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.

Crude Oil Hedging

As of December 31, 2016 are as follows:

Reference Price Term Price ($/bbl) Volume (bbls/d)
WTI Jan 2017 - Mar 2017 $68.98 3,400
WTI Apr 2017 - Jun 2017 $68.48 800
WTI Jul 2017 - Sep 2017 $69.50 400
WTI Oct 2017 - Dec 2017 $70.81 900
WTI Apr 2017 - Dec 2017 $68.73 1,800
WTI Jan 2017 - Dec 2017 $66.81 5,200
WTI Jan 2018 - Jun 2018 $71.00 1,000
 
Natural Gas Hedging

As of December 31, 2016 are as follows:

Reference Price Term Price ($/mcf) Volume (mcf/d)
AECO Jan 2017 - Mar 2017 $3.03 15,200
AECO Apr 2017 - Jun 2017 $2.70 13,300
AECO Jul 2017 - Sep 2017 $2.71 11,400
AECO Oct 2017 - Dec 2017 $3.00 9,500
AECO Jan 2017 - Dec 2017 $3.07 5,700
AECO Jan 2018 - Dec 2018 $2.89 3,800

Subsequent to December 31, 2016, the Company entered into an additional gas swaps on 1,900 mcf per day from January to June of 2018 at AECO $2.84 per mcf.

 

Foreign Exchange Forwards on Senior Notes

As of December 31, 2016

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

As of December 31, 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.