We are getting a few questions and concerns from our stakeholders so we wanted to send out a quick note to cover the current oil price situation. Today will certainly go down in the history books for crude oil pricing as we saw certain grades of WTI (West Texas Intermediary) trade as low as -$54 per barrel. That’s right, negative fifty four dollars.
The concern from some of you is a valid one as a few of the assets under STORH are based on crude as a commodity and thus fluctuate in price with those markets.
As some of you know, and as previously covered in our documentation and various live webinars, we put into place a hedging program the week we made the acquisition to cover our revenues in the event we had a negative market event such as what we are experiencing today. This hedging program covers at least 50% of our production at a set price of (positive) $50 per barrel, and runs all the way through July. We continue to evaluate ways to further de-risk our exposure to these markets and will expand our coverage as the markets begin to correct over the following months. Rest assured, this is our business and we are engaged in this every day and will mitigate risk whenever possible to protect asset value for our stakeholders. Thank you for your continued support and never hesitate to reach out.