Jonathan Whitehead

We've seen a complete reversal of the benign environment where there was limited hedging and investing, some producers are now under severe pressure and some will struggle to keep going, so hedging is back on the agenda and volatility is attracting investors back to the sector.

Jonathan Whitehead

It's a great environment for consumers, consumers typically have narrow pre-agreed risk management remits, but have extended their hedging activities by amount and tenor. Many are pushing hedges out to five years, and that's pretty unusual.

Jonathan Whitehead

Many E&P firms are looking at financial optimization and rebalancing their debt, future investment and hedging activities. If you are massively in-the-money on your hedges, it might make sense to reset strikes and pay down debt, particularly if you are paying off some of the covenants that are more restrictive.

Jonathan Whitehead