Origin plunges into hedges

Tuesday 22 December 2015

From the AFR:

Origin Energy has acted to protect itself from a further dive in crude oil prices, paying $82 million for “put” options for oil and forward selling cargoes from its new $24.7 billion liquefied natural gas project in Queensland.

…The hedging contracts allow Origin to sell 15 million barrels of crude oil at $55 a barrel for 75 per cent of the volume, and at $US40 a barrel for the rest.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.