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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure Of Financial Instruments [Abstract]

Summary of Unrealized Risk Management Positions

	June 30, 2018							December 31, 2017
	Risk Management							Risk Management
As at	Asset		Liability		Net			Asset		Liability		Net
Crude Oil		30		837		(807	)		63		1,031		(968	)
Interest Rate		16		-		16			2		20		(18	)
Total Fair Value		46		837		(791	)		65		1,051		(986	)

Summary of Fair Value Hierarchy for Risk Management Assets and Liabilities Carried at Fair Value

The following table presents the Company’s fair value hierarchy for risk management assets and liabilities carried at fair value:

As at	June 30, 2018				December 31, 2017
Level 2 – Prices Sourced From Observable Data or Market Corroboration		(791	)			(986	)

Reconciliation of Changes in the Fair Value of Cenovus's Risk Management Assets and Liabilities

The following table provides a reconciliation of changes in the fair value of Cenovus’s risk management assets and liabilities from January 1 to June 30:

	2018			2017
Fair Value of Contracts, Beginning of Year		(986	)		(291	)
Fair Value of Contracts Realized During the Period ⁽¹⁾		1,166			(60	)
Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered Into During the Period		(921	)		(471	)
Unamortized Premium on Put Options		-			37
Unrealized Foreign Exchange Gain (Loss) on U.S. Dollar Contracts		(50	)		9
Fair Value of Contracts, End of Period		(791	)		166

(1)Includes realized loss of $nil (2017 – $16 million) related to the Conventional segment which is included in discontinued operations.

Summary of Changes in Inputs to Option Pricing Model, Resulted in Unrealized Gains (Losses) Impacting Earnings Before Income Tax

Changes in the following inputs to the option pricing model, with fluctuations in all other variables held constant, could have resulted in unrealized gains (losses) impacting earnings before income tax as follows:

	Sensitivity Range	Increase			Decrease
WCS Forward Prices	± $5.00 per bbl		(269	)		215
WTI Option Volatility	± five percent		(100	)		95
U.S. to Canadian Dollar Foreign Exchange Rate Option Volatility	± five percent		9			(33	)

Summary of Earnings Impact of (Gains) Losses from Risk Management Positions

D) Earnings Impact of (Gains) Losses From Risk Management Positions

	Three Months Ended					Six Months Ended
For the periods ended June 30,		2018		2017			2018		2017
Realized (Gain) Loss ⁽¹⁾		697		(155	)		1,166		(76	)
Unrealized (Gain) Loss⁽²⁾		(122	)	(132	)		(261	)	(411	)
(Gain) Loss on Risk Management From Continuing Operations		575		(287	)		905		(487	)

(1)

Realized gains and losses on risk management are recorded in the reportable segment to which the derivative instrument relates. Excludes realized risk management losses of $nil in the six months ended June 30, 2018 (six months ended June 30, 2017 – $16 million) that were classified as discontinued operations.

(2)	Unrealized gains and losses on risk management are recorded in the Corporate and Eliminations segment.