Hess paid $325M for more exposure to soaring crude oil prices, CEO says (NYSE:HES)

Hess (NYSE:HES) final week paid ~$325M to take away hedges of $100/bbl for WTI crude and $105/bbl for Brent crude “in gentle of latest excessive volatility and liquidity threat within the oil markets,” CEO John Hess informed the Scotia Howard Weil Vitality convention on Tuesday, in accordance with Bloomberg.

The $325M is sort of double the unique value of the hedges final October, as the price to commerce in choices has surged amid spiking crude costs after Russia’s invasion of Ukraine.

Hess nonetheless has safety if oil costs drop beneath $60-$65/bbl, and dissolving the decision choices it had permits the corporate to understand good points from an additional rally in costs.

Hess shares surged on Monday to an intraday excessive of $103.94, their highest degree since summer time 2014.