Agree Mark. On another issue it is annoying that Macquarie Bank...

Agree Mark.

On another issue it is annoying that Macquarie Bank require ATS to hedge a lot of their production to secure their loan. Hedging losses are annoying when the spot oil market price is US$88/Barrel and they are averaging approximately US$73/Barrel. The swap system hurts them significantly in a market where oil prices are on the rise, with the collar helping a little.

In 4th Quarter 59% of production was subject to hedging which according to my calculations will result in approximately US$62/Barrel being achieved in a spot market that commanded around $75/Barrel. The 1st Quarter 2022 has 49% hedged according to information released in the last quarterly report. My rough calculations see ATS deriving about US$73/barrel in this current quarter if I use an average assumed spot price of US$85/Barrel.
I don't think ATS report their legal hedging parameters with Macquarie over the term of the loan. They just show what has been hedged on a quarterly basis. If I were management I would try and convince Macquarie to release the hedging requirement given the oil price going forward looks strong and agree that ATS pay down the debt with the excess they derive from not hedging. Of course I am not privy to details of the loan therefore I may be way off the mark. At present hedging is costing them approximately $1-1.5 Mill per quarter. My maths have not been checked and I have made a few conservative assumptions. Any comments people.