We analyze how managerial risk preferences influence firms’ hedging instrument choice in the oil and gas industry. CEO age determines hedging behaviour: the probability of being a hedger as well as the use of linear hedging strategies decreases with CEO age. These findings are consistent with an argument that financial distress, which sends a negative signal of managerial ability, is relatively more costly to younger CEOs. We also investigate the vega-theory of hedging instrument choice, finding some support for a negative relationship between vega and a) the use of derivatives and b) hedging strategies that include the sale of call options.