Crescent Point has one of the most active and balanced commodity price risk management programs in the industry. The Trust actively hedges (on a rolling three year basis) crude oil and natural gas prices, along with the US/Canadian dollar exchange rate, to provide stability to revenues, cash flows and distributions. The Trust also hedges interest rates and power prices to provide stability to input costs.

The Trust’s price risk management program is governed by a Risk Management Policy, which is approved and reviewed annually by senior management and the Board of Directors. The Policy allows for transactions of up to three years (36 months from the current quarter) and includes the use of physical and financial swaps, collars and put options. Hedging limits are 50 percent of net production for combinations of swaps and collars and 65 percent of net production including put options.

Crescent Point uses a portfolio of swaps, collars and puts to provide the desired level of downside protection while maintaining an optimal level of exposure to rising prices.