Canadian energy giant Husky Energy has entered a floating-to-fixed oil price swap in order to hedge oil revenues through the year. Mike D'Aguiar, treasurer in Calgary, Alberta, explained the corporate has several projects underway that are not yet bringing in revenue, such as its Whiterose oil exploration project. Locking in oil prices insures a certain amount of revenue which brings the firm financial stability, he said.
In the swap Husky receives a fixed price of USD27.45 per barrel for 80,000 barrels per day and pays a floating rate based on the U.S. oil benchmark, the West Texas Intermediate, D'Aguiar said. The corporate worked with several swap counterparties, which he declined to name. It selects counterparties according to several criteria including price and relationship, he added.
