2 unchanged sentences
We are exposed to various risks, including energy commodity price risk, such as price differentials between the NYMEX commodity price and the index price at the location where our production is sold.
−Removed: When oil, natural gas, and natural gas liquids prices decline significantly, our ability to finance our capital budget and operations may be adversely impacted.
−Removed: We expect energy prices to remain volatile and unpredictable, therefore we have designed a risk management policy which provides for the use of derivative instruments to provide partial protection against declines in oil, natural gas and natural gas liquids prices by reducing the risk of price volatility and the affect it could have on our operations.
+Added: When oil and natural gas prices decline significantly, our ability to finance our capital budget and operations may be adversely impacted.
+Added: We expect energy prices to remain volatile and unpredictable, therefore we have designed a risk management policy which provides for the use of derivative instruments to provide partial protection against declines in oil and natural gas prices by reducing the risk of price volatility and the affect it could have on our operations.
The types of derivative instruments that we typically utilize include fixed-price swaps, costless collars, basis swaps and WTI NYMEX rolls.
−Removed: The total volumes that we hedge through the use of our derivative instruments varies from period to period, however, generally our objective is to hedge approximately 65% to 85% of our anticipated production for up to the next 30 months, when derivative contracts are available upon terms and prices acceptable to us and in a manner consistent with the requirements that may be in effect from time to time under our Senior Credit Agreement.
−Removed: Our hedge policies and objectives may change significantly as our operational profile and contractual obligations changes.
+Added: The total volumes that we hedge through the use of our derivative instruments varies from period to period;
+Added: however, our requirement under our Term Loan Agreement is to hedge approximately 50% to 85% of our anticipated oil and natural gas production, in varying percentages by year, on a rolling basis for the next four years.
+Added: Our hedge policies and objectives may change significantly as our operational profile and contractual obligations change but remain consistent with the requirements in effect under our Term Loan Agreement.
We do not enter into derivative contracts for speculative trading purposes.
1 unchanged sentence
It is our policy to enter into derivative contracts only with counterparties that are creditworthy institutions deemed by management as competitive market makers.
−Removed: As of September 30, 2021, we did not post collateral under any of our derivative contracts as they are secured under our Senior Credit Agreement.
+Added: As of March 31, 2022, we did not post collateral under any of our derivative contracts as they are secured under our Term Loan Agreement.
We account for our derivative activities under the provisions of ASC 815, Derivatives and Hedging , (ASC 815).
4 unchanged sentences
These estimates involve uncertainties and cannot be determined with precision.
−Removed: The estimated fair value of cash and cash equivalents, accounts receivable and accounts payable approximates their carrying value due to their short-term nature.
+Added: The estimated fair value of cash, cash equivalents and restricted cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature.
Condensed Consolidated Financial Statements (Unaudited) —Note 6, “ Fair Value Measurements,” for additional information.
1 unchanged sentence
We are also exposed to market risk related to adverse changes in interest rates.
−Removed: Our interest rate risk exposure results primarily from fluctuations in short-term rates, which are LIBOR and ABR based and may result in reductions of earnings or cash flows due to increases in the interest rates we pay on these obligations.
−Removed: At September 30, 2021, the principal amount of our debt was $155.1 million, of which approximately 0.1% bears interest at a weighted average fixed interest rate of 1.0% per year.
−Removed: The remaining 99.9% of our total debt at September 30, 2021 bears interest at floating and variable interest rates that, at our option, are tied to the prime rate or LIBOR.
+Added: Our interest rate risk exposure results primarily from fluctuations in short-term rates, which are LIBOR based and may result in reductions of earnings or cash flows due to increases in the interest rates we pay on these obligations.
+Added: At March 31, 2022, the principal amount of our debt was $200.0 million, which all bears interest at floating and variable interest rates that are tied to LIBOR.
Fluctuations in market interest rates will cause our annual interest costs to fluctuate.
−Removed: At September 30, 2021, the weighted average interest rate on our variable rate debt was 3.97% per year.
−Removed: If the balance of our variable interest rate at September 30, 2021 were to remain constant, a 10% change in market interest rates would impact our cash flows by approximately $0.6 million per year .
+Added: At March 31, 2022, the weighted average interest rate on our variable rate debt was 8.01% per year.
+Added: If the balance of our variable interest rate at March 31, 2022 were to remain constant, a 10% change in market interest rates would impact our cash flows by approximately $1.6 million per year .
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.