Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis

Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues and foreign exchange gains and losses according to their purpose.

As at June 30, 2022	Level 1 Quoted Prices in Active Markets		Level 2 Other Observable Inputs		Level 3 Significant Unobservable Inputs		Total Fair Value		Netting ⁽¹⁾			Carrying Amount

Risk Management Assets
Commodity Derivatives:
Current assets	$	8	$	36	$	2	$	46	$	(37	)	$	9
Long-term assets		-		10		2		12		(8	)		4
Foreign Currency Derivatives:
Current assets		-		1		-		1		(1	)		-

Risk Management Liabilities
Commodity Derivatives:
Current liabilities	$	-	$	821	$	445	$	1,266	$	(37	)	$	1,229
Long-term liabilities		-		22		1		23		(8	)		15
Foreign Currency Derivatives:
Current liabilities		-		-		-		-		(1	)		(1	)

Other Derivative Contracts ⁽²⁾
Current in accounts receivable and accrued revenues	$	-	$	-	$	7	$	7	$	-		$	7
Current in accounts payable and accrued liabilities		-		1		-		1		-			1
Long-term in other liabilities and provisions		-		5		-		5		-			5

As at December 31, 2021	Level 1 Quoted Prices in Active Markets		Level 2 Other Observable Inputs		Level 3 Significant Unobservable Inputs		Total Fair Value		Netting ⁽¹⁾			Carrying Amount

Risk Management Assets
Commodity Derivatives:
Current assets	$	-	$	10	$	-	$	10	$	(10	)	$	-
Long-term assets		-		1		-		1		(1	)		-
Foreign Currency Derivatives:
Current assets		-		5		-		5		(4	)		1

Risk Management Liabilities
Commodity Derivatives:
Current liabilities	$	-	$	536	$	181	$	717	$	(10	)	$	707
Long-term liabilities		-		26		-		26		(1	)		25
Foreign Currency Derivatives:
Current liabilities		-		-		-		-		(4	)		(4	)

Other Derivative Contracts ⁽²⁾
Current in accounts receivable and accrued revenues	$	-	$	-	$	9	$	9	$	-		$	9
Current in accounts payable and accrued liabilities		-		1		-		1		-			1
Long-term in other liabilities and provisions		-		5		-		5		-			5

(1)	Netting to offset derivative assets and liabilities where the legal right and intention to offset exists, or where counterparty master netting arrangements contain provisions for net settlement.

(2)	Includes credit derivatives and contingent consideration associated with certain prior years’ divestitures.

Summary Of Changes In Level 3 Fair Value Measurements

A summary of changes in Level 3 fair value measurements for risk management positions is presented below:

	Six Months Ended
	June 30,
	2022			2021

Balance, Beginning of Year	$	(172	)	$	(74	)
Total Gains (Losses)		(683	)		(569	)
Purchases, Sales, Issuances and Settlements:
Purchases, sales and issuances ⁽¹⁾		-			6
Settlements		420			215
Transfers Out of Level 3		-			-
Balance, End of Period	$	(435	)	$	(422	)
Change in Unrealized Gains (Losses) During the Period Included in Net Earnings (Loss)	$	(263	)	$	(354	)

(1)	Purchases, sales and issuances for the six months ended June 30, 2021, reflects the fair value of the contingent consideration arrangement at the closing date of the Duvernay asset divestiture discussed in Note 7.

Quantitative Information About Unobservable Inputs Used In Level 3

Quantitative information about unobservable inputs used in Level 3 fair value measurements is presented below as at June 30, 2022:

	Valuation Technique	Unobservable Input	Range	Weighted Average ⁽¹⁾

Risk Management - WTI Options	Option Model	Implied Volatility	14% - 83%	57%

(1)	Unobservable inputs were weighted by the relative fair value of the instruments.