Commodity Exposure, Financial and Operational Hedging of US Oil and Gas Companies
27 Pages Posted: 16 Feb 2017
Date Written: February 16, 2017
We examine the extent of operational and financial hedging in US oil and gas companies. Using a combination of hand collected and publicly available data we first calculate financial and commodity exposure. We find significant exposure to underlying commodity movements. We find no evidence that operational hedging, defined here as multinationality, is effective, rather that financial hedging is significant and impactful.
Keywords: Hedging, operational hedging, financial hedging, commodity exposure
JEL Classification: G30, G31, Q02
Suggested Citation: Suggested Citation