As part of the Company's ongoing risk management program, Crew enters into derivative and physical hedging contracts. Crew’s risk management program incorporates the use of puts, costless collars, swaps and fixed price contracts to limit exposure to fluctuations in commodity prices, interest rates and foreign exchange rates while allowing for participation in commodity price increases.
There are key benefits to implementing a disciplined and consistent risk management strategy:
- Hedging can reduce volatility of funds flow from operations and underpin the capital expenditure program
- Establishing a floor or fixed price for commodities can impart an enhanced degree of predictability in the funds flow, which contributes to greater accuracy in growth planning
The Company’s financial derivative trading activities are conducted pursuant to the Company’s Risk Management Policy approved by the Board of Directors
Hedging Summary as of November 6, 2020
| Volume | Period | Derivative | Reference | Price |
|---|---|---|---|---|
| Natural Gas | ||||
|
10,000 mmbtu/Day |
Oct - Dec 2020 | Swap | Chicago Monthly | $3.34/mmbtu |
|
2,500 mmbtu/Day |
Oct – Dec 2020 |
Swap |
Chicago Citygate Daily |
$3.23/mmbtu |
|
2,500 mmbtu/Day |
Oct – Dec 2020 |
Swap |
US$ Nymex Henry Hub |
$2.48/mmbtu |
|
10,000 gj/Day |
Nov – Dec 2020 |
Swap |
AECO C Daily Index |
$3.02/gj |
|
2,500 mmbtu/Day |
Nov 2020 – Oct 2021 |
Swap |
Chicago Citygate Monthly |
$3.17/mmbtu |
|
10,000 mmbtu/Day |
Nov 2020 – Oct 2021 |
Swap |
Chicago Citygate Daily |
$3.27/mmbtu |
|
5,000 mmbtu/Day |
Jan – Oct 2021 |
Swap |
Chicago Citygate Monthly |
$3.64/mmbtu |
|
7,500 mmbtu/Day |
Jan – Oct 2021 |
Swap |
Chicago Citygate Daily |
$3.74/mmbtu |
|
20,000 gj/day |
Jan – Mar 2021 |
Swap |
AECO C Daily Index |
$2.52/gj |
|
15,000 gj/day |
Jan – Mar 2021 |
Swap |
AECO C Monthly Index |
$2.53/gj |
|
5,000 gj/day |
Jan – Dec 2021 |
Swap |
AECO C Daily Index |
$2.66/gj |
|
2,500 gj/day |
Jan – Dec 2021 |
Collar |
AECO C Monthly Index |
$2.50-3.00/gj |
|
11,500 gj/day |
Apr – Jun 2021 |
Swap |
AECO C Monthly Index |
$2.12/gj |
|
14,000 gj/day |
Apr – Jun 2021 |
Swap |
AECO C Daily Index |
$2.12/gj |
|
2,500 gj/day |
Apr – Oct 2021 |
Swap |
AECO C Daily Index |
$2.35/gj |
|
2,500 gj/day |
Apr – Oct 2021 |
Swap |
AECO C Monthly Index |
$2.05/gj |
|
11,500 gj/day |
Jul – Sep 2021 |
Swap |
AECO C Daily Index |
$2.18/gj |
|
10,000 gj/day |
Jul – Sep 2021 |
Swap |
AECO C Monthly Index |
$2.19/gj |
|
10,000 gj/day |
Oct – Dec 2021 |
Swap |
AECO C Daily Index |
$2.40/gj |
|
9,000 gj/day |
Oct – Dec 2021 |
Swap |
AECO C Monthly Index |
$2.40/gj |
|
5,000 gj/day |
Nov – Dec 2021 |
Swap |
AECO C Daily Index |
$2.85/gj |
|
5,000 gj/day |
Nov 2021 – Mar 2022 |
Swap |
AECO C Daily Index |
$2.93/gj |
|
2,500 gj/day |
Jan 2022 – Mar 2022 |
Collar |
AECO C Monthly Index |
$2.75-3.20/gj |
|
7,500 gj/day |
Jan 2022 – Dec 2022 |
Swap |
AECO C Daily Index |
$2.44/gj |
|
7,500 gj/day |
Nov 2021 – Dec 2021 |
Swap |
AECO C Daily Index |
$2.84/gj |
|
5,000 gj/day |
Nov 2021 – Mar 2022 |
Collar |
AECO C Monthly Index |
$2.65-2.95/gj |
|
5,000 gj/day |
Nov 2021 – Mar 2022 |
Swap |
AECO C Monthly Index |
$2.84/gj |
|
20,000 gj/day |
Jan 2022 – Mar 2022 |
Swap |
AECO C Daily Index |
$3.05/gj |
|
10,000 gj/day |
Jan 2022 – Mar 2022 |
Swap |
AECO C Monthly Index |
$3.09/gj |
|
7,500 gj/day |
Jan 2022 – Dec 2022 |
Swap |
AECO C Daily Index |
$2.40/gj |
|
7,500 gj/day |
Jan 2022 – Dec 2022 |
Swap |
AECO C Monthly Index |
$2.36/gj |
|
20,000 gj/day |
Apr 2022 – Jun 2022 |
Swap |
AECO C Daily Index |
$2.17/gj |
|
10,000 gj/day |
Apr 2022 – Jun 2022 |
Swap |
AECO C Monthly Index |
$2.20/gj |
|
5,000 gj/day |
Apr 2022 – Oct 2022 |
Swap |
AECO C Daily Index |
$2.19/gj |
|
20,000 gj/day |
Jul 2022 – Sep 2022 |
Swap |
AECO C Daily Index |
$2.20/gj |
|
10,000 gj/day |
Jul 2022 – Sep 2022 |
Swap |
AECO C Monthly Index |
$2.22/gj |
|
20,000 gj/day |
Oct 2022 – Dec 2022 |
Swap |
AECO C Daily Index |
$2.44/gj |
|
10,000 gj/day |
Oct 2022 – Dec 2022 |
Swap |
AECO C Monthly Index |
$2.48/gj |
| Oil | ||||
|
1,250 bopd |
Oct – Dec 2020 |
Swap |
$C WTI |
$77.32/bbl |
|
500 bopd |
Oct – Dec 2020 |
Swap |
USD$ WCS – WTI Diff |
$(14.43)/bbl |
| 250 bopd |
Oct – Dec 2020 |
Swap |
$C WCS |
$51.50/bbl |
| Condensate | ||||
| 500 bopd |
Jan 2021 – Jun 2021 |
Swap | $C EDM C5 Blended Index | $53.63/bbl |
