Hedging activity surges in Q3 2016
More oil and gas hedges were added during Q3 than in any of the three prior quarters. The volume of oil- and gas-hedging activity from our peer group increased by 72% and 42%, respectively, relative to what was added in Q2. Devon, Pioneer, and Freeport-McMoRan added the most oil hedges; Chesapeake and Southwestern were the most active gas hedgers. We attribute the surge in activity to the simple fact that Q3 oil and gas prices were generally higher than H1 prices.