Baytex is authorized by its Board of Directors to hedge up to 50% of its net exposure to commodity prices, interest rates and foreign exchange notes. Transactions in excess of this level must be pre-authorized by the Board of Directors. The details of our 2013-2014 hedging positions are as follows:
|% Volumes Hedged at Fixed Price (1)(2)||24%||24%||24%||6%|
|Average Fixed Price (US$/mmBtu)||3.92||3.94||3.89||4.45|
|% Volumes Hedged Using Collars||28%||28%||28%||9%|
|Average Collar Floor/Ceiling||3.50/3.75||3.50/3.75||3.86/4.26||4.04/4.52|
|% of Foreign Exchange Hedged||43%||43%||43%||-|
|Hedged Amount (US$ millions)||87||87||85||-|
|Average Swap Rate (CAD per USD)||1.029||1.029||1.029||-|
|Interest Rate (3)|
|Hedged Amount (US$ millions)||45||45||45||135|
(1) Percentage of volumes hedged are based on mid-point of company guidance, net of royalties (i.e., hedgable volumes).
(2) 2014 gas hedges include 2 mmcf/d swaptions which, if exercised by counterparty on Dec. 31, 2013, increase 2014 gas hedges to 11%.
(3) Interest rate hedges for our US dollar bank line draw established in September 2009 are forward-starting pay-fixed swaps where the floating rate 3-month LIBOR has been swapped for the fixed rate noted. Interest rate hedges expire September 2014.