• Baytex Energy Corp.
  • BTE (TSX)
  • Baytex Energy Corp.
  • BTE.BC (NYSE)
  • Baytex Energy Corp.
Baytex Energy Corp.

Hedging

  

Baytex manages its exposure to a variety of risks arising directly or indirectly in the conduct of its business, including commodity prices, foreign exchange rates and interest rates.  Pursuant to its Risk Management Policy, management of Baytex is authorized by its Board of Directors to enter into transactions covering, in aggregate, up to 60% of its net exposure to the risk being managed. Transactions in excess of this level must be pre-authorized by the Board of Directors. In addition, Baytex actively employs risk mitigation strategies to maximize the profitability of its heavy oil production, including an expanded use of crude by rail which allows us to deliver our heavy oil to higher netback markets. 

  
Under the IFRS guideline for hedge accounting, the Corp.'s financial derivative contracts for oil and foreign currency do not qualify as effective accounting hedges. Accordingly, these contracts have been accounted for based on the fair value method.