Risk Management (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Derivative Financial Instruments [Line Items]

Net Fair Value of Risk Management Positions

Net Fair Value of Risk Management Positions

As at December 31, 2018	Notional Volumes	Terms	Average Price	Fair Value Asset (Liability)
Crude Oil Contracts
WTI Collars	19,000 bbls/d	January – December 2019	US$50.00-US$62.08/bbl		52
Other Financial Positions (1)					102
Crude Oil Fair Value Position					154
Foreign Exchange Contracts					(1	)
Interest Rate Swaps					7
Total Fair Value					160

(1) Other financial positions are part of ongoing operations to market the Company’s production. In 2018, other financial positions consist of WCS and condensate futures, WTI fixed priced contracts and basis swaps.

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:

As at December 31, 2018	Sensitivity Range	Increase			Decrease
WCS Forward Prices	± $5.00 per bbl		(104	)		71
WTI Option Volatility	± five percent		(57	)		51
Canadian per U.S. Dollar Foreign Exchange Rate Option Volatility	± five percent		1			(12	)
As at December 31, 2017	Sensitivity Range	Increase			Decrease
WCS Forward Prices	± $5.00 per bbl		(167	)		111
WTI Option Volatility	± five percent		(95	)		85
Canadian per U.S. Dollar Foreign Exchange Rate Option Volatility	± five percent		2			(27	)

Undiscounted Cash Outflows Relating to Financial Liabilities

Undiscounted cash outflows relating to financial liabilities are:

As at December 31, 2018	Less than 1 Year		Years 2 and 3		Years 4 and 5		Thereafter		Total
Accounts Payable and Accrued Liabilities		1,833		-		-		-		1,833
Risk Management Liabilities (1)		3		-		-		-		3
Long-Term Debt (2)		1,152		862		2,138		13,256		17,408
Contingent Payment (3)		15		113		15		-		143
Other		-		1		1		2		4
As at December 31, 2017	Less than 1 Year		Years 2 and 3		Years 4 and 5		Thereafter		Total
Accounts Payable and Accrued Liabilities		2,627		-		-		-		2,627
Risk Management Liabilities (1)		1,031		20		-		-		1,051
Long-Term Debt (2)		494		2,527		1,429		13,309		17,759
Contingent Payment (3)		38		116		67		-		221
Other		-		1		1		2		4

(1) Risk management liabilities subject to master netting agreements.

(2) Principal and interest, including current portion.

(3) Refer to Note 33C for fair value assumptions.

Commodity Price Risk [Member]

Disclosure of Derivative Financial Instruments [Line Items]

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

The following table summarizes the sensitivity of the fair value of Cenovus’s risk management positions to independent fluctuations in commodity prices, with all other variables held constant. Management believes the fluctuations identified in the table below are a reasonable measure of volatility. The impact of fluctuating commodity prices and interest rates on the Company’s open risk management positions could have resulted in unrealized gains (losses) impacting earnings before income tax as follows:

As at December 31, 2018	Sensitivity Range	Increase			Decrease
Crude Oil Commodity Price	± US$5.00 per bbl Applied to WTI and Condensate Hedges		(78	)		80
Crude Oil Differential Price	± US$2.50 per bbl Applied to Differential Hedges Tied to Production		4			(4	)
As at December 31, 2017	Sensitivity Range	Increase			Decrease
Crude Oil Commodity Price	± US$5.00 per bbl Applied to Brent, WTI and Condensate Hedges		(529	)		507
Crude Oil Differential Price	± US$2.50 per bbl Applied to Differential Hedges Tied to Production		11			(11	)

Currency risk [Member]

Disclosure of Derivative Financial Instruments [Line Items]

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

In respect of these financial instruments, the impact of changes in the U.S. to Canadian dollar exchange rate would have resulted in a change to the foreign exchange (gain) loss as follows:

For the years ended December 31,	2018			2017
$0.05 Increase in the Canadian per U.S. Dollar Foreign Exchange Rate		339			383
$0.05 Decrease in the Canadian per U.S. Dollar Foreign Exchange Rate		(339	)		(383	)

Interest Rate Risk [Member]

Disclosure of Derivative Financial Instruments [Line Items]

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

In respect of these financial instruments, the impact of changes in the interest rate would have resulted in a change to unrealized gains (losses) impacting earnings before income tax as follows:

For the years ended December 31,	2018			2017
50 Basis Points Increase		12			44
50 Basis Points Decrease		(13	)		(50	)