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, our Sr. Vice President of Investor Relations and Communications, on how our hedging program works and why it’s so important.

 

 
LegendQ4 16Q1 17Q2 17Q3 17Q4 17
3-Way Collars 3500 5500 5500 8500 8500
Collars 10000 0 0 0 0
Swaps 43000 36205 34705 14250 14250
Percent Hedged 44 33 32 18 18

 
legendQ4 16Q1 17Q2 17Q3 17Q4 17
Floor Hedge Price 75.26 69.34 68.81 72.39 72.61

 

(1) As of Aug. 5, 2016

(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.