Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

The changes in estimated fair values of derivative financial instruments included in the risk management asset (liability) were recognized in the financial statements as follows:


Asset (liability)	2023		2022
Balance – beginning of year	$	6	$	55

Net change in fair value of outstanding derivative financial instruments recognized in:
Risk management activities (1)	3		70
Foreign exchange	—		(119)



Balance – end of year	9		6
Less: current portion	8		—
	$	1	$	6

(1)Risk management assets and liabilities are disclosed in note 10 and note 12, respectively.

Schedule of Financial Liabilities

The changes in estimated fair values of derivative financial instruments included in the risk management asset (liability) were recognized in the financial statements as follows:


Asset (liability)	2023		2022
Balance – beginning of year	$	6	$	55

Net change in fair value of outstanding derivative financial instruments recognized in:
Risk management activities (1)	3		70
Foreign exchange	—		(119)



Balance – end of year	9		6
Less: current portion	8		—
	$	1	$	6

(1)Risk management assets and liabilities are disclosed in note 10 and note 12, respectively.

Schedule of Information About Financial Instruments

Net (gain) loss from risk management activities for the years ended December 31, were as follows:


	2023		2022		2021
Net realized risk management (gain) loss	$	(14)	$	(7)	$	17
Net unrealized risk management loss (gain)	12		(28)		19
	$	(2)	$	(35)	$	36

The fair value of the Company’s fixed rate long-term debt is outlined below:


	2023		2022
	Carrying amount			Level 1 Fair Value		Carrying amount		Level 1 Fair Value

Fixed rate long-term debt (1) (2)	$	(10,799)		$	(10,795)	$	(11,445)	$	(10,796)

(1)The fair value of fixed rate long-term debt has been determined based on quoted market prices.

(2)Includes the current portion of fixed rate long-term debt.

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)	2023		2022
Derivatives held for trading
Natural gas (1)	$	(3)	$	3






Foreign currency forward contracts	12		3




	$	9	$	6

Included within:
Current portion of other long-term assets	$	12	$	3
Current portion of other long-term liabilities	(4)		(3)
Other long-term assets	1		6

	$	9	$	6

(1)In 2023, the Company entered into 50,000 MMBtu/d of US$1.82 AECO fixed price financial hedge contracts for the period of January to December 2024.

Disclosure of Financial Instrument Sensitivities

The following table summarizes the annualized sensitivities of the Company’s 2023 net earnings and other comprehensive income to changes in the fair value of financial instruments outstanding as at December 31, 2023, resulting from changes in the specified variable, with all other variables held constant. These sensitivities are prepared on a different basis than those 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.


	2023				2022
	Increase (decrease) to net earnings		Increase (decrease) to other comprehensive income		Increase (decrease) to net earnings		Increase (decrease) to other comprehensive income











Interest rate risk
Increase interest rate 1%	$	(5)	$	—	$	(4)	$	—
Decrease interest rate 1%	$	5	$	—	$	4	$	—
Foreign currency exchange rate risk
Weakening of the Canadian dollar by US$0.01	$	(128)	$	—	$	(135)	$	—
Strengthening of the Canadian dollar by US$0.01	$	125	$	—	$	131	$	—

Schedule of Maturity Dates for Financial Liabilities

Scheduled debt repayments are as follows:


Year	Repayment
2024	$	980
2025	$	1,584
2026	$	441
2027	$	1,651
2028	$	225
Thereafter	$	5,978

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	$	1,418	$	—	$	—	$	—
Accrued liabilities	$	3,534	$	—	$	—	$	—
Long-term debt (1)	$	980	$	1,584	$	2,317	$	5,978
Other long-term liabilities (2)	$	302	$	184	$	428	$	645
Interest and other financing expense (3)	$	582	$	518	$	1,257	$	3,362

(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, $298 million; one to less than two years, $184 million; two to less than five years, $428 million; and thereafter, $645 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, 2023.