Hedging

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