Commodity Exposure, Financial and Operational Hedging of US Oil and Gas Companies

27 Pages Posted: 16 Feb 2017

See all articles by Elaine Laing

Elaine Laing

Trinity Business School

Brian M. Lucey

Trinity Business School, Trinity College Dublin; University of Sydney Business School; Ho Chi Minh City University of Economics and Finance

Tobias Leutkemeyer

Trinity College (Dublin)

Date Written: February 16, 2017

Abstract

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

Laing, Elaine and Lucey, Brian M. and Leutkemeyer, Tobias, Commodity Exposure, Financial and Operational Hedging of US Oil and Gas Companies (February 16, 2017). Available at SSRN: https://ssrn.com/abstract=2918966 or http://dx.doi.org/10.2139/ssrn.2918966

Elaine Laing

Trinity Business School ( email )

Trinity College Dublin
Dublin, 2
Ireland

Brian M. Lucey (Contact Author)

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

Ho Chi Minh City University of Economics and Finance ( email )

59C Nguyen Dình Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Tobias Leutkemeyer

Trinity College (Dublin) ( email )

Dublin, D2
Ireland

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