LINE » Topics » Hedging Activities

These excerpts taken from the LINE 10-K filed Feb 29, 2008.

Hedging Activities

 

During the year ended December 31, 2006, the Company entered into commodity pricing derivative contracts for approximately 108% of gas production and 50% of oil production, which resulted in revenues that were $25.5 million greater than the Company would have achieved at unhedged prices.  During the year ended December 31, 2005, the Company entered into commodity pricing derivative contracts for approximately 84% of oil and gas production, which resulted in revenues that were $13.1 million less than the Company would have achieved at unhedged prices.  During the year ended December 31, 2005, the Company canceled (before its original settlement date) a portion of out-of-the-money gas hedges and realized a loss of $38.3 million, then subsequently hedged similar volumes at higher prices.  Unrealized gain on derivatives in the amount of $77.8 million for the year ended December 31, 2006 and unrealized losses on derivatives in the amounts of $24.8 million for the year ended December 31, 2005 were also recorded.  Unrealized gains and losses result from oil and gas price fluctuations as compared to the settlement price on the derivative.

 

Hedging Activities



 



During the year ended December 31, 2006, the Company entered into
commodity pricing derivative contracts for approximately 108% of gas production
and 50% of oil production, which resulted in revenues that were $25.5 million
greater than the Company would have achieved at unhedged prices.  During the year ended December 31, 2005,
the Company entered into commodity pricing derivative contracts for
approximately 84% of oil and gas production, which resulted in revenues that
were $13.1 million less than the Company would have achieved at unhedged
prices.  During the year ended December 31,
2005, the Company canceled (before its original settlement date) a portion of
out-of-the-money gas hedges and realized a loss of $38.3 million, then
subsequently hedged similar volumes at higher prices.  Unrealized gain on derivatives in the amount
of $77.8 million for the year ended December 31, 2006 and unrealized
losses on derivatives in the amounts of $24.8 million for the year ended December 31,
2005 were also recorded.  Unrealized
gains and losses result from oil and gas price fluctuations as compared to the
settlement price on the derivative.



 



This excerpt taken from the LINE 10-Q filed Nov 9, 2007.

Hedging Activities

 

During the nine months ended September 30, 2007, the Company had commodity pricing derivative contracts for approximately 97% of its nine month gas production and 97% of its nine month oil and NGL production, which resulted in realized gains of $30.5 million (revenues greater than would have been achieved at unhedged prices).  The calculation of the percentage hedged for the nine months ended September 30, 2007 includes an adjustment to reflect Panhandle I production, which was hedged, but was not included in the Company’s reported production.  It was instead recorded as a purchase price adjustment (see Note 2 in Notes to Condensed Consolidated Financial Statements).  During the nine months ended September 30, 2006, the Company entered into commodity pricing derivative contracts for approximately 102% of its gas production and 24% of its oil production, which resulted in realized gains of $17.4 million.  Unrealized losses on derivatives in the amount of $174.1 million for the nine months ended September 30, 2007, and unrealized gains of $77.2 million for the nine months ended September 30, 2006, were also recorded.  Unrealized gains and losses result from changes in market valuations of derivatives as future commodity price expectations change compared to the contract price on the derivative.  During the nine months ended September 30, 2007, short-term oil and gas prices increased, which reduced the market value of the derivatives.  Such market value adjustment, if realized in the future, would be offset by higher actual prices for production.  Since the Company has hedged a significant portion of its oil and gas production at fixed prices, it may not realize the benefit of future increases in commodity prices.  See Note 11 in Notes to Condensed Consolidated Financial Statements for details regarding derivatives in place through December 31, 2012.

 

This excerpt taken from the LINE 10-Q filed Aug 14, 2007.

Hedging Activities

During the six months ended June 30, 2007, we entered into commodity pricing derivative contracts for approximately 124% of our gas production and 110% of our oil and NGL production, which resulted in realized gains of $16.3 million (revenues greater than we would have achieved at unhedged prices).  The calculation of the percentage hedged for the six months ended June 30, 2007 includes an adjustment to reflect Panhandle I production, which was hedged, but was not included in the Company’s reported production.  It was instead recorded as a purchase price adjustment (see Note 2 in Notes to Condensed Consolidated Financial Statements).  During the six months ended June 30, 2006, we entered into commodity pricing derivative contracts for approximately 97% of our gas production, which resulted in realized gains of $9.2 million.  Unrealized losses on derivatives in the amount of $94.4 million for the six months ended June 30, 2007, and unrealized gains of $28.0 million for the six months ended June 30, 2006, were also recorded.  Unrealized gains and losses result from changes in market valuations of derivatives as future commodity price expectations change compared to the contract price on the derivative.  During the six months ended June 30, 2007, short-term oil and gas prices increased, which reduced the market value of the derivatives.  Such market value adjustment, if realized in the future, would be offset by higher actual prices for our production.

This excerpt taken from the LINE 10-Q filed May 14, 2007.

Hedging Activities

During the three months ended March 31, 2007, we entered into commodity pricing derivative contracts for approximately 115% of our gas production and 110% of our oil production, which resulted in revenues that were $9.1 million greater than we would have achieved at unhedged prices.  The calculation of percentage production hedged for the three months ended March 31, 2007 includes an adjustment to reflect the production attributable to the Texas Panhandle acquisition, which was hedged, but was not included in the Company’s reported production; instead, it was reflected as a purchase price adjustment (see Note 3 in Notes to Condensed Consolidated Financial Statements).  During the three months ended March 31, 2006, we entered into commodity pricing derivative contracts for approximately 100% of our oil and gas production, which resulted in revenues that were $3.3 million greater than we would have achieved at unhedged prices.  Unrealized losses on derivatives in the amount of $69.5 million for the three months ended March 31, 2007 and unrealized gains of $21.0 million for the three months ended March 31, 2006, were also recorded.  Unrealized gains and losses result from changes in market valuations of oil and gas derivatives as future oil and gas price expectations change compared to the contract price on the derivative.  During the quarter, short-term oil and gas prices increased, which reduced the market value of the derivatives.  Such market value adjustment, if realized in the future, would be offset by higher actual oil and gas prices for our production.

This excerpt taken from the LINE 10-K filed Mar 30, 2007.

Hedging Activities

During the year ended December 31, 2005, we entered into commodity pricing derivative contracts for approximately 84% of our oil and gas production, which resulted in revenues that were $13.1 million less than we would have achieved at unhedged prices.  During the year ended December 31, 2004, we entered into commodity pricing derivative contracts for approximately 72% of our oil and gas production, which resulted in revenues that were $2.2 million less than we would have achieved at unhedged prices.  During the year ended December 31, 2005, we canceled (before their original settlement date) a portion of out-of-the-money gas hedges and realized a loss of $38.3 million, then subsequently hedged similar volumes at higher prices.  Unrealized losses on derivatives in the amounts of $24.8 million and $8.8 million in 2005 and 2004, respectively, were also recorded.  Unrealized losses result from oil and gas price fluctuations as compared to the settlement price on the derivative.

This excerpt taken from the LINE 10-Q filed Nov 14, 2006.

Hedging Activities

During the nine months ended September 30, 2006, we effectively hedged 102% of our gas production and 24% of our oil production, which resulted in revenues that were $17.4 million greater than we would have achieved at unhedged prices.  During the nine months ended September 30, 2005, we hedged approximately 82% of our oil and gas production, which resulted in revenues that were $7.5 million less than we would have achieved at unhedged prices.  During the nine months ended September 30, 2005, we cancelled (before their original settlement date) a portion of out-of-the-money natural gas hedges and realized a loss of $38.3 million, then subsequently hedged similar volumes at higher prices.  Unrealized gain on derivatives in the amount of $77.2 million for the nine months ended September 30, 2006 and unrealized loss on derivatives in the amount of $26.8 million for the nine months ended September 30, 2005 were also recorded.  Unrealized gains and losses result from crude oil and natural gas price fluctuations as compared to the settlement price on the derivative.

This excerpt taken from the LINE 10-Q filed Aug 15, 2006.

Hedging Activities

During the six months ended June 30, 2006, we have effectively hedged 97% of our natural gas production, which resulted in revenues that were $9.2 million greater than we would have achieved at unhedged prices.  During the six months ended June 30, 2005, we hedged approximately 100% of our natural gas production, which resulted in revenues that were $16.8 million less than we would have achieved at unhedged prices.  Unrealized gain on derivatives in the amount of $28.0 million for the six months ended June 30, 2006 and unrealized loss on derivatives in the amount of $5.4 million for the six months ended June 30, 2005 were also recorded.  Unrealized gains and losses result from natural gas price fluctuations as compared to the settlement price on the derivative.

RELATED TOPICS for LINE:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki