SSN reported oil production for Mar Qtr was 38,134 BO or 12,711/mth assuming even spread. BUT all we know it is declining (and seasonality also hurt). SSN absolutely must restore production rate otherwise they will have hedged over 100% of production. SSN says wells being returned to production but they have a history of disappointing owners.
From May through Dec 2018 they have hedged 107,800 BO or 13,475 BO/mth at ceiling of $56.00 Also 915 BO for April at $63.00
So to oversimplify
ALL oil produced sold at $76 ($20 more than the hedge ceiling)
Produce at 13,475 month (exactly what they have hedged)
SSN receives $2,263,800 for selling 3 x 13,475 x $56 hedged barrels
SSN "pays" $808,500 hedge loss from 3 x 13,475 x $20 ... i.e. that flows directly to hedge counterparty
SSN receives NO BENEFIT from higher oil prices!!
Produce at 18,475 month (5,000 BO more than they have hedged) or roughly Q3/17 level
SSN receives $2,263,800 for selling 3 x 13,475 x $56 hedged barrels
SSN pays $808,500 hedge loss from 3 x 13,475 x $20
SSN receives $1,140,000 for selling 3 x 5,000 x $76 non-hedged barrels
SMALL Upside from producing at Q3/17 levels
