locked in returns for future production.
When West Texas Intermediate breached $60 a barrel, it was good news generally for U.S. shale producers. But the higher the price, the less gain will come to companies that hedged their production as crude held below $55 for 10 months of the year.