More than 45% of expected natural gas production in 2021 is hedged at a Henry Hub base price of $2.58/MMBtu, marginally lower than the 2020 price of $2.70, according to a Rystad Energy analysis of U.S. producers.

Henry Hub

The analysis also determined exploration and production (E&P) companies have to date hedged 41% of forecast 2021 oil output at an average price of $42/bbl West Texas Intermediate (WTI), sharply below this year’s floor of $56.

“Hedging strategies of U.S. upstream operators have taken center stage as a tool that is helping companies cushion their cash flows amid weak oil prices,” analysts said. Of the oil-producing peer group that Rystad’s team analyzed, 20 E&Ps had “communicated their hedging volumes for 2021 as of early October,” accounting for nearly...