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Hemisphere Energy Corporation (HME $2.97)
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Cenovus Energy Inc. (CVE $39.74)
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Whitecap Resources Inc. (WCP $16.03)
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Athabasca Oil Corporation (ATH $11.96)
Q: How much have each of these names hedged their forward sales and how common is it in the patch? What is the most hedged Canadian name and the least? If unhedged how much in terms of EPS % gain generally can be expected if oil remains at $100 or even $80 for the remainder of this year?
5i Research Answer:
WCP has hedged approx. 25% of 2026 production. HME and ATH have not really disclosed hedges and are largely unhedged. CVE hedges approx. 30% of near-term production.
On an EPS basis for the unhedged names, the leverage is significant, but it tends to vary with each name. Each name should see benefits in a sustained $80–$100 oil price environment with virtually no hedging, but this does cut both ways.