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: For the three months ended September 30, 2024 and 2025, 2% and 4%, respectively, of our production was hedged through commodity derivatives.
−Removed: For the nine months ended September 30, 2024 and 2025, 4% of our production was hedged through commodity derivatives.
+Added: For the three months ended March 31, 2025 and 2026, 4% and 42%, respectively, of our production was hedged through commodity derivatives, excluding basis swaps.
+Added: In addition, for the three months ended March 31, 2025 and 2026, zero and 12%, respectively, of our production was hedged through basis swap 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.
−Removed: These contracts may include commodity price swaps whereby we will receive a fixed price and pay a variable market price to the contract counterparty, collars that set a floor and ceiling price for the hedged production, basis differential swaps or call or embedded put options, among others.
+Added: These contracts may include commodity price swaps whereby we will receive a fixed price and pay a variable market price to the contract counterparty, collars that set a floor and ceiling price for the hedged production, basis differential swaps or three-way collars, among others.
These contracts are financial instruments and do not require or allow for physical delivery of the hedged commodity.
−Removed: As of September 30, 2025, our commodity derivatives included fixed swaps, collars, call options and embedded put options at index-based pricing for a portion of our production.
+Added: As of March 31, 2026, our commodity derivatives included fixed swaps, basis swaps, collars and three-way collars, among others at index-based pricing for a portion of our production.
See Note 11—Derivative Instruments to our unaudited condensed consolidated financial statements for additional information.
−Removed: Based on our production and our derivative instruments that settled during the nine months ended September 30, 2025, our revenues would have decreased by $112 million for each $0.10 decrease per MMBtu in natural gas prices and $1.00 decrease per Bbl in oil and NGLs prices, excluding the effects of changes in the fair value of our derivative positions which remain open as of September 30, 2025.
+Added: Based on our production and our derivative instruments that settled during the three months ended March 31, 2026, our revenues would have decreased by $27 million for each $0.10 decrease per MMBtu in natural gas prices and $1.00 decrease per Bbl in oil and NGLs prices, excluding the effects of changes in the fair value of our derivative positions which remain open as of March 31, 2026.
All derivative instruments, other than those that meet the normal purchase and normal sale scope exception or other derivative scope exceptions, are recorded at fair market value in accordance with GAAP and are included in our consolidated balance sheets as assets or liabilities.
1 unchanged sentence
Because we do not designate these derivatives as accounting hedges, they do not receive hedge accounting treatment;
−Removed: therefore, all mark to market gains or losses, as well as cash receipts or payments on settled derivative instruments, are recognized in our unaudited condensed consolidated statements of operations and comprehensive income (loss).
−Removed: We present total gains or losses on commodity derivatives (for both settled derivatives and derivative positions which remain open) within operating revenues as commodity derivative fair value gains (losses) in the unaudited condensed consolidated statements of operations and comprehensive income (loss).
+Added: all mark to market gains or losses, as well as cash receipts or payments on settled derivative instruments, are recognized in our unaudited condensed consolidated statements of operations and comprehensive income.
+Added: We present total gains or losses on commodity derivatives (for both settled derivatives and derivative positions which remain open) within operating revenues as commodity derivative fair value gains (losses) in the unaudited condensed consolidated statements of operations and comprehensive income.
Mark-to-market adjustments of derivative instruments cause earnings volatility but have no cash flow impact relative to changes in market prices until the derivative contracts are settled or monetized prior to settlement.
1 unchanged sentence
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, 2024 and September 30, 2025, the estimated fair value of our commodity derivative instruments was a net liability of $47 million and $7 million, respectively, comprised of current and noncurrent assets and liabilities.
+Added: As of December 31, 2025 and March 31, 2026, the estimated fair value of our commodity derivative instruments was a net asset of $81 million and $202 million, respectively, comprised of current and noncurrent assets and liabilities, as applicable.
Counterparty and Customer Credit Risk
Our principal exposures to credit risk are through receivables resulting from the following:
−Removed: the sale of our natural gas, NGLs and oil production ($356 million as of September 30, 2025), which we market to energy companies, end users and refineries, and commodity derivative contracts ($18 million as of September 30, 2025).
+Added: the sale of our natural gas, NGLs and oil production ($454 million as of March 31, 2026), which we market to energy companies, end users and refineries, and commodity derivative contracts ($214 million as of March 31, 2026).
We are subject to credit risk due to the concentration of our receivables from several significant customers for sales of natural gas, NGLs and oil.
6 unchanged sentences
The creditworthiness of our counterparties is subject to periodic review.
−Removed: As of September 30, 2025, we have commodity hedges in place with seven different counterparties, six of which are lenders under the Unsecured Credit Facility.
−Removed: We had derivative assets of $5 million with bank counterparties under our Unsecured Credit Facility as of September 30, 2025.
−Removed: 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 September 30, 2025.
−Removed: We believe that all of the counterparties to our derivative instruments are acceptable credit risks as of September 30, 2025.
+Added: As of March 31, 2026, we have commodity hedges in place with 12 different counterparties, 10 of which are lenders under the Credit Facility.
+Added: We had derivative assets of $202 million with bank counterparties under our Credit Facility as of March 31, 2026.
+Added: 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 March 31, 2026.
+Added: We believe that all of the counterparties to our derivative instruments are acceptable credit risks as of March 31, 2026.
We are not required to provide credit support or collateral to any of our counterparties under our derivative contracts, nor are they required to provide credit support to us.
−Removed: As of September 30, 2025, we did not have any past-due receivables from, or payables to, any of the counterparties to our derivative contracts.
+Added: As of March 31, 2026, we did not have any past-due receivables from, or payables to, any of the counterparties to our derivative contracts.
Interest Rate Risks
−Removed: Our primary exposure to interest rate risk results from outstanding borrowings under the Credit Facility, which has a floating interest rate.
−Removed: The average annualized interest rate incurred on the Credit Facility for borrowings during the nine months ended September 30, 2025 was 6.0%.
−Removed: We estimate that a 1.0% increase in the applicable average interest rates for the nine months ended September 30, 2025 would have resulted in an estimated $2 million increase in interest expense.
+Added: Our primary exposure to interest rate risk results from outstanding borrowings under the Credit Facility and Term Loan, which have floating interest rates.
+Added: The average annualized interest rate incurred on the Credit Facility and the Term Loan for borrowings during the three months ended March 31, 2026 was 5.2%.
+Added: We estimate that a 1.0% increase in the applicable average interest rates for the three months ended March 31, 2026 would have resulted in an estimated $3 million increase in interest expense.
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.