giday mate,
in my opinion, they are being conservative, as the oil price could and probably will go to $150 per barrel but it wont stay there longer than a day,
oil price at $150 barrel will cripple every single part of the economy, and the world economy,
but dont tell the clowns on the property thread because they think were going to get interest rate rises as well as oil price rises, lol, clowns,
$150 per barrel oil and an interest rate rise, yep, i think there smoking some good sheet mate,
so, keep an eye on the quarterlies of all your favourite stocks and and you will see them being impacted by higher fuel prices,
particularly transport related companies, ie, QAN, BXB
used to cost me $70 bucks to fill up my rig, now it costs me $100 bucks,
i would hate to be filling the truck tanks up,
when i was driving a truck for a mate back when the oil prices hit $150 he was getting reamed with fuel, its a big cost, and it will be hurting all the truckies big time, they cant absorb the price, because they are on fixed rates and those rates have been going down over time, just have a look at all the trucks for sale,
if the wheel aint turning then you aint earning, i guess thats why some guys cant wait for the driverless trucks and electric trucks to come on line,
anyway,
this from page 6 of the quarterly report to the end of march 31st, 2018,
Hedging
Beach uses a range of instruments to protect against downside oil price scenarios. During the quarter, Beach entered into a 3-way collar for 5,220,000 bbls for the period April 2018 to March 2019 (A$55 floor, A$100 ceiling with re-participation above A$110). The additional cash flow hedging was undertaken for prudent downside protection in recognition of Beach’s new debt obligations. The following hedges were in place as at 31 March 2018.
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