Aggressive oil hedging enables Plains E&P’s big deepwater play

oil drum

Plains Exploration & Production, a mid-sized independent E&P firm that had previously been known as an onshore US natural gas developer, made a dramatic move into deepwater oil last week by clinching a $6.1 billion deal to acquire assets from BP and Royal Dutch Shell in the Gulf of Mexico. In order to secure financing for the acquisition, the Houston-based firm vowed to hedge up to 90% of its oil production through to 2015, an unusually large coverage ratio for an E&P company.

The hedges were

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here