If I am reading your sheet correctly, it appears the listed Baytex 1Q22 hedging loss includes unrealized losses on unsettled forward contracts. Baytex realized financial derivative losses of $84 million in Q1 and $124 million in Q2 for a total of $208 million in realized derivative losses for the first half of 2022. Let me know if I am missing something.
The banks were counterparties in some cases according to some CFO's and some press releases, so the banks may have benefited at the expense of the borrowing client unless they laid the derivative off on a third party at arms length from the banks. I think there is a definite conflict of interest that may lead to class action litigation.
Terrific assets but questionable management. The hedge book didn't create itself. Stupid decisions aren't one time events. I will buy into the company big time if they get a new CEO and a new CFO.
If I am reading your sheet correctly, it appears the listed Baytex 1Q22 hedging loss includes unrealized losses on unsettled forward contracts. Baytex realized financial derivative losses of $84 million in Q1 and $124 million in Q2 for a total of $208 million in realized derivative losses for the first half of 2022. Let me know if I am missing something.
No, the losses are real whether "realized" or "unrealized". Since prices remain high, more losses are likely, not less.
The banks forced the companies to buy hedges as condition of loan. Did the banks or controlled companies benefit by selling the hedges??
The banks were counterparties in some cases according to some CFO's and some press releases, so the banks may have benefited at the expense of the borrowing client unless they laid the derivative off on a third party at arms length from the banks. I think there is a definite conflict of interest that may lead to class action litigation.
Hello Michael, thanks for your article. ARX.TO greatly reduce their hedge for Q2 and after, don't you think it's more interesting now?
Terrific assets but questionable management. The hedge book didn't create itself. Stupid decisions aren't one time events. I will buy into the company big time if they get a new CEO and a new CFO.