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Oil and Gas Properties | 12 Months Ended
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Dec. 31, 2022
Disclosure of detailed information about property, plant and equipment [abstract] |
Oil and gas properties | OIL AND GAS PROPERTIES
| Cost | Accumulated depletion | Net book value
Balance, December 31, 2020 | $ | 11,423,676 |  | $ | (8,346,128) |  | $ | 3,077,548 |
Capital expenditures | 310,005 |  | — |  | 310,005 |
Property acquisitions | 274 |  | — |  | 274 |
Transfers from exploration and evaluation assets (note 5) | 7,727 |  | — |  | 7,727 |
Change in asset retirement obligations (note 9) | (12,222) |  | — |  | (12,222) |
Divestitures | (37,835) |  | 32,844 |  | (4,991) |
Property swaps | (26,131) |  | 25,900 |  | (231) |
Impairment reversal | — |  | 1,542,414 |  | 1,542,414 |
Foreign currency translation | (31,977) |  | 34,765 |  | 2,788 |
Depletion | — |  | (458,941) |  | (458,941) |
Balance, December 31, 2021 | $ | 11,633,517 |  | $ | (7,169,146) |  | $ | 4,464,371 |
Capital expenditures | 515,183 |  | — |  | 515,183 |
Property acquisitions | 1,173 |  | — |  | 1,173 |
Transfers from exploration and evaluation assets (note 5) | 8,496 |  | — |  | 8,496 |
Change in asset retirement obligations (note 9) | (147,020) |  | — |  | (147,020) |
Divestitures | (265,166) |  | 241,892 |  | (23,274) |
Impairment reversal | — |  | 245,241 |  | 245,241 |
Foreign currency translation | 296,033 |  | (158,404) |  | 137,629 |
Depletion | — |  | (581,033) |  | (581,033) |
Balance, December 31, 2022 | $ | 12,042,216 |  | $ | (7,421,450) |  | $ | 4,620,766 |
2022 Impairment Reversal At December 31, 2022, the Company identified indicators of impairment reversal for oil and gas properties in five CGUs due to the increase in forecasted commodity prices in addition to changes in proved plus probable reserves. The recoverable amounts for three CGUs exceeded their carrying values which resulted in an impairment reversal of $245.2 million recorded at December 31, 2022. The recoverable amount for each CGU was based on its FVLCD which was estimated using a discounted cash flow model of proved plus probable cash flows from an independent reserve report prepared as at December 31, 2022. The after-tax discount rates applied to the cash flows were between 12% and 23%. At December 31, 2022, the recoverable amounts of the five CGUs were calculated using the following benchmark reference prices for the years 2023 to 2032 adjusted for commodity differentials specific to the CGU. The prices and costs subsequent to 2032 have been adjusted for inflation at an annual rate of 2.0%.
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032
WTI crude oil (US$/bbl) | 80.33 |  | 78.50 |  | 76.95 |  | 77.61 |  | 79.16 |  | 80.74 |  | 82.36 |  | 84.00 |  | 85.69 |  | 87.40 |
WCS heavy oil ($/bbl) | 76.54 |  | 77.75 |  | 77.55 |  | 80.07 |  | 81.89 |  | 84.02 |  | 85.73 |  | 87.44 |  | 89.20 |  | 91.11 |
LLS crude oil (US$/bbl) | 82.83 |  | 80.68 |  | 78.81 |  | 79.49 |  | 81.07 |  | 82.68 |  | 84.33 |  | 86.00 |  | 87.71 |  | 89.46 |
Edmonton par oil ($/bbl) | 103.76 |  | 97.74 |  | 95.27 |  | 95.58 |  | 97.07 |  | 99.01 |  | 100.99 |  | 103.01 |  | 105.07 |  | 106.69 |
Henry Hub gas (US$/mmbtu) | 4.74 |  | 4.50 |  | 4.31 |  | 4.40 |  | 4.49 |  | 4.58 |  | 4.67 |  | 4.76 |  | 4.86 |  | 4.95 |
AECO gas ($/mmbtu) | 4.23 |  | 4.40 |  | 4.21 |  | 4.27 |  | 4.34 |  | 4.43 |  | 4.51 |  | 4.60 |  | 4.69 |  | 4.79 |
Exchange rate (CAD/USD) | 1.34 |  | 1.31 |  | 1.30 |  | 1.30 |  | 1.29 |  | 1.29 |  | 1.29 |  | 1.29 |  | 1.29 |  | 1.29 |
The following table summarizes the recoverable amount and impairment reversal for each of the five CGUs at December 31, 2022 and demonstrates the sensitivity of the impairment reversal to reasonably possible changes in key assumptions inherent in the calculation.
| Recoverable amount | Impairment reversal | Change in discount rate of 1% | Change in oil price of $2.50/bbl | Change in gas price of $0.25/mcf
Conventional CGU (1) | $ | 119,031 |  | $ | 23,707 |  | $ | — |  | $ | — |  | $ | — |
Peace River CGU (1) | 676,939 |  | 140,534 |  | — |  | — |  | — |
Lloydminster CGU | 449,250 |  | — |  | 11,500 |  | 53,000 |  | — |
Viking CGU | 1,322,193 |  | 81,000 |  | 39,500 |  | 78,000 |  | 4,000 |
Eagle Ford CGU | 2,102,646 |  | — |  | 95,800 |  | 131,100 |  | 28,500 |
| $ | 4,670,059 |  | $ | 245,241 |  | $ | 146,800 |  | $ | 262,100 |  | $ | 32,500 |
(1)The impairment reversals for the Conventional and Peace River CGUs were limited to the total accumulated impairments less subsequent depletion of $23.7 million and $140.5 million, respectively. As a result, changes in the key assumptions presented in the table above have no impact on the amount of the impairment reversal as at December 31, 2022. 2021 Impairment Reversals At June 30, 2021, indicators of impairment reversal were identified for oil and gas properties in each of the Company's six CGUs due to the increase in forecasted commodity prices. The recoverable amount for each of the six CGUs exceeded their carrying amounts which resulted in an impairment reversal of $1.1 billion recorded at June 30, 2021. The recoverable amount for each CGU was based on its FVLCD which was estimated using a discounted cash flow model of proved plus probable cash flows from an independent reserve report prepared as at December 31, 2020 and was adjusted by management for operations between December 31, 2020 and June 30, 2021. The after-tax discount rates applied to the cash flows were between 10% and 16%. At December 31, 2021, indicators of impairment reversal were identified for oil and gas properties in five CGUs due to the increase in forecasted commodity prices in addition to changes in proved plus probable reserves. The recoverable amount for three CGUs exceeded their carrying amounts which resulted in an impairment reversal of $416 million recorded at December 31, 2021. The recoverable amount for each CGU was based on its FVLCD which was estimated using a discounted cash flow model of proved plus probable cash flows from an independent reserve report prepared as at December 31, 2021. The after-tax discount rates applied to the cash flows were between 12% and 19%.

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