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 September 30, 2018 are as follows:

Reference Price Term Price ($/bbl) Volume (bbls/d)
WTI Swaps Q4 2018 US$50.09 2,000
WTI Swaps Q4 2018 US$50.81 2,000
WTI Swaps Q4 2018 CAD$71.04 4,000
WTI Swaps Q4 2018 US$49.35 1,000
WTI Swaps Q4 2018 US$48.43 2,000
WTI Swaps Oct 2018 – Mar 2019 US$50.20 1,000
WTI Swaps Q1 2019 CAD$66.50 2,000
WTI Swaps Q1 2019 US$49.93 2,000
WTI Swaps Jan 2019 – Jun 2019 CAD$68.58 4,000
WTI Swaps Q2 2019 US$56.53 2,000
WTI Swaps Q3 2019 US$57.00 1,000

Natural Gas Hedging

As of September 30, 2018 are as follows:

Reference Price Term Price (CAD$/mcf) Volume (mcf/d)
AECO Swaps Q4 2018 $2.67 15,200
Ventura Q4 2018 US$2.79 7,500

Foreign Exchange Forward Contracts on Revenue

As of September 30, 2018

FX Collar Q4 2018 US$6 1.210 to 1.272 USD/CAD
FX Swap Q4 2018 US$6 1.2768
FX Swap Q4 2018 US$6 1.2500
FX Swap Q4 2018 US$6 1.2568
FX Swap Q4 2018 US$3 1.2840
FX Swap Q4 2018 US$6 1.2803
FX Swap Q1 2019 US$6 1.3000