Originally Posted by
DoctorTaco
Selling your hedges is a bold move. For context, Devon has something like 40% of its production hedged. Goin 100% unhedged is working without a net.
A similar gamble on natural gas prices is what ultimately brought down Aubrey McClendon at CHK. Aubrey sold all of CHK's gas hedges going into the winter of 2011-2012, gambling that prices would come up. When that winter was warmer than average and gas prices not only stayed low but dropped, it killed CHK's profitability.
Whatever else people were mad at Aubrey about, had that gamble went the other way for him the man would still be at Chesapeake.
Let's hope that Harold Hamm has better luck with his gamble.
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