ABSTRACT
Canadian Oil Sands prefers to remain un-hedged on crude oil prices; however, during periods of significant capital spending and financing requirements, management has in the past, and may again, hedge prices and exchange rates to reduce revenue and cash flow volatility to the Corporation. Canadian Oil Sands did not have any crude oil price hedges in place for 2010 or 2009. Instead, a strong balance sheet was used to mitigate the risk around crude oil price movements. As at February 23, 2011, and based on current expectations, the Corporation remains un-hedged on its crude oil price exposure.
