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