Core Insights - Cavvy Energy Ltd. reported strong financial results for Q3 2025, with a net operating income (NOI) of $30.6 million and a production rate of 23,956 boe/d, reflecting a 4% increase from Q3 2024 [1][5] - The company achieved a 14% growth in third-party processing volumes compared to Q2 2025, reaching 136.1 MMcf/d, which significantly contributed to revenue growth [2][5] - A structured forward pricing agreement for sulphur sales in 2026 was executed, providing downside revenue protection while allowing for upside participation in the market [2][8] Financial Performance - Net operating income for Q3 2025 was $30.6 million, translating to $0.11 per share, while funds flow from operations was $12.9 million, or $0.04 per share [5][6] - The company reduced net debt by $3.2 million from Q2 2025, bringing it down to $163.7 million [5][6] - Operating expenses decreased by $1.8 million (5%) compared to Q3 2024, totaling $36.7 million [5] Production and Processing - Total production for Q3 2025 was 23,956 boe/d, with 80% being natural gas, which is a 4% increase from Q3 2024 [5] - Third-party raw gas processing volumes increased by 69.6 MMcf/d (105%) compared to Q3 2024, resulting in an 87% increase in processing and marketing revenue [5] - Sulphur production was 1,120 mt/d, with 85% sold under a below-market contract expiring on December 31, 2025 [5][7] Pricing and Market Strategy - The realized sulphur price for Q3 2025 was $34.59/mt, significantly higher than the previous year [6] - The structured pricing agreement for sulphur sales includes a fixed price of US$225/mt for one-third of sales, a collar structure for another third, and spot market pricing for the remaining third [9][10] - The company is focused on optimizing infrastructure and reducing costs to maintain profitability amid commodity price fluctuations [10][11] Guidance and Outlook - Cavvy Energy has revised its 2025 guidance, expecting total production to remain between 23,000 and 25,000 boe/d and net operating income to range from $100 million to $110 million [12] - The company plans to prioritize strengthening its balance sheet and attracting incremental third-party volumes while minimizing facility outages [9][10] - Management aims to continue improving operational efficiency and identifying growth opportunities for shareholders [10][11]

Riley Permian encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, Riley Permian assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances. Investor Presentation November 2025 Forward-Looking Statements Forward-Looking Statements This presentation contains projections and other forward-looking statements within the meaning of federal securities laws. These proj ...

Core Insights - The article emphasizes the importance of hedging as a risk management strategy for investors, highlighting that it is essential to manage risk proactively rather than reactively [1][2] - Long puts are presented as a form of insurance against market losses, allowing investors to protect unrealized profits from potential downturns [2][3] Hedging Concept - Hedging is defined as a method to protect unrealized profits from downside risks, akin to insurance for investments [2] - The article notes that while investors hope they never need to use their hedge, having one in place provides peace of mind [2] Long Put Options - A long put option grants the buyer the right to sell an underlying asset at a predetermined strike price before the expiration date, providing downside protection [2][3] - The maximum loss is capped when using a long put, as it allows the investor to sell the stock at the strike price regardless of how much the stock price falls [3] Practical Example - An example is provided where an investor owns 100 shares of Microsoft purchased at $500 per share. Without a hedge, a drop to $450 would result in a $5,000 loss [4] - By purchasing a $490-strike put option, the investor secures the right to sell the shares at $490, thus limiting potential losses [4]

Core Viewpoint - Berry Corporation reported its financial and operational results for Q3 2025, highlighting a net loss and a pending merger with California Resources Corporation, which has led to the suspension of supplemental slides and conference calls for this quarter [1][3][5]. Financial and Operating Summary - Production for Q3 2025 was 23.9 MBoe/d, consistent with Q2 2025 but down from 24.8 MBoe/d in Q3 2024 [3][34]. - Oil, natural gas, and NGL revenues totaled $128 million, slightly up from $126 million in Q2 2025 but down from $154 million in Q3 2024 [3][22]. - The company reported a net loss of $26 million, or $0.34 per diluted share, compared to a net income of $34 million in Q2 2025 and $70 million in Q3 2024 [3][23]. - Adjusted EBITDA for the quarter was $49 million, down from $53 million in Q2 2025 and $67 million in Q3 2024 [3][22]. - Free cash flow was $38 million, a significant improvement from a negative $26 million in Q2 2025 but down from $45 million in Q3 2024 [3][22]. Capital Structure - As of September 30, 2025, Berry had $416 million outstanding on its term loan facility and no borrowings under its revolving credit facility, with total liquidity of $94 million [4][6]. Debt Reduction and Shareholder Returns - The company paid down approximately $11 million of debt during the quarter, bringing the year-to-date total debt reduction to approximately $34 million [6][5]. - A quarterly cash dividend of $0.03 per share was approved, representing a 4% annual yield [6][5]. Production Statistics - The company produced 21.8 MBbl/d of oil, with California contributing 18.4 MBbl/d and Utah 3.4 MBbl/d [34]. - Total natural gas production was 9.1 MMcf/d, consistent with Q2 2025 [34]. Commodity Pricing - The average realized price for oil without hedge was $62.21 per barrel, while the price with hedge was $67.33 per barrel [27]. - Natural gas was sold at an average price of $2.99 per mcf [27]. Current Hedging Summary - As of October 31, 2025, Berry has hedged 18.2 MBbls/d of oil production at an average price of $74.15 per barrel for the remainder of 2025 [8][30].

And airdrop hedgers ...

Core Viewpoint - Devon Energy Corporation (DVN) is anticipated to show an increase in revenue but a decrease in earnings for the third quarter of 2025, with results expected to be reported on November 5 [1][10] Group 1: Earnings and Production Expectations - Devon Energy is projected to maintain stable oil production, with an expected output of 387,000 barrels per day in Q3 2025, supported by strong performance from its multi-basin portfolio, particularly the Delaware Basin [2][10] - The company expects total production volumes to range between 829,000 to 847,000 barrels of oil equivalents per day (Mboe/d), with a Zacks Consensus Estimate of 838.7 Mboe/d, reflecting a year-over-year growth of 15.2% [6][10] - The Zacks Consensus Estimate for Q3 revenues is $4.12 billion, indicating a growth of 2.34% compared to the previous year [6][10] - The consensus estimate for earnings is set at 93 cents per share, which represents a decline of 15.45% from the year-ago figure [7][10] Group 2: Factors Influencing Performance - The company has implemented hedging strategies for its Q3 production to mitigate market volatility in oil, natural gas liquids, and natural gas prices, contributing to earnings stability [3][10] - Prudent cost management has allowed Devon Energy to maintain control over operating expenses, while strong cash flow generation has supported its share repurchase program, likely enhancing quarterly earnings [4][10] - Efforts to restructure NGL contracts and improve downstream oil realizations by expanding access to export markets are expected to positively impact Q3 earnings [5][10] Group 3: Earnings Prediction Model - The current model does not predict a likely earnings beat for Devon Energy, as it has an Earnings ESP of -0.07% and a Zacks Rank of 3 (Hold) [8][9]

Financial Performance - Natural gas and oil sales, including realized hedging gains, reached $335 million in Q3 2025[7] - Operating cash flow was $190 million, equivalent to $0.65 per diluted share[7] - Adjusted EBITDAX for Q3 2025 stood at $249 million[7] - Adjusted net income was $28 million, or $0.09 per diluted share, for the third quarter[7] Asset Divestitures - The company divested non-strategic Cotton Valley wells in East Texas and North Louisiana, generating net proceeds of $15 million[7,10] - An agreement was made to sell Shelby Trough assets in East Texas for $430 million in cash[7,10] Drilling and Production - Three Western Haynesville wells were brought online in Q3 2025, featuring an average lateral length of 8,566 feet and an average initial production rate of 32 MMcf per day[7] - In 2025, 28 wells were turned to sales in the Legacy Haynesville area, with an average lateral length of 11,919 feet and a per-well initial production rate of 25 MMcf per day[7,43] Capitalization and Liquidity - As of September 30, 2025, the company's total debt was $3169 million, with common equity at $2618 million[25] - The company maintains strong financial liquidity, exceeding $900 million, which is expected to increase following the Shelby Trough divestiture in December 2025[65]

[Music] I'm well aware of the irony of me giving a talk on hedging today because despite spending nearly all day every day researching and reading about gendered and intentional language, I still consistently use phrases like I think, maybe, and sort of in nearly every conversation I have. And I've always thought that was just me, my personality, my communication style, until one winter day in 2019 when I met up with two colleagues, Lynn and Emily, for a brew to talk about software design decisions. Because ...

Operational Highlights - Antero Resources achieved a 17% quarter-over-quarter increase in drillout feet per day[8] - The company also saw a 22% quarter-over-quarter increase in completion stages per day[8] - Antero set a company record for the longest lateral drilled, exceeding 22,000 feet[8] - Drillout feet per day reached 4,980[8] - Completion stages per day reached 14.5 per day, or 2,900 feet per day[8] Financial Performance & Strategy - Antero Resources generated nearly $600 million in Free Cash Flow year-to-date[19] - $242 million was allocated to acquisitions[20] - $184 million was used for debt repayment[20] - $163 million was spent on stock purchases[20] - The company has reduced its debt by approximately $2.5 billion since 2019[31] Hedging - For 4Q25, Antero has swaps at 100 BBtu/d at $3.12[24] - For 2026, Antero has collars at 500 BBtu/d with a floor of $3.14 and a ceiling of $6.31, and swaps at 600 BBtu/d at $3.82[24]

ETF Market & Strategy - The discussion revolves around buffer ETFs and whether the downside protection they offer is worth limiting potential gains [1] - Some ETFs are modifying their methodology to address criticisms regarding limited upside potential [2] - True Shares ETFs pioneered uncapped buffered ETFs, believing capturing upside events is as important as mitigating downside events for long-term returns [3] - True Shares ETFs use a traditional buffer with an uncapped upside capture or participation rate [4] Performance & Risk - In the 12 months following July 2020, the S&P 500 rose approximately 39%, while True Shares' buffered product returned close to 31%, outperforming peers capped in the teens [4] - Historically, the S&P 500 has returned over 17% roughly 34% of the time, with an average return of approximately 26% during those periods [5][6] - April (Liberation Day) was cited as a significant test for buffered ETFs, second only to the pandemic's early days [7] Future Discussion - The conversation will continue on ETFedge, featuring Tony Kelly from Bond Blocks discussing fixed income and buffers [8]