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Increased hedging activity is a sign these firms view the outlook for the market as constructive enough to put down some protection - in a way it is almost a necessary pre-cursor to a pick-up in spending and/or production, once the value of futures contracts used for hedging moves back into a range that's reasonable, it presents an opportunity to lock in cashflow ahead of when lenders revisit the revolvers the E&P firms have in place. Having a strong outlook for the business, even if it does cap the upside, goes a long way in shoring up the risk of a lack of funding.