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 May 7, 2020

Volume Period Derivative Reference Price
Natural Gas        
12,500 mmbtu/Day 2020 Swap Chicago C$3.32/mmbtu
2,500 mmbtu/Day 2020 Swap NYMEX US$2.48/mmbtu
7,500 mmbtu/Day Nov 2020 - Oct 2021 Swap Chicago Gas Daily C$3.24/mmbtu
2,500 mmbtu/Day Nov 2020 - Oct 2021 Swap Chicago NGL Monthly C$3.17/mmbtu
5,000 GJ/Day Apr 2021 - Oct 2021 Swap AECO C$2.20/GJ
1,399 bopd 2020 Swap $C WTI / bbl C$73.32
250 bopd Jan - Jun 2020 Swap $WCS Differential US$(17.25)
500 bopd Jan - Jun 2020 Swap $C WCS / bbl C$52.25
250 bopd Jul - Dec 2020 Swap $C WCS / bbl C$51.50
250 bopd Jul - Sep 2020 Swap $WCS Differential US$(16.00)
250 bopd Jul - Dec 2020 Swap $WCS Differential US$(15.60)