11. [Hedging output prices] Amerada Hess [AHC) reported in its 2001 financial statements (Note 14) that: The corporation produced 109 million barrels of crude oil and natural gas liquids and 296 million Mef of nat- ural gas in 2001. At December 31, 2001, the Corpora- tion's crude oil and natural gas hedging activities included commodity futures, option and swap contracts. Crude oil hedges mature in 2002 and cover 29 million barrels of crude oil production (88 million barrels of crude oil in 2000). The corporation has natural gas hedges covering 143 million Mcf of natural gas produc- tion at December 31, 2001, which mature in 2002 and 2003 (20 million Mcf of natural gas at December 31, 2000)

a. Explain the likely motivation for Amerada's hedging activities.