Montage Resources, the company that resulted after the merger of Eclipse Resources with Blue Ridge Mountain Resources one year ago, issued an announcement on Monday with two important pieces of news. One is that the company has renegotiated a deal with the company that gathers the natural gas from its wells, merging a bunch of separate agreements into a single new agreement. The implied message is that Montage will save significant money. Second, the company has most of its natural gas production hedged for the balance of 2020, preselling it for $2.63/Mcf. They’ve also hedged some of their 2021 production–at a slightly lower price.
Montage Resources, the company that resulted after the merger of Eclipse Resources with Blue Ridge Mountain Resources one year ago, issued an announcement on Monday with two important pieces of news. One is that the company has renegotiated a deal with the company that gathers the natural gas from its wells, merging a bunch of separate agreements into a single new agreement. The implied message is that Montage will save significant money. Second, the company has most of its natural gas production hedged for the balance of 2020, preselling it for $2.63/Mcf. They’ve also hedged some of their 2021 production–at a slightly lower price.