11 unchanged sentences
We may enter into financial derivative instruments for a portion of our natural gas, NGLs and oil production when circumstances warrant and management believes that favorable future prices can be secured in order to mitigate some of the potential negative impact on our cash flows caused by changes in commodity prices.
−Removed: Due to our improved liquidity and leverage position as compared to historical levels, the percentage of our expected production that we hedge has decreased.
−Removed: For the years ended December 31, 2023 and 2024, substantially all of our production was unhedged.
+Added: For the years ended December 31, 2024 and 2025, 4% and 8%, respectively, of our production was hedged through commodity derivatives.
Our financial hedging activities may include commodity derivative instruments that are intended to support natural gas, NGLs and oil prices at targeted levels and to manage our exposure to price risk associated with our production.
1 unchanged sentence
These contracts are financial instruments and do not require or allow for physical delivery of the hedged commodity.
−Removed: As of December 31, 2024, our commodity derivatives included fixed swaps, collars, call options and embedded put options at index-based pricing for a nominal portion of our production.
+Added: As of December 31, 2025, our commodity derivatives included fixed swaps, basis swaps, collars, call options and embedded put options at index-based pricing for a portion of our production.
See Note 11—Derivative Instruments to our consolidated financial statements for additional information.
8 unchanged sentences
Our cash flows are impacted when the associated derivative contracts are settled or monetized by making or receiving payments to or from the counterparty.
−Removed: As of December 31, 2023 and 2024, the estimated fair value of our commodity derivative instruments was a net liability $37 million and $47 million, respectively, comprised of current and noncurrent assets and liabilities.
+Added: As of December 31, 2024, the estimated fair value of our commodity derivative instruments was a net liability of $47 million, comprised of current and noncurrent assets and liabilities.
+Added: As of December 31, 2025, the estimated fair value of our commodity derivative instruments was a net asset of $81 million, comprised of current and noncurrent assets.
Counterparty and Customer Credit Risk
9 unchanged sentences
The creditworthiness of our counterparties is subject to periodic review.
−Removed: As of December 31, 2024, we have commodity hedges in place with four different counterparties, three of which are lenders under the Unsecured Credit Facility.
−Removed: As of December 31, 2024, we did not have any commodity derivative assets with bank counterparties under our Unsecured Credit Facility.
+Added: As of December 31, 2025, we have commodity hedges in place with eight different counterparties, seven of which are lenders under the Unsecured Credit Facility.
+Added: We had derivative assets of $81 million with bank counterparties under our Unsecured Credit Facility as of December 31, 2025.
The estimated fair value of our commodity derivative assets has been risk-adjusted using a discount rate based upon the counterparties’ respective published credit default swap rates (if available, or if not available, a discount rate based on the applicable Reuters bond rating) as of December 31, 2025.
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.