Q4 2023 Results Release
March 7th, 2024 (after market)
The firms and analysts listed below follow Crew Energy Inc. and provide research coverage. Crew does not distribute analyst research reports. Please contact the firm directly if you require further information. Any opinions, estimates or forecasts regarding performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Crew Energy or its management.
|ATB Capital Markets||Patrick O’Rourke||(403) 539-8615|
|BMO Capital Markets||Mike Murphy||(403) 515-1500|
|Canaccord Genuity||Mike Mueller||(403) 691-7808|
|Cormark Securities Inc.||Garett Ursu||(403) 750-7221|
|Desjardins Capital Markets||Chris MacCulloch||(403) 532-6617|
|National Bank Financial||Dan Payne||(403) 290-5441|
|Peters & Co. Limited||Dan Grager||(403) 261-2243|
|Raymond James||Jeremy McCrea||(403) 509-0518|
|RBC Capital Markets||Michael Harvey||(403) 299-6998|
|Scotia Capital||Cameron Bean||(403) 218-6786|
|Stifel FirstEnergy||Michael Dunn||(403) 262-0643|
|TD Securities||Aaron Bilkoski||(403) 299-3294|
|Velocity Trade||Mark Heim||(403) 561-4674|
Our Hedging Strategy
As part of the Company’s ongoing risk management program, Crew enters into derivative and physical hedging contracts. Crew’s risk management program incorporates the use of puts, costless collars, swaps and fixed price contracts to limit exposure to fluctuations in commodity prices, interest rates and foreign exchange rates while allowing for participation in commodity price increases. The Company’s financial derivative trading activities are conducted pursuant to the Company’s Risk Management Policy approved by the Board of Directors.
There are key benefits to implementing a disciplined and consistent risk management strategy:
- Hedging can reduce volatility of funds flow from operations and underpin the capital expenditure program
- Establishing a floor or fixed price for commodities can impart an enhanced degree of predictability in the funds flow, which contributes to greater accuracy in growth planning
Hedges as at November 8, 2023
- ~46,667 GJ/d of natural gas at C$4.40/GJ for the remainder of 2023, or C$5.37/mcf using Crew’s higher heat content factor;
- 1,750 bbls/d of condensate at an average price of C$102.58/bbl for the remainder of 2023; and
- 1,000 bbls/d of WTI at an average price of C$104.36/bbl for Q4/23.
- 2,500 GJ/d of natural gas at C$2.76/GJ or C$3.37/mcf using Crew’s heat factor;
- 2,000 bbls/d of condensate at an average price of C$104.04/bbl for 1st half 2024;
- 1,750 bbls/d of condensate at an average price of C$104.01/bbl for 2nd half 2024;
- 1,000 bbls/d of WTI at C$106.09/bbl for Q1 2024;
- 500 bbls/d of WTI at C$112.00/bbl for Q2 2024; and
- 250 bbls/d of WTI at C$110.50/bbl for 2nd half 2024.
- Targeting 40% to 50% hedged on projected natural gas production
- Condensate hedge market is illiquid requiring a short term hedging strategy that is executed in 6-month increments
Following is a link to the US IRS Form 8937, Report of Organizational Actions Affecting Basis of Securities, which pertains to issuers that engage in organizational actions affecting the basis of a specified security to provide certain information to the IRS.