NexTier Oilfield Solutions, Inc. (NEX) provides integrated land-based completion and innovative solutions focused on accelerating production across various active and demanding basins in the U.S. As an industry-leading American oilfield service company, it is currently listed on NYSE among the stocks with the strongest relative price strength in the market and outpacing its Oil – Energy peers in 2022.
a- identify and discuss the primary financial risks that NexTier is exposed to. Since NexTier is a listed company, the company research can be accomplished through its financial reports and documents publicly available on the company’s website and Eikon.
b-Determine and elaborate on why NexTier should hedge and why it shouldn’t hedge its commodity price risk.
c-Explain to your non-technical client how the practice of financial risk management is similar to hedging and how it is different.
refer-website of NexTier and Eikon