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 August 6, 2020

Volume Period Derivative Reference Price
Natural Gas        
10,000 mmbtu/Day Jul - Dec 2020 Swap Chicago Monthly $3.34/mmbtu
2,500 mmbtu/Day Jul - Dec 2020 Swap Chicago Daily $3.23/mmbtu
2,500 mmbtu/Day Jul - Dec 2020 Swap US$ NYMEX Henry Hub $2.48/mmbtu
2,500 mmbtu/Day Nov 2020 - Oct 2021 Swap Chicago Monthly $3.17/mmbtu
10,000 mmbtu/Day Nov 2020 - Oct 2021 Swap Chicago Daily $3.27/mmbtu
15,000 gj/Day Jan - Mar 2021 Swap AECO C Daily Index $2.54/gj
15,000 gj/Day Jan - Mar 2021 Swap AECO C Monthly Index $2.53/gj
5,000 gj/Day Jan - Mar 2021 Swap AECO C Daily Index $2.45/gj
2,500 gj/Day Apr - Jun 2021 Swap AECO C Daily Index $2.11/gj
11,500 gj/Day Apr - Jun 2021 Swap AECO C Daily Index $2.12/gj
11,500 gj/Day Apr - Jun 2021 Swap AECO C Monthly 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
1,500 gj/Day Jul - Sep 2021 Swap AECO C Daily Index $2.18/gj
10,000 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
1,500 gj/Day Oct - Dec 2021 Swap AECO C Daily Index $2.39/gj
8,500 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 $2.40/gj
Oil        
250 bopd Jul - Sep 2020 Swap US$ WCS - WTI Diff ($16.00)/bbl
1,000 bopd Jul - Dec 2020 Swap $C WTI $77.65/bbl
250 bopd Jul - Dec 2020 Swap $C WTI $76.00/bbl
250 bopd Jul - Dec 2020 Swap US$ WCS - WTI Diff ($15.60)/bbl
250 bopd Jul - Dec 2020 Swap $C WCS $51.50/bbl
250 bopd Oct - Dec 2020 Swap US$ WCS - WTI Diff ($13.25)/bbl
500 bopd Jan - Jun 2021 Swap $C EDM C5 Blended Index $53.63/bbl