Key Takeaways: Evaluate Energy’s new U.S. hedging report for Q4 2018

Pioneer operations in Midland, Texas. Image: Pioneer Natural Resources

Evaluate Energy has released a new report examining how hedging strategies may impact upstream company performance metrics in the Q4 reporting season. The full report is available to download here.

Among the key findings:

  • 67 companies included in the Evaluate Energy analysis hedged a combined 4.4 million boe/d under swap, collar and three-way collar agreements for the three-month period ended December 31, 2018. This represents approximately 43 per cent of the group’s total production in the preceding three-month period ended September 30.


  • Gas-focused producers tended to cover large percentages of gas production with hedging contracts. Locking in cash flow provides a greater ability to focus on cost-saving initiatives or operational efficiencies – vital when gas production is selling at a level close to break-even for many producers.
  • Oil production was covered to a lesser extent with larger netbacks providing oil-focused producers with greater confidence to withstand volatility in commodity pricing than gas-producing counterparts.

Evaluate Energy also examined data on a company-by-company level, providing detailed analysis on the hedging strategies of the oil- and gas-focused companies that either hedged the largest actual volumes heading into Q4 or covered the greatest portions of their portfolios. These companies include Devon Energy Corp. , Pioneer Natural Resources , EQT Corp. and Concho Resources Inc. , among others.

The full Evaluate Energy report is available to download at this link .

To find out more about the data used to build the report, download our one-page guide to the Evaluate Energy North American hedging database here .