Hedging

Our hedging program continues to help reduce the volatility of our funds flow from operations, and thereby improve our ability to align capital programs going forward. We target having hedges in place for approximately 25% to 40% of our crude oil exposure, net of royalties, and 40% to 50% of our gas exposure, net of royalties in the current year, subject to market conditions. We seek to layer on positions in a systematic fashion.

Commodity Hedging Program

As of December 31, 2016 are as follows:

 

Q1
2017

Q2
2017

Q3
2017

Q4
2017

Q1
2018

Q2
2018

Q3
2018

Q4
2018

Oil Volume (bbl/d) 8,600 7,800 7,400 7,900 1,000 1,000    
WTI Price (C$/bbl) $67.67 $67.42 $67.42 $67.70 $71.00 $71.00    
WTI Price (US$/bbl) $50.40 $50.22 $50.21 $50.42 $52.88 $52.88    
Gas Volume (mmcf/d) 21 19 17 15 4 4 4 4
AECO Price (C$/mcf) $3.04 $2.81 $2.83 $3.03 $2.89 $2.89 $2.89 $2.89
Power Hedging

As of September 30, 2016

Notional Volume Remaining Term Pricing
25MW 2016 $49.90/MWh
Foreign Exchange Forwards on Senior Notes

As of September 30, 2016

  Notional Volume Remaining Term Pricing
3 to 15-year initial term US $25 2017 1.000 CAD/USD
Cross Currency Swaps

As of September 30, 2016

Notional Volume (millions) Remaining Term Pricing
£57  10-year initial term, 2018 2.0075 (CAD/GBP), 6.95%
£20  10-year initial term, 2019 1.8051 (CAD/GBP), 9.15%
€10  10-year initial term, 2019 1.5870 (CAD/EUR), 9.22%

Please refer to Penn West’s website at www.pennwest.com for details on all financial instruments currently outstanding.