I would think that one of the reasons (apart from dilution prospects) that the SP is at historic lows is because there is little fat in the company now. The POO is critical but what would hedging cost in the present era of volatility? To hedge would probably be so expensive that the POO would need to be well above $50 for the company to run profitably. They have a strong hedging policy and would have been looking into this but I'm just not sure it is economical to hedge right now. I would think that until we see the POO stabilise and hedging costs come down with market certainly they won't hedge. But right now the company is very likely profitable and accumulating cash. Some risk but HZN is likely cash flow positive from here on and with massive potential rewards on our PNG prospects is how I see the company at this point.
HZN Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
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