Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | OBE |
Entity Registrant Name | OBSIDIAN ENERGY LTD. |
Entity Central Index Key | 1,334,388 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Cash | CAD 2 | CAD 11 |
Accounts receivable | 105 | 113 |
Other | 18 | 18 |
Deferred funding asset | 18 | 77 |
Risk management | 11 | 8 |
Assets held for sale | 35 | 114 |
Total current assets | 189 | 341 |
Non-current | ||
Deferred funding asset | 16 | |
Property, plant and equipment | 2,819 | 2,982 |
Total non-current assets | 2,819 | 2,998 |
Total assets | 3,008 | 3,339 |
Current | ||
Accounts payable and accrued liabilities | 149 | 175 |
Current portion of long-term debt | 31 | 27 |
Current portion of provisions | 27 | 35 |
Risk management | 55 | 26 |
Liabilities related to assets held for sale | 24 | 81 |
Total current liabilities | 286 | 344 |
Non-current | ||
Long-term debt | 328 | 442 |
Provisions | 221 | 264 |
Risk management | 6 | 25 |
Deferred tax liability | 14 | |
Other non-currentliabilities | 1 | 3 |
Total liabilities | 842 | 1,092 |
Shareholders' equity | ||
Shareholders' capital | 2,181 | 8,997 |
Other reserves | 96 | 97 |
Deficit | (111) | (6,847) |
Total shareholders' equity | 2,166 | 2,247 |
Total liabilities and shareholders' equity | CAD 3,008 | CAD 3,339 |
Consolidated Statements of Loss
Consolidated Statements of Loss - CAD shares in Millions, CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Oil and natural gas sales and other income | CAD 437 | CAD 608 |
Royalties | (30) | (22) |
Gross Revenue | 407 | 586 |
Risk management gain (loss) | 24 | (11) |
Total revenue | 431 | 575 |
Expenses | ||
Operating | 176 | 281 |
Transportation | 29 | 35 |
General and administrative | 31 | 56 |
Restructuring | 10 | 135 |
Share-based compensation | 8 | 12 |
Depletion, depreciation, impairment and accretion | 323 | 680 |
Gain on dispositions | (74) | (33) |
Provisions | (8) | 3 |
Foreign exchange gain | (5) | (84) |
Financing | 23 | 114 |
Other | 15 | |
Exploration and evaluation | 242 | |
Deferred funding asset | 82 | |
Total expenses | 528 | 1,523 |
Loss before taxes | (97) | (948) |
Deferred tax recovery | 13 | 252 |
Net and comprehensive loss | CAD (84) | CAD (696) |
Net loss per share | ||
Basic | CAD (0.17) | CAD (1.39) |
Diluted | CAD (0.17) | CAD (1.39) |
Weighted average shares outstanding (millions) | ||
Basic | 503.9 | 502.3 |
Diluted | 503.9 | 502.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | ||
Net loss | CAD (84) | CAD (696) |
Depletion, depreciation, impairment and accretion | 323 | 680 |
Gain on dispositions | (74) | (42) |
Provisions | (8) | 3 |
Deferred tax recovery | (13) | (252) |
Share-based compensation | 8 | 7 |
Restructuring | 116 | |
Other | 4 | |
Unrealized risk management loss | 7 | 147 |
Unrealized foreign exchange gain | (11) | (312) |
Exploration and evaluation | 242 | |
Deferred funding asset | 82 | |
Decommissioning expenditures | (16) | (11) |
Office lease settlements | (16) | (4) |
Change in non-cash working capital | 5 | (97) |
Cash flows from (used in) operating activities | 125 | (137) |
Investing activities | ||
Capital expenditures | (141) | (82) |
Property dispositions (acquisitions), net | 110 | 1,415 |
Change in non-cash working capital | (3) | (23) |
Cash flows from (used in) investing activities | (34) | 1,310 |
Financing activities | ||
Decrease in long-term debt | (76) | (133) |
Repayments of senior notes | (26) | (1,260) |
Issue of equity compensation plans | (4) | 1 |
Realized foreign exchange loss on repayments | 6 | 228 |
Cash flows from (used in) financing activities | (100) | (1,164) |
Change in cash | (9) | 9 |
Cash, beginning of year | 11 | 2 |
Cash, end of year | CAD 2 | CAD 11 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - CAD CAD in Millions | Total | Shareholders' Capital [member] | Other Reserves [member] | Deficit [member] |
Beginning balance at Dec. 31, 2015 | CAD 2,935 | CAD 8,994 | CAD 92 | CAD (6,151) |
Net and comprehensive loss | (696) | (696) | ||
Share-based compensation | 7 | 7 | ||
Issued on exercise of options | 1 | 3 | (2) | |
Ending balance at Dec. 31, 2016 | 2,247 | 8,997 | 97 | (6,847) |
Net and comprehensive loss | (84) | (84) | ||
Share-based compensation | 8 | 8 | ||
Issued on exercise of options | (5) | 4 | (9) | |
Elimination of deficit | (6,820) | 6,820 | ||
Ending balance at Dec. 31, 2017 | CAD 2,166 | CAD 2,181 | CAD 96 | CAD (111) |
Structure of Obsidian Energy
Structure of Obsidian Energy | 12 Months Ended |
Dec. 31, 2017 | |
Structure of Obsidian Energy | 1. Structure of Obsidian Energy Obsidian Energy Ltd. (“Obsidian Energy” or the “Company”) is an exploration and production company and is governed by the laws of the Province of Alberta, Canada. The Company operates in one segment, to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Obsidian Energy’s portfolio of assets is managed at an enterprise level, rather than by separate operating segments or business units. The Company assesses its financial performance at the enterprise level and resource allocation decisions are made on a project basis across its portfolio of assets, without regard to the geographic location of projects . Name change Effective June 26, 2017, the Company obtained shareholder approval to change its name from Penn West Petroleum Ltd. to Obsidian Energy Ltd. |
Basis of presentation and state
Basis of presentation and statement of compliance | 12 Months Ended |
Dec. 31, 2017 | |
Basis of presentation and statement of compliance | 2. Basis of presentation and statement of compliance a) Statement of Compliance These annual consolidated financial statements are prepared in compliance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The annual consolidated financial statements have been prepared on a historical cost basis, except risk management assets and liabilities which are recorded at fair value as discussed in Note 10. The annual consolidated financial statements of the Company for the year ended December 31, 2017 were approved for issuance by the Board of Directors on March 6, 2018. b) Basis of Presentation The annual consolidated financial statements include the accounts of Obsidian Energy, its wholly owned subsidiaries and its proportionate interest in partnerships. Results from acquired properties are included in Obsidian Energy’s reported results subsequent to the closing date and results from properties sold are included until the closing date. All intercompany balances, transactions, income and expenses are eliminated on consolidation. Certain comparative figures have been reclassified to correspond with current period presentation. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | 3. Significant accounting policies a) Critical accounting judgments and key estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of any contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. These and other estimates are subject to measurement uncertainty and the effect on the consolidated financial statements of changes in these estimates could be material. Management also makes judgments while applying accounting policies that could affect amounts recorded in its consolidated financial statements. Significant judgments include the identification of cash generating units (“CGUs”) for impairment testing purposes and determining whether a CGU has an impairment indicator. The following are the estimates that management has made in applying the Company’s accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements. i) Reserve estimates Commercial petroleum reserves are determined based on estimates of petroleum-in-place, year-end. Reserve adjustments are made annually based on actual oil and natural gas volumes produced, the results from capital programs, revisions to previous estimates, new discoveries and acquisitions and dispositions made during the year and the effect of changes in forecast future crude oil and natural gas prices. There are a number of estimates and assumptions that affect the process of evaluating reserves. Proved reserves are the estimated quantities of crude oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a high degree of certainty (at least 90 percent) those quantities will be exceeded. Proved plus probable reserves are the estimated quantities of crude oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a 50 percent certainty those quantities will or will not be exceeded. Obsidian Energy reports production and reserve quantities in accordance with Canadian practices and specifically in accordance with “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”). The estimate of proved plus probable reserves is an essential part of the depletion calculation, the impairment test and hence the recorded amount of oil and gas assets. Contingent Resources are defined in the COGE Handbook as those quantities of petroleum estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which do not currently qualify as Reserves or commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, operational, political and regulatory matters or a lack of markets. The estimate of contingent resources may be included as part of the recoverable amount in the impairment test. Obsidian Energy cautions users of this information that the process of estimating crude oil and natural gas reserves is subject to a level of uncertainty. The reserves are based on current and forecast economic and operating conditions; therefore, changes can be made to future assessments as a result of a number of factors, which can include commodity prices, new technology, changing economic conditions, future reservoir performance and forecast development activity. ii) Recoverability of asset carrying values Obsidian Energy assesses its property, plant and equipment (“PP&E”) for impairment by comparing the carrying amount to the recoverable amount of the underlying assets. The determination of the recoverable amount involves estimating the higher of an asset’s fair value less costs to sell or its value-in-use, iii) Decommissioning liability Obsidian Energy recognizes a provision for future abandonment activities in the consolidated financial statements at the net present value of the estimated future expenditures required to settle the estimated obligation at the balance sheet date. The measurement of the decommissioning liability involves the use of estimates and assumptions including the discount rate, the amount and expected timing of future abandonment costs and the inflation rate related thereto. The estimates were made by management and external consultants considering current costs, technology and enacted legislation. iv) Office lease liability Obsidian Energy recognizes a provision for certain onerous office lease commitments in the consolidated financial statements at the net present value of future lease payments the Company is obligated to make under non-cancellable sub-lease v) Fair value calculation on share-based payments The fair value of share-based payments is calculated using a Black-Scholes model. There are a number of estimates used in the calculation such as the expected future forfeiture rate, the expected period the share-based compensation is outstanding and the future price volatility of the underlying security all of which can vary from expectations. The factors applied in the calculation are management’s estimates based on historical information and future forecasts. vi) Fair value of risk management contracts Obsidian Energy records risk management contracts at fair value with changes in fair value recognized in income. The fair values are determined using external counterparty information which is compared to observable market data. vii) Taxation The calculation of deferred income taxes is based on a number of assumptions including estimating the future periods in which temporary differences and other tax credits will reverse and the general assumption that substantively enacted future tax rates at the balance sheet date will be in effect when differences reverse. viii) Litigation Obsidian Energy records provisions related to legal matters if it is probable that the Company will not be successful in defending the claim and if an amount can be reasonably estimated. Determining the probability of a claim being defended is subject to considerable judgment. Additionally, the potential claim is generally a wide range of figures and a single estimate must be made when recording a provision. Contingencies will only be resolved or unfounded when one or more future events occur. The assessment of contingencies involves significant judgment and estimates of the potential outcome of future events. b) Business combinations Obsidian Energy uses the acquisition method to account for business combinations. The net identifiable assets and liabilities acquired in transactions are generally measured at their fair value on the acquisition date. The acquisition date is the closing date of the business combination. Acquisition costs incurred by Obsidian Energy to complete a business combination are expensed in the period incurred except for costs related to the issue of any debt or equity securities, which are recognized based on the nature of the related financing instrument. Revisions may be made to the initial recognized amounts determined during the measurement period, which shall not exceed one year after the close date of the acquisition. c) Revenue Obsidian Energy generally recognizes oil and natural gas revenue when title passes from Obsidian Energy to the purchaser or, in the case of services, as contracted services are performed. Revenue is measured at the fair value of the consideration received or receivable. Revenue from the sale of crude oil, natural gas and natural gas liquids (prior to deduction of transportation costs) is recognized when all the following conditions have been satisfied: • The significant risks and rewards of ownership of the goods have been transferred to the buyer; • There is no continuing managerial involvement to the degree usually associated with ownership or effective control over the goods sold; • The amount of revenue can be reliably measured; • It is probable that the economic benefits associated with the transaction will flow to Obsidian Energy; and • The costs incurred or to be incurred in respect of the transaction can be reliably measured. d) Joint arrangements The consolidated financial statements include Obsidian Energy’s proportionate interest of jointly controlled assets and liabilities and its proportionate interest of the revenue, royalties and operating expenses. A significant portion of Obsidian Energy’s exploration and development activities are conducted jointly with others and involve joint operations. Under such arrangements, Obsidian Energy has the exclusive rights to its proportionate interest in the assets and the economic benefits generated from its share of the assets. Income from the sale or use of Obsidian Energy’s interest in joint operations and its share of expenses is recognized when it is probable that the economic benefits associated with the transactions will flow to/from Obsidian Energy and the amounts can be reliably measured. The Peace River Oil Partnership is a joint operation and Obsidian Energy records its 55 percent interest of revenues, expenses, assets and liabilities. e) Transportation expense Transportation costs are paid by Obsidian Energy for the shipping of natural gas, crude oil and natural gas liquids from the wellhead to the point of title transfer to buyers. These costs are recognized as services are received. f) Foreign currency translation Obsidian Energy and each of its subsidiaries use the Canadian dollar as their functional currency. Monetary items, such as accounts receivable and long-term debt, are translated to Canadian dollars at the rate of exchange in effect at the balance sheet date. Non-monetary g) PP&E i) Measurement and recognition Oil & Gas properties are included in PP&E at cost, less accumulated depletion and depreciation and any impairment losses. The cost of PP&E includes costs incurred initially to acquire or construct the item and betterment costs. Capital expenditures are recognized as PP&E when it is probable that future economic benefits associated with the investment will flow to Obsidian Energy and the cost can be reliably measured. PP&E includes capital expenditures incurred in the development phases, acquisition and disposition of PP&E and additions to the decommissioning liability. ii) Depletion and Depreciation Except for components with a useful life shorter than the reserve life of the associated property, resource properties are depleted using the unit-of-production Components of PP&E that are not depleted using the unit-of-production iii) Derecognition The carrying amount of an item of PP&E is derecognized when no future economic benefits are expected from its use or upon sale to a third party. The gain or loss arising from derecognition is included in income and is measured as the difference between the net proceeds, if any, and the carrying amount of the asset. iv) Major maintenance and repairs Ongoing costs to maintain properties are generally expensed as incurred. These costs include the cost of labour, consumables and small parts. The costs of material replacement parts, turnarounds and major inspections are capitalized provided it is probable that future economic benefits in excess of cost will be realized and such benefits are expected to extend beyond the current operating period. The carrying amount of a replaced part is derecognized in accordance with Obsidian Energy’s derecognition policies. v) Impairment of oil and natural gas properties Obsidian Energy reviews oil and gas properties for circumstances that indicate its assets may be impaired at the end of each reporting period. These indicators can be internal (i.e. reserve changes) or external (i.e. market conditions) in nature. If an indication of impairment exists, Obsidian Energy completes an impairment test, which compares the estimated recoverable amount to the carrying value. The estimated recoverable amount is defined under IAS 36 (“Impairment of Assets”) as the higher of an asset’s or CGU’s fair value less costs to sell and its value-in-use. Where the recoverable amount is less than the carrying amount, the CGU is considered to be impaired. Impairment losses identified for a CGU are allocated on a pro rata basis to the asset categories within the CGU. The impairment loss is recognized as an expense in income. Value-in-use pre-tax Impairment losses related to PP&E can be reversed in future periods if the estimated recoverable amount of the asset exceeds the carrying value. The impairment recovery is limited to a maximum of the estimated depleted historical cost if the impairment had not been recognized. The reversal of the impairment loss is recognized in depletion, depreciation and impairment. vi) Other Property, Plant and Equipment Obsidian Energy’s corporate assets include computer hardware and software, office furniture, buildings and leasehold improvements and are depreciated on a straight-line basis over their useful lives. Corporate assets are tested for impairment separately from oil and gas assets. h) Share-based payments The fair value of units granted under the Restricted and Performance Share Unit Plan (“RPSU”) following the equity method are recognized as compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the units based on a graded vesting schedule. Obsidian Energy measures the fair value of units granted under this plan at the grant date using the share price from the Toronto Stock Exchange (“TSX”). The fair value is based on market prices and considers the terms and conditions of the units granted. The fair value of options granted under the Stock Option Plan (the “Option Plan”) are recognized as compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the options based on a graded vesting schedule. Obsidian Energy measures the fair value of options granted under these plans at the grant date using the Black-Scholes option-pricing model. The fair value is based on market prices and considers the terms and conditions of the share options granted. The fair value of awards granted under the Deferred Share Unit Plan (“DSU”), Performance Share Unit Plan (“PSU”) and the RPSU Plan following the liability method are based on a fair value calculation on each reporting date using the awards outstanding and Obsidian Energy’s share price from the TSX on each balance sheet date. The fair value of the awards is expensed over the vesting period based on a graded vesting schedule. Subsequent increases and decreases in the underlying share price result in increases and decreases, respectively, to the accrued obligation until the related instruments are settled. i) Provisions i) General Provisions are recognized based on an estimate of expenditures required to settle present obligations at the end of the reporting period. The provision is risk adjusted to take into account any uncertainties. When the effect of the time value of money is material, the amount of a provision is calculated as the present value of the future expenditures required to settle the obligations. The discount rate reflects the current assessment of the time value of money and risks specific to the liability when those risks have not already been reflected as an adjustment to future cash flows. ii) Decommissioning liability The decommissioning liability is the present value of Obsidian Energy’s future costs of obligations for property, facility and pipeline abandonment and site restoration. The liability is recognized on the balance sheet with a corresponding increase to the carrying amount of the related asset. The recorded liability increases over time to its future amount through accretion charges to income. Revisions to the estimated amount or timing of the obligations are reflected prospectively as increases or decreases to the recorded liability and the related asset. Actual decommissioning expenditures, up to the recorded liability at the time, are charged to the liability as the costs are incurred. Amounts capitalized to the related assets are amortized to income consistent with the depletion or depreciation of the underlying asset. iii) Office lease liability The office lease liability is the net present value of future lease payments Obsidian Energy is obligated to make under non-cancellable sub-lease sub-lease j) Leases A lease is classified as an operating lease if it does not transfer substantially all of the risks and rewards incidental to ownership of the related asset to the lessee. Operating lease payments are expensed on a straight-line basis over the life of the lease. k) Share capital Common shares are classified as equity. Share issue costs are recorded in shareholder’s equity, net of applicable taxes. Dividends are paid at the discretion of the Board of Directors and are deducted from retained earnings. If issued, preferred shares would be classified as equity and could be issued in one or more series. l) Earnings per share Earnings per share is calculated by dividing net income or loss attributable to the shareholders by the weighted average number of common shares outstanding during the period. Obsidian Energy computes the dilutive impact of equity instruments other than common shares assuming the proceeds received from the exercise of in-the-money m) Taxation Income taxes are based on taxable income in a taxation year. Taxable income normally differs from income reported in the consolidated statement of income as it excludes items of income or expense that are taxable or deductible in other years or are not taxable or deductible for income tax purposes. Obsidian Energy uses the liability method of accounting for deferred income taxes. Temporary differences are calculated assuming that the financial assets and liabilities will be settled at their carrying amount. Deferred income taxes are computed on temporary differences using substantively enacted income tax rates expected to apply when deferred income tax assets and liabilities are realized or settled. A deferred income tax asset is recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences can be utilized. Deferred income tax assets are reviewed at each reporting date and are not recognized until such time that it is more likely than not that the related tax benefit will be realized. n) Financial instruments Financial instruments are measured at fair value and recorded on the balance sheet upon initial recognition of an instrument. Subsequent measurement and changes in fair value will depend on initial classification, as follows: • Fair value through profit or loss financial assets and liabilities and derivative instruments classified as held for trading or designated as fair value through profit or loss are measured at fair value and subsequent changes in fair value are recognized in income; • Loans and receivables are non-derivative • Available-for-sale • Held to maturity financial assets and loans and receivables are initially measured at fair value with subsequent measurement at amortized cost using the effective interest method. The effective interest method calculates the amortized cost of a financial asset and allocates interest income or expense over the applicable period. The rate used discounts the estimated future cash flows over either the expected life of the financial asset or liability or a shorter time-frame if it is deemed appropriate; and • Other financial liabilities are initially measured at fair value with subsequent changes to fair value measured at amortized cost. Obsidian Energy’s current classifications are as follows: • Cash and cash equivalents and accounts receivable are designated as loans and receivables; • Accounts payable and accrued liabilities and long-term debt are designated as other financial liabilities; and • Risk management contracts are derivative financial instruments measured at fair value through profit or loss. Obsidian Energy assesses each financial instrument, except those valued at fair value through profit or loss, for impairment at the reporting date and records the gain or loss in income during the period. o) Embedded derivatives An embedded derivative is a component of a contract that affects the terms of another factor, for example, rent costs that fluctuate with oil prices. These “hybrid” contracts are considered to consist of a “host” contract plus an embedded derivative. The embedded derivative is separated from the host contract and accounted for as a derivative if the following conditions are met: • The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; • The embedded item, itself, meets the definition of a derivative; and • The hybrid contract is not measured at fair value or designated as held for trading. p) Classification of debt or equity Obsidian Energy classifies financial liabilities and equity instruments in accordance with the substance of the contractual arrangement and the definitions of a financial liability or an equity instrument. Obsidian Energy’s debt instruments currently have requirements to deliver cash at the end of the term thus are classified as liabilities. q) Future accounting pronouncements The IASB issued IFRS 15 “Revenue from Contracts with Customers” which replaces IAS 18 “Revenue”. IFRS 15 specifies revenue recognition criteria and expanded disclosures for revenue. The new standard is effective for annual periods beginning on or after January 1, 2018. The Company has completed its assessment of the standard and adopted the standard retrospectively on January 1, 2018. The Company has also concluded that the adoption of IFRS 15 will not have a material impact on its financial statements. Obsidian Energy will expand its disclosures in the notes to the financial statements as outlined in IFRS 15. The IASB completed the final sections of IFRS 9 “Financial Instruments” which replaces IAS 39 “Financial Statement: Recognition and Measurement”. IFRS 9 provides guidance on the recognition and measurement, impairment and derecognition on financial instruments. The new standard is effective for annual periods beginning on or after January 1, 2018. The Company has concluded that the adoption of IFRS 9 will not result in any material changes in the measurement and carrying value of the Company’s financial instruments. The IASB issued IFRS 16 “Leases” in January 2016 which replaces IAS 17 “Leases”. IFRS 16 outlines several new requirements in regards to the recognition, measurement and disclosure of leases. A key principle within the standard includes a single lessee accounting model which requires lessees to recognise assets and liabilities for all leases which have a term more than 12 months. The accounting for lessors, which classify leases as either operating or finance, remains substantially unchanged from the previous standard. The new standard is effective for annual reporting periods beginning on or after January 1, 2019. Obsidian Energy is currently assessing the impact of the standard. |
Working capital
Working capital | 12 Months Ended |
Dec. 31, 2017 | |
Working capital | 4. Working capital Accounts receivable Obsidian Energy continuously monitors credit risk and maintains credit policies to ensure collection risk is limited. Receivables are primarily with customers in the oil and gas industry and are subject to normal industry credit risk. Receivables over 90 days are classified as past due and are assessed for collectability. If an amount is deemed to be uncollectible, it is expensed through income. As at December 31, based on Obsidian Energy’s credit assessments, provisions have been made for amounts deemed uncollectible. As at December 31, the following accounts receivable amounts were outstanding. Current 30-90 days 90+ days Total (1) 2017 $ 94 $ 3 $ 9 $ 106 2016 $ 90 $ 23 $ 9 $ 122 (1) In 2017, $1 million of accounts receivable is related to assets classified as held for sale (2016 - $9 million). |
Deferred funding asset
Deferred funding asset | 12 Months Ended |
Dec. 31, 2017 | |
Deferred funding asset | 5. Deferred funding asset Deferred funding amounts relate to Obsidian Energy’s share of capital and operating expenses to be funded by the Company’s partner in the Peace River Oil Partnership. Amounts expected to be settled within the next 12 months are classified as current. The Company fully utilized the deferred funding asset in the fourth quarter of 2017 and expects payment from its partner during the first quarter of 2018. As at December 31 2017 2016 Current portion $ 18 $ 77 Long-term portion — 16 Total $ 18 $ 93 |
Assets and liabilities held for
Assets and liabilities held for sale | 12 Months Ended |
Dec. 31, 2017 | |
Assets and liabilities held for sale | 6. Assets and liabilities held for sale Assets and liabilities classified as held for sale consisted of the following: As at December 31 2017 2016 Assets held for sale Working capital $ 1 $ 10 Property, plant and equipment 34 104 $ 35 $ 114 Liabilities related to assets held for sale Working capital $ 1 $ 6 Decommissioning liability 23 75 $ 24 $ 81 During the fourth quarter of 2017, as a result of entering into a definitive sale agreement, the Company classified certain non-core At December 31, 2017, these assets were recorded at the lower of fair value less costs to sell and their carrying amount, resulting in a PP&E impairment loss of $12 million (2016 - $65 million). The impairment expense has been recorded as additional depletion, depreciation, impairment and accretion on the Consolidated Statements of Loss. In 2016, the Company entered into definitive sales agreements during the fourth quarter and classified all of its assets located in British Columbia and certain assets located in the Swan Hills area of Alberta as assets held for sale at December 31, 2016. In January 2017, two of these transactions closed for total proceeds of $22 million, subject to closing adjustments. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | 7. Property, plant and equipment Cost Oil and gas Facilities Corporate Total Balance at January 1, 2016 $ 10,731 $ 5,310 $ 169 $ 16,210 Capital expenditures 37 43 2 82 Joint venture, carried capital 40 — — 40 Acquisitions 2 1 — 3 Dispositions (3,996 ) (999 ) — (4,995 ) Transfers from E&E 1 — — 1 Transfers to asset held for sale (430 ) (107 ) — (537 ) Net decommissioning dispositions (1) (156 ) — — (156 ) Balance at December 31, 2016 $ 6,229 $ 4,248 $ 171 $ 10,648 Capital expenditures 56 83 2 141 Joint venture, carried capital 50 — — 50 Acquisitions 5 1 — 6 Dispositions (61 ) (15 ) — (76 ) Transfers to asset held for sale (100 ) (25 ) — (125 ) Net decommissioning dispositions (1) (7 ) — — (7 ) SR&ED credits (note 11) (1 ) — — (1 ) Balance at December 31, 2017 $ 6,171 $ 4,292 $ 173 $ 10,636 (1) Includes additions from drilling activity, facility capital spending and disposals from net property dispositions. Accumulated depletion, depreciation and impairment Oil and gas Facilities Corporate Total Balance at January 1, 2016 $ 8,545 $ 2,426 $ 94 $ 11,065 Depletion and depreciation 263 91 14 368 Impairments 230 58 — 288 Transfers to asset held for sale (346 ) (87 ) — (433 ) Dispositions (2,898 ) (724 ) — (3,622 ) Balance at December 31, 2016 $ 5,794 $ 1,764 $ 108 $ 7,666 Depletion and depreciation 201 74 14 289 Impairments 12 3 — 15 Transfers to asset held for sale (73 ) (18 ) — (91 ) Dispositions (50 ) (12 ) — (62 ) Balance at December 31, 2017 $ 5,884 $ 1,811 $ 122 $ 7,817 Net book value As at December 31 2017 2016 Total $ 2,819 $ 2,982 In 2017, the Company continued to focus its asset base and completed a number of dispositions which led to gains on dispositions of $74 million (2016 - $33 million), which included an insignificant amount of transaction costs (2016 - $9 million). At December 31, 2017, due to commodity price volatility, specifically heavy oil differentials, and recent disposition activity within the Company’s non-core The recoverable amount used in the Peace River impairment test was based on a value in use method while the Legacy impairment test was based on fair value less cost to sell method. Both recoverable amounts were calculated using proved plus probable reserves and incremental development drilling locations, if applicable. The incremental development drilling location value was based on management’s internal estimates considering well performance and recent well and type curve assumptions. The following table outlines benchmark prices and assumptions the Company used in the impairment test as at December 31, 2017: WTI AECO Exchange rate 2018 $ 55.00 $ 2.85 $ 0.79 2019 65.00 3.11 0.82 2020 70.00 3.65 0.85 2021 73.00 3.80 0.85 2022 74.46 3.95 0.85 2023 – 2028 $ 79.85 $ 4.31 $ 0.85 Thereafter (inflation percentage) 2.0 % 2.0 % — Impairments have been recorded as Depletion, depreciation, impairment and accretion on the Consolidated Statements of Loss. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-term debt | 8. Long-term debt As at December 31 2017 2016 Bankers’ acceptances and prime rate loans $ 253 $ 329 U.S. Senior secured notes – 2007 Notes 5.80%, US$5 million, matured May 31, 2017 — 6 5.90%, US$5 million, maturing May 31, 2019 5 6 Senior secured notes – 2008 Notes 6.30%, US$24 million, maturing May 29, 2018 31 33 6.40%, US$4 million, maturing May 29, 2020 5 5 Senior secured notes – 2009 Notes 9.32%, US$8 million, maturing May 5, 2019 10 11 Senior secured notes – 2010 Q1 Notes 5.29%, US$10 million, matured March 16, 2017 — 13 5.85%, US$10 million, maturing March 16, 2020 12 13 Senior secured notes – 2010 Q4 Notes 4.17%, US$6 million, matured December 2, 2017 — 8 4.88%, US$13 million, maturing December 2, 2020 17 17 4.98%, US$6 million, maturing December 2, 2022 7 8 5.23%, US$2 million, maturing December 2, 2025 3 3 Senior secured notes – 2011 Q4 Notes 4.79%, US$12 million, maturing November 30, 2021 16 17 Total long-term debt $ 359 $ 469 Current portion $ 31 $ 27 Long-term portion $ 328 $ 442 In 2017, the Company repaid senior notes in the amount of US$26 million as part of normal course maturities (2016 – $185 million normal course maturities and $1,075 million in prepayments). There were no senior note issuances in either 2017 or 2016. Additional information on Obsidian Energy’s senior secured notes was as follows: As at December 31 2017 2016 Weighted average remaining life (years) 2.3 2.7 Weighted average interest rate 6.0 % 6.3 % The estimated fair values of the principal and interest obligations of the outstanding senior secured notes were as follows: As at December 31 2017 2016 2007 Notes $ 6 $ 12 2008 Notes 36 38 2009 Notes 10 11 2010 Q1 Notes 12 25 2010 Q4 Notes 25 33 2011 Notes 14 15 Total $ 103 $ 134 During 2017, the Company transitioned to a reserve-based syndicated credit facility. The underlying borrowing base of the syndicated credit facility is $550 million, less the amount of outstanding pari passu senior notes and outstanding GBP cross currency swap, resulting in $410 million currently available under the syndicated credit facility. The initial revolving period of the syndicated credit facility ends on May 17, 2018, with an additional one-year Drawings on the Company’s bank facility are subject to fluctuations in short-term money market rates as they are generally held as short-term borrowings. As at December 31, 2017, 70 percent (2016 – 70 percent) of Obsidian Energy’s long-term debt instruments were exposed to changes in short-term interest rates. At December 31, 2017, letters of credit totalling $14 million were outstanding (2016 – $16 million) that reduce the amount otherwise available to be drawn on the syndicated credit facility. Obsidian Energy records unrealized foreign exchange gains or losses on its senior notes as amounts are translated into Canadian dollars at the rate of exchange in effect at the balance sheet date. The split between realized and unrealized foreign exchange is as follows: Year ended December 31 2017 2016 Realized foreign exchange loss on debt maturities $ (6 ) $ (37 ) Realized foreign exchange loss on debt pre-payments — (191 ) Unrealized foreign exchange gain 11 312 Foreign exchange gain $ 5 $ 84 The Company is subject to certain financial covenants under its senior notes and syndicated credit facility. These types of financial covenants are typical for senior lending arrangements and include senior debt and total debt to EBITDA and senior debt and total debt to capitalization, as more specifically defined in the applicable lending agreements. At December 31, 2017, the Company was in compliance with all of its financial covenants under such lending agreements. In 2015, as part of entering into amending agreements with its lenders and noteholders, the Company agreed to grant floating charge security over all of its property in favour of the lenders and the noteholders on a pari passu basis, which security will be fully released on such date when both (a) no default or event of default is continuing under the Company’s syndicated bank facility or senior notes and (b) the Company has achieved both (i) a Senior Debt to EBITDA ratio of 3:1 or less for four consecutive quarters, and (ii) an investment grade rating on its senior secured debt. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | 9. Provisions Year ended December 31 2017 2016 Decommissioning liability $ 147 $ 182 Office lease provision 101 117 Total $ 248 $ 299 Current portion $ 27 $ 35 Long-term portion 221 264 Total $ 248 $ 299 Decommissioning liability The decommissioning liability is based upon the present value of Obsidian Energy’s net share of estimated future costs of obligations to abandon and reclaim all wells, facilities and pipelines. These estimates were made by management using information from internal analysis and external consultants assuming current costs, technology and enacted legislation. The decommissioning liability was determined by applying an inflation factor of 2.0 percent (2016 - 2.0 percent) and the inflated amount was discounted using a credit-adjusted rate of 6.5 percent (2016 – 6.5 percent) over the expected useful life of the underlying assets, currently extending over 50 years into the future. The total decommissioning liability on an undiscounted, uninflated basis was $0.9 billion (2016 - $1.1 billion). Changes to the decommissioning liability were as follows: Year ended December 31 2017 2016 Balance, beginning of year $ 182 $ 397 Net liabilities disposed (1) (4 ) (193 ) Acquisitions — 5 Increase (decrease) due to changes in estimates (2) (3 ) 37 Liabilities settled (16 ) (11 ) Transfers to liabilities for assets held for sale (23 ) (75 ) Accretion charges 11 22 Balance, end of year $ 147 $ 182 Current portion $ 10 $ 20 Long-term portion $ 137 $ 162 (1) Includes additions from drilling activity, facility capital spending and disposals from net property dispositions. (2) In 2017, there were no changes in the discount rate (2016 – $75 million increase). Office lease provision The office lease provision represents the net present value of the future lease payments that the Company is obligated to make under non-cancellable sub-lease Changes to the office lease provision were as follows: Year ended December 31 2017 2016 Balance, beginning of year $ 117 $ — Net additions (7 ) 107 Increase due to changes in estimates (1 ) 12 Cash settlements (16 ) (4 ) Accretion charges 8 2 Balance, end of year $ 101 $ 117 Current portion $ 17 $ 15 Long-term portion $ 84 $ 102 During 2016, the Company closed several significant asset dispositions which reduced the size of its operations and recognized a provision related to certain office lease commitments that are considered onerous contracts. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2017 | |
Risk management | 10. Risk management Financial instruments consist of accounts receivable, fair values of derivative financial instruments, accounts payable and accrued liabilities and long-term debt. At December 31, 2017, except for the senior notes described in Note 8 with a carrying value of $106 million (2016 – $140 million) and a fair value of $103 million (2016—$134 million), the fair values of these financial instruments approximate their carrying amounts due to the short-term maturity of the instruments, the mark to market values recorded for the financial instruments and the market rate of interest applicable to the syndicated credit facility. The fair values of all outstanding financial, commodity, interest rate and foreign exchange contracts are reflected on the balance sheet with the changes during the period recorded in income as unrealized gains or losses. At December 31, 2017 and 2016, the only asset or liability measured at fair value on a recurring basis was the risk management asset and liability, which was valued based on “Level 2 inputs” being quoted prices in markets that are not active or based on prices that are observable for the asset or liability. The following table reconciles the changes in the fair value of financial instruments outstanding: Year ended December 31 Risk management asset (liability) 2017 2016 Balance, beginning of year $ (43 ) $ 104 Unrealized gain (loss) on financial instruments: Commodity collars, swaps and assignments (7 ) (74 ) Electricity swaps — 4 Foreign exchange forwards (6 ) (43 ) Cross currency swaps 6 (34 ) Total fair value, end of year $ (50 ) $ (43 ) As at December 31 Total fair value consists of the following: 2017 2016 Current asset portion $ 11 $ 8 Current liability portion (55 ) (26 ) Non-current — — Non-current (6 ) (25 ) Total fair value $ (50 ) $ (43 ) Obsidian Energy had the following financial instruments outstanding as at December 31, 2017. Fair values are determined using external counterparty information, which is compared to observable market data. The Company limits its credit risk by executing counterparty risk procedures which include transacting only with institutions within its syndicated credit facility or companies with high credit ratings and by obtaining financial security in certain circumstances. Notional Remaining term Pricing Fair value (millions) Natural gas AECO Swaps 1,900 mcf/d Jan/18 – Mar/18 $3.19/mcf $ — AECO Swaps 1,900 mcf/d Jan/18 – Jun/18 $2.91/mcf — AECO Swaps 1,900 mcf/d Jan/18 – Sep/18 $2.69/mcf 1 AECO Swaps 3,800 mcf/d Jan/18 – Mar/18 $3.33/mcf — AECO Swaps 3,800 mcf/d Jan/18 – Jun/18 $2.84/mcf 1 AECO Swaps 15,200 mcf/d Jan/18 – Dec/18 $2.67/mcf 6 Ventura 7,500 mcf/d Jan/18 – Dec/18 US$2.79/mcf — Crude Oil WTI Swaps 1,000 bbl/d Jan/18 – Jun/18 $71.00/bbl (1) WTI Swaps 2,000 bbl/d Jul/18 – Dec/18 US$50.09/bbl (4) WTI Swaps 6,000 bbl/d Jan/18 – Mar/18 US$51.07/bbl (6) WTI Swaps 4,000 bbl/d Apr/18 – Jun/18 US$50.95/bbl (4) WTI Swaps 2,000 bbl/d Jul/18 – Sep/18 US$51.90/bbl (2) WTI Swaps 2,000 bbl/d Oct/18 – Dec/18 US$50.81/bbl (2) WTI Swaps 4,000 bbl/d Jan/18 – Dec/18 $71.04/bbl (5) WTI Swaps 1,000 bbl/d Jan/18 – Dec/18 US$49.35/bbl (4) WTI Swaps 2,000 bbl/d Apr/18 – Dec/18 US$48.43/bbl (7) WTI Swaps 1,000 bbl/d Jul/18 – Mar/19 US$50.20/bbl (3) WTI Swaps 2,000 bbl/d Jan/19 – Mar/19 $66.50/bbl (1) WTI Swaps 2,000 bbl/d Jan/19 – Mar/19 US$49.93/bbl (1) WTI Swaps 4,000 bbl/d Jan/19 – Jun/19 $68.58/bbl (2) WTI Swaps 1,000 bbl/d Apr/19 – Jun/19 US$55.35/bbl — Foreign exchange forward contracts on revenue FX Collar US$24 2018 1.210 to 1.272 USD/CAD — FX Swap US$24 2018 1.2768 1 FX Swap US$24 2018 1.2500 — FX Swap US$24 2018 1.2568 — FX Swap US$24 2018 1.2803 1 FX Swap US$12 2018 1.2840 — Cross currency swaps 10-year £57 2018 2.0075 CAD/GBP, 6.95% (18) 18-month (£43) 2018 1.7049 CAD/GBP, 6.95% — 10-year £5 2019 1.8051 CAD/GBP, 9.15% — 10-year €10 2019 1.5870 CAD/EUR, 9.22% — Total $ (50) Based on December 31, 2017 pricing, a $1.00 change in the price per barrel of liquids of WTI would have changed pre-tax pre-tax Subsequent to December 31, 2017, the Company entered into the following crude oil swaps and foreign exchange contracts on long-term debt: Reference Price Term Price Notional WTI Apr/19 – Jun/19 US$57.70/bbl 1,000 bbl/d WTI Jul/19 – Sep/19 US$57.00/bbl 1,000 bbl/d USD/CAD Jan/19 – May/19 1.2259 US$5 USD/CAD Jan/19 – May/19 1.2319 US$5 USD/CAD Jan/19 – May/19 1.2400 US$5 Additionally, subsequent to December 31, 2017, the Company unwound its outstanding £5 million and €10 million cross currency swaps for nil proceeds. The components of risk management on the Consolidated Statements of Loss are as follows: Year ended December 31 2017 2016 Realized Settlement of commodity contracts/assignment $ 23 $ 99 Monetization of commodity contracts — 2 Settlement of foreign exchange contracts 8 3 Monetization of foreign exchange contracts — 32 Total realized risk management gain 31 136 Unrealized Commodity contracts (7 ) (72 ) Electricity swaps — 4 Crude oil assignment — (2 ) Foreign exchange contracts (6 ) (43 ) Cross-currency swaps 6 (34 ) Total unrealized risk management loss (7 ) (147 ) Risk management gain (loss) $ 24 $ (11 ) In 2017, the Company had no outstanding electricity contracts (2016 - $7 million loss). Market Risks Obsidian Energy is exposed to normal market risks inherent in the oil and natural gas business, including, but not limited to, commodity price risk, foreign currency rate risk, credit risk, interest rate risk and liquidity risk. The Company seeks to mitigate these risks through various business processes and management controls and from time to time by using financial instruments. Commodity Price Risk Commodity price fluctuations are among the Company’s most significant exposures. Crude oil prices are influenced by worldwide factors, including, but not limited to, OPEC actions, world supply and demand fundamentals and geopolitical events. Natural gas prices are influenced by, including, but not limited to, the price of alternative fuel sources such as oil or coal and by North American natural gas supply and demand fundamentals including the levels of industrial activity, weather, storage levels and liquefied natural gas activity. In accordance with policies approved by Obsidian Energy’s Board of Directors, the Company may, from time to time, manage these risks through the use of swaps or other financial instruments up to a maximum of 50 percent of forecast sales volumes, net of royalties, for the balance of any current year plus one additional year forward and up to a maximum of 25 percent, net of royalties, for one additional year thereafter. Risk management limits included in Obsidian Energy’s policies may be exceeded with specific approval from the Board of Directors. In November 2017, the Board approved the Company to hedge up to a maximum of 75 percent of forecast sales volumes on natural gas and up to a maximum of 67 percent of forecast sales volumes on crude, both net of royalties, for the 2018 calendar year. Foreign Currency Rate Risk Prices received for crude oil are referenced to US dollars, thus Obsidian Energy’s realized oil prices are impacted by Canadian dollar to US dollar exchange rates. A portion of the Company’s debt capital is denominated in US dollars, thus the principal and interest payments in Canadian dollars are also impacted by exchange rates. When considered appropriate, the Company may use financial instruments to fix or collar future exchange rates to fix the Canadian dollar equivalent of crude oil revenues or to fix US denominated long-term debt principal repayments. In 2017, US$25 million of foreign exchange forward contracts on senior notes matured. Additionally, in 2016 the Company monetized a total of US$115 million of foreign exchange forward contracts on senior notes. Credit Risk Credit risk is the risk of loss if purchasers or counterparties do not fulfill their contractual obligations. The Company’s accounts receivable are principally with customers in the oil and natural gas industry and are generally subject to normal industry credit risk, which includes the ability to recover unpaid receivables by retaining the partner’s share of production when Obsidian Energy is the operator. For oil and natural gas sales and financial derivatives, a counterparty risk procedure is followed whereby each counterparty is reviewed on a regular basis for the purpose of assigning a credit limit and may be requested to provide security if determined to be prudent. For financial derivatives, the Company normally transacts with counterparties who are members of its banking syndicate or other counterparties that have investment grade bond ratings. Credit events related to all counterparties are monitored and credit exposures are reassessed on a regular basis. As necessary, provisions for potential credit related losses are recognized. As at December 31, 2017, the maximum exposure to credit risk was $117 million (2016 – $130 million) which was comprised of $106 million (2016 - $122 million) being the carrying value of the accounts receivable and $11 million (2016 – $8 million) related to the fair value of the derivative financial assets. Interest Rate Risk A portion of the Company’s debt capital can be held in floating-rate bank facilities, which results in exposure to fluctuations in short-term interest rates, which remain at lower levels than longer-term rates. From time to time, Obsidian Energy may increase the certainty of its future interest rates by entering fixed interest rate debt instruments or by using financial instruments to swap floating interest rates for fixed rates or to collar interest rates. As at December 31, 2017, 70 percent of the Company’s long-term debt instruments were exposed to changes in short-term interest rates (2016 – 70 percent). As at December 31, 2017, a total of $106 million (2016 – $140 million) of fixed interest rate debt instruments was outstanding with an average remaining term of 2.3 years (2016 – 2.7 years) and an average interest rate of 6.0 percent (2016 – 6.3 percent). Liquidity Risk Liquidity risk is the risk that the Company will be unable to meet its financial liabilities as they come due. Management utilizes short and long-term financial and capital forecasting programs to ensure credit facilities are sufficient relative to forecast debt levels and capital program levels are appropriate, and that financial covenants will be met. Management also regularly reviews capital markets to identify opportunities to optimize the debt capital structure on a cost-effective basis. In the short term, liquidity is managed through daily cash management activities, short-term financing strategies and the use of swaps and other financial instruments to increase the predictability of cash flow from operating activities. The following table outlines estimated future obligations for non-derivative Senior secured Accounts payable & (1) Share-based Total 2018 $ 31 $ 148 $ 2 $ 181 2019 16 — 1 17 2020 34 — — 34 2021 15 — — 15 2022 7 — — 7 Thereafter $ 3 $ — $ — $ 3 (1) Includes $1 million of accounts payable and accrued liabilities related to assets classified as held for sale. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes | 11. Income taxes The provision for income taxes is as follows: Year ended December 31 2017 2016 Deferred tax recovery $ (13 ) $ (252 ) The provision for income taxes reflects an effective tax rate that differs from the combined federal and provincial statutory tax rate as follows: Year ended December 31 2017 2016 Loss before taxes $ (97 ) $ (948 ) Combined statutory tax rate (1) 27.0 % 27.0 % Computed income tax recovery $ (26 ) $ (256 ) Increase (decrease) resulting from: Share-based compensation 2 1 Non-taxable (2 ) (11 ) Unrecognized deferred tax asset 5 — Adjustments related to prior years 5 14 Other 3 — Deferred tax recovery $ (13 ) $ (252 ) (1) The tax rate represents the combined federal and provincial statutory tax rates for the Company and its subsidiaries for the years ended December 31, 2017 and December 31, 2016. The net deferred income tax liability is comprised of the following: Balance Provision Recognized in Balance December 31, Deferred tax liabilities (assets) PP&E $ 668 $ (53 ) $ (1 ) $ 614 Risk management (40 ) 5 — (35 ) Decommissioning liability (69 ) 23 — (46 ) Share-based compensation (4 ) 3 — (1 ) Non-capital (541 ) 9 — (532 ) Net deferred tax liability $ 14 $ (13 ) $ (1 ) $ — Balance Provision Recognized in Balance December 31, Deferred tax liabilities (assets) PP&E $ 1,129 $ (461 ) $ — $ 668 Risk management 12 (52 ) — (40 ) Decommissioning liability (107 ) 38 — (69 ) Share-based compensation (2 ) (2 ) — (4 ) Non-capital (766 ) 225 — (541 ) Net deferred tax liability $ 266 $ (252 ) $ — $ 14 As at December 31, 2017, Obsidian Energy had approximately $2.4 billion (2016 – $2.4 billion) in total tax pools, including non-capital non-capital non-capital At December 31, 2017, Obsidian Energy had realized and unrealized net capital losses of $586 million (2016 - $591 million). A deferred tax asset has not been recognized in respect of these losses as they may only be applied against future capital gains. The Company has income tax filings that are subject to audit by taxation authorities, which may impact its deferred income tax position or amount. The Company does not anticipate adjustments arising from these audits and believes it has adequately provided for income taxes based on available information, however, adjustments that arise could be material. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' equity | 12. Shareholders’ equity a) Authorized i) An unlimited number of Common Shares. ii) 90,000,000 preferred shares issuable in one or more series. If issued, preferred shares of each series would rank on parity with the preferred shares of other series with respect to accumulated dividends and return on capital. Preferred shares would have priority over the Common shares with respect to the payment of dividends or the distribution of assets. b) Issued Shareholders’ capital Common Amount Balance, January 1, 2016 502,163,163 $ 8,994 Issued on exercise of equity compensation plans (1) 600,775 3 Cancellation of dividend reinvestment plan (2) (175 ) — Balance, December 31, 2016 502,763,763 $ 8,997 Issued on exercise of equity compensation plans (1) 1,577,225 4 Elimination of deficit — (6,820 ) Balance, December 31, 2017 504,340,988 $ 2,181 (1) Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. (2) In March 2016, the Company cancelled its dividend reinvestment plan. In June 2017, the Company’s shareholders approved the reduction of the Company’s share capital and the elimination of its deficit as stated at March 31, 2017. Year ended December 31 Other Reserves 2017 2016 Balance, beginning of year $ 97 $ 92 Share-based compensation expense 8 7 Net benefit on options exercised (1) (9 ) (2 ) Balance, end of year $ 96 $ 97 (1) Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. Preferred Shares No Preferred Shares were issued or outstanding. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based compensation | 13. Share-based compensation Restricted and Performance Share Unit plan (“RPSU plan”) Obsidian Energy has an RPSU plan whereby employees receive consideration that fluctuates based on the Company’s share price on the TSX. Since March 2016, consideration can be in the form of cash or shares purchased on the open market therefore all grants subsequent to March 2016 are accounted for based on the equity method. In June 2017, the shareholders approved amendments to the RPSU plan such that shares provided under the plan can either be purchased on the open market or issued from treasury. RPSU plan (number of shares equivalent) Year ended December 31 2017 2016 Outstanding, beginning of year 10,199,595 6,325,954 Granted 4,472,510 11,745,330 Vested (3,935,186 ) (2,353,989 ) Forfeited (2,339,541 ) (5,517,700 ) Outstanding, end of year 8,397,378 10,199,595 Outstanding units – liability method 730,297 2,314,805 Outstanding units – equity method 7,667,081 7,884,790 As at December 31 RPSU obligation: 2017 2016 Current liability (1) $ 1 $ 3 Non-current $ — $ 1 (1) Included within Accounts payable and accrued liabilities. The fair value of the RPSU plan units under the equity method used the following weighted average assumptions: Year ended December 31 2017 2016 Average fair value of units granted (per unit) $ 2.11 $ 1.20 Expected life of units (years) 3.0 3.0 Expected forfeiture rate 7.8 % 18.4 % Stock Option Plan Obsidian Energy has an Option Plan that allows the Company to issue options to acquire common shares to officers, employees and other service providers. In March 2017, the Board of Directors resolved to suspend all future grants of options under the Option Plan. Year ended December 31 2017 2016 Options Number of Options Weighted Exercise Number of Weighted Outstanding, beginning of year 7,612,625 $ 6.01 10,595,728 $ 10.21 Granted — — 3,557,250 1.20 Exercised (1,577,225 ) 1.44 (600,775 ) 1.53 Forfeited (2,372,825 ) 11.22 (5,939,578 ) 11.08 Outstanding, end of year 3,662,575 $ 4.60 7,612,625 $ 6.01 Exercisable, end of year 1,980,876 $ 6.50 2,804,426 $ 11.10 Options Outstanding Options Exercisable Range of Grant Prices Number Weighted Weighted Number Weighted $1.00 - $1.99 2,005,425 $ 1.42 2.8 631,238 $ 1.53 $2.00 - $9.99 1,058,950 7.44 1.4 751,438 7.66 $10.00 - $21.99 598,200 10.30 0.3 598,200 10.30 3,662,575 $ 4.60 1.2 1,980,876 $ 6.50 Deferred Share Unit (“DSU”) plan The DSU plan allows the Company to grant DSUs in lieu of cash fees to non-employee Performance Share Unit (“PSU”) plan The PSU plan allows Obsidian Energy to grant PSUs to employees of the Company. Members of the Board of Directors are not eligible for the PSU Plan. The PSU obligation is classified as a liability due to the cash settlement feature. Since June 2017, issuances of performance share units are made under the RPSU plan and therefore could be paid in shares. Year ended December 31 PSU awards (number of shares equivalent) 2017 2016 Outstanding, beginning of period 1,855,500 1,622,881 Granted 569,000 2,516,000 Vested (638,750 ) (199,843 ) Forfeited (246,750 ) (2,083,538 ) Outstanding, end of period 1,539,000 1,855,500 As at December 31 PSU obligation: 2017 2016 Non-current $ 1 $ 2 Share-based compensation Share-based compensation is based on the fair value of the options and units at the time of grant under the Option Plan and RPSU plan (equity method), which is amortized over the remaining vesting period on a graded vesting schedule. Share-based compensation under the RPSU plan (liability method), DSU and PSU is based on the fair value of the awards outstanding at the reporting date and is amortized based on a graded vesting schedule. Share-based compensation consisted of the following: Year ended December 31 2017 2016 Options $ 1 $ 1 PSU plan 1 1 DSU plan — 1 RPSU plan – equity method 7 6 RPSU plan – liability method (1 ) 3 Share-based compensation $ 8 $ 12 The share price used in the fair value calculation of the RPSU plan (liability method), PSU and DSU obligations at December 31, 2017 was $1.56 (2016 – $2.37). Employee retirement savings plan Obsidian Energy has an employee retirement savings plan (the “savings plan”) for the benefit of all employees. Under the savings plan, employees may elect to contribute up to 10 percent of their salary and Obsidian Energy matches these contributions at a rate of $1.50 for each $1.00 of employee contribution up to and including December 31, 2017, $1.25 for each $1.00 of employee contribution for 2018 and $1.00 for each $1.00 of employee contribution thereafter. Both the employee’s and Obsidian Energy’s contributions are used to acquire Obsidian Energy common shares or are placed in low-risk |
Per share amounts
Per share amounts | 12 Months Ended |
Dec. 31, 2017 | |
Per share amounts | 14. Per share amounts The number of incremental shares included in diluted earnings per share is computed using the average volume-weighted market price of shares for the period. In addition, contracts that could be settled in cash or shares are assumed to be settled in shares if share settlement is more dilutive. Year ended December 31 2017 2016 Net loss – basic and diluted $ (84 ) $ (696 ) The weighted average number of shares used to calculate per share amounts is as follows: Year ended December 31 2017 2016 Basic and Diluted 503,933,024 502,316,003 For 2017, 3.7 million shares (2016 – 7.6 million) that would be issued under the Option Plan were excluded in calculating the weighted average number of diluted shares outstanding as they were considered anti-dilutive. |
Changes in non-cashworking capi
Changes in non-cashworking capital (increase) decrease | 12 Months Ended |
Dec. 31, 2017 | |
Changes in non-cashworking capital (increase) decrease | 15. Changes in non-cash Year ended December 31 2017 2016 Accounts receivable (1) $ 12 $ 32 Other current assets (2) — 23 Deferred funding obligation 25 16 Accounts payable and accrued liabilities (3) (4) (35 ) (191 ) 2 (120 ) Operating activities 5 (97 ) Investing activities (3 ) (23 ) $ 2 $ (120 ) Interest paid $ 23 $ 124 Income taxes recovered $ — $ — (1) $1 million of accounts receivable is related to assets classified as held for sale in 2017 (2016 - $9 million). (2) No other current assets were classified as held for sale in 2017 (2016 - $1 million). (3) $1 million of accounts payable and accrued liabilities is related to assets classified as held for sale in 2017 (2016 - $6 million). (4) Includes share-based compensation plans. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2017 | |
Capital management | 16. Capital management Obsidian Energy manages its capital to provide a flexible structure to support capital programs, production maintenance and other operational strategies. Attaining a strong financial position enables the capture of business opportunities and supports Obsidian Energy’s business strategy of providing strong shareholder returns. Obsidian Energy defines capital as the sum of shareholders’ equity and long-term debt. Shareholders’ equity includes shareholders’ capital, other reserves and retained earnings (deficit). Long-term debt includes bank loans and senior notes. Management continuously reviews Obsidian Energy’s capital structure to ensure the objectives and strategies of Obsidian Energy are being met. The capital structure is reviewed based on a number of key factors including, but not limited to, current market conditions, hedging positions, trailing and forecast debt to capitalization ratios, debt to EBITDA and other economic risk factors. The Company is subject to certain quarterly financial covenants under its secured, syndicated credit facility and the senior secured notes. These financial covenants are typical for senior secured lending arrangements and include senior debt and total debt to EBITDA and senior debt and total debt to capitalization as defined in Obsidian Energy’s lending agreements. As at December 31, 2017, the Company was in compliance with all of its financial covenants under such lending agreements. Year ended December 31 (millions, except ratio amounts) 2017 2016 Components of capital Shareholders’ equity $ 2,166 $ 2,247 Long-term debt $ 359 $ 469 Ratios Senior debt to EBITDA (1) 1.9 2.0 Total debt to EBITDA (2) 1.9 2.0 Senior debt to capitalization (3) 15 % 17 % Total debt to capitalization (4) 15 % 17 % Priority debt to consolidated tangible assets (5) — — EBITDA (6) $ 194 $ 235 Credit facility debt and senior notes $ 359 $ 469 Letters of credit (7) 10 6 Senior debt and total debt 369 475 Total shareholders’ equity 2,166 2,247 Total capitalization $ 2,535 $ 2,722 (1) As at December 31, 2017, less than 3:1 (2) As at December 31, 2017, less than 4:1 (3) Not to exceed 50 percent (4) Not to exceed 55 percent (5) Priority debt not to exceed 15% of consolidated tangible assets. (6) EBITDA is calculated in accordance with Obsidian Energy’s lending agreements wherein unrealized risk management and impairment provisions are excluded. Additionally, under the syndicated credit facility, realized foreign exchange gains or losses related to debt maturities are excluded from the calculation. (7) Letters of credit defined as financial under the lending agreements are included in the calculation. The Company intends to continue to actively identify and evaluate hedging opportunities in order to reduce its exposure to fluctuations in commodity prices and protect its future cash flows and capital programs. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and contingencies | 17. Commitments and contingencies Obsidian Energy is committed to certain payments over the next five calendar years and thereafter as follows: 2018 2019 2020 2021 2022 Thereafter Total Long-term debt (1) $ 31 $ 269 $ 34 $ 15 $ 7 $ 3 $ 359 Transportation 12 10 9 7 5 14 57 Power infrastructure 8 2 — — — — 10 Interest obligations 12 6 2 1 1 — 22 Office lease 34 34 34 34 34 73 243 Decommissioning liability 10 10 10 10 10 97 147 Total $ 107 $ 331 $ 89 $ 67 $ 57 $ 187 $ 838 (1) The 2019 figure includes $253 million related to the syndicated credit facility that is due for renewal in 2019. Historically, the Company has successfully renewed its syndicated credit facility. Obsidian Energy has an aggregate of $106 million in senior notes maturing between 2018 and 2025. Obsidian Energy’s commitments relate to the following: • Transportation commitments relate to costs for future pipeline access. • Power infrastructure commitments pertain to electricity contracts. • Interest obligations are the estimated future interest payments related to Obsidian Energy’s debt instruments. • Office leases pertain to total leased office space. A portion of this office space has been sub-leased • The decommissioning liability represents the inflated, discounted future reclamation and abandonment costs that are expected to be incurred over the life of the properties. During the fourth quarter of 2017, the Company settled the outstanding lawsuit it had with the United States Securities and Exchange Commission (“SEC”) for US$8.5 million, which is included in other expenses in the Consolidated Statement of Loss. The settlement is in relation to the Company’s 2014 restatement of certain financial results while it was known as Penn West Petroleum Ltd. (“Penn West”). Under the terms of the settlement, the Company, without admitting or denying any of the factual allegations in the SEC’s Complaint, agreed to pay a penalty of US$8.5 million. In addition, the Company will be enjoined from future violations of certain provisions of U.S. securities legislation. Further details of the settlement and its consequences can be found in the settlement documents, and in U.S. securities laws. The lawsuit continued against the former Penn West employees named in the SEC Complaint. The Company is involved in various litigation and claims in the normal course of business and records provisions for claims as required. |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related-party transactions | 18. Related-party transactions Operating entities The consolidated financial statements include the results of Obsidian Energy Ltd. and its wholly-owned subsidiaries, notably the Obsidian Energy Partnership. Transactions and balances between Obsidian Energy Ltd. and all of its subsidiaries are eliminated upon consolidation. Compensation of key management personnel In 2017, key management personnel include the President and Chief Executive Officer, Vice-Presidents and the Board of Directors. The Human Resources & Compensation Committee makes recommendations to the Board of Directors who approves the appropriate remuneration levels for management based on performance and current market trends. Compensation levels of the Board of Directors are recommended by the Corporate Governance committee of the Board. The remuneration of the directors and key management personnel of Obsidian Energy during the year is below. Year ended December 31 2017 2016 Salary and employee benefits $ 3 $ 2 Termination benefits 2 2 Share-based payments (1) 3 2 $ 8 $ 6 (1) Includes changes in the fair value of PSUs, DSUs and non-cash |
Supplemental Items
Supplemental Items | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Items | 19. Supplemental Items In the consolidated financial statements, compensation costs are included in both operating and general and administrative expenses. For 2017, employee compensation costs of $14 million (2016 - $36 million) were included in operating expenses and $30 million (2016 - $44 million) were included in general and administrative expenses on a gross basis. |
Supplementary Oil and Gas Infor
Supplementary Oil and Gas Information - (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Oil and Gas Information - (Unaudited) | SUPPLEMENTARY OIL AND GAS INFORMATION - (UNAUDITED) The disclosures contained in this section provide oil and gas information in accordance with the U.S. standard, “Extractive Activities – Oil and Gas”. Obsidian Energy’s financial reporting is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. For the years ended December 31, 2017 and 2016, Obsidian Energy has filed its reserves information under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities 51-101”), There are significant differences to the type of volumes disclosed and the basis from which the volumes are economically determined under the United States Securities and Exchange Commission (“SEC”) requirements and NI 51-101. 12-month 51-101 For the purposes of determining proved crude oil and natural gas reserves for SEC requirements as at December 31, 2017 and 2016 Obsidian Energy used the 12-month first-day-of-the-month 12-month NET PROVED OIL AND NATURAL GAS RESERVES Obsidian Energy engaged independent qualified reserve evaluator, Sproule Associates Limited (“Sproule”), to evaluate Obsidian Energy’s proved developed and proved undeveloped oil and natural gas reserves. As at December 31, 2017, substantially all of Obsidian Energy’s oil and natural gas reserves are located in Canada. The changes in the Company’s net proved reserve quantities are outlined below. Net reserves include Obsidian Energy’s remaining working interest and royalty reserves, less all Crown, freehold, and overriding royalties and other interests that are not owned by Obsidian Energy. Proved reserves are those estimated quantities of crude oil, natural gas and natural gas liquids that can be estimated with a high degree of certainty to be economically recoverable under existing economic and operating conditions. Proved developed reserves are those proved reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure to put the reserves on production. Proved developed reserves may be subdivided into producing and non-producing. Proved undeveloped reserves are those reserves that are expected to be recovered from known accumulations where a significant expenditure is required to render them capable of production. Obsidian Energy cautions users of this information as the process of estimating crude oil and natural gas reserves is subject to a level of uncertainty. The reserves are based on economic and operating conditions; therefore, changes can be made to future assessments as a result of a number of factors, which can include new technology, changing economic conditions and development activity. YEAR ENDED DECEMBER 31, 2017 CONSTANT PRICES AND COSTS Net Proved Developed and Proved Undeveloped Reserves (1) Light and Heavy Natural Natural Gas Barrels of Oil December 31, 2016 43 7 164 4 81 Extensions & Discoveries 2 — 14 1 5 Improved Recovery & Infill Drilling 1 1 2 — 3 Technical Revisions 5 1 60 3 19 Acquisitions — — — — — Dispositions (7 ) — (76 ) (1 ) (21 ) Production (4 ) (2 ) (26 ) (1 ) (12 ) Change for the year (3 ) — (26 ) 2 (6 ) December 31, 2017 41 7 138 5 76 Developed 32 5 119 4 62 Undeveloped 9 1 20 1 14 Total (2) 41 7 138 5 76 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved crude oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. YEAR ENDED DECEMBER 31, 2016 CONSTANT PRICES AND COSTS Net Proved Developed and Proved Undeveloped Reserves (1) Light and Heavy Natural Natural Gas Barrels of Oil December 31, 2015 83 24 230 7 153 Extensions & Discoveries — — — — — Improved Recovery & Infill Drilling — 1 — — 2 Technical Revisions (1 ) 1 13 — 3 Acquisitions — — 14 — 2 Dispositions (32 ) (16 ) (49 ) (2 ) (58 ) Production (8 ) (3 ) (44 ) (1 ) (20 ) Change for the year (41 ) (17 ) (66 ) (3 ) (71 ) December 31, 2016 43 7 164 4 81 Developed 37 6 152 4 72 Undeveloped 6 1 12 — 9 Total (2) 43 7 164 4 81 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved crude oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. In both 2017 and 2016 Obsidian Energy closed a number of asset dispositions as it consolidated its asset portfolio and strengthened its balance sheet. CAPITALIZED COSTS As at December 31, ($CAD millions) 2017 2016 Proved oil and gas properties $ 10,636 $ 10,648 Unproved oil and gas properties — — Total capitalized costs 10,636 10,648 Accumulated depletion and depreciation (7,817 ) (7,666 ) Net capitalized costs $ 2,819 $ 2,982 COSTS INCURRED For the years ended December 31, ($CAD millions) 2017 2016 Property acquisition (disposition) costs (1) Proved oil and gas properties - acquisitions $ 6 $ — Proved oil and gas properties - dispositions (116 ) (1,418 ) Unproved oil and gas properties 3 2 Exploration costs (2) 2 4 Development costs (3) 184 114 Joint venture, carried capital (50 ) (40 ) Capital expenditures 29 (1,338 ) Corporate acquisitions — 3 Total expenditures $ 29 $ (1,335 ) (1) Acquisitions are net of disposition of properties. (2) Cost of geological and geophysical capital expenditures and costs on exploratory plays. (3) Includes equipping and facilities capital expenditures. STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AND CHANGES THEREIN The standardized measure of discounted future net cash flows is based on estimates made by Sproule of net proved reserves. Future cash inflows are computed based on constant prices and cost assumptions from annual future production of proved crude oil and natural gas reserves. Future development and production costs are based on constant price assumptions and assume the continuation of existing economic conditions. Constant prices are calculated as the average of the first day prices of each month for the prior 12-month Obsidian Energy cautions users of this information that the discounted future net cash flows relating to proved crude oil and natural gas reserves are neither an indication of the fair market value of our oil and gas properties, nor of the future net cash flows expected to be generated from such properties. The discounted future cash flows do not include the fair market value of exploratory properties and probable or possible oil and gas reserves, nor is consideration given to the effect of anticipated future changes in crude oil and natural gas prices, development, asset retirement and production costs and possible changes to tax and royalty regulations. The prescribed discount rate of 10 percent is arbitrary and may not reflect applicable future interest rates. STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS For the years ended December 31, ($CAD millions) 2017 2016 Future cash inflows $ 3,384 $ 2,885 Future production costs (1,625 ) (1,545 ) Future development costs (302 ) (223 ) Undiscounted pre-tax 1,457 1,117 Deferred income taxes (1) — — Future net cash flows 1,457 1,117 Less 10% annual discount factor (661 ) (486 ) Standardized measure of discounted future net cash flows $ 796 $ 631 (1) Obsidian Energy is currently not cash taxable. STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOW CHANGES For the years ended December 31, ($CAD millions) 2017 2016 Standardized measure of discounted future net cash flows at beginning of year $ 631 $ 1,307 Oil and gas sales during period net of production costs and royalties (1) (213 ) (336 ) Changes due to prices (2) 481 (449 ) Development costs during the period (3) 141 83 Changes in forecast development costs (4) (202 ) 5 Changes resulting from extensions, infills and improved recovery (5) 73 27 Changes resulting from discoveries (2) 1 — Changes resulting from acquisitions of reserves (5) — 8 Changes resulting from dispositions of reserves (5) (71 ) (578 ) Accretion of discount (6) 63 131 Net change in income tax (7) — — Changes resulting from other changes and technical reserves revisions plus effects on timing (8) (109 ) 433 Standardized measure of discounted future net cash flows at end of year $ 796 $ 631 (1) Company actual before income taxes, excluding general and administrative expenses. (2) The impact of changes in prices and other economic factors on future net revenue. (3) Actual capital expenditures relating to the exploration, development and production of oil and gas reserves. (4) The change in forecast development costs. (5) End of period net present value of the related reserves. (6) Estimated as 10 percent of the beginning of period net present value. (7) The difference between forecast income taxes at beginning of period and the actual taxes for the period plus forecast income taxes at the end of period. (8) Includes changes due to revised production profiles, development timing, operating costs, royalty rates and actual prices received versus forecast, etc. |
Significant accounting polici26
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Critical accounting judgments and key estimates | a) Critical accounting judgments and key estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of any contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. These and other estimates are subject to measurement uncertainty and the effect on the consolidated financial statements of changes in these estimates could be material. Management also makes judgments while applying accounting policies that could affect amounts recorded in its consolidated financial statements. Significant judgments include the identification of cash generating units (“CGUs”) for impairment testing purposes and determining whether a CGU has an impairment indicator. The following are the estimates that management has made in applying the Company’s accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements. i) Reserve estimates Commercial petroleum reserves are determined based on estimates of petroleum-in-place, year-end. Reserve adjustments are made annually based on actual oil and natural gas volumes produced, the results from capital programs, revisions to previous estimates, new discoveries and acquisitions and dispositions made during the year and the effect of changes in forecast future crude oil and natural gas prices. There are a number of estimates and assumptions that affect the process of evaluating reserves. Proved reserves are the estimated quantities of crude oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a high degree of certainty (at least 90 percent) those quantities will be exceeded. Proved plus probable reserves are the estimated quantities of crude oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a 50 percent certainty those quantities will or will not be exceeded. Obsidian Energy reports production and reserve quantities in accordance with Canadian practices and specifically in accordance with “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”). The estimate of proved plus probable reserves is an essential part of the depletion calculation, the impairment test and hence the recorded amount of oil and gas assets. Contingent Resources are defined in the COGE Handbook as those quantities of petroleum estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which do not currently qualify as Reserves or commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, operational, political and regulatory matters or a lack of markets. The estimate of contingent resources may be included as part of the recoverable amount in the impairment test. Obsidian Energy cautions users of this information that the process of estimating crude oil and natural gas reserves is subject to a level of uncertainty. The reserves are based on current and forecast economic and operating conditions; therefore, changes can be made to future assessments as a result of a number of factors, which can include commodity prices, new technology, changing economic conditions, future reservoir performance and forecast development activity. ii) Recoverability of asset carrying values Obsidian Energy assesses its property, plant and equipment (“PP&E”) for impairment by comparing the carrying amount to the recoverable amount of the underlying assets. The determination of the recoverable amount involves estimating the higher of an asset’s fair value less costs to sell or its value-in-use, iii) Decommissioning liability Obsidian Energy recognizes a provision for future abandonment activities in the consolidated financial statements at the net present value of the estimated future expenditures required to settle the estimated obligation at the balance sheet date. The measurement of the decommissioning liability involves the use of estimates and assumptions including the discount rate, the amount and expected timing of future abandonment costs and the inflation rate related thereto. The estimates were made by management and external consultants considering current costs, technology and enacted legislation. iv) Office lease liability Obsidian Energy recognizes a provision for certain onerous office lease commitments in the consolidated financial statements at the net present value of future lease payments the Company is obligated to make under non-cancellable sub-lease v) Fair value calculation on share-based payments The fair value of share-based payments is calculated using a Black-Scholes model. There are a number of estimates used in the calculation such as the expected future forfeiture rate, the expected period the share-based compensation is outstanding and the future price volatility of the underlying security all of which can vary from expectations. The factors applied in the calculation are management’s estimates based on historical information and future forecasts. vi) Fair value of risk management contracts Obsidian Energy records risk management contracts at fair value with changes in fair value recognized in income. The fair values are determined using external counterparty information which is compared to observable market data. vii) Taxation The calculation of deferred income taxes is based on a number of assumptions including estimating the future periods in which temporary differences and other tax credits will reverse and the general assumption that substantively enacted future tax rates at the balance sheet date will be in effect when differences reverse. viii) Litigation Obsidian Energy records provisions related to legal matters if it is probable that the Company will not be successful in defending the claim and if an amount can be reasonably estimated. Determining the probability of a claim being defended is subject to considerable judgment. Additionally, the potential claim is generally a wide range of figures and a single estimate must be made when recording a provision. Contingencies will only be resolved or unfounded when one or more future events occur. The assessment of contingencies involves significant judgment and estimates of the potential outcome of future events. |
Business combinations | b) Business combinations Obsidian Energy uses the acquisition method to account for business combinations. The net identifiable assets and liabilities acquired in transactions are generally measured at their fair value on the acquisition date. The acquisition date is the closing date of the business combination. Acquisition costs incurred by Obsidian Energy to complete a business combination are expensed in the period incurred except for costs related to the issue of any debt or equity securities, which are recognized based on the nature of the related financing instrument. Revisions may be made to the initial recognized amounts determined during the measurement period, which shall not exceed one year after the close date of the acquisition. |
Revenue | c) Revenue Obsidian Energy generally recognizes oil and natural gas revenue when title passes from Obsidian Energy to the purchaser or, in the case of services, as contracted services are performed. Revenue is measured at the fair value of the consideration received or receivable. Revenue from the sale of crude oil, natural gas and natural gas liquids (prior to deduction of transportation costs) is recognized when all the following conditions have been satisfied: • The significant risks and rewards of ownership of the goods have been transferred to the buyer; • There is no continuing managerial involvement to the degree usually associated with ownership or effective control over the goods sold; • The amount of revenue can be reliably measured; • It is probable that the economic benefits associated with the transaction will flow to Obsidian Energy; and • The costs incurred or to be incurred in respect of the transaction can be reliably measured. |
Joint arrangements | d) Joint arrangements The consolidated financial statements include Obsidian Energy’s proportionate interest of jointly controlled assets and liabilities and its proportionate interest of the revenue, royalties and operating expenses. A significant portion of Obsidian Energy’s exploration and development activities are conducted jointly with others and involve joint operations. Under such arrangements, Obsidian Energy has the exclusive rights to its proportionate interest in the assets and the economic benefits generated from its share of the assets. Income from the sale or use of Obsidian Energy’s interest in joint operations and its share of expenses is recognized when it is probable that the economic benefits associated with the transactions will flow to/from Obsidian Energy and the amounts can be reliably measured. The Peace River Oil Partnership is a joint operation and Obsidian Energy records its 55 percent interest of revenues, expenses, assets and liabilities. |
Transportation expense | e) Transportation expense Transportation costs are paid by Obsidian Energy for the shipping of natural gas, crude oil and natural gas liquids from the wellhead to the point of title transfer to buyers. These costs are recognized as services are received. |
Foreign currency translation | f) Foreign currency translation Obsidian Energy and each of its subsidiaries use the Canadian dollar as their functional currency. Monetary items, such as accounts receivable and long-term debt, are translated to Canadian dollars at the rate of exchange in effect at the balance sheet date. Non-monetary |
PP&E | g) PP&E i) Measurement and recognition Oil & Gas properties are included in PP&E at cost, less accumulated depletion and depreciation and any impairment losses. The cost of PP&E includes costs incurred initially to acquire or construct the item and betterment costs. Capital expenditures are recognized as PP&E when it is probable that future economic benefits associated with the investment will flow to Obsidian Energy and the cost can be reliably measured. PP&E includes capital expenditures incurred in the development phases, acquisition and disposition of PP&E and additions to the decommissioning liability. ii) Depletion and Depreciation Except for components with a useful life shorter than the reserve life of the associated property, resource properties are depleted using the unit-of-production Components of PP&E that are not depleted using the unit-of-production iii) Derecognition The carrying amount of an item of PP&E is derecognized when no future economic benefits are expected from its use or upon sale to a third party. The gain or loss arising from derecognition is included in income and is measured as the difference between the net proceeds, if any, and the carrying amount of the asset. iv) Major maintenance and repairs Ongoing costs to maintain properties are generally expensed as incurred. These costs include the cost of labour, consumables and small parts. The costs of material replacement parts, turnarounds and major inspections are capitalized provided it is probable that future economic benefits in excess of cost will be realized and such benefits are expected to extend beyond the current operating period. The carrying amount of a replaced part is derecognized in accordance with Obsidian Energy’s derecognition policies. v) Impairment of oil and natural gas properties Obsidian Energy reviews oil and gas properties for circumstances that indicate its assets may be impaired at the end of each reporting period. These indicators can be internal (i.e. reserve changes) or external (i.e. market conditions) in nature. If an indication of impairment exists, Obsidian Energy completes an impairment test, which compares the estimated recoverable amount to the carrying value. The estimated recoverable amount is defined under IAS 36 (“Impairment of Assets”) as the higher of an asset’s or CGU’s fair value less costs to sell and its value-in-use. Where the recoverable amount is less than the carrying amount, the CGU is considered to be impaired. Impairment losses identified for a CGU are allocated on a pro rata basis to the asset categories within the CGU. The impairment loss is recognized as an expense in income. Value-in-use pre-tax Impairment losses related to PP&E can be reversed in future periods if the estimated recoverable amount of the asset exceeds the carrying value. The impairment recovery is limited to a maximum of the estimated depleted historical cost if the impairment had not been recognized. The reversal of the impairment loss is recognized in depletion, depreciation and impairment. vi) Other Property, Plant and Equipment Obsidian Energy’s corporate assets include computer hardware and software, office furniture, buildings and leasehold improvements and are depreciated on a straight-line basis over their useful lives. Corporate assets are tested for impairment separately from oil and gas assets. |
Share-based payments | h) Share-based payments The fair value of units granted under the Restricted and Performance Share Unit Plan (“RPSU”) following the equity method are recognized as compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the units based on a graded vesting schedule. Obsidian Energy measures the fair value of units granted under this plan at the grant date using the share price from the Toronto Stock Exchange (“TSX”). The fair value is based on market prices and considers the terms and conditions of the units granted. The fair value of options granted under the Stock Option Plan (the “Option Plan”) are recognized as compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the options based on a graded vesting schedule. Obsidian Energy measures the fair value of options granted under these plans at the grant date using the Black-Scholes option-pricing model. The fair value is based on market prices and considers the terms and conditions of the share options granted. The fair value of awards granted under the Deferred Share Unit Plan (“DSU”), Performance Share Unit Plan (“PSU”) and the RPSU Plan following the liability method are based on a fair value calculation on each reporting date using the awards outstanding and Obsidian Energy’s share price from the TSX on each balance sheet date. The fair value of the awards is expensed over the vesting period based on a graded vesting schedule. Subsequent increases and decreases in the underlying share price result in increases and decreases, respectively, to the accrued obligation until the related instruments are settled. |
Provisions | i) Provisions i) General Provisions are recognized based on an estimate of expenditures required to settle present obligations at the end of the reporting period. The provision is risk adjusted to take into account any uncertainties. When the effect of the time value of money is material, the amount of a provision is calculated as the present value of the future expenditures required to settle the obligations. The discount rate reflects the current assessment of the time value of money and risks specific to the liability when those risks have not already been reflected as an adjustment to future cash flows. ii) Decommissioning liability The decommissioning liability is the present value of Obsidian Energy’s future costs of obligations for property, facility and pipeline abandonment and site restoration. The liability is recognized on the balance sheet with a corresponding increase to the carrying amount of the related asset. The recorded liability increases over time to its future amount through accretion charges to income. Revisions to the estimated amount or timing of the obligations are reflected prospectively as increases or decreases to the recorded liability and the related asset. Actual decommissioning expenditures, up to the recorded liability at the time, are charged to the liability as the costs are incurred. Amounts capitalized to the related assets are amortized to income consistent with the depletion or depreciation of the underlying asset. iii) Office lease liability The office lease liability is the net present value of future lease payments Obsidian Energy is obligated to make under non-cancellable sub-lease sub-lease |
Leases | j) Leases A lease is classified as an operating lease if it does not transfer substantially all of the risks and rewards incidental to ownership of the related asset to the lessee. Operating lease payments are expensed on a straight-line basis over the life of the lease. |
Share capital | k) Share capital Common shares are classified as equity. Share issue costs are recorded in shareholder’s equity, net of applicable taxes. Dividends are paid at the discretion of the Board of Directors and are deducted from retained earnings. If issued, preferred shares would be classified as equity and could be issued in one or more series. |
Earnings per share | l) Earnings per share Earnings per share is calculated by dividing net income or loss attributable to the shareholders by the weighted average number of common shares outstanding during the period. Obsidian Energy computes the dilutive impact of equity instruments other than common shares assuming the proceeds received from the exercise of in-the-money |
Taxation | m) Taxation Income taxes are based on taxable income in a taxation year. Taxable income normally differs from income reported in the consolidated statement of income as it excludes items of income or expense that are taxable or deductible in other years or are not taxable or deductible for income tax purposes. Obsidian Energy uses the liability method of accounting for deferred income taxes. Temporary differences are calculated assuming that the financial assets and liabilities will be settled at their carrying amount. Deferred income taxes are computed on temporary differences using substantively enacted income tax rates expected to apply when deferred income tax assets and liabilities are realized or settled. A deferred income tax asset is recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences can be utilized. Deferred income tax assets are reviewed at each reporting date and are not recognized until such time that it is more likely than not that the related tax benefit will be realized. |
Financial instruments | n) Financial instruments Financial instruments are measured at fair value and recorded on the balance sheet upon initial recognition of an instrument. Subsequent measurement and changes in fair value will depend on initial classification, as follows: • Fair value through profit or loss financial assets and liabilities and derivative instruments classified as held for trading or designated as fair value through profit or loss are measured at fair value and subsequent changes in fair value are recognized in income; • Loans and receivables are non-derivative • Available-for-sale • Held to maturity financial assets and loans and receivables are initially measured at fair value with subsequent measurement at amortized cost using the effective interest method. The effective interest method calculates the amortized cost of a financial asset and allocates interest income or expense over the applicable period. The rate used discounts the estimated future cash flows over either the expected life of the financial asset or liability or a shorter time-frame if it is deemed appropriate; and • Other financial liabilities are initially measured at fair value with subsequent changes to fair value measured at amortized cost. Obsidian Energy’s current classifications are as follows: • Cash and cash equivalents and accounts receivable are designated as loans and receivables; • Accounts payable and accrued liabilities and long-term debt are designated as other financial liabilities; and • Risk management contracts are derivative financial instruments measured at fair value through profit or loss. Obsidian Energy assesses each financial instrument, except those valued at fair value through profit or loss, for impairment at the reporting date and records the gain or loss in income during the period. |
Embedded derivatives | o) Embedded derivatives An embedded derivative is a component of a contract that affects the terms of another factor, for example, rent costs that fluctuate with oil prices. These “hybrid” contracts are considered to consist of a “host” contract plus an embedded derivative. The embedded derivative is separated from the host contract and accounted for as a derivative if the following conditions are met: • The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; • The embedded item, itself, meets the definition of a derivative; and • The hybrid contract is not measured at fair value or designated as held for trading. |
Classification of debt or equity | p) Classification of debt or equity Obsidian Energy classifies financial liabilities and equity instruments in accordance with the substance of the contractual arrangement and the definitions of a financial liability or an equity instrument. Obsidian Energy’s debt instruments currently have requirements to deliver cash at the end of the term thus are classified as liabilities. |
Future accounting pronouncements | q) Future accounting pronouncements The IASB issued IFRS 15 “Revenue from Contracts with Customers” which replaces IAS 18 “Revenue”. IFRS 15 specifies revenue recognition criteria and expanded disclosures for revenue. The new standard is effective for annual periods beginning on or after January 1, 2018. The Company has completed its assessment of the standard and adopted the standard retrospectively on January 1, 2018. The Company has also concluded that the adoption of IFRS 15 will not have a material impact on its financial statements. Obsidian Energy will expand its disclosures in the notes to the financial statements as outlined in IFRS 15. The IASB completed the final sections of IFRS 9 “Financial Instruments” which replaces IAS 39 “Financial Statement: Recognition and Measurement”. IFRS 9 provides guidance on the recognition and measurement, impairment and derecognition on financial instruments. The new standard is effective for annual periods beginning on or after January 1, 2018. The Company has concluded that the adoption of IFRS 9 will not result in any material changes in the measurement and carrying value of the Company’s financial instruments. The IASB issued IFRS 16 “Leases” in January 2016 which replaces IAS 17 “Leases”. IFRS 16 outlines several new requirements in regards to the recognition, measurement and disclosure of leases. A key principle within the standard includes a single lessee accounting model which requires lessees to recognise assets and liabilities for all leases which have a term more than 12 months. The accounting for lessors, which classify leases as either operating or finance, remains substantially unchanged from the previous standard. The new standard is effective for annual reporting periods beginning on or after January 1, 2019. Obsidian Energy is currently assessing the impact of the standard. |
Working capital (Tables)
Working capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Detailed Information about Accounts Receivable | As at December 31, based on Obsidian Energy’s credit assessments, provisions have been made for amounts deemed uncollectible. As at December 31, the following accounts receivable amounts were outstanding. Current 30-90 days 90+ days Total (1) 2017 $ 94 $ 3 $ 9 $ 106 2016 $ 90 $ 23 $ 9 $ 122 (1) In 2017, $1 million of accounts receivable is related to assets classified as held for sale (2016 - $9 million). |
Deferred funding asset (Tables)
Deferred funding asset (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Detailed Information About Composition of Deferred Funding Asset | The Company fully utilized the deferred funding asset in the fourth quarter of 2017 and expects payment from its partner during the first quarter of 2018. As at December 31 2017 2016 Current portion $ 18 $ 77 Long-term portion — 16 Total $ 18 $ 93 |
Assets and liabilities held f29
Assets and liabilities held for sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Detailed Information about Assets and Liabilities Held for Sale | Assets and liabilities classified as held for sale consisted of the following: As at December 31 2017 2016 Assets held for sale Working capital $ 1 $ 10 Property, plant and equipment 34 104 $ 35 $ 114 Liabilities related to assets held for sale Working capital $ 1 $ 6 Decommissioning liability 23 75 $ 24 $ 81 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Property Plant and Equipment | Cost Oil and gas Facilities Corporate Total Balance at January 1, 2016 $ 10,731 $ 5,310 $ 169 $ 16,210 Capital expenditures 37 43 2 82 Joint venture, carried capital 40 — — 40 Acquisitions 2 1 — 3 Dispositions (3,996 ) (999 ) — (4,995 ) Transfers from E&E 1 — — 1 Transfers to asset held for sale (430 ) (107 ) — (537 ) Net decommissioning dispositions (1) (156 ) — — (156 ) Balance at December 31, 2016 $ 6,229 $ 4,248 $ 171 $ 10,648 Capital expenditures 56 83 2 141 Joint venture, carried capital 50 — — 50 Acquisitions 5 1 — 6 Dispositions (61 ) (15 ) — (76 ) Transfers to asset held for sale (100 ) (25 ) — (125 ) Net decommissioning dispositions (1) (7 ) — — (7 ) SR&ED credits (note 11) (1 ) — — (1 ) Balance at December 31, 2017 $ 6,171 $ 4,292 $ 173 $ 10,636 (1) Includes additions from drilling activity, facility capital spending and disposals from net property dispositions. Accumulated depletion, depreciation and impairment Oil and gas Facilities Corporate Total Balance at January 1, 2016 $ 8,545 $ 2,426 $ 94 $ 11,065 Depletion and depreciation 263 91 14 368 Impairments 230 58 — 288 Transfers to asset held for sale (346 ) (87 ) — (433 ) Dispositions (2,898 ) (724 ) — (3,622 ) Balance at December 31, 2016 $ 5,794 $ 1,764 $ 108 $ 7,666 Depletion and depreciation 201 74 14 289 Impairments 12 3 — 15 Transfers to asset held for sale (73 ) (18 ) — (91 ) Dispositions (50 ) (12 ) — (62 ) Balance at December 31, 2017 $ 5,884 $ 1,811 $ 122 $ 7,817 Net book value As at December 31 2017 2016 Total $ 2,819 $ 2,982 |
Disclosure of Benchmark Prices Used in Impairment Tests | The following table outlines benchmark prices and assumptions the Company used in the impairment test as at December 31, 2017: WTI AECO Exchange rate 2018 $ 55.00 $ 2.85 $ 0.79 2019 65.00 3.11 0.82 2020 70.00 3.65 0.85 2021 73.00 3.80 0.85 2022 74.46 3.95 0.85 2023 – 2028 $ 79.85 $ 4.31 $ 0.85 Thereafter (inflation percentage) 2.0 % 2.0 % — |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Long-term Debt | As at December 31 2017 2016 Bankers’ acceptances and prime rate loans $ 253 $ 329 U.S. Senior secured notes – 2007 Notes 5.80%, US$5 million, matured May 31, 2017 — 6 5.90%, US$5 million, maturing May 31, 2019 5 6 Senior secured notes – 2008 Notes 6.30%, US$24 million, maturing May 29, 2018 31 33 6.40%, US$4 million, maturing May 29, 2020 5 5 Senior secured notes – 2009 Notes 9.32%, US$8 million, maturing May 5, 2019 10 11 Senior secured notes – 2010 Q1 Notes 5.29%, US$10 million, matured March 16, 2017 — 13 5.85%, US$10 million, maturing March 16, 2020 12 13 Senior secured notes – 2010 Q4 Notes 4.17%, US$6 million, matured December 2, 2017 — 8 4.88%, US$13 million, maturing December 2, 2020 17 17 4.98%, US$6 million, maturing December 2, 2022 7 8 5.23%, US$2 million, maturing December 2, 2025 3 3 Senior secured notes – 2011 Q4 Notes 4.79%, US$12 million, maturing November 30, 2021 16 17 Total long-term debt $ 359 $ 469 Current portion $ 31 $ 27 Long-term portion $ 328 $ 442 In 2017, the Company repaid senior notes in the amount of US$20 million as part of normal course maturities (2016 – $185 million normal course maturities and $1,075 million in prepayments). There were no senior note issuances in either 2017 or 2016. Additional information on Obsidian Energy’s senior secured notes was as follows: As at December 31 2017 2016 Weighted average remaining life (years) 2.3 2.7 Weighted average interest rate 6.0 % 6.3 % |
Estimated Fair Values of Principal and Interest Obligations of Outstanding Senior Secured Notes | The estimated fair values of the principal and interest obligations of the outstanding senior secured notes were as follows: As at December 31 2017 2016 2007 Notes $ 6 $ 12 2008 Notes 36 38 2009 Notes 10 11 2010 Q1 Notes 12 25 2010 Q4 Notes 25 33 2011 Notes 14 15 Total $ 103 $ 134 |
Realized and Unrealized Gain (Loss) on Foreign Exchange | The split between realized and unrealized foreign exchange is as follows: Year ended December 31 2017 2016 Realized foreign exchange loss on debt maturities $ (6 ) $ (37 ) Realized foreign exchange loss on debt pre-payments — (191 ) Unrealized foreign exchange gain 11 312 Foreign exchange gain $ 5 $ 84 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Provisions | Year ended December 31 2017 2016 Decommissioning liability $ 147 $ 182 Office lease provision 101 117 Total $ 248 $ 299 Current portion $ 27 $ 35 Long-term portion 221 264 Total $ 248 $ 299 |
Summary of Changes to Decommissioning Liability | Changes to the decommissioning liability were as follows: Year ended December 31 2017 2016 Balance, beginning of year $ 182 $ 397 Net liabilities disposed (1) (4 ) (193 ) Acquisitions — 5 Increase (decrease) due to changes in estimates (2) (3 ) 37 Liabilities settled (16 ) (11 ) Transfers to liabilities for assets held for sale (23 ) (75 ) Accretion charges 11 22 Balance, end of year $ 147 $ 182 Current portion $ 10 $ 20 Long-term portion $ 137 $ 162 (1) Includes additions from drilling activity, facility capital spending and disposals from net property dispositions. (2) In 2017, there were no changes in the discount rate (2016 – $75 million increase). |
Summary of Changes to Office Lease Provision | Changes to the office lease provision were as follows: Year ended December 31 2017 2016 Balance, beginning of year $ 117 $ — Net additions (7 ) 107 Increase due to changes in estimates (1 ) 12 Cash settlements (16 ) (4 ) Accretion charges 8 2 Balance, end of year $ 101 $ 117 Current portion $ 17 $ 15 Long-term portion $ 84 $ 102 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Reconcilation of Change in Fair Value of Financial Instruments Outstanding | The following table reconciles the changes in the fair value of financial instruments outstanding: Year ended December 31 Risk management asset (liability) 2017 2016 Balance, beginning of year $ (43 ) $ 104 Unrealized gain (loss) on financial instruments: Commodity collars, swaps and assignments (7 ) (74 ) Electricity swaps — 4 Foreign exchange forwards (6 ) (43 ) Cross currency swaps 6 (34 ) Total fair value, end of year $ (50 ) $ (43 ) As at December 31 Total fair value consists of the following: 2017 2016 Current asset portion $ 11 $ 8 Current liability portion (55 ) (26 ) Non-current — — Non-current (6 ) (25 ) Total fair value $ (50 ) $ (43 ) |
Schedule of Financial Instruments Outstanding | Obsidian Energy had the following financial instruments outstanding as at December 31, 2017. Fair values are determined using external counterparty information, which is compared to observable market data. The Company limits its credit risk by executing counterparty risk procedures which include transacting only with institutions within its syndicated credit facility or companies with high credit ratings and by obtaining financial security in certain circumstances. Notional Remaining term Pricing Fair value (millions) Natural gas AECO Swaps 1,900 mcf/d Jan/18 – Mar/18 $3.19/mcf $ — AECO Swaps 1,900 mcf/d Jan/18 – Jun/18 $2.91/mcf — AECO Swaps 1,900 mcf/d Jan/18 – Sep/18 $2.69/mcf 1 AECO Swaps 3,800 mcf/d Jan/18 – Mar/18 $3.33/mcf — AECO Swaps 3,800 mcf/d Jan/18 – Jun/18 $2.84/mcf 1 AECO Swaps 15,200 mcf/d Jan/18 – Dec/18 $2.67/mcf 6 Ventura 7,500 mcf/d Jan/18 – Dec/18 US$2.79/mcf — Crude Oil WTI Swaps 1,000 bbl/d Jan/18 – Jun/18 $71.00/bbl (1) WTI Swaps 2,000 bbl/d Jul/18 – Dec/18 US$50.09/bbl (4) WTI Swaps 6,000 bbl/d Jan/18 – Mar/18 US$51.07/bbl (6) WTI Swaps 4,000 bbl/d Apr/18 – Jun/18 US$50.95/bbl (4) WTI Swaps 2,000 bbl/d Jul/18 – Sep/18 US$51.90/bbl (2) WTI Swaps 2,000 bbl/d Oct/18 – Dec/18 US$50.81/bbl (2) WTI Swaps 4,000 bbl/d Jan/18 – Dec/18 $71.04/bbl (5) WTI Swaps 1,000 bbl/d Jan/18 – Dec/18 US$49.35/bbl (4) WTI Swaps 2,000 bbl/d Apr/18 – Dec/18 US$48.43/bbl (7) WTI Swaps 1,000 bbl/d Jul/18 – Mar/19 US$50.20/bbl (3) WTI Swaps 2,000 bbl/d Jan/19 – Mar/19 $66.50/bbl (1) WTI Swaps 2,000 bbl/d Jan/19 – Mar/19 US$49.93/bbl (1) WTI Swaps 4,000 bbl/d Jan/19 – Jun/19 $68.58/bbl (2) WTI Swaps 1,000 bbl/d Apr/19 – Jun/19 US$55.35/bbl — Foreign exchange forward contracts on revenue FX Collar US$24 2018 1.210 to 1.272 USD/CAD — FX Swap US$24 2018 1.2768 1 FX Swap US$24 2018 1.2500 — FX Swap US$24 2018 1.2568 — FX Swap US$24 2018 1.2803 1 FX Swap US$12 2018 1.2840 — Cross currency swaps 10-year £57 2018 2.0075 CAD/GBP, 6.95% (18) 18-month (£43) 2018 1.7049 CAD/GBP, 6.95% — 10-year £5 2019 1.8051 CAD/GBP, 9.15% — 10-year €10 2019 1.5870 CAD/EUR, 9.22% — Total $ (50) Based on December 31, 2017 pricing, a $1.00 change in the price per barrel of liquids of WTI would have changed pre-tax pre-tax Subsequent to December 31, 2017, the Company entered into the following crude oil swaps and foreign exchange contracts on long-term debt: Reference Price Term Price Notional WTI Apr/19 – Jun/19 US$57.70/bbl 1,000 bbl/d WTI Jul/19 – Sep/19 US$57.00/bbl 1,000 bbl/d USD/CAD Jan/19 – May/19 1.2259 US$5 USD/CAD Jan/19 – May/19 1.2319 US$5 USD/CAD Jan/19 – May/19 1.2400 US$5 |
Components of Risk Management on Consolidated Statements of Loss | The components of risk management on the Consolidated Statements of Loss are as follows: Year ended December 31 2017 2016 Realized Settlement of commodity contracts/assignment $ 23 $ 99 Monetization of commodity contracts — 2 Settlement of foreign exchange contracts 8 3 Monetization of foreign exchange contracts — 32 Total realized risk management gain 31 136 Unrealized Commodity contracts (7 ) (72 ) Electricity swaps — 4 Crude oil assignment — (2 ) Foreign exchange contracts (6 ) (43 ) Cross-currency swaps 6 (34 ) Total unrealized risk management loss (7 ) (147 ) Risk management gain (loss) $ 24 $ (11 ) |
Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities | The following table outlines estimated future obligations for non-derivative Senior secured Accounts payable & (1) Share-based Total 2018 $ 31 $ 148 $ 2 $ 181 2019 16 — 1 17 2020 34 — — 34 2021 15 — — 15 2022 7 — — 7 Thereafter $ 3 $ — $ — $ 3 (1) Includes $1 million of accounts payable and accrued liabilities related to assets classified as held for sale. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Provision for Income Taxes | The provision for income taxes is as follows: Year ended December 31 2017 2016 Deferred tax recovery $ (13 ) $ (252 ) |
Summary of Provision for Income Taxes Reflects Effective Tax Rate | The provision for income taxes reflects an effective tax rate that differs from the combined federal and provincial statutory tax rate as follows: Year ended December 31 2017 2016 Loss before taxes $ (97 ) $ (948 ) Combined statutory tax rate (1) 27.0 % 27.0 % Computed income tax recovery $ (26 ) $ (256 ) Increase (decrease) resulting from: Share-based compensation 2 1 Non-taxable (2 ) (11 ) Unrecognized deferred tax asset 5 — Adjustments related to prior years 5 14 Other 3 — Deferred tax recovery $ (13 ) $ (252 ) (1) The tax rate represents the combined federal and provincial statutory tax rates for the Company and its subsidiaries for the years ended December 31, 2017 and December 31, 2016. |
Summary of Net Deferred Income Tax Liability | The net deferred income tax liability is comprised of the following: Balance Provision Recognized in Balance December 31, Deferred tax liabilities (assets) PP&E $ 668 $ (53 ) $ (1 ) $ 614 Risk management (40 ) 5 — (35 ) Decommissioning liability (69 ) 23 — (46 ) Share-based compensation (4 ) 3 — (1 ) Non-capital (541 ) 9 — (532 ) Net deferred tax liability $ 14 $ (13 ) $ (1 ) $ — Balance Provision Recognized in Balance December 31, Deferred tax liabilities (assets) PP&E $ 1,129 $ (461 ) $ — $ 668 Risk management 12 (52 ) — (40 ) Decommissioning liability (107 ) 38 — (69 ) Share-based compensation (2 ) (2 ) — (4 ) Non-capital (766 ) 225 — (541 ) Net deferred tax liability $ 266 $ (252 ) $ — $ 14 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Issued Capital | b) Issued Shareholders’ capital Common Amount Balance, January 1, 2016 502,163,163 $ 8,994 Issued on exercise of equity compensation plans (1) 600,775 3 Cancellation of dividend reinvestment plan (2) (175 ) — Balance, December 31, 2016 502,763,763 $ 8,997 Issued on exercise of equity compensation plans (1) 1,577,225 4 Elimination of deficit — (6,820 ) Balance, December 31, 2017 504,340,988 $ 2,181 (1) Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. (2) In March 2016, the Company cancelled its dividend reinvestment plan. |
Summary of Other Reserves | Year ended December 31 Other Reserves 2017 2016 Balance, beginning of year $ 97 $ 92 Share-based compensation expense 8 7 Net benefit on options exercised (1) (9 ) (2 ) Balance, end of year $ 96 $ 97 (1) Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Weighted Average Assumptions of RPSU Plan Units Under Equity Method | The fair value of the RPSU plan units under the equity method used the following weighted average assumptions: Year ended December 31 2017 2016 Average fair value of units granted (per unit) $ 2.11 $ 1.20 Expected life of units (years) 3.0 3.0 Expected forfeiture rate 7.8 % 18.4 % |
Summary of Stock Option Activity and Related Information | Year ended December 31 2017 2016 Options Number of Options Weighted Exercise Number of Weighted Outstanding, beginning of year 7,612,625 $ 6.01 10,595,728 $ 10.21 Granted — — 3,557,250 1.20 Exercised (1,577,225 ) 1.44 (600,775 ) 1.53 Forfeited (2,372,825 ) 11.22 (5,939,578 ) 11.08 Outstanding, end of year 3,662,575 $ 4.60 7,612,625 $ 6.01 Exercisable, end of year 1,980,876 $ 6.50 2,804,426 $ 11.10 |
Summary of Options Outstanding and Exercisable | Options Outstanding Options Exercisable Range of Grant Prices Number Weighted Weighted Number Weighted $1.00 - $1.99 2,005,425 $ 1.42 2.8 631,238 $ 1.53 $2.00 - $9.99 1,058,950 7.44 1.4 751,438 7.66 $10.00 - $21.99 598,200 10.30 0.3 598,200 10.30 3,662,575 $ 4.60 1.2 1,980,876 $ 6.50 |
Summary of Share-Based Compensation | Share-based compensation consisted of the following: Year ended December 31 2017 2016 Options $ 1 $ 1 PSU plan 1 1 DSU plan — 1 RPSU plan – equity method 7 6 RPSU plan – liability method (1 ) 3 Share-based compensation $ 8 $ 12 |
Restricted share unit plan [member] | |
Summary of Performance Share Unit Plan | RPSU plan (number of shares equivalent) Year ended December 31 2017 2016 Outstanding, beginning of year 10,199,595 6,325,954 Granted 4,472,510 11,745,330 Vested (3,935,186 ) (2,353,989 ) Forfeited (2,339,541 ) (5,517,700 ) Outstanding, end of year 8,397,378 10,199,595 Outstanding units – liability method 730,297 2,314,805 Outstanding units – equity method 7,667,081 7,884,790 As at December 31 RPSU obligation: 2017 2016 Current liability (1) $ 1 $ 3 Non-current $ — $ 1 (1) Included within Accounts payable and accrued liabilities. |
PSU Plan [member] | |
Summary of Performance Share Unit Plan | Year ended December 31 PSU awards (number of shares equivalent) 2017 2016 Outstanding, beginning of period 1,855,500 1,622,881 Granted 569,000 2,516,000 Vested (638,750 ) (199,843 ) Forfeited (246,750 ) (2,083,538 ) Outstanding, end of period 1,539,000 1,855,500 As at December 31 PSU obligation: 2017 2016 Non-current $ 1 $ 2 |
Per share amounts (Tables)
Per share amounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Detailed Information about Net Loss Basic and Diluted | The number of incremental shares included in diluted earnings per share is computed using the average volume-weighted market price of shares for the period. In addition, contracts that could be settled in cash or shares are assumed to be settled in shares if share settlement is more dilutive. Year ended December 31 2017 2016 Net loss – basic and diluted $ (84 ) $ (696 ) |
Disclosure of Detailed Information about Weighted Average Number of Shares Per Share | The weighted average number of shares used to calculate per share amounts is as follows: Year ended December 31 2017 2016 Basic and Diluted 503,933,024 502,316,003 |
Changes in non-cashworking ca38
Changes in non-cashworking capital (increase) decrease (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Changes in Non-cash Working Capital (Increase) Decrease | Year ended December 31 2017 2016 Accounts receivable (1) $ 12 $ 32 Other current assets (2) — 23 Deferred funding obligation 25 16 Accounts payable and accrued liabilities (3) (4) (35 ) (191 ) 2 (120 ) Operating activities 5 (97 ) Investing activities (3 ) (23 ) $ 2 $ (120 ) Interest paid $ 23 $ 124 Income taxes recovered $ — $ — (1) $1 million of accounts receivable is related to assets classified as held for sale in 2017 (2016 - $9 million). (2) No other current assets were classified as held for sale in 2017 (2016 - $1 million). (3) $1 million of accounts payable and accrued liabilities is related to assets classified as held for sale in 2017 (2016 - $6 million). (4) Includes share-based compensation plans. |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Financial Covenants Under Lending Agreements | As at December 31, 2017, the Company was in compliance with all of its financial covenants under such lending agreements. Year ended December 31 (millions, except ratio amounts) 2017 2016 Components of capital Shareholders’ equity $ 2,166 $ 2,247 Long-term debt $ 359 $ 469 Ratios Senior debt to EBITDA (1) 1.9 2.0 Total debt to EBITDA (2) 1.9 2.0 Senior debt to capitalization (3) 15 % 17 % Total debt to capitalization (4) 15 % 17 % Priority debt to consolidated tangible assets (5) — — EBITDA (6) $ 194 $ 235 Credit facility debt and senior notes $ 359 $ 469 Letters of credit (7) 10 6 Senior debt and total debt 369 475 Total shareholders’ equity 2,166 2,247 Total capitalization $ 2,535 $ 2,722 (1) As at December 31, 2017, less than 3:1 (2) As at December 31, 2017, less than 4:1 (3) Not to exceed 50 percent (4) Not to exceed 55 percent (5) Priority debt not to exceed 15% of consolidated tangible assets. (6) EBITDA is calculated in accordance with Obsidian Energy’s lending agreements wherein unrealized risk management and impairment provisions are excluded. Additionally, under the syndicated credit facility, realized foreign exchange gains or losses related to debt maturities are excluded from the calculation. (7) Letters of credit defined as financial under the lending agreements are included in the calculation. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Certain Payments Over the Next Five Years | Obsidian Energy is committed to certain payments over the next five calendar years and thereafter as follows: 2018 2019 2020 2021 2022 Thereafter Total Long-term debt (1) $ 31 $ 269 $ 34 $ 15 $ 7 $ 3 $ 359 Transportation 12 10 9 7 5 14 57 Power infrastructure 8 2 — — — — 10 Interest obligations 12 6 2 1 1 — 22 Office lease 34 34 34 34 34 73 243 Decommissioning liability 10 10 10 10 10 97 147 Total $ 107 $ 331 $ 89 $ 67 $ 57 $ 187 $ 838 (1) The 2019 figure includes $253 million related to the syndicated credit facility that is due for renewal in 2019. Historically, the Company has successfully renewed its syndicated credit facility. |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Compensation of key Management Personnel | The remuneration of the directors and key management personnel of Obsidian Energy during the year is below. Year ended December 31 2017 2016 Salary and employee benefits $ 3 $ 2 Termination benefits 2 2 Share-based payments (1) 3 2 $ 8 $ 6 (1) Includes changes in the fair value of PSUs, DSUs and non-cash |
Supplementary Oil and Gas Inf42
Supplementary Oil and Gas Information - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Proved Oil and Natural Gas Reserves | YEAR ENDED DECEMBER 31, 2017 CONSTANT PRICES AND COSTS Net Proved Developed and Proved Undeveloped Reserves (1) Light and Heavy Natural Natural Gas Barrels of Oil December 31, 2016 43 7 164 4 81 Extensions & Discoveries 2 — 14 1 5 Improved Recovery & Infill Drilling 1 1 2 — 3 Technical Revisions 5 1 60 3 19 Acquisitions — — — — — Dispositions (7 ) — (76 ) (1 ) (21 ) Production (4 ) (2 ) (26 ) (1 ) (12 ) Change for the year (3 ) — (26 ) 2 (6 ) December 31, 2017 41 7 138 5 76 Developed 32 5 119 4 62 Undeveloped 9 1 20 1 14 Total (2) 41 7 138 5 76 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved crude oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. YEAR ENDED DECEMBER 31, 2016 CONSTANT PRICES AND COSTS Net Proved Developed and Proved Undeveloped Reserves (1) Light and Heavy Natural Natural Gas Barrels of Oil December 31, 2015 83 24 230 7 153 Extensions & Discoveries — — — — — Improved Recovery & Infill Drilling — 1 — — 2 Technical Revisions (1 ) 1 13 — 3 Acquisitions — — 14 — 2 Dispositions (32 ) (16 ) (49 ) (2 ) (58 ) Production (8 ) (3 ) (44 ) (1 ) (20 ) Change for the year (41 ) (17 ) (66 ) (3 ) (71 ) December 31, 2016 43 7 164 4 81 Developed 37 6 152 4 72 Undeveloped 6 1 12 — 9 Total (2) 43 7 164 4 81 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved crude oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. |
Capitalized Costs | CAPITALIZED COSTS As at December 31, ($CAD millions) 2017 2016 Proved oil and gas properties $ 10,636 $ 10,648 Unproved oil and gas properties — — Total capitalized costs 10,636 10,648 Accumulated depletion and depreciation (7,817 ) (7,666 ) Net capitalized costs $ 2,819 $ 2,982 |
Costs Incurred | COSTS INCURRED For the years ended December 31, ($CAD millions) 2017 2016 Property acquisition (disposition) costs (1) Proved oil and gas properties - acquisitions $ 6 $ — Proved oil and gas properties - dispositions (116 ) (1,418 ) Unproved oil and gas properties 3 2 Exploration costs (2) 2 4 Development costs (3) 184 114 Joint venture, carried capital (50 ) (40 ) Capital expenditures 29 (1,338 ) Corporate acquisitions — 3 Total expenditures $ 29 $ (1,335 ) (1) Acquisitions are net of disposition of properties. (2) Cost of geological and geophysical capital expenditures and costs on exploratory plays. (3) Includes equipping and facilities capital expenditures. |
Standardized Measure of Discounted Future Net Cash Flows | STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS For the years ended December 31, ($CAD millions) 2017 2016 Future cash inflows $ 3,384 $ 2,885 Future production costs (1,625 ) (1,545 ) Future development costs (302 ) (223 ) Undiscounted pre-tax 1,457 1,117 Deferred income taxes (1) — — Future net cash flows 1,457 1,117 Less 10% annual discount factor (661 ) (486 ) Standardized measure of discounted future net cash flows $ 796 $ 631 (1) Obsidian Energy is currently not cash taxable. |
Standardized Measure of Discounted Future Net Cash Flow Changes | STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOW CHANGES For the years ended December 31, ($CAD millions) 2017 2016 Standardized measure of discounted future net cash flows at beginning of year $ 631 $ 1,307 Oil and gas sales during period net of production costs and royalties (1) (213 ) (336 ) Changes due to prices (2) 481 (449 ) Development costs during the period (3) 141 83 Changes in forecast development costs (4) (202 ) 5 Changes resulting from extensions, infills and improved recovery (5) 73 27 Changes resulting from discoveries (2) 1 — Changes resulting from acquisitions of reserves (5) — 8 Changes resulting from dispositions of reserves (5) (71 ) (578 ) Accretion of discount (6) 63 131 Net change in income tax (7) — — Changes resulting from other changes and technical reserves revisions plus effects on timing (8) (109 ) 433 Standardized measure of discounted future net cash flows at end of year $ 796 $ 631 (1) Company actual before income taxes, excluding general and administrative expenses. (2) The impact of changes in prices and other economic factors on future net revenue. (3) Actual capital expenditures relating to the exploration, development and production of oil and gas reserves. (4) The change in forecast development costs. (5) End of period net present value of the related reserves. (6) Estimated as 10 percent of the beginning of period net present value. (7) The difference between forecast income taxes at beginning of period and the actual taxes for the period plus forecast income taxes at the end of period. (8) Includes changes due to revised production profiles, development timing, operating costs, royalty rates and actual prices received versus forecast, etc. |
Structure of Penn West - Additi
Structure of Penn West - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Disclosure of operating segments [line items] | |
Number of operating segment | 1 |
Percentage of ownership in petroleum and natural gas assets | 100.00% |
Peace River Oil Partnership [member] | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in joint arrangement | 55.00% |
Significant accounting polici44
Significant accounting policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line items] | |
Description of conversion of oil and gas products | Natural gas volumes are converted to equivalent oil volumes based upon the relative energy content of six thousand cubic feet of natural gas to one barrel of oil. |
Corporate asset component [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Estimated useful life | 10 years |
Peace River Oil Partnership [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Proportion of ownership interest in joint arrangement | 55.00% |
Bottom of range [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Percentage of economically recoverable proved reserves | 90.00% |
Bottom of range [member] | Turnaround component [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Estimated useful life | 3 years |
Top of range [member] | Turnaround component [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Estimated useful life | 5 years |
Working capital - Additional In
Working capital - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Later than three months [member] | Trade receivables [member] | |
Disclosure of accounts receivables [line items] | |
Receivables past due period | 90 Days |
Working capital - Disclosure of
Working capital - Disclosure of Detailed Information about Accounts Receivable (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of accounts receivables [line items] | ||
Accounts receivables | CAD 106 | CAD 122 |
Current [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | 94 | 90 |
Later than one month and not later than three months [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | 3 | 23 |
Later than three months [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | CAD 9 | CAD 9 |
Working capital - Disclosure 47
Working capital - Disclosure of Detailed Information about Accounts Receivable (Parenthetical) (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of accounts receivables [line items] | ||
Accounts receivables | CAD 105 | CAD 113 |
Disposal groups classified as held for sale [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | CAD 1 | CAD 9 |
Deferred Funding Asset - Disclo
Deferred Funding Asset - Disclosure of Detailed Information About Composition of Deferred Funding Asset (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Current portion | CAD 18 | CAD 77 |
Long-term portion | 16 | |
Total | CAD 18 | CAD 93 |
Assets and Liabilities Held f49
Assets and Liabilities Held for Sale - Disclosure of Detailed Information about Assets and Liabilities Held for Sale (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of assets and liabilities classified as held for sale [Line Items] | ||
Assets held for sale | CAD 35 | CAD 114 |
Liabilities related to assets held for sale | 24 | 81 |
Working capital [member] | ||
Disclosure of assets and liabilities classified as held for sale [Line Items] | ||
Assets held for sale | 1 | 10 |
Liabilities related to assets held for sale | 1 | 6 |
Disposal of property, plant and equipment [member] | ||
Disclosure of assets and liabilities classified as held for sale [Line Items] | ||
Assets held for sale | 34 | 104 |
Decommissioning liability [member] | ||
Disclosure of assets and liabilities classified as held for sale [Line Items] | ||
Liabilities related to assets held for sale | CAD 23 | CAD 75 |
Assets and Liabilities Held f50
Assets and Liabilities Held for Sale - Additional Information (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2017 |
Depletion depreciation, impairment and accretion [member] | |||
Disclosure of assets and liabilities classified as held for sale [Line Items] | |||
Impairment loss, net of tax | CAD 12 | CAD 65 | |
Impairment loss | CAD 15 | CAD 65 | |
Classification of assets as held for sale [member] | |||
Disclosure of assets and liabilities classified as held for sale [Line Items] | |||
Proceeds from sale assets | CAD 22 |
Property, plant and equipment -
Property, plant and equipment - Disclosure of Property Plant and Equipment (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | CAD 2,982 | |
Ending balance | 2,819 | CAD 2,982 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 10,648 | 16,210 |
Capital expenditures | 141 | 82 |
Joint venture, carried capital | 50 | 40 |
Acquisitions | 6 | 3 |
Dispositions | (76) | (4,995) |
Transfers from E&E | 1 | |
Transfers to asset held for sale | (125) | (537) |
Net decommissioning dispositions | (7) | (156) |
SR&ED credits (note 11) | (1) | |
Ending balance | 10,636 | 10,648 |
Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,666 | 11,065 |
Depletion and depreciation | 289 | 368 |
Impairments | 15 | 288 |
Dispositions | (62) | (3,622) |
Transfers to asset held for sale | (91) | (433) |
Ending balance | 7,817 | 7,666 |
Oil and gas assets [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6,229 | 10,731 |
Capital expenditures | 56 | 37 |
Joint venture, carried capital | 50 | 40 |
Acquisitions | 5 | 2 |
Dispositions | (61) | (3,996) |
Transfers from E&E | 1 | |
Transfers to asset held for sale | (100) | (430) |
Net decommissioning dispositions | (7) | (156) |
SR&ED credits (note 11) | (1) | |
Ending balance | 6,171 | 6,229 |
Oil and gas assets [member] | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 5,794 | 8,545 |
Depletion and depreciation | 201 | 263 |
Impairments | 12 | 230 |
Dispositions | (50) | (2,898) |
Transfers to asset held for sale | (73) | (346) |
Ending balance | 5,884 | 5,794 |
Facilities [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,248 | 5,310 |
Capital expenditures | 83 | 43 |
Acquisitions | 1 | 1 |
Dispositions | (15) | (999) |
Transfers to asset held for sale | (25) | (107) |
Ending balance | 4,292 | 4,248 |
Facilities [member] | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,764 | 2,426 |
Depletion and depreciation | 74 | 91 |
Impairments | 3 | 58 |
Dispositions | (12) | (724) |
Transfers to asset held for sale | (18) | (87) |
Ending balance | 1,811 | 1,764 |
Corporate assets [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 171 | 169 |
Capital expenditures | 2 | 2 |
Ending balance | 173 | 171 |
Corporate assets [member] | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 108 | 94 |
Depletion and depreciation | 14 | 14 |
Ending balance | CAD 122 | CAD 108 |
Property, plant and equipment52
Property, plant and equipment - Additional Information (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Gains on disposition of assets | CAD 74,000,000 | CAD 33,000,000 |
Transaction costs related to advisory fees | CAD 9,000,000 | |
Impairment reversal | CAD 0 |
Property, plant and equipment53
Property, plant and equipment - Disclosure of Benchmark Prices Used in Impairment Tests (Detail) | Dec. 31, 2017bblMMBTUCAD / shares |
Disclosure of detailed information about property, plant and equipment [line items] | |
2018 | CAD / shares | CAD 0.79 |
2019 | CAD / shares | 0.82 |
2020 | CAD / shares | 0.85 |
2021 | CAD / shares | 0.85 |
2022 | CAD / shares | 0.85 |
2023 - 2028 | CAD / shares | CAD 0.85 |
WTI [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
2018 | bbl | 55 |
2019 | bbl | 65 |
2020 | bbl | 70 |
2021 | bbl | 73 |
2022 | bbl | 74.46 |
2023 - 2028 | bbl | 79.85 |
Thereafter (inflation percentage) | 2.00% |
AECO [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
2018 | MMBTU | 2.85 |
2019 | MMBTU | 3.11 |
2020 | MMBTU | 3.65 |
2021 | MMBTU | 3.80 |
2022 | MMBTU | 3.95 |
2023 - 2028 | MMBTU | 4.31 |
Thereafter (inflation percentage) | 2.00% |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-term Debt (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | CAD 359 | CAD 469 |
Current portion | 31 | 27 |
Long-term portion | CAD 328 | CAD 442 |
Weighted average remaining life (years) | 2.3 Years | 2.7 Years |
Weighted average interest rate | 6.00% | 6.30% |
Bankers acceptances and prime rate loans [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | CAD 253 | CAD 329 |
5.80%, US$5 million, matured May 31, 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6 | |
5.90%, US$5 Million, maturing May 31, 2019 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5 | 6 |
6.30%, US$24 Million, maturing May 29, 2018 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 31 | 33 |
6.40%, US$4 Million, maturing May 29, 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5 | 5 |
9.32%, US$8 Million, maturing May 5, 2019 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 10 | 11 |
5.29%, US$10 million, matured March 16, 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 13 | |
5.85%, US$10 Million, maturing March 16, 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 12 | 13 |
4.17%, US$6 million, matured December 2, 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 8 | |
4.88%, US$13 Million, maturing December 2, 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 17 | 17 |
4.98%, US$6 Million, maturing December 2, 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 7 | 8 |
5.23%, US$2 Million, maturing December 2, 2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3 | 3 |
4.79%, US$12 Million, maturing November 30, 2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | CAD 16 | CAD 17 |
Long-term debt - Schedule of 55
Long-term debt - Schedule of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
5.80%, US$5 million, matured May 31, 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.80% | 5.80% |
Debt | $ 5 | $ 5 |
Debt, maturity date | May 31, 2017 | May 31, 2017 |
5.90%, US$5 Million, maturing May 31, 2019 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.90% | 5.90% |
Debt | $ 5 | $ 5 |
Debt, maturity date | May 312,019 | May 312,019 |
6.30%, US$24 Million, maturing May 29, 2018 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 6.30% | 6.30% |
Debt | $ 24 | $ 24 |
Debt, maturity date | May 29, 2018 | May 29, 2018 |
6.40%, US$4 Million, maturing May 29, 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 6.40% | 6.40% |
Debt | $ 4 | $ 4 |
Debt, maturity date | May 29, 2020 | May 29, 2020 |
9.32%, US$8 Million, maturing May 5, 2019 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 9.32% | 9.32% |
Debt | $ 8 | $ 8 |
Debt, maturity date | May 5, 2019 | May 5, 2019 |
5.29%, US$10 million, matured March 16, 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.29% | 5.29% |
Debt | $ 10 | $ 10 |
Debt, maturity date | March 16, 2017 | March 16, 2017 |
5.85%, US$10 Million, maturing March 16, 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.85% | 5.85% |
Debt | $ 10 | $ 10 |
Debt, maturity date | March 16, 2020 | March 16, 2020 |
4.17%, US$6 million, matured December 2, 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.17% | 4.17% |
Debt | $ 6 | $ 6 |
Debt, maturity date | December 2, 2017 | December 2, 2017 |
4.88%, US$13 Million, maturing December 2, 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.88% | 4.88% |
Debt | $ 13 | $ 13 |
Debt, maturity date | December 2, 2020 | December 2, 2020 |
4.98%, US$6 Million, maturing December 2, 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.98% | 4.98% |
Debt | $ 6 | $ 6 |
Debt, maturity date | December 2, 2022 | December 2, 2022 |
5.23%, US$2 Million, maturing December 2, 2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.23% | 5.23% |
Debt | $ 2 | $ 2 |
Debt, maturity date | December 2, 2025 | December 2, 2025 |
4.79%, US$12 Million, maturing November 30, 2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.79% | 4.79% |
Debt | $ 12 | $ 12 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Detail) CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017CAD | Dec. 31, 2016CAD | Dec. 31, 2015 | |
Disclosure of detailed information about borrowings [line items] | |||
Repayment of senior notes | CAD 26 | CAD 185 | |
Prepayment of senior notes under asset disposition proceeds | CAD 1,075 | ||
Percentage of long-term debt instruments exposed to changes in short-term interest rates | 70.00% | 70.00% | |
Letters of credit outstanding | CAD 14 | CAD 16 | |
Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Senior debt to EBITDA ratio | 3 | ||
Syndicated credit facility [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt | 550 | ||
Available borrowing facilities | CAD 410 | ||
Debt, maturity date | May 17, 2018 | ||
Credit facilities term out period | 1 year | ||
Unused borrowings | CAD 157 |
Long-term debt - Estimated Fair
Long-term debt - Estimated Fair Values of Principal and Interest Obligations of Outstanding Senior Secured Notes (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | CAD 103 | CAD 134 |
2007 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 6 | 12 |
2008 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 36 | 38 |
2009 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 10 | 11 |
2010 Q1 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 12 | 25 |
2010 Q4 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 25 | 33 |
2011 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | CAD 14 | CAD 15 |
Long-term debt - Realized and U
Long-term debt - Realized and Unrealized Gain (Loss) on Foreign Exchange (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of foreign exchange rates [Line Items] | ||
Realized foreign exchange loss on debt maturities | CAD (6) | CAD (37) |
Realized foreign exchange loss on debt pre-payments | (191) | |
Unrealized foreign exchange gain | 11 | 312 |
Foreign exchange gain | CAD 5 | CAD 84 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Provisions [Line Items] | |||
Decommissioning liability | CAD 147 | CAD 182 | CAD 397 |
Office lease provision | 101 | 117 | |
Total | 248 | 299 | |
Current portion | 27 | 35 | |
Long-term portion | 221 | 264 | |
Total | CAD 248 | CAD 299 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017CADYears | Dec. 31, 2016CAD | Dec. 31, 2015CAD | |
Disclosure of provision matrix [line items] | |||
Decommissioning liability, inflation factor rate | 2.00% | 2.00% | |
Decommissioning liability, credit-adjusted rate | 6.50% | 6.50% | |
Decommissioning liability, expected useful life | Years | 50 | ||
Decommissioning liability | CAD 147 | CAD 182 | CAD 397 |
Office lease provision, credit-adjusted discount rate | 6.50% | 6.50% | |
Decommissioning liability on undiscounted uninflated basis [member] | |||
Disclosure of provision matrix [line items] | |||
Decommissioning liability | CAD 900 | CAD 1,100 |
Provisions - Summary of Changes
Provisions - Summary of Changes to Decommissioning Liability (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Provisions [Line Items] | ||
Balance, beginning of year | CAD 182 | CAD 397 |
Net liabilities disposed | (4) | (193) |
Acquisitions | 5 | |
Increase (decrease) due to changes in estimates | (3) | 37 |
Liabilities settled | (16) | (11) |
Transfers to liabilities for assets held for sale | (23) | (75) |
Accretion charges | 11 | 22 |
Balance, end of year | 147 | 182 |
Current portion | 10 | 20 |
Long-term portion | CAD 137 | CAD 162 |
Provisions - Summary of Chang62
Provisions - Summary of Changes to Decommissioning Liability (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Provisions [Line Items] | ||
Increase (decrease) in decommissioning liability due to change in discount rate | CAD 0 | CAD 75 |
Provisions - Summary of Chang63
Provisions - Summary of Changes to Office Lease Provision (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Provisions [Line Items] | ||
Balance, beginning of year | CAD 117 | |
Net additions | (7) | CAD 107 |
Increase due to changes in estimates | (1) | 12 |
Cash settlements | (16) | (4) |
Accretion charges | 8 | 2 |
Balance, end of year | 101 | 117 |
Current portion | 17 | 15 |
Long-term portion | CAD 84 | CAD 102 |
Risk management - Additional In
Risk management - Additional Information (Detail) € in Millions, £ in Millions, CAD in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2016CAD | Dec. 31, 2017CADMcfbbl | Dec. 31, 2017USD ($)Mcfbbl | Dec. 31, 2017GBP (£)Mcfbbl | Dec. 31, 2017EUR (€)Mcfbbl | Dec. 31, 2016USD ($) | |
Disclosure of risk management strategy [Line Items] | ||||||||
Pre-tax unrealized risk management, change in price per unit | Mcf | 0.10 | 0.10 | 0.10 | 0.10 | ||||
Pre-tax unrealized risk management, change in price, amount | CAD 1 | |||||||
Risk management, description | the Company may, from time to time, manage these risks through the use of swaps or other financial instruments up to a maximum of 50 percent of forecast sales volumes, net of royalties, for the balance of any current year plus one additional year forward and up to a maximum of 25 percent, net of royalties, for one additional year thereafter. Risk management limits included in Obsidian Energy’s policies may be exceeded with specific approval from the Board of Directors. In November 2017, the Board approved the Company to hedge up to a maximum of 75 percent of forecast sales volumes on natural gas and up to a maximum of 67 percent of forecast sales volumes on crude, both net of royalties for the 2018 calendar year. | the Company may, from time to time, manage these risks through the use of swaps or other financial instruments up to a maximum of 50 percent of forecast sales volumes, net of royalties, for the balance of any current year plus one additional year forward and up to a maximum of 25 percent, net of royalties, for one additional year thereafter. Risk management limits included in Obsidian Energy’s policies may be exceeded with specific approval from the Board of Directors. In November 2017, the Board approved the Company to hedge up to a maximum of 75 percent of forecast sales volumes on natural gas and up to a maximum of 67 percent of forecast sales volumes on crude, both net of royalties for the 2018 calendar year. | ||||||
Maximum exposure to credit risk | CAD 130 | 117 | ||||||
Accounts receivable, carrying value | 122 | 106 | ||||||
Derivative financial assets, fair value | CAD 8 | 11 | ||||||
Percentage of long term debt instruments exposed to changes in short term interest rates | 70.00% | 70.00% | 70.00% | |||||
Fixed interest rate debt instruments outstanding | CAD 140 | CAD 106 | ||||||
Fixed interest rate debt instruments average remaining term | 2 years 3 months 19 days | 2 years 3 months 19 days | 2 years 8 months 12 days | |||||
Average interest rate | 6.30% | 6.00% | 6.00% | 6.00% | 6.00% | 6.30% | ||
Electricity swaps [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Notional value | CAD 0 | |||||||
Realized loss on electricity contracts included in operating expenses | CAD 7 | |||||||
Cross Currency Swap [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Notional value | £ 5 | € 10 | ||||||
Proceeds from cross currency swaps | £ 0 | € 0 | ||||||
Foreign exchange forwards on senior notes [member] | Matured Foreign Exchange Contracts [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Notional value | $ | $ 25 | |||||||
Foreign exchange forwards on senior notes [member] | Monetization of foreign exchange contracts [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Notional value | $ | $ 115 | |||||||
Natural gas [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Pre-tax unrealized risk management, change in price per unit | bbl | 1 | 1 | 1 | 1 | ||||
Pre-tax unrealized risk management, change in price, amount | CAD 7 | |||||||
Senior notes [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Senior notes | 140 | 106 | ||||||
Senior notes [member] | At fair value [member] | ||||||||
Disclosure of risk management strategy [Line Items] | ||||||||
Senior notes | CAD 134 | CAD 103 |
Risk management - Summary of Re
Risk management - Summary of Reconcilation of Change in Fair Value of Financial Instruments Outstanding (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Total fair value consists of the following: | ||
Current asset portion | CAD 11 | CAD 8 |
Current liability portion | (55) | (26) |
Non-current liability portion | (6) | (25) |
At fair value [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Balance, beginning of year | (43) | 104 |
Unrealized gain (loss) on financial instruments: | ||
Commodity collars, swaps and assignments | (7) | (74) |
Electricity swaps | 4 | |
Foreign exchange forwards | (6) | (43) |
Cross currency swaps | 6 | (34) |
Total fair value, end of year | (50) | (43) |
Total fair value consists of the following: | ||
Current asset portion | 11 | 8 |
Current liability portion | (55) | (26) |
Non-current asset portion | 0 | 0 |
Non-current liability portion | (6) | (25) |
Total fair value, end of year | CAD (50) | CAD (43) |
Risk management - Schedule of F
Risk management - Schedule of Financial Instruments Outstanding (Detail) - 12 months ended Dec. 31, 2017 € in Millions, £ in Millions, CAD in Millions | CADMcfbblCAD_per_GBPCAD_per_EURbbl_per_DUSD_per_bblCAD_perUSD | GBP (£)McfbblCAD_per_GBPCAD_per_EURbbl_per_DUSD_per_bblCAD_perUSD | EUR (€)McfbblCAD_per_GBPCAD_per_EURbbl_per_DUSD_per_bblCAD_perUSD |
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | CAD | CAD (50) | ||
W T I swaps [member] | Apr/19 - Jun/19 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | bbl_per_D | 1,000 | 1,000 | 1,000 |
Financial instruments, remaining term, description | Apr/19 - Jun/19 | ||
Financial instruments, benchmark pricing per unit | USD_per_bbl | 57.70 | 57.70 | 57.70 |
Foreign exchange forward contracts on revenue [member] | FX Collar USD [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Exchange rate on collar | CAD_perUSD | 1.21 | 1.21 | 1.21 |
Foreign exchange forward contracts on revenue [member] | FX Collar CAD [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign exchange collar rate | CAD_perUSD | 1.272 | 1.272 | 1.272 |
Foreign exchange forward contracts on revenue [member] | FX swap [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 24 | 24 | 24 |
Financial instruments, remaining term, description | 2,018 | ||
Foreign exchange forward rate | CAD_perUSD | 1.2768 | 1.2768 | 1.2768 |
Foreign exchange forward contracts on revenue [member] | FX swap1[member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 24 | 24 | 24 |
Financial instruments, remaining term, description | 2,018 | ||
Foreign exchange forward rate | CAD_perUSD | 1.2500 | 1.2500 | 1.2500 |
Foreign exchange forward contracts on revenue [member] | FX swap 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 24 | 24 | 24 |
Financial instruments, remaining term, description | 2,018 | ||
Foreign exchange forward rate | CAD_perUSD | 1.2568 | 1.2568 | 1.2568 |
Foreign exchange forward contracts on revenue [member] | FX Swap 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 24 | 24 | 24 |
Financial instruments, remaining term, description | 2,018 | ||
Foreign exchange forward rate | CAD_perUSD | 1.2803 | 1.2803 | 1.2803 |
Foreign exchange forward contracts on revenue [member] | FX swap 4 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 12 | 12 | 12 |
Financial instruments, remaining term, description | 2,018 | ||
Foreign exchange forward rate | CAD_perUSD | 1.2840 | 1.2840 | 1.2840 |
Foreign exchange forward contracts on revenue [member] | FX collar [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 24 | 24 | 24 |
Financial instruments, remaining term, description | 2,018 | ||
Foreign exchange forward contracts on revenue [member] | FX swap [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | CAD | CAD 1 | ||
Foreign exchange forward contracts on revenue [member] | FX Swap 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | CAD | CAD 1 | ||
Cross currency swaps [member] | 6.95 % swaps [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional value | £ | £ 57 | ||
Financial instruments, remaining term, description | 2,018 | ||
Financial instruments, currency exchange pricing per unit | CAD_per_GBP | 2.0075 | 2.0075 | 2.0075 |
Financial liabilities, at fair value | CAD | CAD (18) | ||
Cross currency swaps [member] | 6.95 % swaps one [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional value | £ | £ (57) | ||
Financial instruments, remaining term, description | 2,018 | ||
Financial instruments, currency exchange pricing per unit | CAD_per_GBP | 1.7049 | 1.7049 | 1.7049 |
Cross currency swaps [member] | 9.15% swaps [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional value | £ | £ 5 | ||
Financial instruments, remaining term, description | 2,019 | ||
Financial instruments, currency exchange pricing per unit | CAD_per_GBP | 1.8051 | 1.8051 | 1.8051 |
Cross currency swaps [member] | 9.22% swaps [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional value | € | € 10 | ||
Financial instruments, remaining term, description | 2,019 | ||
Financial instruments, currency exchange pricing per unit | CAD_per_EUR | 1.587 | 1.587 | 1.587 |
Natural gas [member] | A E C O swaps [member] | Jan/18 - Mar/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 1,900 | 1,900 | 1,900 |
Financial instruments, remaining term, description | Jan/18 - Mar/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 3.19 | 3.19 | 3.19 |
Natural gas [member] | A E C O swaps [member] | Jan/18 - Jun/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 1,900 | 1,900 | 1,900 |
Financial instruments, remaining term, description | Jan/18 - Jun/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 2.91 | 2.91 | 2.91 |
Natural gas [member] | A E C O swaps [member] | Jul/17 -Sep/17 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 1,900 | 1,900 | 1,900 |
Financial instruments, remaining term, description | Jan/18 - Sep/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 2.69 | 2.69 | 2.69 |
Financial liabilities, at fair value | CAD | CAD 1 | ||
Natural gas [member] | A E C O swaps [member] | Jan/17 -Mar/17 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 3,800 | 3,800 | 3,800 |
Financial instruments, remaining term, description | Jan/18 - Mar/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 3.33 | 3.33 | 3.33 |
Natural gas [member] | A E C O swaps [member] | Jan/18 - Jun/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 3,800 | 3,800 | 3,800 |
Financial instruments, remaining term, description | Jan/18 - Jun/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 2.84 | 2.84 | 2.84 |
Financial liabilities, at fair value | CAD | CAD 1 | ||
Natural gas [member] | A E C O swaps [member] | Jan/18 - Dec/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 15,200 | 15,200 | 15,200 |
Financial instruments, remaining term, description | Jan/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 2.67 | 2.67 | 2.67 |
Financial liabilities, at fair value | CAD | CAD 6 | ||
Natural gas [member] | Ventura [member] | Jan/18 - Dec/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | Mcf | 7,500 | 7,500 | 7,500 |
Financial instruments, remaining term, description | Jan/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | Mcf | 2.79 | 2.79 | 2.79 |
Crude oil [member] | W T I swaps [member] | Jan/18 - Mar/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 6,000 | 6,000 | 6,000 |
Financial instruments, remaining term, description | Jan/18 - Mar/18 | ||
Financial instruments, benchmark pricing per unit | 51.07 | 51.07 | 51.07 |
Financial liabilities, at fair value | CAD | CAD (6) | ||
Crude oil [member] | W T I swaps [member] | Jan/18 - Jun/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 1,000 | 1,000 | 1,000 |
Financial instruments, remaining term, description | Jan/18 - Jun/18 | ||
Financial instruments, benchmark pricing per unit | 71 | 71 | 71 |
Financial liabilities, at fair value | CAD | CAD (1) | ||
Crude oil [member] | W T I swaps [member] | Jan/18 - Dec/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 4,000 | 4,000 | 4,000 |
Financial instruments, remaining term, description | Jan/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | 71.04 | 71.04 | 71.04 |
Financial liabilities, at fair value | CAD | CAD (5) | ||
Crude oil [member] | W T I swaps [member] | Apr/17 - Jun/17 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 2,000 | 2,000 | 2,000 |
Financial instruments, remaining term, description | Jul/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | 50.09 | 50.09 | 50.09 |
Financial liabilities, at fair value | CAD | CAD (4) | ||
Crude oil [member] | W T I swaps [member] | Apr/18 - Jun/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 4,000 | 4,000 | 4,000 |
Financial instruments, remaining term, description | Apr/18 - Jun/18 | ||
Financial instruments, benchmark pricing per unit | 50.95 | 50.95 | 50.95 |
Financial liabilities, at fair value | CAD | CAD (4) | ||
Crude oil [member] | W T I swaps [member] | Jul/18 - Sep/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 2,000 | 2,000 | 2,000 |
Financial instruments, remaining term, description | Jul/18 - Sep/18 | ||
Financial instruments, benchmark pricing per unit | 51.90 | 51.90 | 51.90 |
Financial liabilities, at fair value | CAD | CAD (2) | ||
Crude oil [member] | W T I swaps [member] | Oct/18 - Dec/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 2,000 | 2,000 | 2,000 |
Financial instruments, remaining term, description | Oct/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | 50.81 | 50.81 | 50.81 |
Financial liabilities, at fair value | CAD | CAD (2) | ||
Crude oil [member] | W T I swaps [member] | Jan/18 - Dec/18 One [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 1,000 | 1,000 | 1,000 |
Financial instruments, remaining term, description | Jan/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | 49.35 | 49.35 | 49.35 |
Financial liabilities, at fair value | CAD | CAD (4) | ||
Crude oil [member] | W T I swaps [member] | Apr/18 - Dec/18 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 2,000 | 2,000 | 2,000 |
Financial instruments, remaining term, description | Apr/18 - Dec/18 | ||
Financial instruments, benchmark pricing per unit | 48.43 | 48.43 | 48.43 |
Financial liabilities, at fair value | CAD | CAD (7) | ||
Crude oil [member] | W T I swaps [member] | Jul/18 - Mar/19 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 1,000 | 1,000 | 1,000 |
Financial instruments, remaining term, description | Jul/18 - Mar/19 | ||
Financial instruments, benchmark pricing per unit | 50.20 | 50.20 | 50.20 |
Financial liabilities, at fair value | CAD | CAD (3) | ||
Crude oil [member] | W T I swaps [member] | Jab/19 - Mar/19 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 2,000 | 2,000 | 2,000 |
Financial instruments, remaining term, description | Jan/19 - Mar/19 | ||
Financial instruments, benchmark pricing per unit | 66.50 | 66.50 | 66.50 |
Financial liabilities, at fair value | CAD | CAD (1) | ||
Crude oil [member] | W T I swaps [member] | Remaining Term January Two Thousand Nineteen To March Two Thousand Nineteen One [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 2,000 | 2,000 | 2,000 |
Financial instruments, remaining term, description | Jan/19 - Mar/19 | ||
Financial instruments, benchmark pricing per unit | 49.93 | 49.93 | 49.93 |
Financial liabilities, at fair value | CAD | CAD (1) | ||
Crude oil [member] | W T I swaps [member] | Jan/19 - Jun/19 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 4,000 | 4,000 | 4,000 |
Financial instruments, remaining term, description | Jan/19 - Jun/19 | ||
Financial instruments, benchmark pricing per unit | 68.58 | 68.58 | 68.58 |
Financial liabilities, at fair value | CAD | CAD (2) | ||
Crude oil [member] | W T I swaps [member] | Apr/19 - Jun/19 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments, notional volume | 1,000 | 1,000 | 1,000 |
Financial instruments, remaining term, description | Apr/19 - Jun/19 | ||
Financial instruments, benchmark pricing per unit | 55.35 | 55.35 | 55.35 |
Risk management - Schedule of67
Risk management - Schedule of Financial Instruments Outstanding (Parenthetical) (Detail) - Cross currency swaps [member] | 12 Months Ended |
Dec. 31, 2017 | |
6.95 % swaps [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, pricing | 6.95% |
6.95 % swaps one [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, pricing | 6.95% |
9.15% swaps [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, pricing | 9.15% |
9.22% swaps [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, pricing | 9.22% |
Risk management - Schedule of C
Risk management - Schedule of Crude Oil Swaps and Foreign Exchange Contracts on Long-term Debt (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($)USD_per_CADbbl_per_DUSD_per_bbl | |
Apr/19 - Jun/19 [member] | W T I swaps [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, remaining term, description | Apr/19 - Jun/19 |
Financial instruments, benchmark pricing per unit | USD_per_bbl | 57.70 |
Financial instruments, notional | bbl_per_D | 1,000 |
Jul/19 - Sep/19 [member] | W T I swaps [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, remaining term, description | Jul/19 - Sep/19 |
Financial instruments, benchmark pricing per unit | USD_per_bbl | 57 |
Financial instruments, notional | bbl_per_D | 1,000 |
Jan/19 - May/19 [member] | Foreign exchange forwards on senior notes [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, remaining term, description | Jan/19 - May/19 |
Financial instruments, benchmark pricing per unit | USD_per_CAD | 1.2259 |
Notional value | $ | $ 5 |
Jan/19 - May/19 One [member] | Foreign exchange forwards on senior notes [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, remaining term, description | Jan/19 - May/19 |
Financial instruments, benchmark pricing per unit | USD_per_CAD | 1.2319 |
Notional value | $ | $ 5 |
Jan/19 - May/19 Two [member] | Foreign exchange forwards on senior notes [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, remaining term, description | Jan/19 - May/19 |
Financial instruments, benchmark pricing per unit | USD_per_CAD | 1.2400 |
Notional value | $ | $ 5 |
Risk management - Components of
Risk management - Components of Risk Management on Consolidated Statements of Loss (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Realized risk management gain (loss) | CAD 31 | CAD 136 |
Unrealized risk management gain (loss) | (7) | (147) |
Risk management gain (loss) | 24 | (11) |
Settlement of commodity contracts or assignment [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Realized risk management gain (loss) | 23 | 99 |
Monetization of commodity contracts [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Realized risk management gain (loss) | 2 | |
Settlement of foreign exchange contracts [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Realized risk management gain (loss) | 8 | 3 |
Monetization of foreign exchange contracts [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Realized risk management gain (loss) | 32 | |
Commodity contracts [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Unrealized risk management gain (loss) | (7) | (72) |
Electricity swaps [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Unrealized risk management gain (loss) | 4 | |
Crude oil assignment [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Unrealized risk management gain (loss) | (2) | |
Foreign exchange contracts [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Unrealized risk management gain (loss) | (6) | (43) |
Cross currency swaps [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Unrealized risk management gain (loss) | CAD 6 | CAD (34) |
Risk management - Summary of Es
Risk management - Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities (Detail) CAD in Millions | Dec. 31, 2017CAD |
2018 [member] | |
Disclosure of financial liabilities [line items] | |
Senior secured notes | CAD 31 |
Accounts payable & accrued liabilities | 148 |
Share-based compensation accrual | 2 |
Total | 181 |
2019 [member] | |
Disclosure of financial liabilities [line items] | |
Senior secured notes | 16 |
Share-based compensation accrual | 1 |
Total | 17 |
2020 [member] | |
Disclosure of financial liabilities [line items] | |
Senior secured notes | 34 |
Total | 34 |
2021 [member] | |
Disclosure of financial liabilities [line items] | |
Senior secured notes | 15 |
Total | 15 |
2022 [member] | |
Disclosure of financial liabilities [line items] | |
Senior secured notes | 7 |
Total | 7 |
Thereafter [member] | |
Disclosure of financial liabilities [line items] | |
Senior secured notes | 3 |
Total | CAD 3 |
Risk management - Summary of 71
Risk management - Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities (Parenthetical) (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Disclosure of financial liabilities [line items] | |
Accounts payable and accrued liabilities related to assets classified as held for sale | $ 1 |
Income taxes - Summary of Provi
Income taxes - Summary of Provision for Income Taxes (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure representing major components of tax expense income [Line Items] | ||
Deferred tax recovery | CAD (13) | CAD (252) |
Income taxes - Summary of Pro73
Income taxes - Summary of Provision for Income Taxes Reflects Effective Tax Rate (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure representing major components of tax expense income [Line Items] | ||
Loss before taxes | CAD (97) | CAD (948) |
Combined statutory tax rate | 27.00% | 27.00% |
Computed income tax recovery | CAD (26) | CAD (256) |
Increase (decrease) resulting from: | ||
Share-based compensation | 2 | 1 |
Non-taxable foreign exchange (gain) loss | (2) | (11) |
Unrecognized deferred tax asset | 5 | |
Adjustments related to prior years | 5 | 14 |
Other | 3 | |
Deferred tax recovery | CAD (13) | CAD (252) |
Income taxes - Summary of Net D
Income taxes - Summary of Net Deferred Income Tax Liability (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | CAD 14 | CAD 266 |
Provision (Recovery) in Income | (13) | (252) |
Recognized in Property, Plant and Equipment | (1) | |
Ending Balance | 14 | |
PP&E [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | 668 | 1,129 |
Provision (Recovery) in Income | (53) | (461) |
Recognized in Property, Plant and Equipment | (1) | |
Ending Balance | 614 | 668 |
Risk Management [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (40) | 12 |
Provision (Recovery) in Income | 5 | (52) |
Ending Balance | (35) | (40) |
Decommissioning liability [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (69) | (107) |
Provision (Recovery) in Income | 23 | 38 |
Ending Balance | (46) | (69) |
Share-based Compensation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (4) | (2) |
Provision (Recovery) in Income | 3 | (2) |
Ending Balance | (1) | (4) |
Non-capital Losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (541) | (766) |
Provision (Recovery) in Income | 9 | 225 |
Ending Balance | CAD (532) | CAD (541) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax pool | CAD 2,400 | CAD 2,400 |
Non-capital losses | 2,000 | 2,000 |
Non-capital losses for which deferred tax asset has not been recognozed | 17 | 0 |
Realized and unrealized net capital losses | CAD 586 | CAD 591 |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of authorized common shares | An unlimited number of Common Shares. | ||
Number of shares issued | 504,340,988 | 502,763,763 | 502,163,163 |
Preferred shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of authorized preferred shares | 90,000,000 | ||
Number of authorized common shares | Shares issuable in one or more series. | ||
Number of shares issued | 0 | ||
Number of shares outstanding | 0 |
Shareholders' equity - Summary
Shareholders' equity - Summary of Issued Capital (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [line items] | ||
Balance, beginning of year | CAD 8,997 | |
Issued on exercise of equity compensation plans | 8 | CAD 7 |
Balance, end of year | 2,181 | 8,997 |
Common shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Balance, beginning of year | 8,997 | 8,994 |
Issued on exercise of equity compensation plans | 4 | 3 |
Cancellation of dividend reinvestment plan | 0 | |
Elimination of deficit | (6,820) | |
Balance, end of year | CAD 2,181 | CAD 8,997 |
Balance, beginning of year | 502,763,763 | 502,163,163 |
Issued on exercise of equity compensation plans | 1,577,225 | 600,775 |
Cancellation of dividend reinvestment plan | (175) | |
Balance, end of year | 504,340,988 | 502,763,763 |
Shareholders' equity - Summar78
Shareholders' equity - Summary of Other Reserves (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reserves within equity [line items] | ||
Balance, beginning of year | CAD 97 | CAD 92 |
Share-based compensation expense | 8 | 7 |
Net benefit on options exercised | (9) | (2) |
Balance, end of year | CAD 96 | CAD 97 |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Share Units Plan (Detail) - Restricted share unit plan [member] CAD in Millions | 12 Months Ended | |
Dec. 31, 2017CAD | Dec. 31, 2016CAD | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of year | 10,199,595 | 6,325,954 |
Granted | 4,472,510 | 11,745,330 |
Vested | (3,935,186) | (2,353,989) |
Forfeited | (2,339,541) | (5,517,700) |
Outstanding, end of year | 8,397,378 | 10,199,595 |
Outstanding units - liability method | 730,297 | 2,314,805 |
Outstanding units - equity method | 7,667,081 | 7,884,790 |
Current liability (1) | CAD 1 | CAD 3 |
Non-current liability | CAD 1 |
Share-based compensation - Su80
Share-based compensation - Summary of Weighted Average Assumptions of RPSU Plan Units Under Equity Method (Detail) - Restricted share unit plan [member] - CAD / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average fair value of units granted (per unit) | CAD 2.11 | CAD 1.20 |
Expected life of units (years) | 3 Years | 3 Years |
Expected forfeiture rate | 7.80% | 18.40% |
Share-based compensation - Su81
Share-based compensation - Summary of Stock Option Activity and Related Information (Detail) | 12 Months Ended | |
Dec. 31, 2017CAD | Dec. 31, 2016CAD | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of Options Outstanding, end of year | 3,662,575 | |
Number of Options Exercisable, end of year | 1,980,876 | |
Weighted Average Exercise Price, Outstanding, end of year | CAD 4.60 | |
Weighted Average Exercise Price, Exercisable, end of year | CAD 6.50 | |
Options [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of Options Outstanding, beginning of year | 7,612,625 | 10,595,728 |
Number of Options, Granted | 3,557,250 | |
Number of Options, Exercised | (1,577,225) | (600,775) |
Number of Options, Forfeited | (2,372,825) | (5,939,578) |
Number of Options Outstanding, end of year | 3,662,575 | 7,612,625 |
Number of Options Exercisable, end of year | 1,980,876 | 2,804,426 |
Weighted Average Exercise Price Outstanding, beginning of year | CAD 6.01 | CAD 10.21 |
Weighted Average Exercise Price, Granted | 1.20 | |
Weighted Average Exercise Price, Exercised | 1.44 | 1.53 |
Weighted Average Exercise Price, Forfeited | 11.22 | 11.08 |
Weighted Average Exercise Price, Outstanding, end of year | 4.60 | 6.01 |
Weighted Average Exercise Price, Exercisable, end of year | CAD 6.50 | CAD 11.10 |
Share-based compensation - Su82
Share-based compensation - Summary of Options Outstanding and Exercisable (Detail) | Dec. 31, 2017CAD |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of Options Outstanding | 3,662,575 |
Options Outstanding, Weighted Average Exercise Price | CAD 4.60 |
Options Outstanding, Weighted Remaining Contractual Life(years) | 0 |
Number of Options Exercisable | 1,980,876 |
Options Exercisable, Weighted Average Exercise Price | CAD 6.50 |
$1.00-$1.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of Options Outstanding | 2,005,425 |
Options Outstanding, Weighted Average Exercise Price | CAD 1.42 |
Options Outstanding, Weighted Remaining Contractual Life(years) | 0 |
Number of Options Exercisable | 631,238 |
Options Exercisable, Weighted Average Exercise Price | CAD 1.53 |
$2.00-$9.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of Options Outstanding | 1,058,950 |
Options Outstanding, Weighted Average Exercise Price | CAD 7.44 |
Options Outstanding, Weighted Remaining Contractual Life(years) | 0 |
Number of Options Exercisable | 751,438 |
Options Exercisable, Weighted Average Exercise Price | CAD 7.66 |
$10.00-$21.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of Options Outstanding | 598,200 |
Options Outstanding, Weighted Average Exercise Price | CAD 10.30 |
Options Outstanding, Weighted Remaining Contractual Life(years) | 0 |
Number of Options Exercisable | 598,200 |
Options Exercisable, Weighted Average Exercise Price | CAD 10.30 |
Bottom of range [member] | $1.00-$1.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Range of Grant Prices | 1 |
Bottom of range [member] | $2.00-$9.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Range of Grant Prices | 2 |
Bottom of range [member] | $10.00-$21.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Range of Grant Prices | 10 |
Top of range [member] | $1.00-$1.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Range of Grant Prices | 1.99 |
Top of range [member] | $2.00-$9.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Range of Grant Prices | 9.99 |
Top of range [member] | $10.00-$21.99 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Range of Grant Prices | CAD 21.99 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017CAD | Dec. 31, 2016CAD | |
Disclosure of classes of share capital [line items] | ||
Weighted average share price | CAD 1.56 | CAD 2.37 |
Employer contributions to employee retirement savings plan percentage of employee contribution | 150.00% | |
Percentage of employees contribution | 10.00% | |
2019 [member] | ||
Disclosure of classes of share capital [line items] | ||
Employer contributions to employee retirement savings plan percentage of employee contribution | 125.00% | |
After year two [member] | ||
Disclosure of classes of share capital [line items] | ||
Employer contributions to employee retirement savings plan percentage of employee contribution | 100.00% | |
Deferred share unit [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of options outstanding, | 640,705 | 745,851 |
Current liability | CAD 1,000,000 | CAD 2,000,000 |
Share-based compensation - Su84
Share-based compensation - Summary of Performance Share Unit Plan (Detail) - PSU Plan [member] CAD in Millions | 12 Months Ended | |
Dec. 31, 2017CAD | Dec. 31, 2016CAD | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of year | 1,855,500 | 1,622,881 |
Granted | 569,000 | 2,516,000 |
Vested | (638,750) | (199,843) |
Forfeited | (246,750) | (2,083,538) |
Outstanding, end of year | 1,539,000 | 1,855,500 |
Non-current liability | CAD 1 | CAD 2 |
Share-based compensation - Su85
Share-based compensation - Summary of Share-Based Compensation (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | CAD 8 | CAD 12 |
Options [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 1 | 1 |
PSU Plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 1 | 1 |
DSU Plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 1 | |
RPSU Plan - equity method [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 7 | 6 |
RPSU Plan - liability method [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | CAD (1) | CAD 3 |
Per share amounts - Disclosure
Per share amounts - Disclosure of Detailed Information about Net Loss Basic and Diluted (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [line items] | ||
Net loss - basic and diluted | CAD (84) | CAD (696) |
Per share amounts - Disclosur87
Per share amounts - Disclosure of Detailed Information about Weighted Average Number of Shares Per Share (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [line items] | ||
Basic and Diluted | 503.9 | 502.3 |
Per share amounts - Additional
Per share amounts - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [line items] | ||
Anti-dilutive securities issued under option plan | 3.7 | 7.6 |
Changes in non-cash working cap
Changes in non-cash working capital (increase) decrease - Summary of Changes in Non-cash Working Capital (Increase) Decrease (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Increase Decrease In Non-cash Working Capital [Line Items] | ||
Accounts receivable | CAD 12 | CAD 32 |
Other current assets | 23 | |
Deferred funding obligation | 25 | 16 |
Accounts payable and accrued liabilities | (35) | (191) |
Net changes in non cash working capital | 2 | (120) |
Operating activities | 5 | (97) |
Investing activities | (3) | (23) |
Net changes in non cash working capital | 2 | (120) |
Interest paid | 23 | 124 |
Income taxes recovered | CAD 0 | CAD 0 |
Changes in non-cash working c90
Changes in non-cash working capital (increase) decrease - Summary of Changes in Non-cash Working Capital (Increase) Decrease (Parenthetical) (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Increase Decrease In Non-cash Working Capital [Line Items] | ||
Accounts receivable | CAD 105 | CAD 113 |
Other current assets | 18 | 18 |
Accounts payable and accrued liabilities | 149 | 175 |
Current assets held for sale [member] | ||
Disclosure of Increase Decrease In Non-cash Working Capital [Line Items] | ||
Accounts receivable | 1 | 9 |
Other current assets | 0 | 1 |
Accounts payable and accrued liabilities | CAD 1 | CAD 6 |
Capital management - Summary of
Capital management - Summary of Financial Covenants Under Lending Agreements (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of capital | |||
Shareholders' equity | CAD 2,166 | CAD 2,247 | CAD 2,935 |
Long-term debt | 359 | 469 | |
Ratios | |||
Long-term debt | CAD 359 | CAD 469 | |
Senior debt to EBITDA | 1.9 | 2 | |
Total debt to EBITDA | 1.9 | 2 | |
Senior debt to capitalization | 15.00% | 17.00% | |
Total debt to capitalization | 15.00% | 17.00% | |
Priority debt to consolidated tangible assets | 0.00% | 0.00% | |
EBITDA | CAD 194 | CAD 235 | |
Total shareholders' equity | 2,166 | 2,247 | CAD 2,935 |
Total capitalization | 2,535 | 2,722 | |
Credit facility debt and senior notes [member] | |||
Components of capital | |||
Long-term debt | 359 | 469 | |
Ratios | |||
Long-term debt | 359 | 469 | |
Letters of credit [member] | |||
Components of capital | |||
Long-term debt | 10 | 6 | |
Ratios | |||
Long-term debt | 10 | 6 | |
Senior debt and total debt [member] | |||
Components of capital | |||
Long-term debt | 369 | 475 | |
Ratios | |||
Long-term debt | CAD 369 | CAD 475 |
Capital management - Summary 92
Capital management - Summary of Financial Covenants Under Lending Agreements (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of objectives, policies and processes for managing capital [line items] | ||
Senior debt to EBITDA | 1.9 | 2 |
Total debt to EBITDA | 1.9 | 2 |
Maximum senior debt to capitalization | 50.00% | |
Maximum total debt to capitalization | 55.00% | |
Maximum priority debt to consolidated tangible assets | 15.00% | |
Top of range [member] | ||
Disclosure of objectives, policies and processes for managing capital [line items] | ||
Senior debt to EBITDA | 3 | |
Total debt to EBITDA | 4 |
Commitments and contingencies -
Commitments and contingencies - Summary of Certain Payments Over the Next Five Years (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | CAD 359 | CAD 469 |
Transportation | 57 | |
Power infrastructure | 10 | |
Interest obligations | 22 | |
Office lease | 243 | |
Decommissioning liability | 147 | |
Total | 838 | |
2018 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 31 | |
Transportation | 12 | |
Power infrastructure | 8 | |
Interest obligations | 12 | |
Office lease | 34 | |
Decommissioning liability | 10 | |
Total | 107 | |
2019 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 269 | |
Transportation | 10 | |
Power infrastructure | 2 | |
Interest obligations | 6 | |
Office lease | 34 | |
Decommissioning liability | 10 | |
Total | 331 | |
2020 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 34 | |
Transportation | 9 | |
Interest obligations | 2 | |
Office lease | 34 | |
Decommissioning liability | 10 | |
Total | 89 | |
2021 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 15 | |
Transportation | 7 | |
Interest obligations | 1 | |
Office lease | 34 | |
Decommissioning liability | 10 | |
Total | 67 | |
2022 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 7 | |
Transportation | 5 | |
Interest obligations | 1 | |
Office lease | 34 | |
Decommissioning liability | 10 | |
Total | 57 | |
Thereafter [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 3 | |
Transportation | 14 | |
Office lease | 73 | |
Decommissioning liability | 97 | |
Total | CAD 187 |
Commitments and contingencies94
Commitments and contingencies - Summary of Certain Payments Over the Next Five Years (Parenthetical) (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | CAD 359 | CAD 469 |
2019 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 269 | |
Bankers acceptances and prime rate loans [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | 253 | CAD 329 |
Bankers acceptances and prime rate loans [member] | 2019 [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Long-term debt | CAD 253 |
Commitments and contingencies95
Commitments and contingencies - Additional Information (Detail) CAD in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Dec. 31, 2016CAD | |
Disclosure of commitments and contingencies [Line Items] | |||
Amount of outstanding funds | CAD 359 | CAD 469 | |
Sublease recoveries | 101 | ||
Lease costs, net of recoveries | 19 | ||
Payment in respect of settlement agreements | $ | $ 8.5 | ||
Senior notes [member] | |||
Disclosure of commitments and contingencies [Line Items] | |||
Amount of outstanding funds | CAD 106 | ||
Senior notes, maturity | Maturing between 2018 and 2025 |
Related-party transactions - Su
Related-party transactions - Summary of Compensation of Key Management Personnel (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | ||
Salary and employee benefits | CAD 3 | CAD 2 |
Termination benefits | 2 | 2 |
Share-based payments | 3 | 2 |
Key Management Personnel Compensation | CAD 8 | CAD 6 |
Supplemental Items - Additional
Supplemental Items - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating expense [member] | ||
Supplemental Information [Line Items] | ||
Employee compensation costs | CAD 14 | CAD 36 |
General and administrative expense [member] | ||
Supplemental Information [Line Items] | ||
Employee compensation costs | CAD 30 | CAD 44 |
Supplementary Oil and Gas Inf98
Supplementary Oil and Gas Information - (Unaudited) - Net Proved Oil and Natural Gas Reserves (Detail) | 12 Months Ended | |
Dec. 31, 2017MMBblsBcf | Dec. 31, 2016MMBblsBcf | |
Light and medium crude oil [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 43 | 83 |
Extensions & Discoveries | 2 | |
Improved Recovery & Infill Drilling | 1 | |
Technical Revisions | 5 | (1) |
Dispositions | (7) | (32) |
Production | (4) | (8) |
Change for the year | (3) | (41) |
Ending balance | 41 | 43 |
Developed | 32 | 37 |
Undeveloped | 9 | 6 |
Heavy crude oil and bitumen [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 7 | 24 |
Improved Recovery & Infill Drilling | 1 | 1 |
Technical Revisions | 1 | 1 |
Dispositions | (16) | |
Production | (2) | (3) |
Change for the year | (17) | |
Ending balance | 7 | 7 |
Developed | 5 | 6 |
Undeveloped | 1 | 1 |
Natural gas [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | Bcf | 164 | 230 |
Extensions & Discoveries | Bcf | 14 | |
Improved Recovery & Infill Drilling | Bcf | 2 | |
Technical Revisions | Bcf | 60 | 13 |
Acquisitions | Bcf | 14 | |
Dispositions | Bcf | (76) | (49) |
Production | Bcf | (26) | (44) |
Change for the year | Bcf | (26) | (66) |
Ending balance | Bcf | 138 | 164 |
Developed | Bcf | 119 | 152 |
Undeveloped | Bcf | 20 | 12 |
Natural gas liquids [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 4 | 7 |
Extensions & Discoveries | 1 | |
Technical Revisions | 3 | |
Dispositions | (1) | (2) |
Production | (1) | (1) |
Change for the year | 2 | (3) |
Ending balance | 5 | 4 |
Developed | 4 | 4 |
Undeveloped | 1 | |
Barrels of oil equivalent [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 81 | 153 |
Extensions & Discoveries | 5 | |
Improved Recovery & Infill Drilling | 3 | 2 |
Technical Revisions | 19 | 3 |
Acquisitions | 2 | |
Dispositions | (21) | (58) |
Production | (12) | (20) |
Change for the year | (6) | (71) |
Ending balance | 76 | 81 |
Developed | 62 | 72 |
Undeveloped | 14 | 9 |
Supplementary Oil and Gas Inf99
Supplementary Oil and Gas Information - (Unaudited) - Capitalized Costs (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Proved oil and gas properties | CAD 10,636 | CAD 10,648 |
Unproved oil and gas properties | 0 | 0 |
Total capitalized costs | 10,636 | 10,648 |
Accumulated depletion and depreciation | (7,817) | (7,666) |
Net capitalized costs | CAD 2,819 | CAD 2,982 |
Supplementary Oil and Gas In100
Supplementary Oil and Gas Information - (Unaudited) - Costs Incurred (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved oil and gas properties - acquisitions | CAD 6 | |
Proved oil and gas properties - dispositions | (116) | CAD (1,418) |
Unproved oil and gas properties | 3 | 2 |
Exploration costs | 2 | 4 |
Development costs | 184 | 114 |
Joint venture, carried capital | (50) | (40) |
Capital expenditures | 29 | (1,338) |
Corporate acquisitions | 3 | |
Total expenditures | CAD 29 | CAD (1,335) |
Supplementary Oil and Gas In101
Supplementary Oil and Gas Information - (Unaudited) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |
Discounted future net cash flows, annual discount factor | 10.00% |
Supplementary Oil and Gas In102
Supplementary Oil and Gas Information - (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Future cash inflows | CAD 3,384 | CAD 2,885 | |
Future production costs | (1,625) | (1,545) | |
Future development costs | (302) | (223) | |
Undiscounted pre-tax cash flows | 1,457 | 1,117 | |
Deferred income taxes | 0 | 0 | |
Future net cash flows | 1,457 | 1,117 | |
Less 10% annual discount factor | (661) | (486) | |
Standardized measure of discounted future net cash flows | CAD 796 | CAD 631 | CAD 1,307 |
Supplementary Oil and Gas In103
Supplementary Oil and Gas Information - (Unaudited) - Standardized Measure of Discounted Future Net Cash Flow Changes (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||
Standardized measure of discounted future net cash flows at beginning of year | CAD 631 | CAD 1,307 |
Oil and gas sales during period net of production costs and royalties | (213) | (336) |
Changes due to prices | 481 | (449) |
Development costs during the period | 141 | 83 |
Changes in forecast development costs | (202) | 5 |
Changes resulting from extensions, infills and improved recovery | 73 | 27 |
Changes resulting from discoveries | 1 | |
Changes resulting from acquisitions of reserves | 8 | |
Changes resulting from dispositions of reserves | (71) | (578) |
Accretion of discount | 63 | 131 |
Net change in income tax | 0 | 0 |
Changes resulting from other changes and technical reserves revisions plus effects on timing | (109) | 433 |
Standardized measure of discounted future net cash flows at end of year | CAD 796 | CAD 631 |