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 (1)

As of September 30, 2017 are as follows:

Reference Price Term Price ($/bbl) Volume (bbls/d)
WTI Oct 2017 – Dec 2017 CAD$67.70 7,900
WTI Jan 2018 – Mar 2018 US$51.07 6,000
WTI Jan 2018 – Jun 2018 CAD$71.00 1,000
WTI Jan 2018 – Dec 2018 US$49.35 1,000
WTI Apr 2018 – Jun 2018 US$50.95 4,000
WTI Apr 2018 – Dec 2018 US$48.43 2,000
WTI Jul 2018 – Sep 2018 US$51.90 2,000
WTI Jul 2018 – Dec 2018 US$50.09 2,000
WTI Jul 2018 – Mar 2019 US$50.20 1,000
WTI Oct 2018 – Dec 2018 US$50.81 2,000
WTI Jan 2019 – Mar 2019 US$49.93 2,000

Natural Gas Hedging (1)

As of September 30, 2017 are as follows:

Reference Price Term Price (US$/mcf) Volume (mcf/d)
AECO Oct 2017 – Dec 2017 $3.03 15,200
AECO Jan 2018 – Mar 2018 $3.33 3,800
AECO Jan 2018 – Jun 2018 $2.84 3,800
AECO Jan 2018 – Dec 2018 $2.67 15,200
AECO Oct 2017 – Mar 2018 $3.19 1,900
AECO Oct 2017 – Jun 2018 $2.91 1,900
AECO Oct 2017 – Sep 2018 $2.69 1,900

Foreign Exchange Collar (1)

As of September 30, 2017

12-month term US$24 2018 1.210 to 1.272 USD/CAD

(1) Please refer to the 2017 Third Quarter Report and November 1o, 2017 Press Release which outlines our hedge positions entered into subsequent to September 30, 2017.

Cross Currency Swaps

As of September 30, 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%