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 5, 2018

Volume Period Derivative Reference Price
Natural Gas        
2,500 GJ/Day 2018 Swap AECO $2.62/GJ
22,500 mmbtu/Day 2018 Swap Chicago C$3.58/mmbtu
5,000 mmbtu/Day 2018 Swap NYMEX US$3.05/mmbtu
15,000 mmbtu/Day 2019 Swap Chicago C$3.35/mmbtu
2,500 mmbtu/Day 2019 Swap Dawn C$3.30/mmbtu
2,500 mmbtu/Day 2019 Swap NYMEX US$2.80/mmbtu
2,250 bopd 2018 Swap $C WTI / bbl C$72.92
500 bopd 2018 Collar $C WTI / bbl C$64.50 x $71.95
750 bopd Jul - Dec 2018 Swap $C WCS / bbl C$56.62
500 bopd Jan - Jun 2019 Swap $C WCS / bbl C$52.93
1,874 bopd 2019 Swap $C WTI / bbl C$75.99
400 bopd 2018 Swap OPIS Conway $US/Gallon US$0.79/Gallon