Energen adds oil hedges for 2016

Energen Corporation has recently revealed that it has begun hedging its 2016 oil production and has added to its 2015 oil hedge position. Energen has entered into swap contracts for approximately 1.1 million bbls of 2016 oil production at an average NYMEX price of US$63.80/bbl. The company also has hedged an additional 2.9 million bbls of 2015 oil production in July through December 2015 at an average NYMEX price of US$62.46/bbl.

Adjusted for the new 2015 swaps, Energen’s oil hedge position for the period April through December 2015, as disclosed on 6 May 2015, now covers approximately 82% of the company’s estimated 2015 production midpoint for the last nine months of the year of 11.1 million bbls, based on production guidance issued on 6 May 2015, at an average NYMEX price of US$80.76 per bbl.

Average realised oil prices for Energen’s production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. The average realised oil prices also will reflect estimated oil transportation charges.

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/19062015/energen-adds-oil-hedges-for-2016/