Proactive Permian basis hedging supports producers

We estimate Permian basis hedges add US$2.5 billion in pre-tax value to the basin's producers. Twenty-five of the Permian's 37 main public producers hold basis swaps – i.e., hedging derivatives that mitigate the risk of Permian oil and gas prices dipping below WTI and Henry Hub indexes). Most producers added the hedges before pipeline capacity filled up and caused Permian basis futures to widen. View this Insight to access a granular, comprehensive dataset on Permian basis-hedge volumes, prices, values, and other important metrics. The Insight also contains our regular, quarterly hedging analysis that covers all other oil and gas derivative activity.