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What is Crescent Points hedging policy?

April 26, 2017Crescent hedging point policy

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What is Crescent Points hedging policy?

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Crescent Point hedges up to 50 percent of production, after adjusting for royalty volumes (65% if at least 15% are put options), for three and a half years to provide greater stability to dividends. In addition, by layering in hedges as commodity prices move upward, value and stability will increase for shareholders. Hedges currently in place are outlined on Crescent Point’s hedging page. In 2008, the Corporation monetized certain of its 2009 and 2010 hedges and reset them at higher prices. This hedge monetization and reset program will provide further cash flow stability in 2009 and 2010 to support the Corporation’s monthly distribution increase to $0.23 per unit and will also provide a mechanism to reduce 2008 taxable income due to record high cash flow.