SPE Business Development Meeting: Managing Price & Revenue Risk Amid Heightened Market Uncertainty

Over the past two-years, low petroleum prices and heightened price volatility have presented a challenging operating environment for oil & gas producers.

With growing optimism around energy prices in 2017 and beyond, managing price risk, or hedging, will play a much larger role in our industry moving forward. 

This increase in hedging activity will not only focus on risk to forward revenues but also risk to “deal value” as ownership of upstream assets increasingly changes hands.

Capital providers, both debt and equity, are increasingly requiring hedge programs from their partners that cover operating expenses, debt service, pledged return, CAPEX requirements and minimum liquidity thresholds.

Banks that had previously left hedging to the discretion of their customers are no longer doing so. Likewise, lenders that have previously had minimum hedge requirements are increasing hedge ratios, extending hedge tenors, and taking a stricter approach to what strategies are accepted as bona fide hedge.  

Alongside the increased need to hedge, the ability and tools available to hedge have also expanded. For WTI and Henry Hub natural gas, the forward price curve extends well beyond 2020.

There is also much greater opportunity to manage specific regional price risks whether its crude differentials in the Permian Basin or volatile gas basis spreads in the Marcellus. Likewise, there is growing transparency, and liquidity, in the rapidly expanding US NGL market that allows for much precise risk management of exposure to ethane, propane, butane and pentane markets.

The popular format of a Business & Social Networking hour followed by an hour long program, including a Q&A session, will begin at 5:00 PM in the Mezzanine.

 

*SEASON PASS HOLDERS: You do not need to register for this event, as your Season Pass has automatically registered you for all 2016 – 2017 Business Development events. Thank you for being a Season Pass Holder!

 

More information at http://www.spegcs.org/events/3363/

Speaker John Saucer
Vice President of Research and Analysis   Prior to joining Mobius Risk Group as Vice President of Research and Analysis, Mr. Saucer spent 13 years at the Houston based energy fund AAA Capital Management Advisors as a Trading Principal and Petroleum Specialist. Previously, he was a Vice President of Commodity Futures Sales ...

Vice President of Research and Analysis


 


Prior to joining Mobius Risk Group as Vice President of Research and Analysis, Mr. Saucer spent 13 years at the Houston based energy fund AAA Capital Management Advisors as a Trading Principal and Petroleum Specialist. Previously, he was a Vice President of Commodity Futures Sales at Citigroup. During his 12 year career at Citigroup, he also spent 7 years as a Vice President of Energy Analysis, responsible for fundamental research in the firm’s Futures Research Department. Prior to his work at Citigroup, Mr. Saucer spent 5 years as a senior editor at Petroleum Argus, a leading international oil market publication. Mr. Saucer is a 1987 graduate of The University of Texas with a BA in Economics.

Full Description
Organizer The Society of Petroleum Engineers Gulf Coast Section

When?

Wed, Nov. 16, 2016
5 p.m. - 7:30 p.m.
(GMT-0500) US/Central

Where?

Four Seasons
1300 Lamar St
Houston, TX 77010
United States