Canadian and U.S. oil producers have moved quickly to reset oil hedging positions at materially higher prices, ensuring that recent hedging losses will not weigh on earnings for long. This also means that downside protection is improved substantially for 2026 and 2027, should oil prices fall from current levels. Geologic data shows 69 North American producers expanded oil hedging through 2027, with significantly more volumes now hedged above $70/bbl. This should translate into improved earnings: 58% of the group’s Q1 production is now hedged at between $60/bbl and $80/bbl, compared to 44% in Q4 2025. 8% of the group’s production is now hedged at over $80/bbl. This data includes fixed swap hedges, collars and call options, which all cap potential earnings in a high price environment. These derivatives drove billions of dollars in Q1 hedging losses because many producers were locked into lower-priced positions. Large and small producers resetCompanies with hedges involving swaps or collar ceilings of above $80/bbl include ARC Resources, Diamondback Energy and Devon Energy (through its merger with Coterra), plus smaller oil producers like Lotus Creek Exploration in Canada and Kolibri Global Energy in the U.S. Higher-priced hedges extend beyond the near termEnd of term dates for these derivatives are quite evenly spread over the next two years based on hedged oil volumes. Source: Geologic (via Evaluate Energy)This insight was created using Geologic’s Evaluate Energy hedging data.
