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Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2017
Property, plant and equipment [abstract]  
Disclosure of property plant and equipment
($ millions)
2017

 
  2016

 
Exploration and evaluation assets at cost
2,305.1

 
2,080.7

 
Accumulated amortization
(1,670.2
)
 
(1,582.6
)
 
Net carrying amount
634.9

 
498.1

 
 
 
 
 
 
Reconciliation of movements during the year
 
 
 
 
Cost, beginning of year
2,080.7

 
1,961.0

 
Accumulated amortization, beginning of year
(1,582.6
)
 
(1,420.3
)
 
Net carrying amount, beginning of year
498.1

 
540.7

 
 
 
 
 
 
Net carrying amount, beginning of year
498.1

 
540.7

 
Acquisitions through business combinations, net
116.9

 
62.9

 
Additions
729.1

 
314.8

 
Dispositions
(12.9
)
 
(0.4
)
 
Transfers to property, plant and equipment
(541.4
)
 
(238.3
)
 
Amortization
(134.3
)
 
(172.5
)
 
Foreign exchange
(20.6
)
 
(9.1
)
 
Net carrying amount, end of year
634.9

 
498.1

 
($ millions)
2017

 
  2016

 
Development and production assets
25,881.1

 
24,846.9

 
Corporate assets
106.4

 
102.4

 
Property, plant and equipment at cost
25,987.5

 
24,949.3

 
Accumulated depletion, depreciation and impairment
(11,925.1
)
 
(10,774.4
)
 
Net carrying amount
14,062.4

 
14,174.9

 
 
 
 
 
 
Reconciliation of movements during the year
 
 
 
 
Development and production assets
 
 
 
 
Cost, beginning of year
24,846.9

 
23,677.4

 
Accumulated depletion and impairment, beginning of year
(10,735.5
)
 
(8,795.5
)
 
Net carrying amount, beginning of year
14,111.4

 
14,881.9

 
 
 
 
 
 
Net carrying amount, beginning of year
14,111.4

 
14,881.9

 
Acquisitions through business combinations, net
220.2

 
218.2

 
Additions
1,211.8

 
909.5

 
Dispositions, net
(332.7
)
 
(56.4
)
 
Transfers from exploration and evaluation assets
541.4

 
238.3

 
Reclassified as assets held for sale
(26.4
)
 
—

 
Depletion
(1,394.4
)
 
(1,427.0
)
 
Impairment
(203.6
)
 
(611.4
)
 
Foreign exchange
(123.7
)
 
(41.7
)
 
Net carrying amount, end of year
14,004.0

 
14,111.4

 
 
 
 
 
 
Cost, end of year
25,881.1

 
24,846.9

 
Accumulated depletion and impairment, end of year
(11,877.1
)
 
(10,735.5
)
 
Net carrying amount, end of year
14,004.0

 
14,111.4

 
 
 
 
 
 
Corporate assets
 
 
 
 
Cost, beginning of year
102.4

 
101.5

 
Accumulated depreciation, beginning of year
(38.9
)
 
(29.7
)
 
Net carrying amount, beginning of year
63.5

 
71.8

 
 
 
 
 
 
Net carrying amount, beginning of year
63.5

 
71.8

 
Additions
4.2

 
0.9

 
Depreciation
(9.1
)
 
(9.2
)
 
Foreign exchange
(0.2
)
 
—

 
Net carrying amount, end of year
58.4

 
63.5

 
 
 
 
 
 
Cost, end of year
106.4

 
102.4

 
Accumulated depreciation, end of year
(48.0
)
 
(38.9
)
 
Net carrying amount, end of year
58.4

 
63.5

 
Schedule of Forecast Benchmark Commodity Prices And Exchange Rates for Impairment of Property, Plant and Equipment
The following table outlines the forecast benchmark commodity prices and the exchange rate used in the impairment calculation of PP&E at December 31, 2017:
 
2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028 (2)

WTI ($US/bbl) (1)
55.00

65.00

70.00

73.00

74.46

75.95

77.47

79.02

80.60

82.21

83.85

Exchange Rate ($US/$Cdn)
0.790

0.820

0.850

0.850

0.850

0.850

0.850

0.850

0.850

0.850

0.850

WTI ($Cdn/bbl)
69.62

79.27

82.35

85.88

87.60

89.35

91.14

92.96

94.82

96.72

98.65

AECO ($Cdn/MMbtu) (1)
2.85

3.11

3.65

3.80

3.95

4.05

4.15

4.25

4.36

4.46

4.57

(1)
The forecast benchmark commodity prices listed above are adjusted for quality differentials, heat content, distance to market and other factors in performing the impairment tests.
(2)
Forecast benchmark commodity prices are assumed to increase by 2.0% in each year after 2028 to the end of the reserve life. Exchange rates are assumed to be constant at 0.850.
The following table outlines the forecast benchmark commodity prices and the exchange rate used in the impairment calculation of PP&E at December 31, 2016:
 
2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027 (2)

WTI ($US/bbl) (1)
55.00

65.00

70.00

71.40

72.83

74.28

75.77

77.29

78.83

80.41

82.02

Exchange Rate ($US/$Cdn)
0.780

0.820

0.850

0.850

0.850

0.850

0.850

0.850

0.850

0.850

0.850

WTI ($Cdn/bbl)
70.51

79.27

82.35

84.00

85.68

87.39

89.14

90.93

92.74

94.60

96.49

AECO ($Cdn/MMbtu) (1)
3.44

3.27

3.22

3.91

4.00

4.10

4.19

4.29

4.40

4.50

4.61

(1)
The forecast benchmark commodity prices listed above are adjusted for quality differentials, heat content, distance to market and other factors in performing the impairment tests.
(2)
Forecast benchmark commodity prices are assumed to increase by 2.0% in each year after 2027 to the end of the reserve life. Exchange rates are assumed to be constant at 0.850.
Schedule of Impairment Loss and Reversal of Impairment Loss
The following table summarizes the impairment and recovery for the year ended December 31, 2017 by CGU:
CGU
($ millions, except %)
Operating segment
Fair value less costs of disposal

Discount rate

(Impairment) / Recovery

(Impairment) / Recovery,
net of tax

Southeast Saskatchewan (1)
Canada
6,946.2

10.25
%
(281.7
)
(206.1
)
Southwest Saskatchewan (1)
Canada
2,412.6

10.25
%
(164.1
)
(120.0
)
Southern Alberta (1)
Canada
1,217.9

11.00
%
(109.6
)
(80.2
)
Northern U.S. (2)
U.S.
976.5

10.50
%
87.9

54.6

Utah (2)
U.S.
1,482.4

10.25
%
263.9

164.0

Total impairment (3)
 
(203.6
)
(187.7
)
(1)
At September 30, 2017, the carrying amount of the Southeast Saskatchewan, Southwest Saskatchewan and Southern Alberta CGUs exceeded their fair value less costs of disposal and impairments were recorded as a component of depletion, depreciation, amortization and impairment expense.
(2)
At September 30, 2017 the fair value less costs of disposal of the Northern U.S. and Utah CGUs exceeded their carrying amount and recoveries were recorded as a component of depletion, depreciation, amortization and impairment expense.
(3)
At December 31, 2017, accumulated after tax impairment losses, net of depletion had no impairment loss been recognized in prior periods for the Canada and U.S. operating segments were $1.74 billion and $144.2 million, respectively.
The following table summarizes the impairment and recovery for the year ended December 31, 2016 by CGU:
CGU
($ millions, except %)
Operating segment
Fair value less costs of disposal

Discount rate

(Impairment) / Recovery

(Impairment) / Recovery,
net of tax

Southeast Saskatchewan
Canada
7,321.2

9.75
%
(375.1
)
(273.8
)
Southwest Saskatchewan
Canada
2,498.7

9.75
%
(355.2
)
(259.3
)
Northern Alberta
Canada
48.1

10.25
%
10.3

7.5

Southern Alberta
Canada
1,339.1

10.25
%
9.8

7.2

Northern U.S.
U.S.
622.6

10.00
%
56.6

35.2

Utah
U.S.
938.9

9.75
%
42.2

26.2

Total impairment (1)
 
(611.4
)
(457.0
)
(1)
At December 31, 2016, accumulated after tax impairment losses, net of depletion had no impairment loss been recognized in prior periods for the Canada and U.S. operating segments were $1.51 billion and $383.2 million, respectively.
Schedule of Impact on Income Before Tax For Changes in Discount Rate and Forecast Benchmark Commodity Price Estimates
The following sensitivities show the resulting impact on income before tax of the changes in discount rate and forecast benchmark commodity price estimates at December 31, 2017, with all other variables held constant:
CGU
($ millions)
Discount Rate
 
Commodity Prices
 
Increase 1%

 
Decrease 1%

 
Increase 5%

 
Decrease 5%

 
Southeast Saskatchewan
(559.4
)
 
627.7

 
831.9

 
(839.6
)
 
Southwest Saskatchewan
(209.6
)
 
235.6

 
306.0

 
(305.7
)
 
Southern Alberta
(114.3
)
 
128.1

 
176.7

 
(175.8
)
 
Northern U.S.
—

 
—

 
—

 
—

 
Utah
(103.6
)
 
116.4

 
174.9

 
(173.6
)
 
Increase (decrease)
(986.9
)
 
1,107.8

 
1,489.5

 
(1,494.7
)

The following sensitivities show the resulting impact on income before tax of the changes in discount rate and forecast benchmark commodity price estimates at December 31, 2016, with all other variables held constant:
CGU
($ millions)
Discount Rate
 
Commodity Prices
 
Increase 1%

 
Decrease 1%

 
Increase 5%

 
Decrease 5%

 
Southeast Saskatchewan
(605.4
)
 
666.9

 
666.9

 
(891.9
)
 
Southwest Saskatchewan
(222.6
)
 
249.6

 
311.3

 
(321.7
)
 
Northern Alberta
—

 
—

 
—

 
—

 
Southern Alberta
(134.0
)
 
150.1

 
204.6

 
(209.7
)
 
Northern U.S.
(58.2
)
 
66.8

 
96.3

 
(99.8
)
 
Utah
(76.4
)
 
85.8

 
129.0

 
(127.9
)
 
Increase (decrease)
(1,096.6
)
 
1,219.2

 
1,408.1

 
(1,651.0
)