5 unchanged sentences
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 instruments to reduce our exposure to price volatility of oil and natural gas.
+Added: 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.
The counterparties to the contracts are unrelated third parties.
−Removed: The contracts settle monthly in cash based on a designated floating price.
−Removed: The designated floating price is based on the NYMEX benchmark for oil and natural gas.
+Added: The contracts settle monthly in cash based on the difference between the fixed contract price and the market settlement price.
+Added: The market settlement price is based on the NYMEX benchmark for oil and natural gas.
We have not designated any of our contracts as fair value or cash flow hedges.
−Removed: Accordingly, the changes in fair value of the contracts are included in net income in the period of the change.
+Added: Accordingly, the changes in fair value of the contracts are included in net income in the period of the
See "Note 4 - Commodity Derivative Financial Instruments" and "Note 5 - Fair Value Measurements" to the unaudited interim consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Commodity prices have been historically volatile based upon the dynamics of supply and demand.
−Removed: To estimate the effect lower prices would have on our reserves, we reduced the SEC commodity pricing for the three months ended September 30, 2023 by 10%.
−Removed: This results in an approximate 2% reduction of proved reserve volumes as compared to the unadjusted September 30, 2023 SEC pricing scenario.
+Added: To estimate the effect lower prices would have on our reserves, we applied a 10% discount to the SEC commodity pricing for the three months ended March 31, 2024.
+Added: Applying this discount results in an approximate 2.2% reduction of proved reserve volumes as compared to the undiscounted March 31, 2024 SEC pricing scenario.
Counterparty and Customer Credit Risk
2 unchanged sentences
This evaluation includes reviewing a counterparty’s credit rating and latest financial information.
−Removed: September 30, 2023, we had seven counterparties, all of which were rated Baa1 or better by Moody’s and are lenders under our Credit Facility.
+Added: As of March 31, 2024, we had seven counterparties, all of which were 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.
3 unchanged sentences
We have exposure to changes in interest rates on our indebtedness.
−Removed: During the nine months ended September 30, 2023, we had $4.6 million weighted average outstanding borrowings under our Credit Facility, bearing interest at a weighted average interest rate of 7.33%.
−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 nine months ended September 30, 2023, assuming that our indebtedness remained constant throughout the period.
+Added: During the three months ended March 31, 2024, we had $0.3 million weighted average outstanding borrowings under our Credit Facility, bearing interest at a weighted average interest rate of 7.92%.
+Added: The impact of a 1% increase in the interest rate on this amount of debt would have resulted in a de minimis increase in interest expense, and a corresponding decrease in our results of operations, for the three months ended March 31, 2024, 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.
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.