Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Trading Symbol | OBE |
Entity Registrant Name | OBSIDIAN ENERGY LTD. |
Entity Central Index Key | 0001334388 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Common Stock |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Common Stock, Shares Outstanding | 73,516,225 |
ICFR Auditor Attestation Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Cash | $ 8.1 | $ 1 |
Restricted cash | 0 | 2.4 |
Accounts receivable | 40.8 | 61.7 |
Risk management | 0.8 | 0.4 |
Prepaid expenses and other | 9.2 | 12.3 |
Lease receivable | 0 | 8.8 |
Assets held for sale | 0 | 82.9 |
Total current assets | 58.9 | 169.5 |
Non-current | ||
Lease receivable | 0 | 30.7 |
Property, plant and equipment | 905.2 | 1,704.6 |
Total non-current assets | 905.2 | 1,735.3 |
Total assets | 964.1 | 1,904.8 |
Current | ||
Accounts payable and accrued liabilities | 74.1 | 111 |
Current portion of long-term debt | 451.8 | 434.2 |
Current portion of lease liabilities | 4.8 | 28.8 |
Current portion of provisions | 16.3 | 16.2 |
Risk management | 0.6 | 1 |
Liabilities related to assets held for sale | 0 | 13 |
Total current liabilities | 547.6 | 604.2 |
Non-current | ||
Long-term debt | 0 | 26.3 |
Lease liabilities | 5.6 | 85 |
Provisions | 87.7 | 96.6 |
Other non-current liabilities | 0.1 | |
Total liabilities | 641 | 812.1 |
Shareholders' equity | ||
Shareholders' capital | 2,187 | 2,186.7 |
Other reserves | 103.6 | 101.8 |
Deficit | (1,967.5) | (1,195.8) |
Total shareholders' equity | 323.1 | 1,092.7 |
Total liabilities and shareholders' equity | $ 964.1 | $ 1,904.8 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement [LineItems] | ||
Production revenues | $ 275.4 | $ 409.3 |
Processing fees | 6.3 | 7.7 |
Royalties | (13.7) | (30.6) |
Sales of commodities purchased from third parties | 4.8 | 2.9 |
Gross Revenue | 272.8 | 389.3 |
Other income | 13 | 8.5 |
Government decommissioning assistance | 2.2 | |
Risk management gain (loss) | 21.7 | (15.8) |
Total revenue | 309.7 | 382 |
Expenses | ||
Operating | 115.4 | 145.4 |
Transportation | 17.7 | 27.1 |
Commodities purchased from third parties | 4.6 | 3.3 |
General and administrative | 13.9 | 20 |
Restructuring | 0.6 | 3.6 |
Share-based compensation | 3.4 | 4.6 |
Depletion, depreciation, impairment and accretion | 902.9 | 913 |
Loss on dispositions | 0 | 1.2 |
Provisions | (22.6) | (8.8) |
Foreign exchange gain | (1.4) | (3.2) |
Financing | 37.2 | 40.6 |
Transaction Costs | 3.5 | |
Other | 6.2 | 23.5 |
Total expenses | 1,081.4 | 1,170.3 |
Loss before taxes | (771.7) | (788.3) |
Deferred tax recovery | 0 | 0 |
Net and comprehensive loss | $ (771.7) | $ (788.3) |
Net loss per share | ||
Basic | $ (10.53) | $ (10.82) |
Diluted | $ (10.53) | $ (10.82) |
Weighted average shares outstanding (millions) | ||
Basic | 73.3 | 72.9 |
Diluted | 73.3 | 72.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net income (loss) | $ (771.7) | $ (788.3) |
Government decommissioning assistance | (2.2) | |
Other income | (0.3) | (2.5) |
Depletion, depreciation, impairment and accretion | 902.9 | 913 |
Loss on dispositions | 0 | 1.2 |
Provisions | (22.6) | (8.8) |
Financing | 1.5 | 7.5 |
Share-based compensation | 2.1 | 4.5 |
Unrealized risk management loss (gain) | (0.8) | 8.6 |
Unrealized foreign exchange gain | (1.4) | (5.8) |
Other | 2.1 | 3.6 |
Decommissioning expenditures | (11.1) | (14.4) |
Onerous office lease settlements | (9.7) | (2.2) |
Deferred financing costs | 2.8 | |
Financing Fees Paid | (5.6) | |
Change in non-cash working capital | (6.6) | (39.6) |
Cash flows from (used in) operating activities | 79.4 | 76.8 |
Investing activities | ||
Capital expenditures | (57.2) | (103.2) |
Property dispositions, net | 0.1 | 10.7 |
Change in non-cash working capital | (9.1) | (8.6) |
Cash flows from (used in) investing activities | (66.2) | (101.1) |
Financing activities | ||
Lease receivable receipts | 2.2 | 9.1 |
Lease liabilities settlements | (6.3) | (29.9) |
Increase (decrease) in long-term debt | (4) | 62 |
Repayments of senior notes | 0 | (16.9) |
Realized foreign exchange loss on repayments | 0 | 2.6 |
Cash flows from (used in) financing activities | (8.1) | 26.9 |
Change in cash and cash equivalents | 5.1 | 2.6 |
Cash and cash equivalents, beginning of year | 3 | 0.4 |
Cash and cash equivalents, end of year | $ 8.1 | $ 3 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - CAD ($) $ in Millions | Total | Shareholders' Capital [member] | Other Reserves [member] | Deficit [member] |
Beginning balance at Dec. 31, 2018 | $ 1,876.5 | $ 2,184.9 | $ 99.1 | $ (407.5) |
Statement [LineItems] | ||||
Net and comprehensive loss | (788.3) | (788.3) | ||
Share-based compensation | 4.5 | 4.5 | ||
IIssued on exercise of equity compensation plans | 1.8 | (1.8) | ||
Ending balance at Dec. 31, 2019 | 1,092.7 | 2,186.7 | 101.8 | (1,195.8) |
Statement [LineItems] | ||||
Net and comprehensive loss | (771.7) | 0 | 0 | (771.7) |
Share-based compensation | 2.1 | 0 | 2.1 | 0 |
IIssued on exercise of equity compensation plans | 0 | 0.3 | (0.3) | 0 |
Ending balance at Dec. 31, 2020 | $ 323.1 | $ 2,187 | $ 103.6 | $ (1,967.5) |
Structure of Obsidian Energy
Structure of Obsidian Energy | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Structure of Obsidian Energy | 1. Structure of Obsidian Energy Obsidian Energy Ltd. (“Obsidian Energy”, the “Company”, “we”, “us” or “our”) 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 our financial performance at the enterprise level and resource allocation decisions are made on a project basis across our portfolio of assets, without regard to the geographic location of projects . |
Basis of presentation and state
Basis of presentation and statement of compliance | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Basis of presentation and statement of compliance | 2. Basis of presentation and statement of compliance a) 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. Additionally, within these financial statements the Company has updated the presentation of our financial figures to disclose dollar figures rounded to the nearest hundred thousand. This may result in immaterial differences in the comparative figures. b) 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. These annual consolidated financial statements of the Company for the year ended December 31, 2020 were approved for issuance by the Board of Directors on March 26 |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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. Additionally, management has performed an assessment of the Company’s ability to comply with liquidity requirements for the 12-month 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 and resource 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 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 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 oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a 50 percent degree of certainty those quantities will 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 and 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 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 our 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 of disposal 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 non-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. 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 closing date of the acquisition. c) Revenue Obsidian Energy generally recognizes oil, natural gas and natural gas liquids (“NGLs”) revenue when title passes from Obsidian Energy to the purchaser or, in the case of services, as contracted services are performed. Production revenues are determined pursuant to the terms outlined in contractual agreements and are based on fixed or variable price components. The transaction price for oil, natural gas and NGLs is based on the commodity price in the month of production, adjusted for various factors including product quality and location. Commodity prices are based on monthly or daily market indices. Performance obligations in the contract are fulfilled on the last day of the month with payment typically on the 25 th Obsidian Energy may purchase commodity products from third parties to utilize in blending activities and then subsequently sell these products to its customers. These transactions are presented as separate revenue and expense items in the Consolidated Statements of Income (Loss). The Company enters into road use agreements with our partners which allows them to use roads that are operated by the Company. Under these road use agreements, the Company charges a fee which assists the Company in maintaining the roads. These fees received from partners are recorded within road use recoveries within Other income d) Joint arrangements The consolidated financial statements include Obsidian Energy’s proportionate interest of jointly controlled assets and liabilities and our 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 our proportionate interest in the assets and the economic benefits generated from our share of the assets. Income from the sale or use of Obsidian Energy’s interest in joint operations and our 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 our 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, oil and natural gas liquids from the wellhead to the point where title transfers to buyers. These costs are recognized as services are received. f) Foreign currency translation Obsidian Energy and each of our 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 and 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 our 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 of disposal 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 after-tax The fair value less costs of disposal values used to determine the recoverable amounts of the Company’s CGUs are classified as Level 3 fair value measures as certain key assumptions are not based on observable market data but rather management’s best estimates. 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 an 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” plan) follows the equity method and recognizes 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”) is 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”) and performance share units granted under the RPSU plan follow the liability method and are based on a fair value calculation on each reporting date using the awards and performance share units outstanding and Obsidian Energy’s share price from the TSX on each balance sheet date. The fair value of the awards and performance share units 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 amount of the 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 provision The office lease provision is the net present value of future lease payments that the Company is obligated to make under non-cancellable non-lease j) Leases At the inception of entering into a contract, the Company assesses whether a contract is, or contains, a lease • the contract involves the use of an identified asset; • the Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and • the Company has the right to direct the use of the asset, which occurs if either; • the Company has the right to operate the asset; or • the Company designed the asset in a way that predetermines how and for what purpose it will be used. Obsidian Energy recognizes a right-of-use right-of-use The right-of-use right-of-use right-of-use The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate. The consideration used to measure the lease liability includes all fixed payments and variable lease payments that depend on an index or rate under the arrangement. Subsequently, the lease liability is measured at amortized cost using the effective interest method and is re-measured In-scope Upon adoption of IFRS 16, the Company identified certain office leases, transportation commitments, vehicle leases and surface leases in-scope • Office lease commitments pertain to total leased office space; • Transportation commitments related to costs for future pipeline access; • Vehicle leases relate to commitments for usage of vehicles; and • Surface leases allow access to land at a natural gas or oil treatment facility and beyond. Obsidian Energy has elected not to recognize right-of-use low-value k) Share capital Common shares are classified as equity. Share issue costs are recorded in shareholder’s equity, net of applicable taxes. Dividends, if paid, are 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 Statements of Income (Loss) 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 probable that the related tax benefit will be realized. n) Financial instruments Obsidian Energy recognizes financial assets and financial liabilities, including derivatives, on the Consolidated Balance Sheets when the Company becomes a party to the contract. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or when the Company has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognized from the consolidated financial statements when the liability is extinguished either through settlement of or release from the obligation of the underlying liability. Classification and Measurement of Financial Instruments The classification of financial assets is determined by their context in Obsidian Energy’s operations and by the characteristics of the financial asset’s contractual cash flows. Financial assets and financial liabilities are measured at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification, as described below: • Cash and cash equivalents (which includes cash and bank overdrafts), accounts receivable, accounts payable and accrued liabilities and long-term debt are measured at amortized cost. • Risk management contracts, all of which are derivatives, are measured initially at fair value through profit or loss and are subsequently measured at fair value with changes in fair value immediately charged to the Consolidated Statements of Income (Loss). Financial assets and liabilities are offset and the net amount is reported on the balance sheet when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. Impairment of Financial Assets Financial assets are assessed using an expected credit loss (“ECL”) model. The ECL model applies to financial assets measured at amortized cost, a lease receivable, a contract asset or a loan commitment and a financial guarantee. 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) Government Grants Obsidian Energy recognizes government grants as they are received or if there is reasonable assurance that the Company is in compliance with all associated conditions. The grant is recognized within the Consolidated Statements of Income (Loss) in the period in which the income is earned or the related expenditures are incurred. If the grant relates to an asset, it is recognized as a reduction to the carrying value of the asset and amortized into income over the expected useful life of the asset through lower depletion and depreciation. |
Lease receivable
Lease receivable | 12 Months Ended |
Dec. 31, 2020 | |
Lease receivable | |
Lease receivable | 4. Lease receivable Lease receivable relates to the lease component of sub-leased Year ended December 31 2020 2019 Balance, beginning of year $ 39.5 $ 42.4 Additions (terminations) (37.6 ) 3.7 Finance income 0.3 2.5 Lease payments received (2.2 ) (9.1 ) Balance, end of year $ 0 $ 39.5 Current portion $ 0 $ 8.8 Long-term portion $ 0 $ 30.7 In the first quarter of 2020, the Company entered into an amending agreement with our building landlord which resulted in renewed lease terms for our Calgary office space. Under the revised agreement, the amounts received from subtenants no longer meet the criteria to be classified as a finance lease and thus the lease receivable has been removed. The office lease provision referenced in Notes 8 and 9 has been updated to reflect the accounting treatment under the revised terms. |
Assets and liabilities held for
Assets and liabilities held for sale | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Assets and liabilities held for sale | 5. Assets and liabilities held for sale Assets and liabilities classified as held for sale consisted of the following: As at December 31 2020 2019 Assets held for sale Cash $ 0 $ 2.0 Accounts receivable 0 3.9 Property, plant and equipment 0 77.0 $ 0 $ 82.9 Liabilities related to assets held for sale Accounts payable and accrued liabilities $ 0 $ 6.0 Decommissioning liability 0 7.0 $ 0 $ 13.0 In the prior year, at December 31, 2019, the Company was continuing to progress through a sales process for our interest in the Peace River Oil Partnership. As a result of commodity price volatility, primarily due to the COVID-19 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Property, plant and equipment | 6. Property, plant and equipment Oil and Gas assets/Facilities, Corporate assets Cost Oil and gas Corporate Total Balance at January 1, 2019 $ 10,600.8 $ 175.1 $ 10,775.9 Capital expenditures 102.7 0.5 103.2 Dispositions (53.3 ) — (53.3 ) Transfer to assets held for sale (423.0 ) — (423.0 ) Net decommissioning dispositions (1) (15.6 ) — (15.6 ) Balance at December 31, 2019 $ 10,211.6 $ 175.6 $ 10,387.2 Capital expenditures 57.0 0.2 57.2 Dispositions (0.1 ) 0 (0.1 ) Transfer from assets held for sale 423.0 0 423.0 Net decommissioning dispositions (1) (29.0 ) 0 (29.0 ) Balance at December 31, 2020 $ 10,662.5 $ 175.8 $ 10,838.3 (1) Includes additions from drilling activity, facility capital spending and disposals from net property dispositions. Accumulated depletion, depreciation and impairment Oil and gas Corporate Total Balance at January 1, 2019 $ 8,066.2 $ 135.8 $ 8,202.0 Depletion and depreciation 221.7 14.3 236.0 Impairments 657.7 — 657.7 Transfers to assets held for sale (346.0 ) — (346.0 ) Dispositions (41.4 ) — (41.4 ) Balance at December 31, 2019 $ 8,558.2 $ 150.1 $ 8,708.3 Depletion and depreciation 115.1 7.0 122.1 Impairments 747.5 18.7 766.2 Transfers from assets held for sale 346.0 0 346.0 Balance at December 31, 2020 $ 9,766.8 $ 175.8 $ 9,942.6 Net book value As at December 31 2020 2019 Total $ 895.7 $ 1,678.9 At December 31, 2020, future development costs of $636.1 million were included within the depletable base in the depletion and depreciation calculation (2019 – $563.7 million). Right-of-use The following table includes a break-down of the categories for right-of-use Cost Office Transportation Vehicle Surface Total Balance, January 1, 2019 $ 15.0 $ 16.7 $ 2.9 $ 2.2 $ 36.8 Additions (Terminations) (2.4 ) — 1.2 (0.1 ) (1.3 ) Balance, December 31, 2019 $ 12.6 $ 16.7 $ 4.1 $ 2.1 $ 35.5 Additions (Terminations) (12.6 ) (1.8 ) 1.6 — (12.8 ) Balance, December 31, 2020 $ 0 $ 14.9 $ 5.7 $ 2.1 $ 22.7 Accumulated amortization Office Transportation Vehicle Surface Total Balance, January 1, 2019 $ — $ — $ — $ — $ — Amortization 2.4 6.0 1.3 0.1 9.8 Balance, December 31, 2019 $ 2.4 $ 6.0 $ 1.3 $ 0.1 $ 9.8 Amortization 0.5 4.5 1.3 — 6.3 Termination (2.9 ) — — — (2.9 ) Balance, December 31, 2020 $ 0 $ 10.5 $ 2.6 $ 0.1 $ 13.2 As at December 31 2020 2019 Total $ 9.5 $ 25.7 In the first quarter of 2020, the Company entered into an amending agreement with our building landlord which resulted in renewed lease terms for our Calgary office space. Under the revised agreement, the office lease no longer meets the criteria to be classified as a right-of-use Total PP&E Total PP&E including Oil and Gas assets, Facilities, Corporate assets and Right-of-use As at December 31 PP&E 2020 2019 Oil and Gas assets, Facilities, Corporate assets $ 895.7 $ 1,678.9 Right-of-use 9.5 25.7 Total $ 905.2 $ 1,704.6 The Company recorded non-cash At March 31, 2020, the Company completed impairment tests across all of our CGU’s as a result of the low commodity price environment, primarily due to the impact of the COVID-19 shut-ins. non-cash At December 31, 2020, the Company completed an assessment to determine if indicators of impairment or an impairment reversal were present. As a result of recent improvements in near term commodity prices and positive reserve revisions, the Company concluded that an impairment reversal indicator was present resulting in impairment tests being completed within our Cardium and Peace River CGUs. The Company followed the value-in use method for our Cardium CGU and the fair value less costs of disposal method for our Peace River CGU using proved plus probable reserves. Additionally, the Company identified an indicator of impairment for our Legacy CGU as a result of the planned acceleration of decommissioning spending in the area. This led to an impairment test being completed following the fair value less costs of disposal method. The after-tax discount rates applied within the tests were between 9.5 – 15 percent. No indicator of impairment was noted for our Viking CGU; thus, no test was performed. Upon completion of the impairment tests, an $18.0 million impairment reversal was recorded within our Peace River CGU and no reversal was recorded within our Cardium CGU. Within our Legacy CGU, as a result of revisions to our decommissioning spending profile the Company recorded a $21.8 million impairment. The Company plans to accelerate decommissioning spending in the area as we focus on reducing our inactive well liability, which led to the impairment. The following table outlines benchmark prices and assumptions, based on an average of four independent reserve evaluators’ forecasts (Sproule Associates Limited, GLJ Petroleum Consultants, McDaniel & Associates Consultants and Deloitte Resource Evaluation & Advisory), used in completing the impairment tests as at December 31, 2020. WTI AECO Exchange rate Inflation rate 2021 $ 46.88 $ 2.74 $ 0.77 0 % 2022 51.14 2.70 0.77 1.5 % 2023 54.83 2.65 0.77 2.0 % 2024 56.48 2.69 0.77 2.0 % 2025 57.62 2.74 0.77 2.0 % 2026 – 2030 $ 61.16 $ 2.91 $ 0.77 2.0 % Thereafter (inflation percentage) 2 % 2 % — 2.0 % The following table outlines the sensitivity on possible changes to the estimated recoverable amounts on the Company’s CGUs that had impairment tests completed on December 31, 2020. Recoverable Impairment/ 1% change in 5% change in Cardium $ 849.2 $ Nil $ 66.9 $ 66.2 Peace River 28.5 (18.0 ) 1.3 2.8 Legacy $ Nil $ 21.8 $ Nil $ Nil At December 31, 2019, the Company completed impairment tests as a result of continued market and commodity price volatility in the oil and gas industry which resulted in an increase of our discount rates used in the calculation. This led to the Company recording $527.8 million of non-cash At June 30, 2019, as a result of continuing to progress through a sales process for our interest in the Peace River Oil Partnership, these assets were recorded at the lower of fair value less costs of disposal and their carrying amount, resulting in a PP&E impairment loss of $129.7 million. Impairments and impairment reversals have been recorded as Depletion, depreciation, impairment and accretion expense on the Consolidated Statements of Income (Loss). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Long-term debt | 7. Long-term debt As at December 31 2020 2019 Syndicated credit facility $ 395.0 $ 399.0 Senior secured notes – 2008 Notes 5.2 5.3 Senior secured notes – 2010 Q1 Notes 12.4 12.7 Senior secured notes – 2010 Q4 Notes 16.9 17.2 4.98%, US$5.8 million, maturing November 30, 2021 7.4 7.5 5.23%, US$2.1 million, maturing November 30, 2021 2.7 2.8 Senior secured notes – 2011 Q4 Notes 15.7 16.0 Total credit facility and senior secured notes $ 455.3 $ 460.5 Deferred financing costs (3.5 ) — Total long-term debt 451.8 460.5 Current portion $ 451.8 $ 434.2 Long-term portion $ 0 $ 26.3 At December 31, 2020, the revolving period of the syndicated credit facility was set at January 29, 2021, with the end date of the term out period on November 30, 2021. As the term-out re-negotiated term-out There were no senior note issuances in either 2020 or 2019. Additional information on Obsidian Energy’s senior secured notes was as follows: As at December 31 2020 2019 Weighted average remaining life (years) 0.9 1.5 Weighted average interest rate 5.2 % 5.7 % The estimated fair values of the principal and interest obligations of the outstanding senior secured notes were as follows: As at December 31 2020 2019 2008 Notes $ 4.3 $ 5.3 2010 Q1 Notes 10.2 12.6 2010 Q4 Notes 22.0 25.7 2011 Notes 12.8 14.8 Total $ 49.3 $ 58.4 The Company has a reserve-based syndicated credit facility which is subject to a semi-annual borrowing base redetermination typically in May and November of each year. Subsequent to December 31, 2020, the Company entered into an amending agreement with our banking syndicate whereby the aggregate amount drawn or available to be drawn under the syndicated credit facility is now set at $440 million. The $440 million of availability consists of a $225 million revolving syndicated credit facility and a $215 million non-revolving Additionally, the following terms were included in the amending agreement: • the revolving period under the syndicated credit facility has been extended to May 31, 2022, with the end date of the term period extended to November 30, 2022; • the maturity date of the non-revolving term loan is also November 30, 2022; • the next scheduled borrowing base redeterminations will occur on November 30, 2021 and May 31, 2022; • a revolving period reconfirmation date will occur on January 17, 2022, whereby, on or prior to such date, the lenders • the Company’s revolving credit facility will have a one-time adjustment to reduce our undrawn availability to $35 million at December 31, 2021. Any borrowing availability at this time in excess of that amount will be used to reduce amounts outstanding on the non-revolving term loan and senior notes. Additionally, subsequent to December 31, 2020, the Company agreed with holders of our senior notes to extend the maturity dates of the notes due on November 30, 2021 to November 30, 2022 and to increase the interest rate on each series of our notes by approximately 2.1 percent Drawings on the Company’s syndicated credit facility are subject to fluctuations in short-term money market rates as they are generally held as short-term borrowings. As at December 31, 2020, 87 percent (2019 – 87 percent) of Obsidian Energy’s long-term debt instruments were exposed to changes in short-term interest rates. At December 31, 2020, letters of credit totaling $5.0 million were outstanding (2019 – $7.7 million) that reduce the amount otherwise available to be drawn on the syndicated credit facility. The aggregate amount available under our syndicated credit facility is scheduled for review on a semi-annual basis and is based on our lender’s assessment of the Company’s reserves, forecasted commodity prices and other factors. In the event that a decrease in the borrowing base occurs, this could result in a reduction to the available amount under the syndicated credit facility. In a situation where the amount available is below the amount drawn on the syndicated credit facility, the Company has 30 days to eliminate any shortfall by repaying amounts in excess of the new re-determined borrowing base. Financing expense consists of the following: As at December 31 2020 2019 Interest on bank debt and senior notes $ 22.8 $ 28.3 Advisor fees 10.1 4.1 Deferred financing costs 2.8 0.7 Unwinding discount on lease liabilities 1.5 7.5 Financing $ 37.2 $ 40.6 Obsidian Energy records unrealized foreign exchange gains or losses on our senior notes as amounts are translated into Canadian dollars at the rate of exchange in effect at the balance sheet date. Realized foreign exchange gains or losses are recorded upon actual repayment of senior notes. The split between realized and unrealized foreign exchange is as follows: As at December 31 2020 2019 Realized foreign exchange loss $ 0 $ (2.6 ) Unrealized foreign exchange gain 1.4 5.8 Foreign exchange gain $ 1.4 $ 3.2 The Company is subject to Senior debt and Total debt to Capitalization financial covenants with a maximum ratio of 75 percent, as more specifically defined in the applicable lending agreements. At December 31, 2020, the Company was in compliance with our 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. The security remained in place at December 31, 2020. |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Lease liabilities [abstract] | |
Lease Liabilities | 8. Lease liabilities Total lease liabilities included in the Consolidated Balance Sheets Year ended December 31 2020 2019 Balance, beginning of year $ 113.8 $ 135.2 Additions (terminations) (98.6 ) 1.0 Unwinding of discount on lease liabilities 1.5 7.5 Lease payments (6.3 ) (29.9 ) Balance, end of year $ 10.4 $ 113.8 Current portion $ 4.8 $ 28.8 Long-term portion $ 5.6 $ 85.0 In the first quarter of 2020, the Company entered into an amending agreement with our building landlord which resulted in renewed lease terms for our Calgary office space. The revised agreement no longer meets the criteria to be classified as a lease liability, thus the office lease portion has been removed. The office lease provision referenced in Note 9 has been adjusted to reflect the revised appropriate accounting treatment. The following table sets out a maturity analysis of lease payments, disclosing the undiscounted balance after December 31, 2020: 2021 2022 2023 2024 2025 Thereafter Total Transportation $ 3.4 $ 2.2 $ — $ — $ — $ — $ 5.6 Vehicle 1.4 1.2 0.7 0.1 — — 3.4 Surface 0.1 0.1 0.1 0.1 0.1 5.0 5.5 Total $ 4.9 $ 3.5 $ 0.8 $ 0.2 $ 0.1 $ 5.0 $ 14.5 Amounts recognized in Consolidated Statements of Income (Loss) and Consolidated Statements of Cash Flows The Company recorded $0.3 million of income from sub-leases right-of-use low-value |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Provisions | 9. Provisions As at December 31 2020 2019 Decommissioning liability $ 70.5 $ 100.1 Office lease provision 33.5 12.7 Total $ 104.0 $ 112.8 Current portion $ 16.3 $ 16.2 Long-term portion 87.7 96.6 Total $ 104.0 $ 112.8 Decommissioning liability The decommissioning liability is based on the present value of Obsidian Energy’s net share of estimated future costs of obligations to abandon and reclaim all our wells, facilities and pipelines. These estimates were made by management using information obtained from government estimates, internal analysis and external consultants assuming current costs, technology and enacted legislation. At December 31, 2020, the decommissioning liability was determined by applying an inflation factor of 2.0 percent (2019 – 2.0 percent) and the inflated amount was discounted using a credit-adjusted rate of 9.0 percent (2019 – 7.0 percent) over the expected useful life of the underlying assets, currently extending over 50 years into the future. At December 31, 2020, the total decommissioning liability on an undiscounted, uninflated basis was $596.6 million (2019 – $621.2 million). Changes to the decommissioning liability were as follows: Year ended December 31 2020 2019 Balance, beginning of year $ 100.1 $ 129.1 Net liabilities added (disposed) (1) (0.4 ) (6.2 ) Increase (decrease) due to changes in estimates (28.6 ) (9.4 ) Liabilities settled (11.1 ) (14.4 ) Government decommissioning assistance (2.2 ) — Transfers (to) from liabilities for assets held for sale 7.0 (7.0 ) Accretion charges 5.7 8.0 Balance, end of year $ 70.5 $ 100.1 Current portion $ 7.3 $ 13.0 Long-term portion $ 63.2 $ 87.1 (1) Includes additions from drilling activity, facility capital spending and disposals related to net property dispositions. Office lease provision The office lease provision represents the net present value of non-lease Changes to the office lease provision were as follows: Year ended December 31 2020 2019 Balance, beginning of year $ 12.7 $ 21.3 Net additions (dispositions) 27.0 (5.6 ) Increase (decrease) due to changes in estimates 1.0 (1.9 ) Settlements (9.7 ) (2.2 ) Accretion charges 2.5 1.1 Balance, end of year $ 33.5 $ 12.7 Current portion $ 9.0 $ 3.2 Long-term portion $ 24.5 $ 9.5 In the first quarter of 2020, the Company entered into an amending agreement with our building landlord which resulted in renewed lease terms for our Calgary office space. Under the terms of the amending agreement our annual net rent payable will be a maximum of $0.8 million per month ($10.0 million per annum) for the period from February 1, 2020 through January 31, 2025, when the lease expires. Additionally, the building landlord has agreed to indemnify the Company on all existing subleases. Based on the revised terms, all costs associated with the agreement now meet the criteria to be classified as an onerous lease. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Risk management | 10. Risk management Financial instruments consist of cash and cash equivalents, accounts receivable, fair values of derivative financial instruments, accounts payable and accrued liabilities and long-term debt. At December 31, 2020, except for the senior notes described in Note 7 with a carrying value of $60.3 million (2019 – $61.5 million) and a fair value of $49.3 million (2019 – $58.4 million), the fair values of these financial instruments approximate their carrying amounts due to the short-term maturity of the instruments. The fair values of all outstanding financial and commodity contracts are reflected on the Consolidated Balance Sheets with the changes during the period recorded in income as unrealized gains or losses. At December 31, 2020 and 2019, 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) 2020 2019 Balance, beginning of year $ (0.6 ) $ 8.0 Unrealized gain (loss) on financial instruments: Commodity collars and swaps 0.8 (8.6 ) Total fair value, end of year $ 0.2 $ (0.6 ) Current portion $ 0.2 $ (0.6 ) Long-term portion $ 0 $ — Obsidian Energy records our risk management assets and liabilities on a net basis in the Consolidated Balance Sheets. At December 31, 2020 and 2019, there were no differences between the gross and net amounts. Obsidian Energy had the following financial instruments outstanding as at December 31, 2020. Fair values are determined using external counterparty information, which is compared to observable market data. The Company limits our credit risk by executing counterparty risk procedures which include transacting only with institutions within our syndicated credit facility or companies with high credit ratings and by obtaining financial security in certain circumstances. Notional Remaining term Pricing Fair value Oil WTI Swaps 5,750 bbl/d January 2021 $ 59.62/bbl $ (0.5 ) WTI Swaps 2,500 bbl/d February 2021 $ 60.34/bbl (0.1 ) WTI Swaps 750 bbl/d March 2021 $ 61.58/bbl 0 AECO Swaps AECO Swaps 23,700 mcf/d Jan –Mar 2021 $ 2.94/mcf 0.8 Total $ 0.2 Subsequent to December 31, 2020, the Company entered into the following additional financial hedges: Reference price Notional Term Pricing Oil WTI Swaps 400 bbl/d January 2021 $ 63.09/bbl WTI Swaps 3,750 bbl/d February 2021 $ 67.00/bbl WTI Swaps 6,050 bbl/d March 2021 $ 69.70/bbl WTI Swaps 4,750 bbl/d April 2021 $ 77.74/bbl WTI Swaps 1,125 bbl/d May 2021 $ 81.50/bbl AECO Swaps AECO Swaps 2,370 mcf/d March 2021 $ 3.17/mcf AECO Swaps 26,100 mcf/d April 2021 $ 2.83/mcf AECO Swaps 21,300 mcf/d May 2021 $ 2.68/mcf AECO Swaps 21,300 mcf/d June 2021 $ 2.67/mcf AECO Swaps 4,700 mcf/d July 2021 $ 2.28/mcf AECO Swaps 4,700 mcf/d August 2021 $ 2.28/mcf AECO Swaps 4,700 mcf/d September 2021 $ 2.28/mcf AECO Swaps 4,700 mcf/d October 2021 $ 2.28/mcf Based on commodity prices and contracts in place at December 31, 2020, a $1.00 change in the price per barrel of liquids of WTI would change pre-tax pre-tax The components of risk management on the Consolidated Statements of Income (Loss) are as follows: Year ended December 31 2020 2019 Realized Settlement of commodity contracts $ 20.9 $ (7.2 ) Total realized risk management gain (loss) $ 20.9 $ (7.2 ) Unrealized Commodity contracts $ 0.8 $ (8.6 ) Total unrealized risk management gain (loss) 0.8 (8.6 ) Risk management gain (loss) $ 21.7 $ (15.8 ) Additionally, the Company had the following physical contracts outstanding at December 31, 2020. Notional Term Pricing Physical Oil Contracts (1) WTI 542 bbl/d Jan – Mar 2021 $ 55.54/bbl WTI 571 bbl/d Apr – Jun 2021 $ 59.04/bbl (1) WTI, differentials and foreign exchange hedged to lock-in positive net operating income on certain heavy oil properties. Subsequent to December 31, 2020 the Company entered into the following physical contracts: Notional Term Pricing Light Oil Differential (1)(2) 1,245 bbl/d Apr – Jun 2021 $ 5.51/bbl 1,230 bbl/d Jul – Sep 2021 $ 5.82/bbl Light Oil Differential – USD (1) 1,556 bbl/d Apr – Jun 2021 US$ 4.00/bbl 1,539 bbl/d Jul – Sep 2021 US$ 4.42/bbl Heavy Oil Differential (3) 564 bbl/d Jul – Sep 2021 $ 14.85/bbl (1) Differentials completed on a WTI - MSW basis. (2) USD transactions completed on a US$ WTI - US$ MSW basis and converted to Canadian dollars using a fixed foreign exchange ratio of CAD/USD $1.281 in the second quarter of 2021 and $1.279 in the third quarter of 2021. (3) Differentials completed on a WTI - WCS basis. COVID-19 In March 2020, the World Health Organization declared COVID-19 rolling-out year-end 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. Oil prices are influenced by worldwide factors, including, but not limited to, OPEC actions, world supply and demand fundamentals, pipeline capacity availability 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. For the first half of 2021, the Board of Directors has approved an increase to the maximum percentage of production that may be hedged as follows: i) gas volumes, net of royalties may be hedged up to a maximum of 65 percent and ii) oil volumes, net of royalties may be hedged up to a maximum of 65 percent for the following month, otherwise hedges must follow the standard terms and conditions of the program. Additionally, for the second half of 2021, the Board of Directors has approved that gas volumes, net of royalties, may be hedged up to a maximum of 60 percent. Foreign Currency Rate Risk Prices received for oil are referenced in 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 is denominated in US dollars, thus the principal and interest payments in Canadian dollar terms 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 oil revenues or to fix US denominated long-term debt principal repayments. Credit Risk Credit risk is the risk of loss if purchasers or counterparties do not fulfill their contractual obligations. As at December 31, 2020, the Company’s maximum exposure to credit risk was $41.6 million (2019 – $66.0 million) which was comprised of $40.8 million (2019 – $65.6 million) being the carrying value of the accounts receivable and $0.8 million (2019 – $0.4 million) related to the fair value of the derivative financial assets. 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 or the potential to net offsetting payables to mitigate exposure. Obsidian Energy continuously monitors credit risk and maintains credit policies to ensure collection risk is limited. 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 our banking syndicate or counterparties that have investment grade bond ratings. Credit events related to all counterparties are monitored and credit exposures are reassessed on a regular basis. At December 31, 2020, $5.7 million of accounts receivable are past due (90+ days) but are considered to be collectible (2019 – $8.7 million). The lifetime ECL allowances related to Obsidian Energy’s commodity product sales receivables and joint venture receivables recognized in accounts receivable was nominal as at and for the years ended December 31, 2020 and 2019. As at December 31, the following accounts receivable amounts were outstanding: Current 30-90 days 90+ days Total (1) 2020 $ 29.5 $ 5.6 $ 5.7 $ 40.8 2019 $ 47.5 $ 9.4 $ 8.7 $ 65.6 (1) In 2020, $nil of accounts receivable is related to assets classified as held for sale (2019 – $3.9 million). 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 our 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, 2020, 87 percent of the Company’s long-term debt instruments were exposed to changes in short-term interest rates (2019 – 87 percent). As at December 31, 2020, a total of $60.3 million (2019 – $61.5 million) of fixed interest rate debt instruments was outstanding with an average remaining term of 0.9 years (2019 – 1.5 years) and an average interest rate of 5.2 percent (2019 – 5.7 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 Long-term debt (1) Accounts payable Share-based Total 2021 $ 451.8 $ 72.2 $ 1.9 $ 525.9 2022 0 0 0.1 0.1 2023 0 0 0 0 2024 0 0 0 0 2025 0 0 0 0 Thereafter $ 0 $ 0 $ 0 $ 0 (1) The 2021 figure includes $395.0 million related to the syndicated credit facility, which at the balance sheet date was due for renewal in 2021. Subsequent to December 31, 2020, the Company entered into an agreement with members of our banking syndicate to extend the term-out |
Revenue and Other Income
Revenue and Other Income | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Revenue and Other Income | 11. Revenue and Other Income The Company’s significant revenue streams consist of the following: Year ended December 31 2020 2019 Oil $ 213.1 $ 357.9 NGLs 16.3 16.3 Natural gas 46.0 35.1 Production revenues 275.4 409.3 Processing fees 6.3 7.7 Oil and natural gas sales 281.7 417.0 Other income 13.0 8.5 Oil and natural gas sales and other income $ 294.7 $ 425.5 In 2020, Other income includes $5.4 million in road use recoveries (2019 – $6.0 million), while the remainder primarily relates to curtailment sales, whereby the Company sold unused production limit capacity under the Alberta Government Curtailment production limits |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Income taxes | 12. Income taxes The provision for income taxes is as follows: As at December 31 2020 2019 Deferred tax recovery $ 0 $ — 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 2020 2019 Loss before taxes $ (771.7 ) $ (788.3 ) Combined statutory tax rate (1) 24.0 % 26.5 % Computed income tax recovery $ (185.2 ) $ (208.9 ) Increase (decrease) resulting from: Share-based compensation 0.5 1.2 Non-taxable (0.3 ) (0.9 ) Unrecognized deferred tax asset 178.2 176.5 Adjustments related to prior years (0.9 ) (4.8 ) Tax rate reductions 7.6 34.2 Other 0.1 2.7 Deferred tax recovery $ 0 $ — (1) The tax rate represents the combined federal and provincial statutory tax rates for the Company and our subsidiaries for the years ended December 31, 2020 and December 31, 2019. Effective July 1, 2020, the Alberta corporate income tax rate was reduced from 10% to 8%. This resulted in a combined statutory tax rate of 24.0% for the year. The net deferred income tax liability is comprised of the following: Balance Provision Balance December 31, Deferred tax liabilities (assets) PP&E $ 282.5 $ (196.0 ) $ 86.5 Leases (20.0 ) 9.9 (10.1 ) Decommissioning liability (24.6 ) 8.0 (16.6 ) Share-based compensation (0.2 ) (0.2 ) (0.4 ) Non-capital (237.7 ) 178.3 (59.4 ) Net deferred tax liability $ 0 $ 0 $ 0 Balance Provision Balance Deferred tax liabilities (assets) PP&E $ 525.9 $ (243.4 ) $ 282.5 Risk management 2.2 (2.2 ) — Leases (22.7 ) 2.7 (20.0 ) Decommissioning liability (34.9 ) 10.3 (24.6 ) Share-based compensation (0.2 ) — (0.2 ) Non-capital (470.3 ) 232.6 (237.7 ) Net deferred tax liability $ — $ — $ — As at December 31, 2020, Obsidian Energy had approximately $2.5 billion (2019 – $2.6 billion) in total tax pools, including non-capital non-capital non-capital At December 31, 2020, Obsidian Energy had realized and unrealized net capital losses of $595.0 million (2019 – $592.0 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 our deferred income tax position or amount. The Company does not anticipate adjustments arising from these audits and believes we have 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, 2020 | |
Statement [LineItems] | |
Shareholders' equity | 13. Shareholders’ equity Effective June 5, 2019, the Company consolidated its common shares on the basis of seven old common shares outstanding for one new common share. All figures in the annual consolidated financial statements have been updated to reflect the 7:1 consolidation. Additionally, the number of units or options and the per unit or option prices under the RPSU plan, Option Plan and DSU plan have been updated accordingly. 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 Shares Amount Balance, December 31, 2018 72,473,719 $ 2,184.9 Issued on exercise of equity compensation plans (1) 537,769 1.8 Balance, December 31, 2019 73,011,488 $ 2,186.7 Issued on exercise of equity compensation plans (1) 504,737 0.3 Balance, December 31, 2020 73,516,225 $ 2,187.0 (1) Upon vesting or exercise of equity awards, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. Year ended December 31 Other Reserves 2020 2019 Balance, beginning of year $ 101.8 $ 99.1 Share-based compensation expense 2.1 4.5 Net benefit on options exercised (1) (0.3 ) (1.8 ) Balance, end of year $ 103.6 $ 101.8 (1) Upon exercise of awards, 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, 2020 | |
Statement [LineItems] | |
Share-based compensation | 14. Share-based compensation Restricted and Performance Share Unit plan (“RPSU plan”) Restricted Share unit (“RSU”) grants under the RPSU plan Obsidian Energy awards RSU grants under the RPSU plan whereby employees receive consideration that fluctuates based on the Company’s share price on the TSX. Consideration can be in the form of cash or shares purchased on the open market or issued from treasury. Year ended December 31 RSUs (number of shares equivalent) 2020 2019 Outstanding, beginning of year 1,100,278 1,235,202 Granted 1,818,840 971,916 Vested (510,738 ) (574,706 ) Forfeited (52,972 ) (532,134 ) Outstanding, end of year 2,355,408 1,100,278 The fair value and weighted average assumptions of the RSUs granted during the year were as follows: Year ended December 31 2020 2019 Average fair value of units granted (per unit) $ 0.55 $ 2.77 Expected life of units (years) 3.0 3.0 Expected forfeiture rate 0.6% 1.0% Performance Share Unit (“PSU”) grants under the RPSU plan The RPSU plan allows Obsidian Energy to grant PSUs to employees of the Company. Members of the Board of Directors are not eligible for the RPSU plan. The PSU obligation is classified as a liability due to the cash settlement feature and could be settled in cash or shares purchased on the open market or issued from treasury. Year ended December 31 PSUs (number of shares equivalent) 2020 2019 Outstanding, beginning of year 92,424 163,129 Granted 376,310 144,211 Vested (10,716 ) (22,929 ) Forfeited (4,173 ) (191,987 ) Outstanding, end of year 453,845 92,424 The liability associated with the PSU’s under the RPSU plan was insignificant at both December 31, 2020 and 2019. Stock Option Plan Obsidian Energy has an Option Plan that allows the Company to issue options to acquire common shares to officers, employees, directors and other service providers. Year ended December 31 2020 2019 Options Number of Options Weighted Exercise Price Number of Weighted Outstanding, beginning of year 89,178 $ 10.41 287,996 $ 25.34 Granted 917,490 0.56 — — Forfeited (44,714 ) 12.06 (198,818 ) 32.04 Outstanding, end of year 961,954 $ 0.94 89,178 $ 10.41 Exercisable, end of year 44,464 $ 8.74 77,066 $ 10.67 The fair value and weighted average assumptions of the options granted during the year were as follows: Year ended December 31 2020 2019 Average fair value of options granted (per option) $ 0.29 $ — Expected volatility 83.6% — Expected life of options (years) 3.25 — Expected forfeiture rate 0.6% — Deferred Share Unit (“DSU”) plan The DSU plan allows the Company to grant DSUs in lieu of cash fees to non-employee Share-based compensation Share-based compensation consisted of the following: Year ended December 31 2020 2019 RSU grants $ 2.0 $ 4.5 DSU plan 1.2 0.1 PSU grants 0.1 — Options 0.1 — Share-based compensation $ 3.4 $ 4.6 The share price used in the fair value calculation of the DSU and RPSU plan obligations at December 31, 2020 was $0.87 per share (2019 – $0.93). 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 $1.00 for each $1.00 of employee contribution. Both the employee’s and Obsidian Energy’s contributions are used to acquire Obsidian Energy common shares or are placed in low-risk Effective May 1, 2020, due to the low commodity price environment, the Company temporarily suspended the employer match portion of the savings plan, until further notice. |
Per share amounts
Per share amounts | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Per share amounts | 15. 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 2020 2019 Net loss – basic and diluted $ (771.7 ) $ (788.3 ) The weighted average number of shares used to calculate per share amounts is as follows: Year ended December 31 2020 2019 Basic and Diluted 73,258,648 72,882,619 For 2020, 1.0 million shares (2019 – 0.1 million) that could 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-cash working cap
Changes in non-cash working capital increase (decrease) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Changes in non-cash working capital increase (decrease) | 16. Changes in non-cash Year ended December 31 2020 2019 Restricted cash $ 2.4 $ (2.4 ) Accounts receivable (1) 22.6 (15.8 ) Prepaid expenses and other 0.6 — Accounts payable and accrued liabilities (2) (3) (41.3 ) (30.0 ) (15.7 ) (48.2 ) Operating activities (6.6 ) (39.6 ) Investing activities (9.1 ) (8.6 ) $ (15.7 ) $ (48.2 ) Interest paid in cash $ 25.5 $ 35.2 Income taxes paid (recovered) in cash $ 0 $ — (1) At December 31, 2020, $nil is related to assets classified as held for sale (2019 - $3.9 million). (2) At December 31, 2020, $nil is related to assets classified as held for sale (2019 - $6.0 million). (3) Includes share-based compensation plans. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Capital management | 17. Capital management Obsidian Energy manages our 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 reviews Obsidian Energy’s capital structure to allow our objectives and strategies to be 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 Adjusted 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 include Senior debt and Total debt to capitalization as defined in Obsidian Energy’s lending agreements. As at December 31, 2020, the Company was in compliance with all of our financial covenants under such lending agreements. The Company intends to continue to identify and evaluate hedging opportunities in order to reduce our exposure to fluctuations in commodity prices and protect our future cash flows and capital programs. Year ended December 31 (millions, except ratio amounts) 2020 2019 Components of capital Shareholders’ equity $ 323.1 $ 1,092.7 Credit facility and senior secured notes $ 455.3 $ 460.5 Ratios Senior debt to capitalization (1) 59 % 30 % Total debt to capitalization (1) 59 % 30 % Priority debt to consolidated tangible assets (2) 0 — Credit facility and senior secured notes $ 455.3 $ 460.5 Letters of credit (3) 4.9 4.8 Senior debt and total debt 460.2 465.3 Total shareholders’ equity 323.1 1,092.7 Total capitalization $ 783.3 $ 1,558.0 (1) Not to exceed 75 percent. (2) Priority debt not to exceed 15% of consolidated tangible assets. (3) Letters of credit defined as financial under the lending agreements are included in the calculation. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Commitments and contingencies | 18. Commitments and contingencies Obsidian Energy is committed to certain payments over the next five calendar years and thereafter as follows: 2021 2022 2023 2024 2025 Thereafter Total Long-term debt (1) $ — $ 451.8 $ — $ — $ — $ — $ 451.8 Transportation 7.1 5.4 2.9 2.5 2.1 5.6 25.6 Power infrastructure 6.7 3.2 — — — — 9.9 Interest obligations 30.0 28.1 — — — — 58.1 Office lease 10.0 10.0 10.0 10.0 0.8 — 40.8 Lease liability 4.9 3.5 0.8 0.2 0.1 5.0 14.5 Decommissioning liability 7.3 12.4 3.5 3.3 3.1 40.9 70.5 Total $ 66.0 $ 514.4 $ 17.2 $ 16.0 $ 6.1 $ 51.5 $ 671.2 (1) Based on agreements signed subsequent to December 31, 2020, the 2022 figure includes $395.0 million related to the syndicated credit facility and non-revolving term loan that is due for renewal in 2022 and $60.3 million of senior notes set to mature in 2022. Refer to Note 7 for further details. Historically, the Company has successfully renewed its syndicated credit facility. Obsidian Energy has an aggregate of $60.3 million in senior notes maturing in 2022. Refer to Note 7 for further details. 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. • The decommissioning liability represents the inflated, discounted future reclamation and abandonment costs that are expected to be incurred over the life of the properties. The Company is involved in various litigation and claims in the normal course of business and records provisions for claims as required. In 2018, the Company fully utilized available insurance coverage relating to ongoing claims against former Penn West employees arising from the Company’s 2014 restatement of certain financial results when we were known as Penn West. A claim brought by the United States Securities and Exchange Commission (“SEC”) against Penn West was previously settled. The Company had been indemnifying two former employees pursuant to indemnity agreements in connection with the claims brought by the SEC arising out of the same restatement. In 2020, the SEC reached a settlement with the two former employees. In 2019, the Company notified and commenced legal proceedings against the two former employees that the Company did not believe that the former employees met the criteria for indemnification, that the amounts invoiced on account of indemnification to date were in any event unreasonable, and that the Company would not be making any further advancements on account of indemnification. The preliminary application Judge ruled in favour of the two former employees. The Company appealed the preliminary application decision and was notified in late 2020 that the appeal was ruled in favour of the two former employees as well. The Company continued to accrue for, but not pay, defense costs incurred on behalf of the two former employees and recently agreed to a settlement to pay $6.4 million of the defense costs equally over a 30-month April |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Related-party transactions | 19. Related-party transactions Operating entities The consolidated financial statements include the results of Obsidian Energy Ltd. and our wholly owned subsidiaries, notably the Obsidian Energy Partnership. Transactions and balances between Obsidian Energy Ltd. and all of our subsidiaries are eliminated upon consolidation. Compensation of key management personnel In 2020, key management personnel included the Interim President and Chief Executive Officer, Chief Financial Officer, Senior Vice-Presidents, Vice Presidents and the Board of Directors. The Human Resources, Governance & 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 also recommended by the Human Resources, Governance & Compensation 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 2020 2019 Salary and employee benefits $ 4.5 $ 2.2 Termination benefits 0 0.9 Share-based payments (1) 1.7 1.1 $ 6.2 $ 4.2 (1) Includes changes in the fair value of PSUs, DSUs and non-cash |
Supplemental Items
Supplemental Items | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Supplemental Items | 20. Supplemental Items In the consolidated financial statements, compensation costs are included in both operating and general and administrative expenses. For 2020, employee compensation costs of $13.0 million (2019 - $15.7 million) were included in operating expenses and $15.7 million (2019 - $21.1 million) were included in general and administrative expenses on a gross basis. |
Government grants
Government grants | 12 Months Ended |
Dec. 31, 2020 | |
Government Grants [Abstract] | |
Government grants | 21. Government grants The Company has received payments as part of the Canadian Emergency Wage Subsidy (“CEWS”). The CEWS allows eligible companies to receive a subsidy of employee wages, subject to a maximum. For 2020, this resulted in a benefit to the Company of approximately $3.5 million which resulted in a $2.2 million reduction to operating costs, a $0.7 million reduction to general and administrative costs and a $0.6 reduction to capital expenditures. Additionally, in 2020 the Company received a grant allocation under the Alberta Site Rehabilitation Program (“ASRP”). These awards will allow the Company to expand our abandonment activities for wells, pipelines, facilities, and related site reclamation and thus reduce our decommissioning liability. The Company began utilization these grants during the fourth quarter of 2020 which totaled $2.2 million on a net basis. The benefit of these grants has been recorded as Government decommissioning assistance in the Consolidated Statements of Income (Loss). |
Potential Business Combination
Potential Business Combination | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Potential Business Combination | 22. Potential Business Combination On September 21, 2020, the Company formally launched an offer to purchase all issued and outstanding common shares of Bonterra Energy Corp. (“Bonterra”) for consideration of two common shares of Obsidian Energy for each Bonterra common share. The offer is open until 5:00pm (Mountain Daylight Time) on March 29, 2021, unless extended, accelerated or withdrawn. The Company continues to pursue a path of consolidation within the Cardium as we focus on further enhancing our size and scale while strengthening our balance sheet and reducing deb t. As a result of this offer, the Company recorded certain transaction related costs during the period. |
Supplementary Oil and Gas Infor
Supplementary Oil and Gas Information - (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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, 2020 and 2019, Obsidian Energy has filed our 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, 2020 and 2019 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, 2020 and 2019, 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, 2020 CONSTANT PRICES AND COSTS Light and Heavy Natural Natural Gas Barrels of Oil Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2019 46 5 143 6 82 Extensions & Discoveries 0 0 0 0 0 Improved Recovery & Infill Drilling 2 0 5 0 3 Technical Revisions (4 ) (3 ) 11 0 (5 ) Acquisitions 0 0 0 0 0 Dispositions 0 0 0 0 0 Production (4 ) (1 ) (19 ) (1 ) (9 ) Change for the year (6 ) (4 ) (3 ) (1 ) (11 ) December 31, 2020 40 2 140 6 70 Developed 26 2 105 4 48 Undeveloped 14 0 35 2 22 Total (2) 40 2 140 6 70 (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, 2019 CONSTANT PRICES AND COSTS Light and Heavy Natural Natural Gas Barrels of Oil Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2018 43 5 143 6 78 Extensions & Discoveries — — 1 — — Improved Recovery & Infill Drilling 5 — 13 1 8 Technical Revisions 2 2 5 — 5 Acquisitions — — — — — Dispositions — — — — — Production (4 ) (1 ) (19 ) (1 ) (10 ) Change for the year 3 — — — 4 December 31, 2019 46 5 143 6 82 Developed 31 4 102 4 57 Undeveloped 15 1 41 2 25 Total (2) 46 5 143 6 82 (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 2020 and 2019, the Company focused development activities on the Cardium area of Alberta, specifically in the Willesden Green play. In response to the low commodity price environment due to the COVID-19 CAPITALIZED COSTS As at December 31, ($CAD millions) 2020 2019 Proved oil and gas properties $ 10,838.3 $ 10,387.2 Unproved oil and gas properties 0 — Total capitalized costs 10,838.3 10,387.2 Accumulated depletion and depreciation (9,942.6 ) (8,708.3 ) Net capitalized costs $ 895.7 $ 1,678.9 COSTS INCURRED For the years ended December 31, ($CAD millions) 2020 2019 Property acquisition (disposition) costs (1) Proved oil and gas properties – acquisitions $ 0 $ — Proved oil and gas properties – dispositions (0.1 ) (10.7 ) Unproved oil and gas properties 0 — Exploration costs (2) 0.3 0.2 Development costs (3) 56.7 102.5 Capital expenditures 56.9 92.0 Corporate acquisitions 0 — Total expenditures $ 56.9 $ 92.0 (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) 2020 2019 Future cash inflows $ 2,288 $ 3,884 Future production costs (1,108 ) (1,659 ) Future development/ abandonment costs (586 ) (1,104 ) Undiscounted pre-tax 594 1,121 Deferred income taxes (1) 0 — Future net cash flows 594 1,121 Less 10% annual discount factor (183 ) (289 ) Standardized measure of discounted future net cash flows $ 411 $ 832 (1) Obsidian Energy is currently not cash taxable and does not expect to be based on the assumptions in the forecast period. STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOW CHANGES For the years ended December 31, ($CAD millions) 2020 2019 Standardized measure of discounted future net cash flows at beginning of year $ 832 $ 826 Oil and gas sales during period net of production costs and royalties (1) (123 ) (215 ) Changes due to prices (2) (419 ) (20 ) Development costs during the period (3) 57 103 Changes in forecast development costs (4) 69 (88 ) Changes resulting from extensions, infills and improved recovery (5) (2 ) 48 Changes resulting from discoveries (2) 0 — Changes resulting from acquisitions of reserves (5) 0 — Changes resulting from dispositions of reserves (5) (3 ) (4 ) Accretion of discount (6) 83 83 Net change in income tax (7) 0 — Changes resulting from other changes and technical reserves revisions plus effects on timing (8) (83 ) 98 Standardized measure of discounted future net cash flows at end of year $ 411 $ 832 (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 polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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. Additionally, management has performed an assessment of the Company’s ability to comply with liquidity requirements for the 12-month 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 and resource 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 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 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 oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a 50 percent degree of certainty those quantities will 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 and 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 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 our 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 of disposal 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 non-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. 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 closing date of the acquisition. |
Revenue | c) Revenue Obsidian Energy generally recognizes oil, natural gas and natural gas liquids (“NGLs”) revenue when title passes from Obsidian Energy to the purchaser or, in the case of services, as contracted services are performed. Production revenues are determined pursuant to the terms outlined in contractual agreements and are based on fixed or variable price components. The transaction price for oil, natural gas and NGLs is based on the commodity price in the month of production, adjusted for various factors including product quality and location. Commodity prices are based on monthly or daily market indices. Performance obligations in the contract are fulfilled on the last day of the month with payment typically on the 25 th Obsidian Energy may purchase commodity products from third parties to utilize in blending activities and then subsequently sell these products to its customers. These transactions are presented as separate revenue and expense items in the Consolidated Statements of Income (Loss). The Company enters into road use agreements with our partners which allows them to use roads that are operated by the Company. Under these road use agreements, the Company charges a fee which assists the Company in maintaining the roads. These fees received from partners are recorded within road use recoveries within Other income |
Joint arrangements | d) Joint arrangements The consolidated financial statements include Obsidian Energy’s proportionate interest of jointly controlled assets and liabilities and our 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 our proportionate interest in the assets and the economic benefits generated from our share of the assets. Income from the sale or use of Obsidian Energy’s interest in joint operations and our 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 our 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, oil and natural gas liquids from the wellhead to the point where title transfers to buyers. These costs are recognized as services are received. |
Foreign currency translation | f) Foreign currency translation Obsidian Energy and each of our 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 and 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 our 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 of disposal 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 after-tax The fair value less costs of disposal values used to determine the recoverable amounts of the Company’s CGUs are classified as Level 3 fair value measures as certain key assumptions are not based on observable market data but rather management’s best estimates. 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 an 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” plan) follows the equity method and recognizes 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”) is 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”) and performance share units granted under the RPSU plan follow the liability method and are based on a fair value calculation on each reporting date using the awards and performance share units outstanding and Obsidian Energy’s share price from the TSX on each balance sheet date. The fair value of the awards and performance share units 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 amount of the 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 provision The office lease provision is the net present value of future lease payments that the Company is obligated to make under non-cancellable non-lease |
Leases | j) Leases At the inception of entering into a contract, the Company assesses whether a contract is, or contains, a lease • the contract involves the use of an identified asset; • the Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and • the Company has the right to direct the use of the asset, which occurs if either; • the Company has the right to operate the asset; or • the Company designed the asset in a way that predetermines how and for what purpose it will be used. Obsidian Energy recognizes a right-of-use right-of-use The right-of-use right-of-use right-of-use The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate. The consideration used to measure the lease liability includes all fixed payments and variable lease payments that depend on an index or rate under the arrangement. Subsequently, the lease liability is measured at amortized cost using the effective interest method and is re-measured In-scope Upon adoption of IFRS 16, the Company identified certain office leases, transportation commitments, vehicle leases and surface leases in-scope • Office lease commitments pertain to total leased office space; • Transportation commitments related to costs for future pipeline access; • Vehicle leases relate to commitments for usage of vehicles; and • Surface leases allow access to land at a natural gas or oil treatment facility and beyond. Obsidian Energy has elected not to recognize right-of-use low-value |
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, if paid, are 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 Statements of Income (Loss) 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 probable that the related tax benefit will be realized. |
Financial instruments | n) Financial instruments Obsidian Energy recognizes financial assets and financial liabilities, including derivatives, on the Consolidated Balance Sheets when the Company becomes a party to the contract. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or when the Company has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognized from the consolidated financial statements when the liability is extinguished either through settlement of or release from the obligation of the underlying liability. Classification and Measurement of Financial Instruments The classification of financial assets is determined by their context in Obsidian Energy’s operations and by the characteristics of the financial asset’s contractual cash flows. Financial assets and financial liabilities are measured at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification, as described below: • Cash and cash equivalents (which includes cash and bank overdrafts), accounts receivable, accounts payable and accrued liabilities and long-term debt are measured at amortized cost. • Risk management contracts, all of which are derivatives, are measured initially at fair value through profit or loss and are subsequently measured at fair value with changes in fair value immediately charged to the Consolidated Statements of Income (Loss). Financial assets and liabilities are offset and the net amount is reported on the balance sheet when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. Impairment of Financial Assets Financial assets are assessed using an expected credit loss (“ECL”) model. The ECL model applies to financial assets measured at amortized cost, a lease receivable, a contract asset or a loan commitment and a financial guarantee. |
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. |
Government Grants | q) Government Grants Obsidian Energy recognizes government grants as they are received or if there is reasonable assurance that the Company is in compliance with all associated conditions. The grant is recognized within the Consolidated Statements of Income (Loss) in the period in which the income is earned or the related expenditures are incurred. If the grant relates to an asset, it is recognized as a reduction to the carrying value of the asset and amortized into income over the expected useful life of the asset through lower depletion and depreciation. |
Lease receivable (Tables)
Lease receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease Receivables [Abstract] | |
Disclosure Of Detailed Information About Lease Receivable Activity Explanatory | Lease receivable relates to the lease component of sub-leased Year ended December 31 2020 2019 Balance, beginning of year $ 39.5 $ 42.4 Additions (terminations) (37.6 ) 3.7 Finance income 0.3 2.5 Lease payments received (2.2 ) (9.1 ) Balance, end of year $ 0 $ 39.5 Current portion $ 0 $ 8.8 Long-term portion $ 0 $ 30.7 |
Assets and liabilities held f_2
Assets and liabilities held for sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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 2020 2019 Assets held for sale Cash $ 0 $ 2.0 Accounts receivable 0 3.9 Property, plant and equipment 0 77.0 $ 0 $ 82.9 Liabilities related to assets held for sale Accounts payable and accrued liabilities $ 0 $ 6.0 Decommissioning liability 0 7.0 $ 0 $ 13.0 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Disclosure of Property Plant and Equipment | Oil and Gas assets/Facilities, Corporate assets Cost Oil and gas Corporate Total Balance at January 1, 2019 $ 10,600.8 $ 175.1 $ 10,775.9 Capital expenditures 102.7 0.5 103.2 Dispositions (53.3 ) — (53.3 ) Transfer to assets held for sale (423.0 ) — (423.0 ) Net decommissioning dispositions (1) (15.6 ) — (15.6 ) Balance at December 31, 2019 $ 10,211.6 $ 175.6 $ 10,387.2 Capital expenditures 57.0 0.2 57.2 Dispositions (0.1 ) 0 (0.1 ) Transfer from assets held for sale 423.0 0 423.0 Net decommissioning dispositions (1) (29.0 ) 0 (29.0 ) Balance at December 31, 2020 $ 10,662.5 $ 175.8 $ 10,838.3 (1) Includes additions from drilling activity, facility capital spending and disposals from net property dispositions. Accumulated depletion, depreciation and impairment Oil and gas Corporate Total Balance at January 1, 2019 $ 8,066.2 $ 135.8 $ 8,202.0 Depletion and depreciation 221.7 14.3 236.0 Impairments 657.7 — 657.7 Transfers to assets held for sale (346.0 ) — (346.0 ) Dispositions (41.4 ) — (41.4 ) Balance at December 31, 2019 $ 8,558.2 $ 150.1 $ 8,708.3 Depletion and depreciation 115.1 7.0 122.1 Impairments 747.5 18.7 766.2 Transfers from assets held for sale 346.0 0 346.0 Balance at December 31, 2020 $ 9,766.8 $ 175.8 $ 9,942.6 Net book value As at December 31 2020 2019 Total $ 895.7 $ 1,678.9 |
Disclosure of Benchmark Prices Used in Impairment Tests | The following table outlines benchmark prices and assumptions, based on an average of four independent reserve evaluators’ forecasts (Sproule Associates Limited, GLJ Petroleum Consultants, McDaniel & Associates Consultants and Deloitte Resource Evaluation & Advisory), used in completing the impairment tests as at December 31, 2020. WTI AECO Exchange rate Inflation rate 2021 $ 46.88 $ 2.74 $ 0.77 0 % 2022 51.14 2.70 0.77 1.5 % 2023 54.83 2.65 0.77 2.0 % 2024 56.48 2.69 0.77 2.0 % 2025 57.62 2.74 0.77 2.0 % 2026 – 2030 $ 61.16 $ 2.91 $ 0.77 2.0 % Thereafter (inflation percentage) 2 % 2 % — 2.0 % |
Summary of Right of Use Assets | The following table includes a break-down of the categories for right-of-use Cost Office Transportation Vehicle Surface Total Balance, January 1, 2019 $ 15.0 $ 16.7 $ 2.9 $ 2.2 $ 36.8 Additions (Terminations) (2.4 ) — 1.2 (0.1 ) (1.3 ) Balance, December 31, 2019 $ 12.6 $ 16.7 $ 4.1 $ 2.1 $ 35.5 Additions (Terminations) (12.6 ) (1.8 ) 1.6 — (12.8 ) Balance, December 31, 2020 $ 0 $ 14.9 $ 5.7 $ 2.1 $ 22.7 Accumulated amortization Office Transportation Vehicle Surface Total Balance, January 1, 2019 $ — $ — $ — $ — $ — Amortization 2.4 6.0 1.3 0.1 9.8 Balance, December 31, 2019 $ 2.4 $ 6.0 $ 1.3 $ 0.1 $ 9.8 Amortization 0.5 4.5 1.3 — 6.3 Termination (2.9 ) — — — (2.9 ) Balance, December 31, 2020 $ 0 $ 10.5 $ 2.6 $ 0.1 $ 13.2 As at December 31 2020 2019 Total $ 9.5 $ 25.7 |
Summary of Property Plant Equipment And Right Of Use Assets | Total PP&E including Oil and Gas assets, Facilities, Corporate assets and Right-of-use As at December 31 PP&E 2020 2019 Oil and Gas assets, Facilities, Corporate assets $ 895.7 $ 1,678.9 Right-of-use 9.5 25.7 Total $ 905.2 $ 1,704.6 |
Disclosure of Estimated Recoverable Amount on Impairment Test | The following table outlines the sensitivity on possible changes to the estimated recoverable amounts on the Company’s CGUs that had impairment tests completed on December 31, 2020. Recoverable Impairment/ 1% change in 5% change in Cardium $ 849.2 $ Nil $ 66.9 $ 66.2 Peace River 28.5 (18.0 ) 1.3 2.8 Legacy $ Nil $ 21.8 $ Nil $ Nil |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Schedule of Long-term Debt | As at December 31 2020 2019 Syndicated credit facility $ 395.0 $ 399.0 Senior secured notes – 2008 Notes 5.2 5.3 Senior secured notes – 2010 Q1 Notes 12.4 12.7 Senior secured notes – 2010 Q4 Notes 16.9 17.2 4.98%, US$5.8 million, maturing November 30, 2021 7.4 7.5 5.23%, US$2.1 million, maturing November 30, 2021 2.7 2.8 Senior secured notes – 2011 Q4 Notes 15.7 16.0 Total credit facility and senior secured notes $ 455.3 $ 460.5 Deferred financing costs (3.5 ) — Total long-term debt 451.8 460.5 Current portion $ 451.8 $ 434.2 Long-term portion $ 0 $ 26.3 As at December 31 2020 2019 Weighted average remaining life (years) 0.9 1.5 Weighted average interest rate 5.2 % 5.7 % |
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 2020 2019 2008 Notes $ 4.3 $ 5.3 2010 Q1 Notes 10.2 12.6 2010 Q4 Notes 22.0 25.7 2011 Notes 12.8 14.8 Total $ 49.3 $ 58.4 |
Detailed Information About In Financing Expense | Financing expense consists of the following: As at December 31 2020 2019 Interest on bank debt and senior notes $ 22.8 $ 28.3 Advisor fees 10.1 4.1 Deferred financing costs 2.8 0.7 Unwinding discount on lease liabilities 1.5 7.5 Financing $ 37.2 $ 40.6 |
Realized and Unrealized Gain (Loss) on Foreign Exchange | The split between realized and unrealized foreign exchange is as follows: As at December 31 2020 2019 Realized foreign exchange loss $ 0 $ (2.6 ) Unrealized foreign exchange gain 1.4 5.8 Foreign exchange gain $ 1.4 $ 3.2 |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease liabilities [abstract] | |
Detailed Information About In Lease Liabilities Included In Consolidated Balance Sheet | Total lease liabilities included in the Consolidated Balance Sheets Year ended December 31 2020 2019 Balance, beginning of year $ 113.8 $ 135.2 Additions (terminations) (98.6 ) 1.0 Unwinding of discount on lease liabilities 1.5 7.5 Lease payments (6.3 ) (29.9 ) Balance, end of year $ 10.4 $ 113.8 Current portion $ 4.8 $ 28.8 Long-term portion $ 5.6 $ 85.0 |
Detailed information About In Maturity Lease Payments | The following table sets out a maturity analysis of lease payments, disclosing the undiscounted balance after December 31, 2020: 2021 2022 2023 2024 2025 Thereafter Total Transportation $ 3.4 $ 2.2 $ — $ — $ — $ — $ 5.6 Vehicle 1.4 1.2 0.7 0.1 — — 3.4 Surface 0.1 0.1 0.1 0.1 0.1 5.0 5.5 Total $ 4.9 $ 3.5 $ 0.8 $ 0.2 $ 0.1 $ 5.0 $ 14.5 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Provisions | As at December 31 2020 2019 Decommissioning liability $ 70.5 $ 100.1 Office lease provision 33.5 12.7 Total $ 104.0 $ 112.8 Current portion $ 16.3 $ 16.2 Long-term portion 87.7 96.6 Total $ 104.0 $ 112.8 |
Summary of Changes to Decommissioning Liability | Changes to the decommissioning liability were as follows: Year ended December 31 2020 2019 Balance, beginning of year $ 100.1 $ 129.1 Net liabilities added (disposed) (1) (0.4 ) (6.2 ) Increase (decrease) due to changes in estimates (28.6 ) (9.4 ) Liabilities settled (11.1 ) (14.4 ) Government decommissioning assistance (2.2 ) — Transfers (to) from liabilities for assets held for sale 7.0 (7.0 ) Accretion charges 5.7 8.0 Balance, end of year $ 70.5 $ 100.1 Current portion $ 7.3 $ 13.0 Long-term portion $ 63.2 $ 87.1 (1) Includes additions from drilling activity, facility capital spending and disposals related to net property dispositions. |
Summary of Changes to Office Lease Provision | Changes to the office lease provision were as follows: Year ended December 31 2020 2019 Balance, beginning of year $ 12.7 $ 21.3 Net additions (dispositions) 27.0 (5.6 ) Increase (decrease) due to changes in estimates 1.0 (1.9 ) Settlements (9.7 ) (2.2 ) Accretion charges 2.5 1.1 Balance, end of year $ 33.5 $ 12.7 Current portion $ 9.0 $ 3.2 Long-term portion $ 24.5 $ 9.5 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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) 2020 2019 Balance, beginning of year $ (0.6 ) $ 8.0 Unrealized gain (loss) on financial instruments: Commodity collars and swaps 0.8 (8.6 ) Total fair value, end of year $ 0.2 $ (0.6 ) Current portion $ 0.2 $ (0.6 ) Long-term portion $ 0 $ — |
Schedule of Financial Instruments Outstanding | Obsidian Energy had the following financial instruments outstanding as at December 31, 2020. Fair values are determined using external counterparty information, which is compared to observable market data. The Company limits our credit risk by executing counterparty risk procedures which include transacting only with institutions within our syndicated credit facility or companies with high credit ratings and by obtaining financial security in certain circumstances. Notional Remaining term Pricing Fair value Oil WTI Swaps 5,750 bbl/d January 2021 $ 59.62/bbl $ (0.5 ) WTI Swaps 2,500 bbl/d February 2021 $ 60.34/bbl (0.1 ) WTI Swaps 750 bbl/d March 2021 $ 61.58/bbl 0 AECO Swaps AECO Swaps 23,700 mcf/d Jan –Mar 2021 $ 2.94/mcf 0.8 Total $ 0.2 |
Disclosure Details Of Financial Contracts One | Subsequent to December 31, 2020, the Company entered into the following additional financial hedges: Reference price Notional Term Pricing Oil WTI Swaps 400 bbl/d January 2021 $ 63.09/bbl WTI Swaps 3,750 bbl/d February 2021 $ 67.00/bbl WTI Swaps 6,050 bbl/d March 2021 $ 69.70/bbl WTI Swaps 4,750 bbl/d April 2021 $ 77.74/bbl WTI Swaps 1,125 bbl/d May 2021 $ 81.50/bbl AECO Swaps AECO Swaps 2,370 mcf/d March 2021 $ 3.17/mcf AECO Swaps 26,100 mcf/d April 2021 $ 2.83/mcf AECO Swaps 21,300 mcf/d May 2021 $ 2.68/mcf AECO Swaps 21,300 mcf/d June 2021 $ 2.67/mcf AECO Swaps 4,700 mcf/d July 2021 $ 2.28/mcf AECO Swaps 4,700 mcf/d August 2021 $ 2.28/mcf AECO Swaps 4,700 mcf/d September 2021 $ 2.28/mcf AECO Swaps 4,700 mcf/d October 2021 $ 2.28/mcf |
Components of Risk Management on Consolidated Statements of Income (Loss) | The components of risk management on the Consolidated Statements of Income (Loss) are as follows: Year ended December 31 2020 2019 Realized Settlement of commodity contracts $ 20.9 $ (7.2 ) Total realized risk management gain (loss) $ 20.9 $ (7.2 ) Unrealized Commodity contracts $ 0.8 $ (8.6 ) Total unrealized risk management gain (loss) 0.8 (8.6 ) Risk management gain (loss) $ 21.7 $ (15.8 ) |
Disclosure of Detailed Information about Accounts Receivable | As at December 31, the following accounts receivable amounts were outstanding: Current 30-90 days 90+ days Total (1) 2020 $ 29.5 $ 5.6 $ 5.7 $ 40.8 2019 $ 47.5 $ 9.4 $ 8.7 $ 65.6 (1) In 2020, $nil of accounts receivable is related to assets classified as held for sale (2019 – $3.9 million). |
Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities | The following table outlines estimated future obligations for non-derivative Long-term debt (1) Accounts payable Share-based Total 2021 $ 451.8 $ 72.2 $ 1.9 $ 525.9 2022 0 0 0.1 0.1 2023 0 0 0 0 2024 0 0 0 0 2025 0 0 0 0 Thereafter $ 0 $ 0 $ 0 $ 0 (1) The 2021 figure includes $395.0 million related to the syndicated credit facility, which at the balance sheet date was due for renewal in 2021. Subsequent to December 31, 2020, the Company entered into an agreement with members of our banking syndicate to extend the term-out |
Disclosure Details Of Physical Contracts Outstanding [Text Block] | Additionally, the Company had the following physical contracts outstanding at December 31, 2020. Notional Term Pricing Physical Oil Contracts (1) WTI 542 bbl/d Jan – Mar 2021 $ 55.54/bbl WTI 571 bbl/d Apr – Jun 2021 $ 59.04/bbl (1) WTI, differentials and foreign exchange hedged to lock-in positive net operating income on certain heavy oil properties. Subsequent to December 31, 2020 the Company entered into the following physical contracts: Notional Term Pricing Light Oil Differential (1)(2) 1,245 bbl/d Apr – Jun 2021 $ 5.51/bbl 1,230 bbl/d Jul – Sep 2021 $ 5.82/bbl Light Oil Differential – USD (1) 1,556 bbl/d Apr – Jun 2021 US$ 4.00/bbl 1,539 bbl/d Jul – Sep 2021 US$ 4.42/bbl Heavy Oil Differential (3) 564 bbl/d Jul – Sep 2021 $ 14.85/bbl (1) Differentials completed on a WTI - MSW basis. (2) USD transactions completed on a US$ WTI - US$ MSW basis and converted to Canadian dollars using a fixed foreign exchange ratio of CAD/USD $1.281 in the second quarter of 2021 and $1.279 in the third quarter of 2021. (3) Differentials completed on a WTI - WCS basis. |
Revenue and Other Income (Table
Revenue and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Disclosure of Significant Revenue | The Company’s significant revenue streams consist of the following: Year ended December 31 2020 2019 Oil $ 213.1 $ 357.9 NGLs 16.3 16.3 Natural gas 46.0 35.1 Production revenues 275.4 409.3 Processing fees 6.3 7.7 Oil and natural gas sales 281.7 417.0 Other income 13.0 8.5 Oil and natural gas sales and other income $ 294.7 $ 425.5 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Provision for Income Taxes | The provision for income taxes is as follows: As at December 31 2020 2019 Deferred tax recovery $ 0 $ — |
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 2020 2019 Loss before taxes $ (771.7 ) $ (788.3 ) Combined statutory tax rate (1) 24.0 % 26.5 % Computed income tax recovery $ (185.2 ) $ (208.9 ) Increase (decrease) resulting from: Share-based compensation 0.5 1.2 Non-taxable (0.3 ) (0.9 ) Unrecognized deferred tax asset 178.2 176.5 Adjustments related to prior years (0.9 ) (4.8 ) Tax rate reductions 7.6 34.2 Other 0.1 2.7 Deferred tax recovery $ 0 $ — (1) The tax rate represents the combined federal and provincial statutory tax rates for the Company and our subsidiaries for the years ended December 31, 2020 and December 31, 2019. Effective July 1, 2020, the Alberta corporate income tax rate was reduced from 10% to 8%. This resulted in a combined statutory tax rate of 24.0% for the year. |
Summary of Net Deferred Income Tax Liability | The net deferred income tax liability is comprised of the following: Balance Provision Balance December 31, Deferred tax liabilities (assets) PP&E $ 282.5 $ (196.0 ) $ 86.5 Leases (20.0 ) 9.9 (10.1 ) Decommissioning liability (24.6 ) 8.0 (16.6 ) Share-based compensation (0.2 ) (0.2 ) (0.4 ) Non-capital (237.7 ) 178.3 (59.4 ) Net deferred tax liability $ 0 $ 0 $ 0 Balance Provision Balance Deferred tax liabilities (assets) PP&E $ 525.9 $ (243.4 ) $ 282.5 Risk management 2.2 (2.2 ) — Leases (22.7 ) 2.7 (20.0 ) Decommissioning liability (34.9 ) 10.3 (24.6 ) Share-based compensation (0.2 ) — (0.2 ) Non-capital (470.3 ) 232.6 (237.7 ) Net deferred tax liability $ — $ — $ — |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Issued Capital | b) Issued Shareholders’ capital Common Shares Amount Balance, December 31, 2018 72,473,719 $ 2,184.9 Issued on exercise of equity compensation plans (1) 537,769 1.8 Balance, December 31, 2019 73,011,488 $ 2,186.7 Issued on exercise of equity compensation plans (1) 504,737 0.3 Balance, December 31, 2020 73,516,225 $ 2,187.0 (1) Upon vesting or exercise of equity awards, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. |
Summary of Other Reserves | Year ended December 31 Other Reserves 2020 2019 Balance, beginning of year $ 101.8 $ 99.1 Share-based compensation expense 2.1 4.5 Net benefit on options exercised (1) (0.3 ) (1.8 ) Balance, end of year $ 103.6 $ 101.8 (1) Upon exercise of awards, 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, 2020 | |
Statement [LineItems] | |
Summary of Stock Option Activity and Related Information | Year ended December 31 2020 2019 Options Number of Options Weighted Exercise Price Number of Weighted Outstanding, beginning of year 89,178 $ 10.41 287,996 $ 25.34 Granted 917,490 0.56 — — Forfeited (44,714 ) 12.06 (198,818 ) 32.04 Outstanding, end of year 961,954 $ 0.94 89,178 $ 10.41 Exercisable, end of year 44,464 $ 8.74 77,066 $ 10.67 |
Summary of Fair Value and Weighted Average Assumptions of the Options Granted | The fair value and weighted average assumptions of the options granted during the year were as follows: Year ended December 31 2020 2019 Average fair value of options granted (per option) $ 0.29 $ — Expected volatility 83.6% — Expected life of options (years) 3.25 — Expected forfeiture rate 0.6% — |
Summary of Share-Based Compensation | Share-based compensation consisted of the following: Year ended December 31 2020 2019 RSU grants $ 2.0 $ 4.5 DSU plan 1.2 0.1 PSU grants 0.1 — Options 0.1 — Share-based compensation $ 3.4 $ 4.6 |
Restricted share unit plan [member] | |
Statement [LineItems] | |
Summary of Restricted and Performance Share Unit plan ("RPSU plan") | Year ended December 31 RSUs (number of shares equivalent) 2020 2019 Outstanding, beginning of year 1,100,278 1,235,202 Granted 1,818,840 971,916 Vested (510,738 ) (574,706 ) Forfeited (52,972 ) (532,134 ) Outstanding, end of year 2,355,408 1,100,278 |
Summary of Weighted Average Assumptions of RPSU Plan Units Under Equity Method | The fair value and weighted average assumptions of the RSUs granted during the year were as follows: Year ended December 31 2020 2019 Average fair value of units granted (per unit) $ 0.55 $ 2.77 Expected life of units (years) 3.0 3.0 Expected forfeiture rate 0.6% 1.0% |
PSU Plan [member] | |
Statement [LineItems] | |
Summary of Restricted and Performance Share Unit plan ("RPSU plan") | Year ended December 31 PSUs (number of shares equivalent) 2020 2019 Outstanding, beginning of year 92,424 163,129 Granted 376,310 144,211 Vested (10,716 ) (22,929 ) Forfeited (4,173 ) (191,987 ) Outstanding, end of year 453,845 92,424 |
Per share amounts (Tables)
Per share amounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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 2020 2019 Net loss – basic and diluted $ (771.7 ) $ (788.3 ) |
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 2020 2019 Basic and Diluted 73,258,648 72,882,619 |
Changes in non-cash working c_2
Changes in non-cash working capital increase (decrease) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Changes in Non-cash Working Capital (Increase) Decrease | Year ended December 31 2020 2019 Restricted cash $ 2.4 $ (2.4 ) Accounts receivable (1) 22.6 (15.8 ) Prepaid expenses and other 0.6 — Accounts payable and accrued liabilities (2) (3) (41.3 ) (30.0 ) (15.7 ) (48.2 ) Operating activities (6.6 ) (39.6 ) Investing activities (9.1 ) (8.6 ) $ (15.7 ) $ (48.2 ) Interest paid in cash $ 25.5 $ 35.2 Income taxes paid (recovered) in cash $ 0 $ — (1) At December 31, 2020, $nil is related to assets classified as held for sale (2019 - $3.9 million). (2) At December 31, 2020, $nil is related to assets classified as held for sale (2019 - $6.0 million). (3) Includes share-based compensation plans. |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Financial Covenants Under Lending Agreements | Year ended December 31 (millions, except ratio amounts) 2020 2019 Components of capital Shareholders’ equity $ 323.1 $ 1,092.7 Credit facility and senior secured notes $ 455.3 $ 460.5 Ratios Senior debt to capitalization (1) 59 % 30 % Total debt to capitalization (1) 59 % 30 % Priority debt to consolidated tangible assets (2) 0 — Credit facility and senior secured notes $ 455.3 $ 460.5 Letters of credit (3) 4.9 4.8 Senior debt and total debt 460.2 465.3 Total shareholders’ equity 323.1 1,092.7 Total capitalization $ 783.3 $ 1,558.0 (1) Not to exceed 75 percent. (2) Priority debt not to exceed 15% of consolidated tangible assets. (3) 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, 2020 | |
Statement [LineItems] | |
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: 2021 2022 2023 2024 2025 Thereafter Total Long-term debt (1) $ — $ 451.8 $ — $ — $ — $ — $ 451.8 Transportation 7.1 5.4 2.9 2.5 2.1 5.6 25.6 Power infrastructure 6.7 3.2 — — — — 9.9 Interest obligations 30.0 28.1 — — — — 58.1 Office lease 10.0 10.0 10.0 10.0 0.8 — 40.8 Lease liability 4.9 3.5 0.8 0.2 0.1 5.0 14.5 Decommissioning liability 7.3 12.4 3.5 3.3 3.1 40.9 70.5 Total $ 66.0 $ 514.4 $ 17.2 $ 16.0 $ 6.1 $ 51.5 $ 671.2 (1) Based on agreements signed subsequent to December 31, 2020, the 2022 figure includes $395.0 million related to the syndicated credit facility and non-revolving term loan that is due for renewal in 2022 and $60.3 million of senior notes set to mature in 2022. Refer to Note 7 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
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 2020 2019 Salary and employee benefits $ 4.5 $ 2.2 Termination benefits 0 0.9 Share-based payments (1) 1.7 1.1 $ 6.2 $ 4.2 (1) Includes changes in the fair value of PSUs, DSUs and non-cash |
Supplementary Oil and Gas Inf_2
Supplementary Oil and Gas Information - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Net Proved Oil and Natural Gas Reserves | YEAR ENDED DECEMBER 31, 2020 CONSTANT PRICES AND COSTS Light and Heavy Natural Natural Gas Barrels of Oil Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2019 46 5 143 6 82 Extensions & Discoveries 0 0 0 0 0 Improved Recovery & Infill Drilling 2 0 5 0 3 Technical Revisions (4 ) (3 ) 11 0 (5 ) Acquisitions 0 0 0 0 0 Dispositions 0 0 0 0 0 Production (4 ) (1 ) (19 ) (1 ) (9 ) Change for the year (6 ) (4 ) (3 ) (1 ) (11 ) December 31, 2020 40 2 140 6 70 Developed 26 2 105 4 48 Undeveloped 14 0 35 2 22 Total (2) 40 2 140 6 70 (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, 2019 CONSTANT PRICES AND COSTS Light and Heavy Natural Natural Gas Barrels of Oil Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2018 43 5 143 6 78 Extensions & Discoveries — — 1 — — Improved Recovery & Infill Drilling 5 — 13 1 8 Technical Revisions 2 2 5 — 5 Acquisitions — — — — — Dispositions — — — — — Production (4 ) (1 ) (19 ) (1 ) (10 ) Change for the year 3 — — — 4 December 31, 2019 46 5 143 6 82 Developed 31 4 102 4 57 Undeveloped 15 1 41 2 25 Total (2) 46 5 143 6 82 (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) 2020 2019 Proved oil and gas properties $ 10,838.3 $ 10,387.2 Unproved oil and gas properties 0 — Total capitalized costs 10,838.3 10,387.2 Accumulated depletion and depreciation (9,942.6 ) (8,708.3 ) Net capitalized costs $ 895.7 $ 1,678.9 |
Costs Incurred | COSTS INCURRED For the years ended December 31, ($CAD millions) 2020 2019 Property acquisition (disposition) costs (1) Proved oil and gas properties – acquisitions $ 0 $ — Proved oil and gas properties – dispositions (0.1 ) (10.7 ) Unproved oil and gas properties 0 — Exploration costs (2) 0.3 0.2 Development costs (3) 56.7 102.5 Capital expenditures 56.9 92.0 Corporate acquisitions 0 — Total expenditures $ 56.9 $ 92.0 (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) 2020 2019 Future cash inflows $ 2,288 $ 3,884 Future production costs (1,108 ) (1,659 ) Future development/ abandonment costs (586 ) (1,104 ) Undiscounted pre-tax 594 1,121 Deferred income taxes (1) 0 — Future net cash flows 594 1,121 Less 10% annual discount factor (183 ) (289 ) Standardized measure of discounted future net cash flows $ 411 $ 832 (1) Obsidian Energy is currently not cash taxable and does not expect to be based on the assumptions in the forecast period. |
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) 2020 2019 Standardized measure of discounted future net cash flows at beginning of year $ 832 $ 826 Oil and gas sales during period net of production costs and royalties (1) (123 ) (215 ) Changes due to prices (2) (419 ) (20 ) Development costs during the period (3) 57 103 Changes in forecast development costs (4) 69 (88 ) Changes resulting from extensions, infills and improved recovery (5) (2 ) 48 Changes resulting from discoveries (2) 0 — Changes resulting from acquisitions of reserves (5) 0 — Changes resulting from dispositions of reserves (5) (3 ) (4 ) Accretion of discount (6) 83 83 Net change in income tax (7) 0 — Changes resulting from other changes and technical reserves revisions plus effects on timing (8) (83 ) 98 Standardized measure of discounted future net cash flows at end of year $ 411 $ 832 (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 Obsidian Energy -
Structure of Obsidian Energy - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Disclosure of operating segments [line items] | |
Number of operating segment | 1 |
Percentage of ownership in petroleum and natural gas assets | 100.00% |
Obsidian [member] | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in joint arrangement | 55.00% |
Significant accounting polici_3
Significant accounting policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 |
Lease receivable - Disclosure O
Lease receivable - Disclosure Of Detailed Information About Lease Receivable Activity Explanatory (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Receivables [Line Items] | ||
Balance, beginning of year | $ 39.5 | $ 42.4 |
Additions (terminations) | (37.6) | 3.7 |
Finance income | 0.3 | 2.5 |
Lease payments received | (2.2) | (9.1) |
Balance, end of year | 0 | 39.5 |
Current portion | 0 | 8.8 |
Long-term portion | $ 0 | $ 30.7 |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale - Disclosure of Detailed Information about Assets and Liabilities Held for Sale (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Assets held for sale | $ 0 | $ 82.9 |
Liabilities related to assets held for sale | 0 | 13 |
Cash [member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Assets held for sale | 0 | 2 |
Accounts receivable [member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Assets held for sale | 0 | 3.9 |
Property, plant and equipment [member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Assets held for sale | 0 | 77 |
Accounts payable and accrued liabilities [member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Liabilities related to assets held for sale | 0 | 6 |
Decommissioning liability [member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Liabilities related to assets held for sale | $ 0 | $ 7 |
Property, plant and equipment -
Property, plant and equipment - Disclosure of Property Plant and Equipment (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 1,704.6 | |
Impairments | $ 527.8 | |
Ending balance | 905.2 | 1,704.6 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 10,387.2 | 10,775.9 |
Capital expenditures | 57.2 | 103.2 |
Dispositions | (0.1) | (53.3) |
Transfer to assets held for sale | (423) | |
Transfer from assets held for sale | 423 | |
Net decommissioning dispositions | (29) | (15.6) |
Ending balance | 10,838.3 | 10,387.2 |
Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (8,708.3) | (8,202) |
Depletion and depreciation | 122.1 | 236 |
Impairments | 766.2 | 657.7 |
Dispositions | 41.4 | |
Transfer to assets held for sale | (346) | |
Transfer from assets held for sale | 346 | |
Ending balance | (9,942.6) | (8,708.3) |
Oil and gas assets/Facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,678.9 | |
Ending balance | 895.7 | 1,678.9 |
Oil and gas assets/Facilities [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 10,211.6 | 10,600.8 |
Capital expenditures | 57 | 102.7 |
Dispositions | (0.1) | (53.3) |
Transfer to assets held for sale | (423) | |
Transfer from assets held for sale | 423 | |
Net decommissioning dispositions | (29) | (15.6) |
Ending balance | 10,662.5 | 10,211.6 |
Oil and gas assets/Facilities [member] | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (8,558.2) | (8,066.2) |
Depletion and depreciation | 115.1 | 221.7 |
Impairments | 747.5 | 657.7 |
Dispositions | 41.4 | |
Transfer to assets held for sale | (346) | |
Transfer from assets held for sale | 346 | |
Ending balance | (9,766.8) | (8,558.2) |
Corporate assets [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 175.6 | 175.1 |
Capital expenditures | 0.2 | 0.5 |
Dispositions | 0 | |
Transfer from assets held for sale | 0 | |
Net decommissioning dispositions | 0 | |
Ending balance | 175.8 | 175.6 |
Corporate assets [member] | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (150.1) | (135.8) |
Depletion and depreciation | 7 | 14.3 |
Impairments | 18.7 | |
Transfer from assets held for sale | 0 | |
Ending balance | $ (175.8) | $ (150.1) |
Property, plant and equipment_2
Property, plant and equipment - Additional Information (Detail) - CAD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | $ 527.8 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 527.8 | |||
Non cash impairment charge | $ 762.8 | $ 766.2 | 657.7 | |
Future development costs | 636.1 | 563.7 | ||
Cardium [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | 450 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 450 | |||
Non cash impairment charge | 701.8 | |||
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||
Peace River CGU [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Non cash impairment charge | 58.1 | $ 129.7 | ||
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | $ 18 | |||
Peace River CGU [member] | Bottom of range [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Discount rate on property, plant and equipment after Tax | 9.50% | |||
Peace River CGU [member] | Top of range [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Discount rate on property, plant and equipment after Tax | 15.00% | |||
Viking CGU [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Non cash impairment charge | $ 0 | |||
Legacy CGU [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | 21.8 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | $ 21.8 | |||
Non cash impairment charge | 15.8 | |||
Impairment expenses (recovery) | $ 77.8 | |||
Corporate assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Non cash impairment charge | $ 18.7 |
Property, plant and equipment_3
Property, plant and equipment - Summary of Right of Use Assets (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 25.7 | |
Ending balance | 9.5 | $ 25.7 |
Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 9.8 | |
Amortization | 6.3 | 9.8 |
Additions (Terminations) | (2.9) | |
Ending balance | 13.2 | 9.8 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 35.5 | 36.8 |
Additions (Terminations) | (12.8) | (1.3) |
Ending balance | 22.7 | 35.5 |
Office | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2.4 | |
Amortization | 0.5 | 2.4 |
Additions (Terminations) | (2.9) | |
Ending balance | 0 | 2.4 |
Office | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 12.6 | 15 |
Additions (Terminations) | (12.6) | (2.4) |
Ending balance | 0 | 12.6 |
Transportation | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6 | |
Amortization | 4.5 | 6 |
Ending balance | 10.5 | 6 |
Transportation | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 16.7 | 16.7 |
Additions (Terminations) | (1.8) | |
Ending balance | 14.9 | 16.7 |
Vehicles | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1.3 | |
Amortization | 1.3 | 1.3 |
Ending balance | 2.6 | 1.3 |
Vehicles | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4.1 | 2.9 |
Additions (Terminations) | 1.6 | 1.2 |
Ending balance | 5.7 | 4.1 |
Surface | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 0.1 | |
Amortization | 0.1 | |
Ending balance | 0.1 | 0.1 |
Surface | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2.1 | 2.2 |
Additions (Terminations) | (0.1) | |
Ending balance | $ 2.1 | $ 2.1 |
Property, plant and equipment_4
Property, plant and equipment - Summary of Property Plant Equipment And Right Of Use Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Oil and Gas assets, Facilities, Corporate assets | $ 895.7 | $ 1,678.9 |
Right-of-use assets | 9.5 | 25.7 |
Total | $ 905.2 | $ 1,704.6 |
Property, plant and equipment_5
Property, plant and equipment - Disclosure of Benchmark Prices Used in Impairment Tests (Detail) | Dec. 31, 2020$ / CAD$ / MMBTU$ / bbl |
Disclosure of detailed information about property, plant and equipment [line items] | |
2021 | $ / CAD | 0.77 |
2022 | $ / CAD | 0.77 |
2023 | $ / CAD | 0.77 |
2024 | $ / CAD | 0.77 |
2025 | $ / CAD | 0.77 |
2026 – 2031 | $ / CAD | 0.77 |
2021 | 0.00% |
2022 | 1.50% |
2023 | 2.00% |
2024 | 2.00% |
2025 | 2.00% |
2026 - 2030 | 2.00% |
Thereafter (inflation percentage) | 2.00% |
WTI [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
2021 | $ / bbl | 46.88 |
2022 | $ / bbl | 51.14 |
2023 | $ / bbl | 54.83 |
2024 | $ / bbl | 56.48 |
2025 | $ / bbl | 57.62 |
2026 - 2030 | $ / bbl | 61.16 |
Thereafter (inflation percentage) | 2.00% |
AECO [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
2021 | $ / MMBTU | 2.74 |
2022 | $ / MMBTU | 2.70 |
2023 | $ / MMBTU | 2.65 |
2024 | $ / MMBTU | 2.69 |
2025 | $ / MMBTU | 2.74 |
2026 - 2030 | $ / MMBTU | 2.91 |
Thereafter (inflation percentage) | 2.00% |
Property, plant and equipment_6
Property, plant and equipment - Details of Estimated Recoverable Amount on Impairment Test (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | $ 527.8 | |
Cardium [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | $ 450 | |
Legacy [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | $ 21.8 | |
1% change in discount rate | Cardium [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 66.9 | |
1% change in discount rate | Peace River [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 1.3 | |
1% change in discount rate | Legacy [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 0 | |
5% change in cash flows | Cardium [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 66.2 | |
5% change in cash flows | Peace River [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 2.8 | |
5% change in cash flows | Legacy [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 0 | |
Recoverable amount | Cardium [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 849.2 | |
Recoverable amount | Peace River [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 28.5 | |
Recoverable amount | Legacy [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 0 | |
Impairment/ (Impairment reversal) | Cardium [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | 0 | |
Impairment/ (Impairment reversal) | Peace River [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | (18) | |
Impairment/ (Impairment reversal) | Legacy [member] | ||
Disclosure of estimated recoverable amount on impairment test [Line Items] | ||
Impairment | $ 21.8 |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-term Debt (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 451.8 | $ 460.5 |
Notional amount | 455.3 | 460.5 |
Deferred financing costs | (3.5) | |
Current portion | 451.8 | 434.2 |
Long-term portion | $ 0 | $ 26.3 |
Weighted average remaining life (years) | 0.9 Years | 1.5 Years |
Weighted average interest rate | 5.20% | 5.70% |
Syndicated Credit Facility [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 395 | $ 399 |
6.40%, US$4.0 million, maturing November 30, 2021[Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5.2 | 5.3 |
5.85%, US$9.8 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 12.4 | 12.7 |
4.88%, US$13.3 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 16.9 | 17.2 |
4.98%, US$5.8 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 7.4 | 7.5 |
5.23%, US$2.1 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 2.7 | 2.8 |
4.79%, US$12.3 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 15.7 | $ 16 |
Long-term debt - Schedule of _2
Long-term debt - Schedule of Long-term Debt (Parenthetical) (Detail) - Loan Maturity Date Extension [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
6.40%, US$4.0 million, maturing November 30, 2021[Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 6.40% | 6.40% |
Debt | $ 4 | $ 4 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
5.85%, US$9.8 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.85% | 5.85% |
Debt | $ 9.8 | $ 9.8 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
4.88%, US$13.3 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.88% | 4.88% |
Debt | $ 13.3 | $ 13.3 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
4.98%, US$5.8 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.98% | 4.98% |
Debt | $ 5.8 | $ 5.8 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
5.23%, US$2.1 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 5.23% | 5.23% |
Debt | $ 2.1 | $ 2.1 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
4.79%, US$12.3 million, maturing November 30, 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 4.79% | 4.79% |
Debt | $ 12.3 | $ 12.3 |
Debt, maturity date | November 30, 2021 | November 30, 2021 |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Detail) - CAD ($) $ in Millions | Jan. 17, 2022 | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | |||||
Repayment of senior notes | $ 0 | $ 0 | |||
Percentage of long-term debt instruments exposed to changes in short-term interest rates | 87.00% | 87.00% | |||
Letters of credit outstanding | $ 5 | $ 7.7 | |||
Increase in the interest rate on notes payable | 2.10% | ||||
Reduction in Undrawn Borrowing Capacity [Member] | Forecast [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Available borrowing facilities | $ 35 | ||||
Revolving Credit Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Available borrowing facilities | $ 225 | ||||
Non Revolving Credit Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Available borrowing facilities | 215 | ||||
Syndicated credit facility [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Available borrowing facilities | $ 440 | ||||
Syndicated credit facility [member] | Prospective Amendment To The Maturity And Revolving Date Syndicated Credit Facilities [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Credit facilitites revolving date | Feb. 1, 2022 | ||||
Credit facilities maturity | November 30, 2022 | ||||
Revolving period reconfirmation date | Jan. 17, 2022 | ||||
Syndicated credit facility [member] | Amendement Syndicated Credit Facilities Maturity Date And Revolving Date [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Credit facilitites revolving date | May 31, 2022 | ||||
Credit facilities maturity | November 30, 2022 |
Long-term debt - Estimated Fair
Long-term debt - Estimated Fair Values of Principal and Interest Obligations of Outstanding Senior Secured Notes (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | $ 49.3 | $ 58.4 |
2008 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 4.3 | 5.3 |
2010 Q1 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 10.2 | 12.6 |
2010 Q4 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | 22 | 25.7 |
2011 notes [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Senior notes | $ 12.8 | $ 14.8 |
Long-term debt - Detailed Infor
Long-term debt - Detailed Information About In Financing Expense (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | ||
Interest on bank debt and senior notes | $ 22.8 | $ 28.3 |
Advisor fees | 10.1 | 4.1 |
Deferred financing costs | 2.8 | 0.7 |
Unwinding discount on lease liabilities | 1.5 | 7.5 |
Finance costs | $ 37.2 | $ 40.6 |
Long-term debt - Realized and U
Long-term debt - Realized and Unrealized Gain (Loss) on Foreign Exchange (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of foreign exchange rates [line items] | ||
Realized foreign exchange loss | $ 0 | $ (2.6) |
Unrealized foreign exchange gain | 1.4 | 5.8 |
Foreign exchange gain | $ 1.4 | $ 3.2 |
Lease Liabilities - Detailed In
Lease Liabilities - Detailed Information About In Lease Liabilities Included In Consolidated Balance Sheet (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities [abstract] | ||
Balance, beginning of year | $ 113.8 | $ 135.2 |
Additions (terminations) | (98.6) | 1 |
Unwinding of discount on lease liabilities | 1.5 | 7.5 |
Lease payments | (6.3) | (29.9) |
Balance, end of year | 10.4 | 113.8 |
Current portion | 4.8 | 28.8 |
Long-term portion | $ 5.6 | $ 85 |
Lease Liabilities - Detailed _2
Lease Liabilities - Detailed Information About In Maturity Lease Payments (Detail) $ in Millions | Dec. 31, 2020CAD ($) |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | $ 14.5 |
2021 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 4.9 |
2022 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 3.5 |
2023 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.8 |
2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.2 |
2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 5 |
Transportation [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 5.6 |
Transportation [member] | 2021 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 3.4 |
Transportation [member] | 2022 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 2.2 |
Transportation [member] | 2023 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Transportation [member] | 2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Transportation [member] | 2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Transportation [member] | Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Vehicles [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 3.4 |
Vehicles [member] | 2021 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.4 |
Vehicles [member] | 2022 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.2 |
Vehicles [member] | 2023 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.7 |
Vehicles [member] | 2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Vehicles [member] | 2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Vehicles [member] | Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Surface [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 5.5 |
Surface [member] | 2021 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2022 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2023 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | $ 5 |
Lease Liabilities - Additional
Lease Liabilities - Additional information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Statement [Line Items] | |
Sublease income | $ 0.3 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Provisions [line items] | |||
Decommissioning liability | $ 70.5 | $ 100.1 | $ 129.1 |
Office lease provision | 33.5 | 12.7 | $ 21.3 |
Total | 104 | 112.8 | |
Current portion | 16.3 | 16.2 | |
Long-term portion | 87.7 | 96.6 | |
Total | $ 104 | $ 112.8 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) $ in Millions | Jan. 01, 2020CAD ($) | Dec. 31, 2020CAD ($)yr | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) |
Disclosure of provision matrix [line items] | ||||
Decommissioning liability, inflation factor rate | 2.00% | 2.00% | ||
Decommissioning liability, credit-adjusted rate | 9.00% | 7.00% | ||
Decommissioning liability, expected useful life | yr | 50 | |||
Decommissioning liability | $ 70.5 | $ 100.1 | $ 129.1 | |
Office lease provision, credit-adjusted discount rate | 6.50% | 6.00% | ||
Office Lease Amendment Agreement [Member] | 2020 [member] | ||||
Disclosure of provision matrix [line items] | ||||
Lease rent monthly payment | $ 0.8 | |||
Lease rent annual payment | 10 | |||
Office Lease Amendment Agreement [Member] | 2021 [member] | ||||
Disclosure of provision matrix [line items] | ||||
Lease rent monthly payment | 0.8 | |||
Lease rent annual payment | 10 | |||
Office Lease Amendment Agreement [Member] | 2022 [member] | ||||
Disclosure of provision matrix [line items] | ||||
Lease rent monthly payment | 0.8 | |||
Lease rent annual payment | 10 | |||
Office Lease Amendment Agreement [Member] | 2023 [Member] | ||||
Disclosure of provision matrix [line items] | ||||
Lease rent monthly payment | 0.8 | |||
Lease rent annual payment | 10 | |||
Office Lease Amendment Agreement [Member] | 2024 [Member] | ||||
Disclosure of provision matrix [line items] | ||||
Lease rent monthly payment | 0.8 | |||
Lease rent annual payment | 10 | |||
Office Lease Amendment Agreement [Member] | 2025 [Member] | ||||
Disclosure of provision matrix [line items] | ||||
Lease rent monthly payment | 0.8 | |||
Lease rent annual payment | $ 10 | |||
Decommissioning liability on undiscounted uninflated basis [member] | ||||
Disclosure of provision matrix [line items] | ||||
Decommissioning liability | $ 596.6 | $ 621.2 |
Provisions - Summary of Changes
Provisions - Summary of Changes to Decommissioning Liability (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Provisions [line items] | ||
Balance, beginning of year | $ 100.1 | $ 129.1 |
Net liabilities added (disposed) | (0.4) | (6.2) |
Increase (decrease) due to changes in estimates | (28.6) | (9.4) |
Liabilities settled | (11.1) | (14.4) |
Government decommissioning assistance | (2.2) | |
Transfers (to) from liabilities for assets held for sale | 7 | (7) |
Accretion charges | 5.7 | 8 |
Balance, end of year | 70.5 | 100.1 |
Current portion | 7.3 | 13 |
Long-term portion | $ 63.2 | $ 87.1 |
Provisions - Summary of Chang_2
Provisions - Summary of Changes to Office Lease Provision (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Provisions [line items] | ||
Balance, beginning of year | $ 12.7 | $ 21.3 |
Net additions (dispositions) | 27 | (5.6) |
Increase (decrease) due to changes in estimates | 1 | (1.9) |
Settlements | (9.7) | (2.2) |
Accretion charges | 2.5 | 1.1 |
Balance, end of year | 33.5 | 12.7 |
Current portion | 9 | 3.2 |
Long-term portion | $ 24.5 | 9.5 |
As restated [member] | ||
Disclosure of Provisions [line items] | ||
Office lease provision, Restated | $ 12.7 |
Risk management - Additional In
Risk management - Additional Information (Detail) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020CAD ($)bblMcf | Dec. 31, 2019CAD ($) | |
Disclosure of risk management strategy [line items] | ||||
Senior notes | $ 49.3 | $ 58.4 | ||
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. | |||
Maximum exposure to credit risk | $ 41.6 | 66 | ||
Accounts receivable, carrying value | 40.8 | 65.6 | ||
Derivative financial assets, fair value | $ 0.8 | $ 0.4 | ||
Percentage of long term debt instruments exposed to changes in short term interest rates | 87.00% | 87.00% | ||
Fixed interest rate debt instruments outstanding | $ 60.3 | $ 61.5 | ||
Fixed interest rate debt instruments average remaining term | 10 months 24 days | 1 year 6 months | ||
Average interest rate | 5.20% | 5.70% | ||
Later than three months [member] | ||||
Disclosure of risk management strategy [line items] | ||||
Accounts receivable, carrying value | $ 5.7 | $ 8.7 | ||
Natural gas [member] | ||||
Disclosure of risk management strategy [line items] | ||||
Pre-tax unrealized risk management, change in price per unit | Mcf | 0.50 | |||
Natural gas [member] | Subsequent [member] | ||||
Disclosure of risk management strategy [line items] | ||||
Maximum percentage of volumes to be hedged net of royalties | 65.00% | |||
Maximum percentage additional volume to be hedged net of royalties | 60.00% | |||
CrudeOil [Member] | ||||
Disclosure of risk management strategy [line items] | ||||
Pre-tax unrealized risk management, change in price per unit | bbl | 1 | |||
CrudeOil [Member] | Subsequent [member] | ||||
Disclosure of risk management strategy [line items] | ||||
Maximum percentage of volumes to be hedged net of royalties | 65.00% | |||
barrels of OIL [Member] | ||||
Disclosure of risk management strategy [line items] | ||||
Pre-tax unrealized risk management, change in price, amount | $ 0.4 | |||
MCF Of Gas [Member] | ||||
Disclosure of risk management strategy [line items] | ||||
Pre-tax unrealized risk management, change in price, amount | 1.1 | |||
Senior notes [member] | ||||
Disclosure of risk management strategy [line items] | ||||
Senior notes | $ 60.3 | $ 61.5 |
Risk management - Summary of Re
Risk management - Summary of Reconciliation of Change in Fair Value of Financial Instruments Outstanding (Detail) - At fair value [member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||
Balance, beginning of year | $ (0.6) | $ 8 |
Unrealized gain (loss) on financial instruments: | ||
Commodity collars and swaps | 0.8 | (8.6) |
Total fair value, end of year | 0.2 | (0.6) |
Current portion | 0.2 | $ (0.6) |
Total fair value consists of the following: | ||
Long-term portion | $ 0 |
Risk management - Schedule of F
Risk management - Schedule of Financial Instruments Outstanding (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020CAD ($)bblMcf | |
Disclosure of detailed information about financial instruments [line items] | |
Financial Assets, at fair value | $ | $ 0.2 |
March 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 2,370 |
Financial instruments, remaining term, description | March 2021 |
Financial instruments, benchmark pricing per unit | 3.17 |
Jan – Mar 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 23,700 |
Financial instruments, remaining term, description | Jan –Mar 2021 |
Financial instruments, benchmark pricing per unit | 2.94 |
Financial Assets, at fair value | $ | $ 0.8 |
April 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 26,100 |
Financial instruments, remaining term, description | April 2021 |
Financial instruments, benchmark pricing per unit | 2.83 |
May 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 21,300 |
Financial instruments, remaining term, description | May 2021 |
Financial instruments, benchmark pricing per unit | 2.68 |
June 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 21,300 |
Financial instruments, remaining term, description | June 2021 |
Financial instruments, benchmark pricing per unit | 2.67 |
July 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 4,700 |
Financial instruments, remaining term, description | July 2021 |
Financial instruments, benchmark pricing per unit | 2.28 |
August 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 4,700 |
Financial instruments, remaining term, description | August 2021 |
Financial instruments, benchmark pricing per unit | 2.28 |
September 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 4,700 |
Financial instruments, remaining term, description | September 2021 |
Financial instruments, benchmark pricing per unit | 2.28 |
October 2021 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 4,700 |
Financial instruments, remaining term, description | October 2021 |
Financial instruments, benchmark pricing per unit | 2.28 |
Oil [member] | January 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 400 |
Financial instruments, remaining term, description | January 2021 |
Financial instruments, benchmark pricing per unit | bbl | 63.09 |
Oil [member] | February 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 3,750 |
Financial instruments, remaining term, description | February 2021 |
Financial instruments, benchmark pricing per unit | bbl | 67 |
Oil [member] | March 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 6,050 |
Financial instruments, remaining term, description | March 2021 |
Financial instruments, benchmark pricing per unit | bbl | 69.70 |
Oil [member] | April 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 4,750 |
Financial instruments, remaining term, description | April 2021 |
Financial instruments, benchmark pricing per unit | bbl | 77.74 |
Oil [member] | May 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 1,125 |
Financial instruments, remaining term, description | May 2021 |
Financial instruments, benchmark pricing per unit | bbl | 81.50 |
Oil [member] | W T I swaps [member] | January 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 5,750 |
Financial instruments, remaining term, description | January 2021 |
Financial instruments, benchmark pricing per unit | bbl | 59.62 |
Financial Assets, at fair value | $ | $ (0.5) |
Oil [member] | W T I swaps [member] | February 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 2,500 |
Financial instruments, remaining term, description | February 2021 |
Financial instruments, benchmark pricing per unit | bbl | 60.34 |
Financial Assets, at fair value | $ | $ (0.1) |
Oil [member] | W T I swaps [member] | March 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 750 |
Financial instruments, remaining term, description | March 2021 |
Financial instruments, benchmark pricing per unit | bbl | 61.58 |
Financial Assets, at fair value | $ | $ 0 |
Risk management - Disclosure De
Risk management - Disclosure Details Of Financial Contracts One (Detail) - 12 months ended Dec. 31, 2020 | bbl | $ / bbl | $ / bbl |
Oil [member] | Jan – Mar 2021 | WTI [member] | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 542 | ||
Term | Jan – Mar 2021 | ||
Pricing | $ / bbl | 55.54 | ||
Oil [member] | Apr – Jun 2021 | WTI [member] | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 571 | ||
Term | Apr – Jun 2021 | ||
Pricing | $ / bbl | 59.04 | ||
Light Oil Differential [member] | Apr – Jun 2021 | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 1,230 | ||
Term | Apr – Jun 2021 | ||
Pricing | 5.82 | 5.51 | |
Light Oil Differential [member] | Apr – Jun 2021 | Term Period One [Member] | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 1,245 | ||
Light Oil Differential [member] | Jul - Sep 2021 | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 1,539 | ||
Term | Jul – Sep 2021 | ||
Pricing | 4.42 | 4 | |
Light Oil Differential [member] | Jul - Sep 2021 | Term Period Two [Member] | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 1,556 | ||
Heavy Oil Differential Member [Member] | Jul - Sep 2021 | |||
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |||
Notional volume | 564 | ||
Term | Jul – Sep 2021 | ||
Pricing | $ / bbl | 14.85 |
Risk management - Disclosure _2
Risk management - Disclosure Details Of Financial Contracts One (Parenthetical) (Detail) - Light Oil Differential [member] - Canada, Dollars | 12 Months Ended |
Dec. 31, 2020bbl | |
Second Quarter Of 2021 [member] | |
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |
Fixed foreign exchange ratio | 1.281 |
Third Quarter Of 2021 [member] | |
Disclosure of Disclosure Details Of Financial Contracts One [Line Items] | |
Fixed foreign exchange ratio | 1.279 |
Risk management - Components of
Risk management - Components of Risk Management on Consolidated Statements of Income (Loss) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Realized risk management gain/loss on settlement of commodity contracts/assignment | $ 20.9 | $ (7.2) |
Total realized risk management gain (loss) | 20.9 | (7.2) |
Unrealized risk management gain/loss on commodity contracts | 0.8 | (8.6) |
Total unrealized risk management gain (loss) | 0.8 | (8.6) |
Risk management gain (loss) | $ 21.7 | $ (15.8) |
Risk management - Disclosure of
Risk management - Disclosure of Detailed Information about Accounts Receivable (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of accounts receivables [line items] | ||
Accounts receivables | $ 40.8 | $ 65.6 |
Current [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | 29.5 | 47.5 |
Later than one month and not later than three months [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | 5.6 | 9.4 |
Later than three months [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | $ 5.7 | $ 8.7 |
Risk management - Disclosure _3
Risk management - Disclosure of Detailed Information about Accounts Receivable (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of accounts receivables [line items] | ||
Accounts receivables | $ 40.8 | $ 61.7 |
Disposal groups classified as held for sale [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | $ 0 | $ 3.9 |
Risk management - Summary of Es
Risk management - Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Long-term debt | $ 451.8 | $ 460.5 |
2021 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 451.8 | |
Accounts payable & accrued liabilities | 72.2 | |
Share-based compensation accrual | 1.9 | |
Total | 525.9 | |
2022 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 0 | |
Accounts payable & accrued liabilities | 0 | |
Share-based compensation accrual | 0.1 | |
Total | 0.1 | |
2023 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 0 | |
Accounts payable & accrued liabilities | 0 | |
Share-based compensation accrual | 0 | |
Total | 0 | |
2024 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 0 | |
Accounts payable & accrued liabilities | 0 | |
Share-based compensation accrual | 0 | |
Total | 0 | |
2025 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 0 | |
Accounts payable & accrued liabilities | 0 | |
Share-based compensation accrual | 0 | |
Total | 0 | |
Thereafter [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 0 | |
Accounts payable & accrued liabilities | 0 | |
Share-based compensation accrual | 0 | |
Total | $ 0 |
Risk management - Summary of _2
Risk management - Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [line items] | ||
Long-term debt | $ 451.8 | $ 460.5 |
Top of range [member] | Prospective Amendment To The Maturity And Revolving Date Syndicated Credit Facilities [Member] | ||
Disclosure of financial liabilities [line items] | ||
Credit facilities maturity | November 30, 2022 | |
2021 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | $ 451.8 | |
Syndicated credit facility [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | 395 | $ 399 |
Syndicated credit facility [member] | 2021 [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term debt | $ 395 |
Revenue and Other Income - Disc
Revenue and Other Income - Disclosure of Significant Revenue (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | $ 275.4 | $ 409.3 |
Processing fees | 6.3 | 7.7 |
Other income | 13 | 8.5 |
Oil and natural gas sales and other income | 294.7 | 425.5 |
Crude oil [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | 213.1 | 357.9 |
Natural gas liquids [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | 16.3 | 16.3 |
Natural gas [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | 46 | 35.1 |
Oil and natural gas sales [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Other income | $ 281.7 | $ 417 |
Revenue and Other Income - Addi
Revenue and Other Income - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Other income | $ 0.3 | $ 2.5 |
Road Use Recoveries [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Other income | $ 5.4 | $ 6 |
Income taxes - Summary of Provi
Income taxes - Summary of Provision for Income Taxes (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure representing major components of tax expense income [line items] | ||
Deferred tax recovery | $ 0 | $ 0 |
Income taxes - Summary of Pro_2
Income taxes - Summary of Provision for Income Taxes Reflects Effective Tax Rate (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure representing major components of tax expense income [line items] | ||
Loss before taxes | $ (771.7) | $ (788.3) |
Combined statutory tax rate | 24.00% | 26.50% |
Computed income tax recovery | $ (185.2) | $ (208.9) |
Increase (decrease) resulting from: | ||
Share-based compensation | 0.5 | 1.2 |
Non-taxable foreign exchange (gain) loss | (0.3) | (0.9) |
Unrecognized deferred tax asset | 178.2 | 176.5 |
Adjustments related to prior years | (0.9) | (4.8) |
Tax rate reductions | 7.6 | 34.2 |
Other | 0.1 | 2.7 |
Deferred tax recovery | $ 0 | $ 0 |
Income taxes - Summary of Net D
Income taxes - Summary of Net Deferred Income Tax Liability (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | $ 0 | $ 0 |
Provision (Recovery) in Income | 0 | 0 |
Ending Balance | 0 | 0 |
PP&E [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | 282.5 | 525.9 |
Provision (Recovery) in Income | (196) | (243.4) |
Ending Balance | 86.5 | 282.5 |
Risk Management [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | 0 | 2.2 |
Provision (Recovery) in Income | (2.2) | |
Ending Balance | 0 | |
Leases [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (20) | (22.7) |
Provision (Recovery) in Income | 9.9 | 2.7 |
Ending Balance | (10.1) | (20) |
Decommissioning liability [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (24.6) | (34.9) |
Provision (Recovery) in Income | 8 | 10.3 |
Ending Balance | (16.6) | (24.6) |
Share-based Compensation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (0.2) | (0.2) |
Provision (Recovery) in Income | (0.2) | 0 |
Ending Balance | (0.4) | (0.2) |
Non-capital Losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (237.7) | (470.3) |
Provision (Recovery) in Income | 178.3 | 232.6 |
Ending Balance | $ (59.4) | $ (237.7) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Tax pool | $ 2,500 | $ 2,600 | ||
Non-capital losses | 2,200 | 2,200 | ||
Non-capital losses for which deferred tax asset has not been recognized | 1,950.4 | |||
Realized and unrealized net capital losses | $ 595 | 592 | ||
Provincial Corporate Income Tax Rate | 8.00% | 10.00% | ||
Statutory Rate | 24.00% | |||
Deferred tax assets unrecognised tax credits | $ 1,175.4 |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 73,516,225 | 73,011,488 | 72,473,719 |
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of year | $ 2,186.7 | ||
Issued on exercise of equity compensation plans | 2.1 | $ 4.5 | |
Balance, end of year | 2,187 | 2,186.7 | |
Common shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of year | 2,186.7 | 2,184.9 | |
Issued on exercise of equity compensation plans | [1] | 0.3 | 1.8 |
Balance, end of year | $ 2,187 | $ 2,186.7 | |
Balance, beginning of year | 73,011,488 | 72,473,719 | |
Issued on exercise of equity compensation plans | [1] | 504,737 | 537,769 |
Balance, end of year | 73,516,225 | 73,011,488 | |
[1] | Upon vesting or exercise of equity awards, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. |
Shareholders' equity - Summar_2
Shareholders' equity - Summary of Other Reserves (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reserves within equity [line items] | ||
Balance, beginning of year | $ 101.8 | $ 99.1 |
Share-based compensation expense | 2.1 | 4.5 |
Net benefit on options exercised | (0.3) | (1.8) |
Balance, end of year | $ 103.6 | $ 101.8 |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Share Units Plan (Detail) - Restricted share unit plan [member] | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of year | 1,100,278 | 1,235,202 |
Granted | 1,818,840 | 971,916 |
Vested | (510,738) | (574,706) |
Forfeited | (52,972) | (532,134) |
Outstanding, end of year | 2,355,408 | 1,100,278 |
Share-based compensation - Su_2
Share-based compensation - Summary of Weighted Average Assumptions of RSU Plan Units Under Equity Method (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected forfeiture rate | 0.60% | 0.00% |
Restricted share unit plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average fair value of units granted (per unit) | $ 0.55 | $ 2.77 |
Expected life of units (years) | 3.0 | 3.0 |
Expected forfeiture rate | 0.60% | 1.00% |
Share-based compensation - Su_3
Share-based compensation - Summary of Performance Share Unit Plan (Detail) - PSU Plan [member] - Options granted from June 2017 [member] | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of year | 92,424 | 163,129 |
Granted | 376,310 | 144,211 |
Vested | (10,716) | (22,929) |
Forfeited | (4,173) | (191,987) |
Outstanding, end of year | 453,845 | 92,424 |
Share-based compensation - Su_4
Share-based compensation - Summary of Stock Option Activity and Related Information (Detail) - Options [member] | 12 Months Ended | |
Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of Options Outstanding, beginning of year | 89,178 | 287,996 |
Number of Options, Granted | 917,490 | 0 |
Number of Options, Forfeited | (44,714) | (198,818) |
Number of Options Outstanding, end of year | 961,954 | 89,178 |
Number of Options Exercisable, end of year | 44,464 | 77,066 |
Weighted Average Exercise Price Outstanding, beginning of year | $ 10.41 | $ 25.34 |
Weighted Average Exercise Price, Granted | 0.56 | 0 |
Weighted Average Exercise Price, Forfeited | 12.06 | 32.04 |
Weighted Average Exercise Price, Outstanding, end of year | 0.94 | 10.41 |
Weighted Average Exercise Price, Exercisable, end of year | $ 8.74 | $ 10.67 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020CAD ($)$ / shares | Dec. 31, 2019CAD ($)$ / shares | |
Disclosure of classes of share capital [line items] | ||
Weighted average share price | $ / shares | $ 0.87 | $ 0.93 |
Employer contributions to employee retirement savings plan percentage of employee contribution | 1.00% | |
Percentage of employees contribution | 10.00% | |
Deferred share unit [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of options outstanding | 2,087,580 | 847,100 |
Current liability | $ | $ 1.9 | $ 0.7 |
Share-based compensation - Su_5
Share-based compensation - Summary of Fair Value and Weighted Average Assumptions of the Options Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average fair value of units granted (per unit) | $ 0.29 | $ 0 |
Expected volatility | 83.60% | |
Expected life of options (years) | 3 years 3 months | 0 years |
Expected forfeiture rate | 0.60% | 0.00% |
Share-based compensation - Su_6
Share-based compensation - Summary of Share-Based Compensation (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | $ 3.4 | $ 4.6 |
RSU grants [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 2 | 4.5 |
DSU Plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 1.2 | $ 0.1 |
PSU grants [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | 0.1 | |
Options [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | $ 0.1 |
Per share amounts - Disclosure
Per share amounts - Disclosure of Detailed Information about Net Loss Basic and Diluted (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [line items] | ||
Net loss - basic and diluted | $ (771.7) | $ (788.3) |
Per share amounts - Disclosur_2
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, 2020 | Dec. 31, 2019 | |
Earnings per share [line items] | ||
Basic and Diluted | 73.3 | 72.9 |
Per share amounts - Additional
Per share amounts - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [line items] | ||
Anti-dilutive securities issued under option plan | 1 | 0.1 |
Changes in non-cash working c_3
Changes in non-cash working capital increase (decrease) - Summary of Changes in Non-cash Working Capital (Increase) Decrease (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Increase Decrease In Non-cash Working Capital [line items] | ||
Restricted cash | $ 2.4 | $ (2.4) |
Accounts receivable | 22.6 | (15.8) |
Prepaid expenses and other | 0.6 | |
Accounts payable and accrued liabilities | (41.3) | (30) |
Net changes in non cash working capital | (15.7) | (48.2) |
Operating activities | (6.6) | (39.6) |
Investing activities | (9.1) | (8.6) |
Net changes in non cash working capital | (15.7) | (48.2) |
Interest paid in cash | 25.5 | 35.2 |
Income taxes paid (recovered) in cash | $ 0 | $ 0 |
Changes in non-cash working c_4
Changes in non-cash working capital increase (decrease) - Summary of Changes in Non-cash Working Capital (Increase) Decrease (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Increase Decrease In Non-cash Working Capital [line items] | ||
Accounts receivable | $ 40.8 | $ 61.7 |
Accounts payable and accrued liabilities | 74.1 | 111 |
Current assets held for sale [member] | ||
Disclosure of Increase Decrease In Non-cash Working Capital [line items] | ||
Accounts receivable | 0 | 3.9 |
Accounts payable and accrued liabilities | $ 0 | $ 6 |
Capital management - Summary of
Capital management - Summary of Financial Covenants Under Lending Agreements (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of capital | ||||
Shareholders' equity | $ 323.1 | $ 1,092.7 | $ 1,876.5 | |
Credit facility and senior secured notes | $ 455.3 | $ 460.5 | ||
Ratios | ||||
Senior debt to capitalization | [1] | 59.00% | 30.00% | |
Total debt to capitalization | [1] | 59.00% | 30.00% | |
Priority debt to consolidated tangible assets | [2] | 0.00% | 0.00% | |
Credit facility and senior secured notes | $ 455.3 | $ 460.5 | ||
Long-term debt | 451.8 | 460.5 | ||
Total Shareholders' equity | 323.1 | 1,092.7 | $ 1,876.5 | |
Total capitalization | 783.3 | 1,558 | ||
Letters of credit [member] | ||||
Ratios | ||||
Long-term debt | 4.9 | 4.8 | ||
Senior debt and total debt [member] | ||||
Ratios | ||||
Long-term debt | $ 460.2 | $ 465.3 | ||
[1] | Not to exceed 75 percent | |||
[2] | Priority debt not to exceed 15% of consolidated tangible assets. |
Capital management - Summary _2
Capital management - Summary of Financial Covenants Under Lending Agreements (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of objectives, policies and processes for managing capital [line items] | ||
Maximum senior debt to capitalization | 75.00% | |
Maximum total debt to capitalization | 75.00% | |
Maximum priority debt to consolidated tangible assets | 15.00% |
Commitments and contingencies -
Commitments and contingencies - Summary of Certain Payments Over the Next Five Years (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of commitments and contingencies [line items] | |||
Long-term debt | $ 451.8 | $ 460.5 | |
Transportation | 25.6 | ||
Power infrastructure | 9.9 | ||
Interest obligations | 58.1 | ||
Office lease (before recoveries) | 40.8 | ||
Lease liability | 14.5 | ||
Decommissioning liability | 70.5 | ||
Total | 671.2 | ||
2021 [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Long-term debt | 395 | ||
Transportation | 7.1 | ||
Power infrastructure | 6.7 | ||
Interest obligations | 30 | ||
Office lease (before recoveries) | 10 | ||
Lease liability | 4.9 | ||
Decommissioning liability | 7.3 | ||
Total | 66 | ||
2022 [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Long-term debt | 451.8 | ||
Transportation | 5.4 | ||
Power infrastructure | 3.2 | ||
Interest obligations | 28.1 | ||
Office lease (before recoveries) | 10 | ||
Lease liability | 3.5 | ||
Decommissioning liability | 12.4 | ||
Total | 514.4 | ||
2023 [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Transportation | 2.9 | ||
Office lease (before recoveries) | 10 | ||
Lease liability | 0.8 | ||
Decommissioning liability | 3.5 | ||
Total | 17.2 | ||
2024 [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Transportation | 2.5 | ||
Office lease (before recoveries) | 10 | ||
Lease liability | 0.2 | ||
Decommissioning liability | 3.3 | ||
Total | 16 | ||
2025 [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Long-term debt | [1] | 0 | |
Transportation | 2.1 | ||
Office lease (before recoveries) | 0.8 | ||
Lease liability | 0.1 | ||
Decommissioning liability | 3.1 | ||
Total | 6.1 | ||
Thereafter [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Transportation | 5.6 | ||
Lease liability | 5 | ||
Decommissioning liability | 40.9 | ||
Total | $ 51.5 | ||
[1] | Based on agreements signed subsequent to December 31, 2020, the 2022 figure includes $395.0 million related to the syndicated credit facility that is due for renewal in 2022 and $60.3 million of senior notes set to mature in 2022, refer to Note 7 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Commitments and contingencies_2
Commitments and contingencies - Summary of Certain Payments Over the Next Five Years (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of commitments and contingencies [line items] | ||
Long-term debt | $ 451.8 | $ 460.5 |
2021 [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Long-term debt | 395 | |
Bankers acceptances and prime rate loans [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Long-term debt | 395 | |
Senior notes [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Long-term debt | $ 60.3 |
Commitments and contingencies_3
Commitments and contingencies - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of commitments and contingencies [line items] | ||
Amount of outstanding funds | $ 451.8 | $ 460.5 |
Defense costs | $ 6.4 | |
Number of Months amortized defense cost equally over period | 30 months | |
Senior notes [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Amount of outstanding funds | $ 60.3 | |
Senior notes, maturity | maturing in 2022 |
Related-party transactions - Su
Related-party transactions - Summary of Compensation of Key Management Personnel (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of transactions between related parties [line items] | |||
Salary and employee benefits | $ 4.5 | $ 2.2 | |
Termination benefits | 0 | 0.9 | |
Share-based payments | [1] | 1.7 | 1.1 |
Key Management Personnel Compensation | $ 6.2 | $ 4.2 | |
[1] | Includes share-based compensation plans. |
Supplemental Items - Additional
Supplemental Items - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expense [member] | ||
Supplemental Information [line items] | ||
Employee compensation costs | $ 13 | $ 15.7 |
General and administrative expense [member] | ||
Supplemental Information [line items] | ||
Employee compensation costs | $ 15.7 | $ 21.1 |
Government grants - Additional
Government grants - Additional Information (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | |
Government Grants [Line Items] | |||
Grant received from government | $ 2.2 | ||
Decrease in operating costs | $ 115.4 | $ 145.4 | |
Canadian Emergency Wage Subsidy [Member] | |||
Government Grants [Line Items] | |||
Grant received from government | $ 3.5 | ||
Decrease in operating costs | 2.2 | ||
Decrease in General and administrative costs | 0.7 | ||
Decrese in Capital expenditure | 0.6 | ||
Alberta Site Rehabilitation Program [Member] | |||
Government Grants [Line Items] | |||
Decrese in Capital expenditure | $ 2.2 |
Potential Business Combination
Potential Business Combination - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Name of acquiree | Bonterra Energy Corp |
Description of Potential Businees acquisition offer | two common shares of Obsidian Energy for each Bonterra common share |
Supplementary Oil and Gas Inf_3
Supplementary Oil and Gas Information - (Unaudited) - Net Proved Oil and Natural Gas Reserves (Detail) | 12 Months Ended | |
Dec. 31, 2020MMBblsBcfbbl | Dec. 31, 2019MMBblsBcf | |
Light and medium crude oil [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 46 | 43 |
Extensions & Discoveries | 0 | |
Improved Recovery & Infill Drilling | 2 | 5 |
Technical Revisions | (4) | 2 |
Acquisitions | 0 | |
Dispositions | 0 | |
Production | (4) | (4) |
Change for the year | (6) | 3 |
Ending balance | 40 | 46 |
Developed | 26 | 31 |
Undeveloped | 14 | 15 |
Heavy crude oil and bitumen [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 5 | 5 |
Extensions & Discoveries | 0 | |
Improved Recovery & Infill Drilling | 0 | |
Technical Revisions | (3) | 2 |
Acquisitions | 0 | |
Dispositions | 0 | |
Production | (1) | (1) |
Change for the year | (4) | |
Ending balance | 2 | 5 |
Developed | 2 | 4 |
Undeveloped | 1 | |
Natural gas [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | Bcf | 143 | 143 |
Extensions & Discoveries | 0 | 1 |
Improved Recovery & Infill Drilling | Bcf | 5 | 13 |
Technical Revisions | Bcf | 11 | 5 |
Acquisitions | bbl | 0 | |
Dispositions | bbl | 0 | |
Production | Bcf | (19) | (19) |
Change for the year | Bcf | (3) | |
Ending balance | Bcf | 140 | 143 |
Developed | Bcf | 105 | 102 |
Undeveloped | Bcf | 35 | 41 |
Natural gas liquids [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 6 | 6 |
Extensions & Discoveries | 0 | |
Improved Recovery & Infill Drilling | 0 | 1 |
Technical Revisions | 0 | |
Acquisitions | 0 | |
Dispositions | 0 | |
Production | (1) | (1) |
Change for the year | (1) | |
Ending balance | 6 | 6 |
Developed | 4 | 4 |
Undeveloped | 2 | 2 |
Barrels of oil equivalent [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 82 | 78 |
Extensions & Discoveries | 0 | |
Improved Recovery & Infill Drilling | 3 | 8 |
Technical Revisions | (5) | 5 |
Acquisitions | 0 | |
Dispositions | 0 | |
Production | (9) | (10) |
Change for the year | (11) | 4 |
Ending balance | 70 | 82 |
Developed | 48 | 57 |
Undeveloped | 22 | 25 |
Supplementary Oil and Gas Inf_4
Supplementary Oil and Gas Information - (Unaudited) - Capitalized Costs (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Capitalized Costs Relating To Oil and Gas Producing Activities By Geographic Area [line items] | ||
Proved oil and gas properties | $ 10,838.3 | $ 10,387.2 |
Unproved oil and gas properties | 0 | |
Total capitalized costs | 10,838.3 | 10,387.2 |
Accumulated depletion and depreciation | (9,942.6) | (8,708.3) |
Net capitalized costs | $ 895.7 | $ 1,678.9 |
Supplementary Oil and Gas Inf_5
Supplementary Oil and Gas Information - (Unaudited) - Costs Incurred (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [line items] | ||
Proved oil and gas properties - acquisitions | $ 0 | |
Proved oil and gas properties - dispositions | (0.1) | $ (10.7) |
Unproved oil and gas properties | 0 | |
Exploration costs | 0.3 | 0.2 |
Development costs | 56.7 | 102.5 |
Capital expenditures | 56.9 | 92 |
Corporate acquisitions | 0 | |
Total expenditures | $ 56.9 | $ 92 |
Supplementary Oil and Gas Inf_6
Supplementary Oil and Gas Information - (Unaudited) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
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 Inf_7
Supplementary Oil and Gas Information - (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Future cash inflows | $ 2,288 | $ 3,884 | |
Future production costs | (1,108) | (1,659) | |
Future development/ abandonment costs | (586) | (1,104) | |
Undiscounted pre-tax cash flows | 594 | 1,121 | |
Deferred income taxes | 0 | ||
Future net cash flows | 594 | 1,121 | |
Less 10% annual discount factor | (183) | (289) | |
Standardized measure of discounted future net cash flows | $ 411 | $ 832 | $ 826 |
Supplementary Oil and Gas Inf_8
Supplementary Oil and Gas Information - (Unaudited) - Standardized Measure of Discounted Future Net Cash Flow Changes (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 832 | $ 826 |
Oil and gas sales during period net of production costs and royalties | (123) | (215) |
Changes due to prices | (419) | (20) |
Development costs during the period | 57 | 103 |
Changes in forecast development costs | 69 | (88) |
Changes resulting from extensions, infills and improved recovery | (2) | 48 |
Changes resulting from discoveries | 0 | |
Changes resulting from acquisitions of reserves | 0 | |
Changes resulting from dispositions of reserves | (3) | (4) |
Accretion of discount | 83 | 83 |
Net change in income tax | 0 | |
Changes resulting from other changes and technical reserves revisions plus effects on timing | (83) | 98 |
Standardized measure of discounted future net cash flows at end of year | $ 411 | $ 832 |