Mike Filloon's Tight Oil Update -- June 22, 2016

Summary:

• Permian operators began hedging oil prices at $40/bbl and continue at $50/bbl with additional hedging from Eagle Ford names.
• Increased volumes of hedging provide a short term ceiling to oil prices, at least until operators have enough revenues guaranteed to satisfy banks.
• Given the large number of barrels unhedged through 2016 and into 2017, this could continue for a couple of months, but could take longer if oil prices pullback. 

There is a small amount of discussion regarding the Bakken in the Williston Basin.