The Business Times
SUBSCRIBERS

Unhedged US shale drillers bear brunt of oil slide

Published Sun, Dec 14, 2014 · 09:50 PM

New York

OIL'S slide to the lowest price in more than five years is carving a divide between US shale drillers which heavily hedged future production and those which didn't.

While financial hedges are commonly required by many oilfield lenders, the industry's mid-sized US-focused shale field producers pursued varied strategies when it came to protecting future revenues, according to a Reuters review of filings and interviews with bankers and experts.

Those decisions are now coming back to haunt some drillers. Best known is Continental Resources, which lifted its hedges in early November, when oil was trading at around US$83 a barrel, leaving it unprotected as prices slipped another US$20, the most dramatic drop since the 2008 crisis. Continental's share …

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Energy & Commodities

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here