cj hedge program Cardinal’s risk management program is an important component of our business strategy as it is designed to mitigate the volatility in oil and gas prices experienced throughout the year and fix the downside of commodity prices to support our capital program and dividend. The Company was opportunistic with the Canadian oil pricing increases experienced in early 2019 and the spikes caused by international geopolitical events in the third quarter of 2019. During the third quarter, the Company entered into new contracts for 1,000 bbl/d of oil production fixed at an average price of US$60/bbl for the fourth quarter of 2019 and first quarter of 2020. Cardinal also has 3,500 bbl/d hedged with WTI-WCS pricing differential hedges averaging approximately US$17/bbl and 3,250 bbl/d at an average wellhead CAD$52/bbl WCS pricing for the remainder of 2019. The Company has also protected the downside with pricing floors averaging over CAD$69/bbl but retained upside on WTI pricing by locking in 4,750 bbl/d of our light oil with an average ceiling price of over CAD$85/bbl or with no ceiling at all through various puts. This risk management program has given Cardinal the ability to achieve its budgeted capital expenditures and fund its ARO while continuing to support our dividend program and reduce our debt or acquire our common shares on the open market.
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