Well-hedged oil and gas companies are best prepared to endure this downturn in the near term, but the longer the low-price environment continue, the greater the likelihood that many in the industry won’t survive, an analyst said.

“The hedges that are in place between $50 and $60, that is meaningful,” said Bernadette Johnson, vice president for strategic analytics at Enverus, during a webinar on March 12. “That does provide some protection for the first part of the year. It’s not going to save all these operators, certainly, and there are operators [in the Enverus analysis] that are not hedged.”

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access