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Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2019
Financial Instruments [Abstract] |
Schedule of financial assets | The fair values of the Company’s investments, recurring other long-term assets (liabilities) and fixed rate long-term debt are outlined below:
|  |  | 2019
|  | Carrying amount |  |  | Fair value
Asset (liability) (1) (2) |  |  |  |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 (4) (5) |
Investments (3) |  |  | $ | 490 |  |  | $ | 490 |  |  | $ | — |  |  | $ | — |
Other long-term assets |  |  | $ | 942 |  |  | $ | — |  |  | $ | 290 |  |  | $ | 652 |
Other long-term liabilities |  |  | $ | (207 | ) |  | $ | — |  |  | $ | (112 | ) |  | $ | (95 | )
Fixed rate long-term debt (6) (7) |  |  | $ | (14,110 | ) |  | $ | (15,938 | ) |  | $ | — |  |  | $ | — |
|  |  | 2018
|  | Carrying amount |  |  | Fair value
Asset (liability) (1) (2) |  |  |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 (4) (5) |
Investments (3) |  |  | $ | 524 |  |  | $ | 524 |  |  | $ | — |  |  | $ | — |
Other long-term assets |  |  | $ | 964 |  |  | $ | — |  |  | $ | 373 |  |  | $ | 591 |
Other long-term liabilities |  |  | $ | (135 | ) |  | $ | — |  |  | $ | (17 | ) |  | $ | (118 | )
Fixed rate long-term debt (6) (7) |  |  | $ | (15,620 | ) |  | $ | (15,952 | ) |  | $ | — |  |  | $ | — |
(1) | Excludes financial assets and liabilities where the carrying amount approximates fair value due to the short-term nature of the asset or liability (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and purchase consideration payable).
(2) | There were no transfers between Level 1, 2 and 3 financial instruments.
(3) | The fair values of the investments are based on quoted market prices.
(4) | The fair value of the deferred purchase consideration included in other long-term liabilities is based on the present value of future cash payments.
(5) | The fair value of Redwater Partnership subordinated debt is based on the present value of future cash receipts.
(6) | The fair value of fixed rate long-term debt has been determined based on quoted market prices.
(7) | Includes the current portion of fixed rate long-term debt.
The carrying amounts of the Company’s financial instruments by category were as follows:
|  | 2019
Asset (liability) |  | Financial assets at amortized cost |  |  | Fair value through profit or loss |  |  | Derivatives used for hedging |  |  | Financial liabilities at amortized cost |  |  | Total |
Accounts receivable |  | $ | 2,465 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,465 |
Investments |  | — |  |  | 490 |  |  | — |  |  | — |  |  | 490 |
Other long-term assets |  | 652 |  |  | — |  |  | 290 |  |  | — |  |  | 942 |
Accounts payable |  | — |  |  | — |  |  | — |  |  | (816 | ) |  | (816 | )
Accrued liabilities |  | — |  |  | — |  |  | — |  |  | (2,611 | ) |  | (2,611 | )
Other long-term liabilities (1) |  | — |  |  | (21 | ) |  | (91 | ) |  | (1,904 | ) |  | (2,016 | )
Long-term debt (2) |  | — |  |  | — |  |  | — |  |  | (20,982 | ) |  | (20,982 | )
|  | $ | 3,117 |  |  | $ | 469 |  |  | $ | 199 |  |  | $ | (26,313 | ) |  | $ | (22,528 | )
|  | 2018
Asset (liability) |  | Financial assets at amortized cost |  |  | Fair value through profit or loss |  |  | Derivatives used for hedging |  |  | Financial liabilities at amortized cost |  |  | Total |
Accounts receivable |  | $ | 1,148 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,148 |
Investments |  | — |  |  | 524 |  |  | — |  |  | — |  |  | 524 |
Other long-term assets |  | 591 |  |  | 12 |  |  | 361 |  |  | — |  |  | 964 |
Accounts payable |  | — |  |  | — |  |  | — |  |  | (779 | ) |  | (779 | )
Accrued liabilities |  | — |  |  | — |  |  | — |  |  | (2,356 | ) |  | (2,356 | )
Other long-term liabilities (1) |  | — |  |  | (17 | ) |  | — |  |  | (118 | ) |  | (135 | )
Long-term debt (2) |  | — |  |  | — |  |  | — |  |  | (20,623 | ) |  | (20,623 | )
|  | $ | 1,739 |  |  | $ | 519 |  |  | $ | 361 |  |  | $ | (23,876 | ) |  | $ | (21,257 | )
(1) | Includes $1,809 million of lease liabilities (December 31, 2018 – $nil) and $95 million of deferred purchase consideration payable over the next four years (December 31, 2018 – $118 million).
(2) | Includes the current portion of long-term debt.
Schedule of financial liabilities | The fair values of the Company’s investments, recurring other long-term assets (liabilities) and fixed rate long-term debt are outlined below:
|  |  | 2019
|  | Carrying amount |  |  | Fair value
Asset (liability) (1) (2) |  |  |  |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 (4) (5) |
Investments (3) |  |  | $ | 490 |  |  | $ | 490 |  |  | $ | — |  |  | $ | — |
Other long-term assets |  |  | $ | 942 |  |  | $ | — |  |  | $ | 290 |  |  | $ | 652 |
Other long-term liabilities |  |  | $ | (207 | ) |  | $ | — |  |  | $ | (112 | ) |  | $ | (95 | )
Fixed rate long-term debt (6) (7) |  |  | $ | (14,110 | ) |  | $ | (15,938 | ) |  | $ | — |  |  | $ | — |
|  |  | 2018
|  | Carrying amount |  |  | Fair value
Asset (liability) (1) (2) |  |  |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 (4) (5) |
Investments (3) |  |  | $ | 524 |  |  | $ | 524 |  |  | $ | — |  |  | $ | — |
Other long-term assets |  |  | $ | 964 |  |  | $ | — |  |  | $ | 373 |  |  | $ | 591 |
Other long-term liabilities |  |  | $ | (135 | ) |  | $ | — |  |  | $ | (17 | ) |  | $ | (118 | )
Fixed rate long-term debt (6) (7) |  |  | $ | (15,620 | ) |  | $ | (15,952 | ) |  | $ | — |  |  | $ | — |
(1) | Excludes financial assets and liabilities where the carrying amount approximates fair value due to the short-term nature of the asset or liability (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and purchase consideration payable).
(2) | There were no transfers between Level 1, 2 and 3 financial instruments.
(3) | The fair values of the investments are based on quoted market prices.
(4) | The fair value of the deferred purchase consideration included in other long-term liabilities is based on the present value of future cash payments.
(5) | The fair value of Redwater Partnership subordinated debt is based on the present value of future cash receipts.
(6) | The fair value of fixed rate long-term debt has been determined based on quoted market prices.
(7) | Includes the current portion of fixed rate long-term debt.
The carrying amounts of the Company’s financial instruments by category were as follows:
|  | 2019
Asset (liability) |  | Financial assets at amortized cost |  |  | Fair value through profit or loss |  |  | Derivatives used for hedging |  |  | Financial liabilities at amortized cost |  |  | Total |
Accounts receivable |  | $ | 2,465 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,465 |
Investments |  | — |  |  | 490 |  |  | — |  |  | — |  |  | 490 |
Other long-term assets |  | 652 |  |  | — |  |  | 290 |  |  | — |  |  | 942 |
Accounts payable |  | — |  |  | — |  |  | — |  |  | (816 | ) |  | (816 | )
Accrued liabilities |  | — |  |  | — |  |  | — |  |  | (2,611 | ) |  | (2,611 | )
Other long-term liabilities (1) |  | — |  |  | (21 | ) |  | (91 | ) |  | (1,904 | ) |  | (2,016 | )
Long-term debt (2) |  | — |  |  | — |  |  | — |  |  | (20,982 | ) |  | (20,982 | )
|  | $ | 3,117 |  |  | $ | 469 |  |  | $ | 199 |  |  | $ | (26,313 | ) |  | $ | (22,528 | )
|  | 2018
Asset (liability) |  | Financial assets at amortized cost |  |  | Fair value through profit or loss |  |  | Derivatives used for hedging |  |  | Financial liabilities at amortized cost |  |  | Total |
Accounts receivable |  | $ | 1,148 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,148 |
Investments |  | — |  |  | 524 |  |  | — |  |  | — |  |  | 524 |
Other long-term assets |  | 591 |  |  | 12 |  |  | 361 |  |  | — |  |  | 964 |
Accounts payable |  | — |  |  | — |  |  | — |  |  | (779 | ) |  | (779 | )
Accrued liabilities |  | — |  |  | — |  |  | — |  |  | (2,356 | ) |  | (2,356 | )
Other long-term liabilities (1) |  | — |  |  | (17 | ) |  | — |  |  | (118 | ) |  | (135 | )
Long-term debt (2) |  | — |  |  | — |  |  | — |  |  | (20,623 | ) |  | (20,623 | )
|  | $ | 1,739 |  |  | $ | 519 |  |  | $ | 361 |  |  | $ | (23,876 | ) |  | $ | (21,257 | )
(1) | Includes $1,809 million of lease liabilities (December 31, 2018 – $nil) and $95 million of deferred purchase consideration payable over the next four years (December 31, 2018 – $118 million).
(2) | Includes the current portion of long-term debt.
Schedule of information about financial instruments | The following provides a summary of the carrying amounts of derivative financial instruments held and a reconciliation to the Company’s consolidated balance sheets.
Asset (liability) |  | 2019 |  |  | 2018 |
Derivatives held for trading |  |  |  |
Foreign currency forward contracts |  | $ | (10 | ) |  | $ | 8 |
Natural gas AECO basis swaps |  | (8 | ) |  | 1 |
Natural gas AECO fixed price swaps |  | (3 | ) |  | 3 |
Crude oil WCS (1) differential swaps |  | — |  |  | (17 | )
Cash flow hedges |  |  |  |  |  |
Foreign currency forward contracts |  | (91 | ) |  | 70 |
Cross currency swaps |  | 290 |  |  | 291 |
|  | $ | 178 |  |  | $ | 356 |
Included within: |  |  |  |  |  |
Current portion of other long-term assets |  | $ | 8 |  |  | $ | 92 |
Current portion of other long-term liabilities |  | (112 | ) |  | (17 | )
Other long-term assets |  | 282 |  |  | 281 |
|  | $ | 178 |  |  | $ | 356 |
(1) | Western Canadian Select
The changes in estimated fair values of derivative financial instruments included in the risk management asset were recognized in the financial statements as follows:
Asset (liability) |  | 2019 |  |  | 2018 |
Balance – beginning of year |  | $ | 356 |  |  | $ | 101 |
Net change in fair value of outstanding derivative financial instruments recognized in: |  |  |  |  |  |
Risk management activities |  | (13 | ) |  | 35 |
Foreign exchange |  | (231 | ) |  | 260 |
Other comprehensive income (loss) |  | 66 |  |  | (40 | )
Balance – end of year |  | 178 |  |  | 356 |
Less: current portion |  | (104 | ) |  | 75 |
|  | $ | 282 |  |  | $ | 281 |
Net loss (gain) from risk management activities for the years ended December 31 were as follows:
|  | 2019 |  |  | 2018 |  |  | 2017 |
Net realized risk management loss (gain) |  | $ | 64 |  |  | $ | (99 | ) |  | $ | (2 | )
Net unrealized risk management loss (gain) |  | 13 |  |  | (35 | ) |  | 37 |
|  | $ | 77 |  |  | $ | (134 | ) |  | $ | 35 |
Schedule of Derivative Financial Instruments Outstanding to Manage Commodity Price Risk [Table Text Block] | At December 31, 2019, the Company had the following derivative financial instruments outstanding to manage its commodity price risk:
| Remaining term | Volume | Weighted average price | Index
Natural Gas |  |  |  |  |  |  |
AECO basis swaps | Jan 2020 | – | Mar 2020 | 140,000 MMbtu/d |  | US$0.93 | NYMEX
AECO fixed price swaps | Apr 2020 | – | Oct 2020 | 102,500 GJ/d |  | $1.51 | AECO
Schedule of derivative financial instruments | At December 31, 2019 the Company had the following cross currency swap contracts outstanding:
| Remaining term | Amount | Exchange rate (US$/C$) |  | Interest rate (US$) |  | Interest rate (C$) |
Cross currency |  |  |  |  |  |  |
Swaps | Jan 2020 | – | Nov 2021 | US$500 | 1.022 |  | 3.45 | % | 3.96 | %
| Jan 2020 | – | Mar 2038 | US$550 | 1.170 |  | 6.25 | % | 5.76 | %
Disclosure of financial instrument sensitivities | The following table summarizes the annualized sensitivities of the Company’s 2019 net earnings and other comprehensive income (loss) to changes in the fair value of financial instruments outstanding as at December 31, 2019, resulting from changes in the specified variable, with all other variables held constant. These sensitivities are prepared on a different basis than those sensitivities disclosed in the Company’s other continuous disclosure documents, are limited to the impact of changes in a specified variable applied to financial instruments only and do not represent the impact of a change in the variable on the operating results of the Company taken as a whole. Further, these sensitivities are theoretical, as changes in one variable may contribute to changes in another variable, which may magnify or counteract the sensitivities. In addition, changes in fair value generally cannot be extrapolated because the relationship of a change in an assumption to the change in fair value may not be linear.
| 2019 | 2018
| Increase (decrease) to net earnings |  | (Increase) decrease to other comprehensive loss |  | Increase (decrease) to net earnings |  | Increase (decrease) to other comprehensive income |
Commodity price risk |  |  |  |
Increase NYMEX/AECO basis US$0.10 MMBtu | $ | 1 |  | $ | — |  | $ | — |  | $ | — |
Decrease NYMEX/AECO basis US$0.10 MMBtu | $ | (1 | ) | $ | — |  | $ | — |  | $ | — |
Increase AECO $0.10/Mcf (1) | $ | (1 | ) | $ | — |  | $ | (1 | ) | $ | — |
Decrease AECO $0.10/Mcf (1) | $ | 1 |  | $ | — |  | $ | 1 |  | $ | — |
Increase WCS differential US$1.00/bbl | $ | — |  | $ | — |  | $ | (5 | ) | $ | — |
Decrease WCS differential US$1.00/bbl | $ | — |  | $ | — |  | $ | 5 |  | $ | — |
Interest rate risk |  |  |  |  |  |
Increase interest rate 1% | $ | (48 | ) | $ | (21 | ) | $ | (33 | ) | $ | (21 | )
Decrease interest rate 1% | $ | 48 |  | $ | 24 |  | $ | 33 |  | $ | 25 |
Foreign currency exchange rate risk |  |  |  |  |  |
Weakening of the Canadian dollar by US$0.01 | $ | (103 | ) | $ | — |  | $ | (114 | ) | $ | — |
Strengthening of the Canadian dollar by US$0.01 | $ | 100 |  | $ | — |  | $ | 113 |  | $ | — |
(1) | Movements in AECO are based on the Company's contracted AECO fixed price swap volumes at December 31, 2019 and 2018.
Schedule of maturity dates for financial liabilities | Scheduled debt repayments are as follows:
Year | Repayment |
2020 | $ | 2,391 |
2021 | $ | 1,552 |
2022 | $ | 3,879 |
2023 | $ | 3,894 |
2024 | $ | 1,148 |
Thereafter | $ | 8,226 |
The maturity dates of the Company’s financial liabilities were as follows:
|  | Less than 1 year |  |  | 1 to less than 2 years |  |  | 2 to less than 5 years |  |  | Thereafter |
Accounts payable |  | $ | 816 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accrued liabilities |  | $ | 2,611 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Long-term debt (1) |  | $ | 2,391 |  |  | $ | 1,552 |  |  | $ | 8,921 |  |  | $ | 8,226 |
Other long-term liabilities (2) |  | $ | 370 |  |  | $ | 196 |  |  | $ | 436 |  |  | $ | 1,014 |
Interest and other financing expense (3) |  | $ | 881 |  |  | $ | 813 |  |  | $ | 1,771 |  |  | $ | 4,856 |
(1) | Long-term debt represents principal repayments only and does not reflect interest, original issue discounts and premiums or transaction costs.
(2) | Lease payments included within other long-term liabilities reflect principal payments only and are as follows; less than one year, $233 million; one to less than two years, $171 million; two to less than five years, $391 million; and thereafter $1,014 million.
(3) | Includes interest and other financing expense on long-term debt and other long-term liabilities. Payments were estimated based upon applicable interest and foreign exchange rates at December 31, 2019.

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