Perspectives: Oil and Gas Companies Continue to Hedge

Here’s a survey of the 30 largest public oil and gas companies and their hedging activities as disclosed in their Dec. 21, 2021, 10-K filings.

(Source: Oil and Gas Investor / Hart Energy,

[Editor's note: A version of this story appears in the July 2022 issue of Oil and Gas Investor magazine.]

Hedging remains a mainstay activity for many oil and gas producers to protect cash flows and manage operating budgets. However, these hedge programs and coverage levels were in place before price increases that occurred in early 2022. This resulted in the 30 largest public oil and gas E&P companies recording an overall total derivative liability of $26.8 billion as of March 31, 2022.

Price volatility is ever-present in oil and gas markets and encourages producers to have an effective hedging program in place. Other than a couple of short-lived dips, prices for NYMEX WTI futures climbed steadily through 2021. The lowest futures price for oil in 2021 was over $47/bbl. Natural gas prices made strong gains in 2021, even trading above $6/MMBtu for multiple days in October 2021. The average natural gas spot price in 2021 was $3.72/MMBtu, which is nearly $1.60/MMBtu higher than the 2020 average.

The following is a survey of the 30 largest public E&P companies and their hedging activities as disclosed in their Dec. 31, 2021, 10-K filings. It also includes comparisons to the same survey done in the prior year.

Already have an account? Log In

Subscribe now to get unmatched and complete coverage of the Energy industry’s entire landscape!

View our subscription options
  • Access to site wide content
  • Access to our proprietary databases
  • Watch exclusive videos with energy executives
  • Unlimited access to an extensive library of Playbooks, Techbooks, Yearbooks, supplements, and special reports
  • Newly Added! Access to Rextag's Energy Datalink, containing extensive GIS databases of energy assets, production records, processing capacities, physical locations, planned projects, acquisition records, and much more.