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Realized prices are primarily driven by the prevailing global prices for oil and prices for natural gas and NGLs in the United States.
−Removed: Prices for oil, natural gas, and NGLs have been volatile for several years, and we expect this unpredictability to continue in the future.
+Added: Prices for oil, natural gas, and NGLs have been volatile, and we expect this unpredictability to continue in the future.
The prices that our operators receive for production depend on many factors outside of our or their control.
−Removed: To reduce the impact of fluctuations in oil and natural gas prices on our revenues, we use commodity derivative financial instruments to reduce our exposure to price volatility of oil and natural gas.
+Added: To mitigate the impact of fluctuations in oil and natural gas prices on our revenues, we use commodity derivative financial instruments to reduce our exposure to price volatility of oil and natural gas.
The counterparties to the contracts are unrelated third parties.
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See "Note 5 – Commodity Derivative Financial Instruments" and "Note 6 – Fair Value Measurements" to the consolidated financial statements included elsewhere in this Annual Report for additional information.
+Added: Based upon our open commodity derivative positions at December 31, 2025, a hypothetical $1 per barrel increase or decrease in the NYMEX WTI strip price would result in an increase or decrease of approximately $3.4 million in the fair value of our oil derivative contracts.
+Added: Similarly, a hypothetical $0.10 per MMBtu increase or decrease in the NYMEX Henry Hub natural gas strip price would result in an increase or decrease of approximately $7.7 million in the fair value of our natural gas derivative contracts.
+Added: These hypothetical changes in fair value could result in a gain or loss depending on whether commodity prices increase or decrease.
Commodity prices have been historically volatile based upon the dynamics of supply and demand.
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This evaluation includes reviewing a counterparty’s credit rating and latest financial information.
−Removed: As of December 31, 2024, we had seven counterparties, all of which are rated Baa2 or better by Moody’s and are lenders under our Credit Facility.
+Added: As of December 31, 2025, we had eight counterparties, all of which are rated Baa2 or better by Moody’s and are lenders under our Credit Facility.
Our principal exposure to credit risk results from receivables generated by the production activities of our operators.
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We have exposure to changes in interest rates on our indebtedness.
−Removed: During the twelve months ended December 31, 2024, we had weighted average outstanding borrowings under our Credit Facility of $7.7 million, bearing interest at a weighted-average interest rate of 7.5%.
−Removed: The impact of a 1% increase in the interest rate on this amount of debt would have resulted in an increase in interest expense, and a corresponding decrease in our results of operations, of less than $0.1 million for the year ended December 31, 2024, assuming that our indebtedness remained constant throughout the period.
+Added: During the year ended December 31, 2025, we had $95.8 million weighted average outstanding borrowings under our Credit Facility, bearing interest at a weighted-average interest rate of 7.03%.
+Added: The impact of a 1% increase in the interest rate on this amount of debt would have resulted in an increase in interest expense, and a corresponding decrease in our results of operations, of $1.0 million for the year ended December 31, 2025, assuming that our indebtedness remained constant throughout the period.
We may use certain derivative instruments to hedge our exposure to variable interest rates in the future, but we do not currently have any interest rate hedges in place.
3 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.