Manage Risk

Crescent Point strives to manage the risks associated with the oil and gas industry and to provide long-term stability to its dividends. To accomplish this, we maintain a strong balance sheet with significant unutilized lines of credit. Crescent Point actively hedges commodity prices, using a rolling 3-½ year price risk management program. We hedge up to 65 percent of after-Crown royalty volumes, using a portfolio of swaps, collars and put option instruments.

Trent Stangl discusses how our hedging program works and why it’s so important.

 

 
LegendQ1 17Q2 17Q3 17Q4 17Q1 18Q2 18
3-Way Collars 13828 14000 17500 17500 5000 5000
Collars 0 0 0 0 0 0
Swaps 40205 38705 25250 14250 25250 25250
Percent Hedged 42 41 33 33 7 7

 
legendQ1 17Q2 17Q3 17Q4 17Q1 18Q2 18
Floor Hedge Price 70.46 70.33 73.92 73.99 74.04 73.99

 

(1) As of February 21, 2017

(2) Floor hedge price is calculated using the forward strip for the 3-way collar hedges. Floor hedge price of 3-way collar hedges are subject to change based on forward market prices.