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Some producers took their hedges off towards the end of last year but the market has proved them wrong. If prices had rebounded, they would have been heroes, but many got out about US$30 above where we are now, instead of hedging at US$100, many are now hedged at US$70, which probably isn't that bad, but they can't sustain those levels when the cash runs out.
Given the contango, those who hedged the calendar year have done better. Producers are doing more calendar hedging and right now as hedging the front doesn't make any sense because of the shape of the curve, if you're confident that current prices and the shape of the curve are here to stay, then it makes sense to hedge at these levels.
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