RE:RE:RBC:Avg 2018 WCS Differential increase -no impact on CJ.Yes, that is true. Right now, the higher than normal spreads are not having much impact on CJ at all, due to their hedging program.
In 2018, if the spreads were to stay where they are now, it would be impacting only about 16% of their total production, after factoring in their 2018 hedging program. However, as the differential settles down, which already seems to be happening, it will have almost no impact on cj at all.
As the RBC article points out, the WCS differential is set to be about $3 on average higher in 2017 compared to 2018. Factoring in their hedges, RBC notes that cj would be completely shielded from that, and their cash flow will not be impacted.
So bottom line: The keystone/differential issue is currently not having an impact on cj due to hedges. If the issue persists for a while longer, it really only impacts about 16% of cj's production after hedges, and that would be temporary. All in all, the increased wcs differential in 2018 should have essentiall zero impact on cj.