Methanex Corporation (NASDAQ:MEOH) Q4 2022 Earnings Call Transcript

James Cannon: Okay. Thank you. And then just as a follow-up to that, with gas now below 250 in the U.S. Do you have any update to your kind of views on your hedging strategy with 2023 at 85% and how we should think about looking out to 2024 and beyond?

Rich Sumner: Sure. So, when we think — you quoted, we have 85% hedged. When we look at our North America natural gas exposure, we consider both Medicine Hat and Geismar in our North — in mix of North American gas. We have a team that looks at how we want to manage that on an active basis. Our target is to have around 70% per year hedged for us there. We view that in two ways. One is through longer-term fixed price physical contracts with suppliers. And then the second is through commodity hedging in the financial markets. We’re hedged 85% for 2023 and then we’re close to our 70% levels for both 2024 and 2025 after considering G3 at full production rates. So we feel really good where we are in the kind of medium-term. We’re going to continue to be active in the market.

Obviously, today’s spot price is supporting our unhedged exposure and that’s quite a benefit from where we were last year when we saw that pricing up in the $8-$9 in MMBtu. So we think that’s a positive for our cost structure in 2023.

James Cannon: Okay. Great. Thank you.

Operator: There are no further questions at this time. I will now turn the call back over to Mr. Rich Sumner.

Rich Sumner: Thank you for your questions and interest in our company. Looking forward, we’re well positioned with our current asset portfolio and a strong balance sheet. Our G3 project is fully funded, progressing safely on time and on budget and we expect to be in production in the fourth quarter of this year. We hope you will join us in April when we update you on our first quarter results. Thank you.

Operator: Ladies and gentlemen, that concludes today’s conference. Thank you all for joining. You may now disconnect.