Aside from the too little-too soon press release from Chevron
First we heard from Questar
Questar is in a pretty enviable position. It has a substantial leasehold alongside Ultra Petroleum
The real focus of Encore's announcement, however, was the company's liquidity and forward-capital plan. I believe that this is where the company really caught people by surprise.
First of all, the company has hedged more than 95% of its oil production for next year. This kind of announcement would have made oil bulls cringe only a few months ago, but it's a prudent step, and the company will be able to fund its drilling program at any oil price exceeding $50. Not only that, but Encore also plans to acquire more acreage and repurchase shares.
All of these efforts are being funded out of internally generated cash flow, by the way. It's exceedingly rare to see something like that in the oil patch. If commodity prices cooperate, Encore may even generate excess cash, which it would direct toward paying down debt.
In short, both Questar and Encore appear to be in fine shape as they approach 2009.