BUS419 Advanced Derivative Securities Canadian Oil and Gas Presented by: Amjodh Dhillon Qiyuan Ren Junheng Cai (Pat) Jiyuan Chen

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Agenda o Introduction o Canadian Natural Resources o Penn West o Canadian Oil Sands o Q&A

Industry Overview Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Canada The oil and gas industry is a branch of the Energy Industry Oil and Gas Industry components:  Upstream operation (Exploration)  Midstream Operation (Refining)  Downstream Operations (Distribution and sales) Statistics 5 th largest production of natural gas 5 th largest production of crude oil in the world 5 th largest energy producer in the world Largest single private investor in Canada 20% of value on Toronto Stock Exchange

Industry (Forecasting) Industry revenues down one third WCSB capital investment down 33% ($23 billion) Well drilling down 30% (3,150 wells) from 2014 Oil and gas share of TSX down from 20% in 2014 to 12% in January in 2015

Industry (Forecasting)

Industry Products-Crude Oil Actively traded commodities 40% of Canada’s energy demand 17% of Canada’s merchandise exports 3 rd crude oil reserves in the world, after Venezuela and Saudi Arabia Reserves: 4,561 million barrels Production: 1.38 million barrels per day (Conventional oil, 2013)

Industry Products-Crude Oil Products: -Gasoline -Kerosene -Jet Fuel -Lubricants Substitutes -Nuclear Power -Hydrogen -hydropower -Coal -Methane -Solar energy

Industry Products-Crude Oil

Capital Investment-Crude Oil

Industry Products-Natural Gas Natural gas accounts for 30% of Canada’s energy demand. Reserves: 69.3 trillion cubic feet Production: 14.1 billion cubic feet per day

Industry Products-Natural Gas Price determined in an open market Supply of natural gas versus the demand for the fuel Price Sensitivity – Residential – Commercial – Industrial – Winter Season – Higher crude oil prices – Economic growth

Industry Products-Natural Gas

Regulation on the Industry

Canadian Natural Resources Canada National Energy Board Environmental Regulations (Environment Canada) Self-regulation: – Canadian Association of Petroleum Producers (CAPP)

Risk Management Risk Exposures – General Business – Environmental/Legal – Operational – Credit/Liquidity – Financial/Commodity

Risk Management Objective – Reduce the risk of adverse price changes in the physical market – Perhaps to make a profit How? Determines a hedge ratio Optimal hedge rations should be time-varying

Risk Management Sensitivity analysis: – On cash flows sensitive to: Oil and gas prices Interest rates FX changes Further Developed with: Probability calculations for movements in prices interest rates and FX

Risk Management Derivatives are at the center of risk management for these companies: Major Products for risk management: – Energy Futures traded din COMEX – FX futures traded in CME – OTX Forward contracts (oil, gas, etc.) – Interest rate and FX SWAPS – Options: Costless Collar

Risk Management Hazards from risk management activities – Decreased earnings – Liquidity pressure – Potential loses from hedging

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Canadian Natural Resources

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Overview Headquarters in Calgary, Alberta (1973) Operates in Western Canada, the North Sea off Scotland, and West Africa

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Overview

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Overview Grown rapidly since 1989 In 2013 CNQ produced BOE/d Bulk of production located in North America, with 25% in light crude oil, 35% in heavy oil bitumen, and 14% from the Horizon oil sands mining and upgrading project 9% market share of Canadian Oil production 8% market share of Canadian gas production Canada’s largest heavy oil producer Canada’s second largest natural gas producer

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Overview

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Management N. Murray Edwards: Chairman Launched Canadian Natural Resources Bachelor of Commerce Law Degree Doctors of Law (Honorary) Steve W. Laut: President & Director Bachelor of Science in Mechanical Engineering Joined CNQ In 1991 President since April 2005 Compensation for 2013: $9,248,828

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Management Tim S. McKay COO Since January 2003 Salary: $4,053,568 Douglas A. Proll Executive Vice-President Previously served as CFO/Senior VP of Finance since 2001 Salary: $2,158,846 Corey B. Bieber CFO (since 2013) Senior Vice-President of Finance Bachelor of Commerce Salary: $2,000,010

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Historical Price TSX

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Trading and Share Statistics

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Future Development Birch Mountain: Currently at planning stage Completion 2019 Oil sands thermal in situ project Gregoire Lake: Currently at planning stage Completion 2018 Oil sands thermal in situ project Grouse: Currently at planning stage Completion 2018 Oil sands thermal in situ project

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Reserves

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Risks: CNQ is exposed to various operational risks inherent in the exploration, development, production, marketing of crude oil, NGLs, natural gas, the mining, and upgrading of bitumen into SCO Market Risk Commodity Price Risk Interest Rate Risk Foreign Currency Exchange Risk Credit Risk Liquidity Risk

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Managing Risk: Derivative financial instruments are utilized to help ensure targets are met and to manage commodity price, foreign currency and interest rate exposures

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Commodity Price Risk The Company periodically uses commodity derivative financial instruments to manage its exposure to commodity price risk associated with the sale of its future crude oil and natural gas production and with natural gas purchases. At December 31, 2013, the Company had the following derivative financial instruments outstanding to manage its commodity price risk:

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Commodity Price Risk The Company’s commodity hedging program reduces the risk of volatility in commodity prices and supports the Company’s cash flow for its capital expenditures programs.

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Interest Rate Risk CNQ is exposed to interest rate price risk on its fixed rate long-term debt and to interest rate cash flow risk on its floating rate long-term debt. CNQ periodically enters into interest rate swap contracts to manage its fixed to floating interest rate mix on long-term debt. The interest rate swap contracts require the periodic exchange of payments without the exchange of the notional principal amounts on which the payments are based. At December 31, 2013, the Company had no interest rate swap contracts outstanding.

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Foreign Currency Exchange Risk CNQ is exposed to foreign currency exchange rate risk in Canada primarily related to its US dollar denominated long-term debt, commercial paper and working capital. CNQ is also exposed to foreign currency exchange rate risk on transactions conducted in other currencies and in the carrying value of its foreign subsidiaries. CNQ periodically enters into cross currency swap contracts and foreign currency forward contracts to manage known currency exposure on US dollar denominated long-term debt, commercial paper and working capital. The cross currency swap contracts require the periodic exchange of payments with the exchange at maturity of notional principal amounts on which the payments are based.

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Foreign Currency Exchange Risk

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Credit risk is the risk that a party to a financial instrument will cause a financial loss to the Company by failing to discharge an obligation CNQ manages these risks by reviewing its exposure to individual companies on a regular basis and where appropriate, ensures that parental guarantees or letters of credit are in place to minimize the impact in the event of default. At December 31, 2013, substantially all of the Company’s accounts receivable were due within normal trade terms. CNQ is also exposed to possible losses in the event of non-performance by counterparties to derivative financial instruments; however, the Company manages this credit risk by entering into agreements with counterparties that are substantially all investment grade financial institutions and other entities. At December 31, 2013, the Company had no net risk management assets with specific counterparties related to derivative financial instruments Credit Risk

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities Management of liquidity risk requires the Company to maintain sufficient cash and cash equivalents, along with other sources of capital, consisting primarily of cash flow from operating activities, available credit facilities, commercial paper and access to debt capital markets, to meet obligations as they become due. CNQ believes it has adequate bank credit facilities to provide liquidity to manage fluctuations in the timing of the receipt and/or disbursement of operating cash flows.

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Liquidity Risk

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Sensitivity Analysis The following table summarizes the annualized sensitivities of the Company’s 2013 net earnings and other comprehensive income to changes in the fair value of financial instruments outstanding as at December 31, 2013, resulting from changes in the specified variable, with all other variables held constant

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Penn West Exploration

Overview Founded in Calgary, Alberta (1979) One of the largest conventional oil and natural gas producers in Canada Operates a significant portfolio of opportunities with a dominant position in light oil in Canada Operations are currently focused on light-oil development. Approximately 1415 employees, which is 25% less than the previous year Streamlined its management structure in July, 2013 by replacing its CEO and two Senior VPs Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Overview Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A In 2013, approximately 50 percent was light and medium oil, 30 percent was natural gas, 13 percent was conventional heavy oil and 7 percent was NGLs Operates throughout western Canada on a land base encompassing approximately five million acres

Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A David E. Roberts President and CEO Joined in June, 2013 More than 30 years of operational experience in the upstream oil and gas business Former Executive VP and COO of Marathon Oil Corporation Richard L. George Chairman, joined in May, 2013 Served as a director and the President and Chief Executive Officer of Suncor from 1991 to 2012 A director of the Royal Bank of Canada and Anadarko Petroleum Corporation and a partner of Novo Investment Group A Bachelor of Science degree in engineering from Colorado State University A law degree from the University of Houston Law School A graduate of the Harvard Business School Program for Management Development

Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Todd H. Takeyasu Executive VP and CFO Joined in 1994 Charted Accountant Over 25 years of experience in oil and natural gas industry and public accounting experience Mark P. Fitzgerald Senior VP, Development Joined in Nov, 2008 Professional Engineer 25 years of experience in field operations, production, development, business in the oil and gas industry

Historical Price TSX Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Trading and Share Statistics Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Future Development Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Cardium Play: Expanding waterflood programs in the core areas Increasing development activities, primarily in the Lodgepole and Crimson Lake areas $270 million capital budget in 2014 Slave Point: Continuing waterflood program in Otter Initial a new pilot in Sawn Lake $150 million capital budget in 2014 Viking Play: Further develop the Dodsland area Assessing potential for down spacing with implementation of a waterflood program in the Avon Hills area $150 million capital budget in 2014

Future Development Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Enhanced Oil Recovery “Penn West believes that recent results in its key plays and continuing advancements in drilling, completions and other technologies will enable it to pursue various enhanced recovery techniques aimed at increasing oil recovery rates in several of its large plays” “During 2013, Penn West continued to expand its enhanced recovery programs primarily through the use of waterflood techniques as outlined above” “In 2014, Penn West plans to continue to build on these results and expand on existing waterflood projects and initiate others in most of its key areas.”

Reserves Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Reserves Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Company is are exposed to normal market risks inherent in the oil and natural gas business, including, but not limited to: Commodity price risk Foreign currency risk Credit risk Interest rate risk Liquidity risk Environmental and climate change risk

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A The Company seeks to mitigate these risks through: Business processes Management controls from time to time by using financial instruments. “As at December 31, 2013 and 2012, the only asset or liability measured at fair value on a recurring basis was the risk management asset and liability, which was valued based on “Level 2 inputs” being quoted prices in markets that are not active or based on prices that are observable for the asset or liability.”

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Commodity Price Risk The most important risk to hedge The risk is managend by using swaps, collars and other financial instruments “Commodity price risk may be hedged upto a maximum of 50 percent of forecast sales volumes, net of royalties, for the balance of any current year and one year following and up to 25 percent of forecast sales volumes, net of royalties, for one additional year thereafter” “Subject to the Board’s approval, our hedging limits may be increased above the maximum limits”

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Commodity Price Risk

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Commodity Price Risk

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Commodity Price Risk

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Foreign Exchange Risk Prices received for crude oil are referenced to US dollars, thus Penn West’s realized oil prices are impacted by Canadian dollar to US dollar exchange rates. A portion of the Company’s debt capital is denominated in US dollars, thus the principal and interest payments in Canadian dollars are also impacted by exchange rates.

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Foreign Exchange Risk Company may use financial instruments to fix or collar future exchange rates to fix the Canadian dollar equivalent of crude oil revenues or to fix US denominated long-term debt principal repayments

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Credit Risk Credit risk is the risk of loss if purchasers or counterparties do not fulfill their contractual obligations. To hedge credit risk: each counterparty is reviewed on a regular basis for the purpose of assigning a credit limit and may be requested to provide security if determined to be prudent (oil and natural gas sales and financial derivatives) transacts with counterparties who are members of its banking syndicate or other counterparties that have investment grade bond ratings (financial derivatives) Credit events related to all counterparties are monitored and credit exposures are reassessed on a regular basis “In 2013, the maximum exposure to credit risk was $265 million ( $364 million) being the carrying value of the accounts receivable.”

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Interest Rate Risk “A portion of the Company’s debt capital is held in floating-rate bank facilities, which results in exposure to fluctuations in short-term interest rates, which remain at lower levels than longer-term rates.” To mitigate interest rate risk: increasing the certainty of our future interest rates by entering fixed interest rate debt instruments using financial instruments to swap floating interest rates for fixed rates or to collar interest rates.

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Interest Rate Risk “As at December 31, 2013, none of the Company’s long-term debt instruments were exposed to changes in short-term interest rates (2012 – four percent).” “As at December 31, 2013, a total of $2.1 billion (2012 – $1.9 billion) of fixed interest rate debt instruments was outstanding with an average remaining term of 4.5 years (2012 – 5.5 years) and an average interest rate of 5.8 percent (2012 – 5.8 percent), including the effects of interest rate swaps.”

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Liquidity Risk Liquidity risk is the risk that the Company will be unable to meet its financial liabilities as they come due To mitigate liquidity risk: Using short and long-term financial and capital forecasting programs to ensure credit facilities are sufficient relative to forecast debt levels, dividend and capital program levels are appropriate, and that financial covenants will be met Regularly reviews capital markets to identify opportunities to optimize the debt capital structure on a cost effective basis In the short term, liquidity is managed through daily cash management activities, short-term financing strategies and the use of collars and other financial instruments to increase the predictability of cash flow from operating activities.

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Liquidity Risk The following table outlines estimated future obligations for non-derivative financial liabilities as at December 31, 2013:

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Environmental and Climate Change Risk The oil and gas industry has a number of environmental risks and hazards and is subject to regulation by all levels of government. Environmental legislation includes, but is not limited to: Operational controls Site restoration requirements Restrictions on emissions of various substances produced in association with oil and natural gas operations Compliance with such legislation could require additional expenditures and a failure to comply may result in fines and penalties which could, in the aggregate and under certain assumptions, become material.

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Environmental and Climate Change Risk To reducing the environmental impact from our operations through: Resource conservation CO2 sequestration Water management Site abandonment/reclamation Operations are continuously monitored to minimize the environmental impact and sufficient capital is allocated to reclamation and other activities to mitigate the impact on the areas in which we operate.

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Sensitivity Analysis

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Financial Instruments Financial instruments included in the balance sheets consist of accounts receivable, fair values of derivative financial instruments, accounts payable and accrued liabilities, dividends payable and long-term debt.

Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Overview Canadian Oil Sands (COS): A limited liability, publicly traded Canadian corporation Generate income from its oil sands investment in the Syncrude Joint Venture. A major producer of high quality, low sulphur, light, synthetic crude oil (“SCO”) COS hold 36.74% interest in Syncrude since Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Market for COS Production Headquarters is located in Calgary, Alberta Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Board of Directors Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Donald J. Lowry Chairman of the Board Joined the COS in 2007 Bachelor of Commerce (Hons) degree & MBA Harvard Advanced Management Program Ryan M. Kubik President and CEO Bachelor of Commerce degree Chartered Accountant &Chartered Financial Analyst designations ICD.D designation Gerald W. Grandey Corporate Director Saskatoon, SK Joined the COS board in 2011 Degree in geophysical engineering Law degree Lan A. Bourne Corporate Director Calgary, Alberta Joined the COS board in 2007 Bachelor of Commerce degree Director Education Program

Highlights Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Historical Stock Price Google Finance Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

2015 Outlook Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Risks are categorized based on their probability of occurrence and their potential impact on Canadian Oil Sands’ financial results, financial condition, corporate reputation and EH&S performance. Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Risk Management Crude Oil Price Risk Operational Risk Competition Risk Market&Trans Risk Environmental Risk Ownership Risk Financial Market Risk

Highlights Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Crude Oil Price Risk: The financial results and financial condition of Canadian Oil Sands are significantly impacted by crude oil prices. Price is subject to large fluctuations in response to changes in the global and regional supply and demand for oil A prolonged period of low crude oil prices could affect the value of our interest in the Syncrude Project, and result in the impairment of Canadian Oil Sands’ assets Solution: Maintaining a strong balance sheet and ensuring adequate sources of financing are available. Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Responding to Low Oil Price Syncrude cost reductions  -Recent oil price decline intensified efforts already underway to achieve a lower cost structure  -Potential cost reductions, net to COS of $260 million to $400 million in 2015  -Reductions of $294 million have been incorporated into 2015 Outlook Reduced dividend  On January 29, reduced the quarterly dividend from $0.35/share to $0.05/share to align better with crude oil prices and to preserve balance sheet strength and liquidity Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Operational Risk: Operational Outages: The shutdown of any part of Syncrude’s operation could significantly impact production of SCO.  water store  geology and limestone base  electrical power Solution: maintaining appropriate levels of insurance, primarily business interruption (“BI”) and property insurance. Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Operational Risk: Project Execution:  Risks associated with the execution of Syncrude’s major projects and future growth and development projects  Solution (strategic planning function): Identification and evaluation of capital projects, helps manage these risks with support from Imperial Oil/ExxonMobil Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Competition Risk: Skilled labors Solution: Competitive industry compensation A socially and environmentally responsible company Other competitions: longer procurement lead times, distribution and marketing of petroleum products Solution: Cost Analysis and Strategy Taskforce in 2014 Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Environmental Risk: Tailings Management While Syncrude continues to develop tailings and fluid fine tailings reclamation technologies, there is a risk of increased costs to develop and implement various measures Water Access and Emissions Legislation significantly restricts or penalizes water use and/or emissions Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Financial Market Risk: Foreign Currency Risk  Fluctuations in the U.S./Canadian currency exchange rates.  Sales are based in part on a WTI benchmark price in U.S. dollars, while operating expenses and capital expenditures are primarily in Canadian dollars.  No any foreign currency hedges in place in 2014 or 2013  COS may hedge foreign currency rates in the future Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Financial Market Risk: Interest Rate Risk: Changes in market interest rates may affect the Corporation’s financial results and financial condition.  Long-term Debt (variable-rate credit facilities)  short-term investments - Employee future benefits - Accrued benefit liability - Asset retirement obligation Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A The changes in the asset retirement obligation due to increases and decreases in the risk-free interest rate (2.25 per cent at Dec 31, 2014 VS 3.25 per cent at Dec 31, 2013)and increases in estimated reclamation and closure expenditures were recorded as changes in PP&E.

Risk Management Financial Market Risk: Credit Risk:  Customer accounts receivable balances, financial counterparties  Solution: - Credit policy that limits exposure based on credit ratings. - Credit insurance  At present, there are no financial assets that are past their maturity or impaired due to credit risk-related defaults. Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A Financial Market Risk

Risk Management Financial Market Risk: Liquidity Risk:  Liquidity risk is the risk that Canadian Oil Sands will not be able to meet its financial obligations - The amount and timing of operating commitments, - Future capital expenditure requirements - Debt repayments -Adequacy of financing available -Downgrade in the Corporation's credit ratings Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Risk Management Financial Market Risk: Liquidity Risk:  The ability to make scheduled payments on or to refinance debt obligations depends on the financial condition and operating performance of the Corporation  Solution: Manages its liquidity through cash, debt and equity management strategies Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Sensitivity Analysis Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Financial Report Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Financial Report Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Financial Report Intro Canadian Natural Resources Penn West Canadian Oil Sands Q&A

Oil and Natural Gas Industry Any Question

Oil and Natural Gas Industry