this transaction is designed to improve debt/cash flow metrics. the reason they need to do this is they have debt coming due and they need to be able to refinance it.
most nat gas producers in CA are reigning in production right now. So it is odd to see one adding assets. having said that the deal, although small, does look like it is furthering its goals of reducing leverage and increasing its ability to refi the debt coming due.
the hedging is smart. by selling the recent spike in US nat gas, they lock in high prices for the next few months. bxe was able to diversify away from AECO markets with about half its output.
bxe is buying themselves time.