Yes, no and may The cash settled derivative hedges are just just that - "cash settled" - and just using Swap settlement for simplicity
1,850,000 Bbls x $56.50/ Bbl = $104,525,000 of cash flow
If you took an "extreme case" and said zero production (and you buy the equivalent production on market"
1,850,000 Bbls x $26.50/Bbl (taking a random easy to calc price) says
swapping of the "cash flows" = ($56.50 - $26.50) x 1,850,000 = $55,500,000 as cash to SNDE
Now of course SNDE also has MVC contracts with midstream companies to fulfill (and they also have problems as storage fills up). I don't have any visibility there.
Was that the question you were asking?
SEA Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
