Business Context and Reporting Period
This Form 8-K is filed by Enerjex Resources, Inc. (not Ageagle Aerial Systems Inc.) on July 10, 2012. The report details hedging transactions executed on that date to manage exposure to oil price fluctuations.
Key Financial Metrics and Hedging Activity
The filing does not provide revenue, profit, cash flow, or debt metrics. It focuses exclusively on commodity hedging positions:
- New Hedge: 45,000 barrels of oil hedged.
- Replaced Hedge: Existing hedge of 27,600 barrels at $62.20 per barrel was replaced.
- Counterparty: BP Corporation North America, Inc. (Fixed price swap agreement).
Outstanding Hedge Schedule
| Period | Barrels Per Month | Average Oil Price |
|---|---|---|
| July - December 2012 | 5,600 | $82.39 |
| January - December 2013 | 4,900 | $80.00 |
| January - December 2014 | 4,450 | $80.26 |
| January - December 2015 | 4,000 | $81.96 |
Material Changes
The primary material change is the adjustment of the company's hedging portfolio. The company increased its hedged volume by entering into a new transaction for 45,000 barrels while simultaneously removing an older, lower-priced hedge ($62.20) to align with current market conditions.
Guidance, Outlook, and Risks
The filing contains no forward-looking financial guidance, management commentary on future performance, or specific risk factors beyond the implicit risk management strategy of the hedging program. No unusual items or contingencies are disclosed.
Investor Verification Checklist
- Verify the registrant name is Enerjex Resources, Inc., as the input metadata incorrectly listed Ageagle Aerial Systems Inc.
- Confirm the total volume of outstanding hedges matches the sum of the monthly rates provided in the table.
- Review the impact of the $80+ average hedge price against current market oil prices to assess potential mark-to-market gains or losses.
- Check subsequent filings for any termination or modification of the BP Corporation North America, Inc. swap agreement.