3 unchanged sentences
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 historically volatile, and we expect this unpredictability to continue in the future.
+Added: Prices for oil,
+Added: natural gas, and NGLs have been historically 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.
3 unchanged sentences
The market settlement price is based on the NYMEX benchmark for oil and natural gas.
−Removed: We have not designated any of our contracts as fair
−Removed: value or cash flow hedges.
+Added: We have not designated any of our contracts as fair value or cash flow hedges.
Accordingly, the changes in fair value of the contracts are included in net income in the period of the change.
1 unchanged sentence
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 applied a 10% discount to the SEC commodity pricing for the three months ended June 30, 2024.
−Removed: Applying this discount results in an approximate 2.5% reduction of proved reserve volumes as compared to the undiscounted June 30, 2024 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 September 30, 2024.
+Added: Applying this discount results in an approximate 2.5% reduction of proved reserve volumes as compared to the undiscounted September 30, 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: As of June 30, 2024, we had seven counterparties, all of which were rated Baa2 or better by Moody’s and are lenders under our Credit Facility.
+Added: As of September 30, 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 six months ended June 30, 2024, we had $0.2 million weighted average outstanding borrowings under our Credit Facility, bearing interest at a weighted average interest rate of 7.96%.
−Removed: 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 six months ended June 30, 2024, assuming that our indebtedness remained constant throughout the period.
+Added: During the nine months ended September 30, 2024, we had $1.8 million weighted average outstanding borrowings under our Credit Facility, bearing interest at a weighted average interest rate of 8.04%.
+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 nine months ended September 30, 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.