Shareholders' equity increased to $4,537 million at March 31, 2013 from $4,515 million at December 31, 2012, as net income exceeded dividends in the first quarter of 2013.
As disclosed in Notes 10 and 11 to the 2012 annual consolidated financial statements, the Corporation's senior notes indentures and credit facility agreements contain certain covenants which restrict Canadian Oil Sands' ability to sell all or substantially all of its assets or change the nature of its business, and limit long-term debt-to-total capitalization to 55 per cent. Canadian Oil Sands is in compliance with its debt covenants, and with a long-term debt-to-total capitalization of 29 per cent at March 31, 2013, a significant increase in debt or decrease in equity would be required to negatively impact the Corporation's financial flexibility.
13) Financial Instruments
The Corporation's financial instruments include cash and cash equivalents, accounts receivable, investments held in a reclamation trust, accounts payable and accrued liabilities, and current and non-current portions of long-term debt. The nature, the Corporation's use of, and the risks associated with these instruments are unchanged from December 31, 2012.
Offsetting Financial Assets and Financial Liabilities
The carrying values of accounts receivable and accounts payable and accrued liabilities have each been reduced by $62 million ($25 million at December 31, 2012) as a result of netting agreements with counterparties.
Fair Values
The fair values of cash and cash equivalents, accounts receivable, reclamation trust investments and accounts payable and accrued liabilities approximate their carrying values due to the short-term nature of those instruments. The fair value of long-term debt, based on third-party market indications, is as follows:
December March 31 31As at ($ millions) 2013 2012----------------------------------------------------------------------------8.2% Senior Notes due April 1, 2027 (U.S. $73.95 million) $ 98 $ 1047.9% Senior Notes due September 1, 2021 (U.S. $250 million) 325 3325.8% Senior Notes due August 15, 2013 (U.S. $300 million) 312 3097.75% Senior Notes due May 15, 2019 (U.S. $500 million) 647 6284.5% Senior Notes due April 1, 2022 (U.S. $400 million) 435 4356.0% Senior Notes due April 1, 2042 (U.S. $300 million) 346 350---------------------------------------------------------------------------- $ 2,163 $ 2,158--------------------------------------------------------------------------------------------------------------------------------------------------------
14) Commitments
Canadian Oil Sands' commitments are summarized in the 2012 annual consolidated financial statements and include future cash payments that the Corporation is required to make under existing contractual arrangements entered into directly or as a 36.74 per cent owner in Syncrude. There are no significant new commitments relative to the 2012 annual disclosure.
