Hedging

Our hedging program continues to help reduce the volatility of our funds flow from operations, and thereby improve our ability to align capital programs going forward. We target having hedges in place for approximately 25% to 50% of our crude oil exposure, net of royalties, and 25% to 50% of our gas exposure, net of royalties up to 18-months ahead, subject to market conditions. We seek to layer on positions in a systematic fashion.

For 2018 only, our Board of Directors approved to hedge up to 67% of liquids production to support a fully funded capital program.

Crude Oil Hedging

As of December 31, 2017 are as follows:

Reference Price Term Price ($/bbl) Volume (bbls/d)
WTI Swaps Jan 2018 – Jun 2018 CAD$71.00 1,000
WTI Swaps Jul 2018 – Dec 2018 US$50.09 2,000
WTI Swaps Jan 2018 – Mar 2018 US$51.07 6,000
WTI Swaps Apr 2018 – Jun 2018 US$50.95 4,000
WTI Swaps Jul 2018 – Sep 2018 US$51.90 2,000
WTI Swaps Oct 2018 – Dec 2018 US$50.81 2,000
WTI Swaps Jan 2018 – Dec 2018 CAD$71.04 4,000
WTI Swaps Jan 2018 – Dec 2018 US$49.35 1,000
WTI Swaps Apr 2018 – Dec 2018 US$48.43 2,000
WTI Swaps Jul 2018 – Mar 2019 US$50.20 1,000
WTI Swaps Jan 2019 – Mar 2019 CAD$66.50 2,000
WTI Swaps Jan 2019 – Mar 2019 US$49.93 2,000
WTI Swaps Jan 2019 – Jun 2019 CAD$68.58 4,000
WTI Swaps Apr 2019 – Jun 2019 US$55.35 1,000

Natural Gas Hedging

As of December 31, 2017 are as follows:

Reference Price Term Price (CAD$/mcf) Volume (mcf/d)
AECO Swaps Jan 2018 – Mar 2018 $3.19 1,900
AECO Swaps Jan 2018 – Jun 2018 $2.91 1,900
AECO Swaps Jan 2018 – Sep 2018 $2.69 1,900
AECO Swaps Jan 2018 – Mar 2018 $3.33 3,800
AECO Swaps Jan 2018 – Jun 2018 $2.84 3,800
AECO Swaps Jan 2018 – Dec 2018 $2.67 15,200
Ventura Jan 2018 – Dec 2018 $2.79 7,500

Foreign Exchange Forward Contracts on Revenue

As of December 31, 2017

FX Collar US$24 2018 1.210 to 1.272 USD/CAD
FX Swap US$24 2018 1.2768
FX Swap US$24 2018 1.2500
FX Swap US$24 2018 1.2568
FX Swap US$24 2018 1.2803
FX Swap US$12 2018 1.2840

Cross Currency Swaps

As of December 31, 2017

Notional Volume (millions) Remaining Term Pricing
£57 10-year initial term, 2018 2.0075 (CAD/GBP), 6.95%
(£43) 18-month offset, 2018 1.7049 (CAD/GBP), 6.95%
£5 10-year initial term, 2019 1.8051 (CAD/GBP), 9.15%
€10 10-year initial term, 2019 1.5870 (CAD/EUR), 9.22%