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Additional risks not presently known to us or which we currently consider immaterial also may adversely affect us.
−Removed: Risks related to our emergence from bankruptcy
−Removed: We recently emerged from bankruptcy, which may adversely affect our business and relationships.
−Removed: It is possible that our having filed for bankruptcy and our recent emergence from the Chapter 11 Cases may adversely affect our business and relationships with customers, vendors, contractors, employees or suppliers.
−Removed: Due to uncertainties, many risks exist, including the following:
−Removed: • key suppliers, vendors or other contract counterparties may terminate their relationships with us, require additional financial assurances or enhanced performance from us or pursue unreasonable fee increases for their goods or services;
−Removed: • our ability to renew existing contracts and compete for new business may be adversely affected;
−Removed: • our ability to attract, motivate and/or retain key employees and executives may be adversely affected;
−Removed: • landowners may not be willing to lease acreage to us;
−Removed: • competitors may take business away from us, and our ability to attract and retain customers may be negatively impacted.
−Removed: The occurrence of one or more of these events could have a material and adverse effect on our operations, financial condition and reputation.
−Removed: We cannot assure you that having been subject to bankruptcy protection will not adversely affect our operations in the future.
−Removed: Our actual financial results after emergence from bankruptcy may not be comparable to our historical financial information as a result of the implementation of the Plan and the transactions contemplated thereby and our adoption of fresh start accounting.
−Removed: In connection with the disclosure statement we filed with the Bankruptcy Court, and the hearing to consider confirmation of the Plan, we prepared projected financial information to demonstrate to the Bankruptcy Court the feasibility of the Plan and our ability to continue operations upon our emergence from bankruptcy.
−Removed: Those projections were prepared solely for the purpose of the bankruptcy proceedings and have not been, and will not be, updated on an ongoing basis and should not be relied upon by investors.
−Removed: At the time they were prepared, the projections reflected numerous assumptions concerning our anticipated future performance and with respect to prevailing and anticipated market and economic conditions that were and remain beyond our control and that may not materialize.
−Removed: Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks and the assumptions underlying the projections and/or valuation estimates may prove to be wrong in material respects.
−Removed: Actual results will likely vary significantly from those contemplated by the projections.
−Removed: As a result, investors should not rely on these projections.
−Removed: In addition, our capital structure was significantly altered by the Plan, and we adopted fresh start accounting upon our emergence from bankruptcy.
−Removed: Under fresh start accounting, our assets and liabilities were recorded at fair value as of the Emergence Date.
−Removed: Accordingly, our future financial conditions and results of operations may not be comparable to the financial condition or results of operations reflected in our historical financial statements.
−Removed: Upon our emergence from bankruptcy, the composition of our Board of Directors changed significantly.
−Removed: Pursuant to the Plan, the composition of our Board of Directors changed significantly.
−Removed: Our Board of Directors currently consists of six directors, none of whom served on the Board of Directors prior to our emergence from the Chapter 11 Cases.
−Removed: The new directors have different backgrounds, experiences and perspectives from those individuals who previously served on our Board of Directors and, thus, may have different views on the issues that will determine our future.
−Removed: As a result, our future strategy and plans may differ materially from those of the past.
−Removed: The ability to attract and retain key personnel is critical to the success of our business and may be affected by our emergence from bankruptcy.
−Removed: The success of our business depends on key personnel.
−Removed: The ability to attract and retain these key personnel may be difficult in light of our emergence from bankruptcy, the uncertainties currently facing the business and changes we may make to the organizational structure to adjust to changing circumstances.
−Removed: We may need to enter into retention or other arrangements that
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−Removed: could be costly to maintain.
−Removed: If executives, managers or other key personnel resign, retire or are terminated, or their service is otherwise interrupted, we may not be able to replace them in a timely manner and we could experience significant declines in productivity, which could adversely affect our business and results of operations.
Risks related to the oil and gas industry and our business
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We face risks related to pandemics, epidemics, outbreaks or other public health events that are outside of our control, and could significantly disrupt our operations and adversely affect our business and financial condition.
−Removed: For example, the recent global outbreak of COVID-19 has reduced demand for crude oil and natural gas because of significantly reduced global and national economic activity.
−Removed: On March 13, 2020, the United States declared the COVID-19 pandemic a national emergency, and several states, including Texas, North Dakota and Montana, and municipalities have declared public health emergencies.
−Removed: Along with these declarations, there have been extraordinary and wide-ranging actions taken by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions across the United States and the world, including mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations.
+Added: For example, the global outbreak of COVID-19 has impacted demand for crude oil and natural gas because of reduced global and national economic activity levels.
+Added: On March 13, 2020, the United States declared the COVID-19 pandemic a national emergency, and several states, including North Dakota and Montana, and municipalities have declared public health emergencies.
+Added: Along with these declarations, there have been extraordinary and wide-ranging actions taken by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions across the United States and the world.
To the extent COVID-19 continues or worsens, governments may impose additional similar restrictions.
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As the potential impact from COVID-19 is uncertain due to the ongoing and dynamic nature of the circumstances, it is difficult to predict the extent to which it may negatively affect our business, including, without limitation, our operating results, financial position and liquidity, the duration of any potential disruption of our business, how and the degree to which the pandemic may impact our customers, supply chain and distribution network, the health of our employees, the productivity and sustainability of our workforce, our insurance premiums, costs attributable to our emergency measures, payments from customers and uncollectible accounts, limitations on travel, the availability of industry experts and qualified personnel and the market for our securities.
−Removed: Any potential impact will depend on future developments and new information that may emerge regarding the severity and duration of COVID-19, the actions taken by authorities to contain it or treat its impact, and the availability and acceptance of vaccines, all of which are beyond our control.
+Added: Any potential impact will depend on future developments and new information that may emerge regarding the severity and duration of COVID-19 and its variants, the actions taken by authorities to contain it or treat its impact, and the availability and acceptance of vaccines, all of which are beyond our control.
These potential impacts, while uncertain, could continue to adversely affect global economies and financial markets and result in a persistent economic downturn that could continue to have an adverse effect on the industries in which we and our customers operate and on the demand for our products, our operating results and our future prospects.
−Removed: The factors described above have had, and are expected to continue to have, an adverse effect on our business, operating results, financial position and liquidity, which led to us filing the Chapter 11 Cases.
−Removed: We cannot predict when the continuing adverse effect on us will end, and depending on the duration of the pandemic and its severity, this adverse effect could worsen.
A substantial or extended decline in commodity prices, for crude oil and, to a lesser extent, natural gas and NGLs, may adversely affect our business, financial condition or results of operations and our ability to meet our capital expenditure obligations and financial commitments.
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Crude oil, natural gas and NGLs are commodities and, therefore, their prices are subject to wide fluctuations in response to relatively minor changes in supply and demand.
−Removed: Historically, the markets for crude oil, natural gas and NGLs have been volatile, and continue to be volatile.
−Removed: These markets will likely continue to be volatile in the future.
+Added: Historically, the markets for crude oil, natural gas and NGLs have been volatile, and these markets will likely continue to be volatile in the future.
The prices we receive for our production, and the levels of our production, depend on numerous factors beyond our control.
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• the actions of the Organization of Petroleum Exporting Countries (“OPEC”) and other non-OPEC oil-producing countries, including Russia;
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• the price and quantity of imports of foreign crude oil, natural gas and NGLs;
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• the level of global crude oil, natural gas and NGL inventories;
−Removed: • events that impact global market demand, including impacts from global health epidemics and concerns, such as the COVID-19 pandemic, which has reduced and may continue to reduce demand for crude oil, natural gas and NGLs because of reduced economic activity;
+Added: • events that impact global market demand, including impacts from global health epidemics and concerns, such as the COVID-19 pandemic;
• localized supply and demand fundamentals and regional, domestic and international transportation availability;
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• the price and availability of alternative fuels.
−Removed: Commodity prices have been volatile in recent years.
−Removed: During 2020, the daily spot prices for NYMEX West Texas Intermediate crude oil (“NYMEX WTI”) ranged from a high of $63.27 per barrel to a low of $(36.98) per barrel, and the daily spot prices for NYMEX Henry Hub natural gas ranged from a high of $3.14 per MMBtu to a low of $1.33 per MMBtu.
−Removed: The significant decline in crude oil prices in early 2020 was largely attributable to the actions of Saudi Arabia and Russia, which resulted in substantial increases in the global supply of crude oil.
−Removed: Specifically, in March 2020, Saudi Arabia and Russia failed to agree on a plan to extend production cuts that expired on April 1, 2020 within OPEC and other non-OPEC, oil-producing countries, including Russia.
−Removed: Subsequently, Saudi Arabia announced plans to increase production to record levels and to reduce the prices at which they sell crude oil.
−Removed: These events, combined with the continued global outbreak of COVID-19, which has significantly impacted both crude oil prices and natural gas prices due to substantially reduced demand for crude oil and natural gas because of reduced global and national economic activity, contributed to a sharp drop in prices for crude oil in early 2020.
−Removed: The impact has not been as severe on natural gas prices, but such prices are susceptible to global actions impacting supply and demand.
−Removed: In April 2020, OPEC announced an agreement among OPEC and other non-OPEC countries, including Russia, to reduce aggregate global production by approximately 10 million barrels a day in May and June of 2020, with gradually decreasing reductions in daily production through the end of 2020.
−Removed: While these cuts in production may offset some of the oversupply of the global crude oil market, crude oil prices have remained low and we cannot predict future impacts to crude oil production and global economic activities.
Substantially all of our crude oil and natural gas production is sold to purchasers under short-term (less than 12-month) contracts at market-based prices, and our NGL production is sold to purchasers under long-term (more than 12-month) contracts at market-based prices.
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Our future financial condition and results of operations will depend on the success of our exploitation, exploration, development and production activities.
−Removed: Our crude oil and natural gas E&P activities are subject to numerous risks beyond our
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−Removed: control, including the risk that drilling will not result in commercially viable crude oil or natural gas production.
+Added: Our crude oil and natural gas E&P activities are subject to numerous risks beyond our control, including the risk that drilling will not result in commercially viable crude oil or natural gas production.
Our decisions to purchase, explore, develop or otherwise exploit drilling locations or properties will depend in part on the evaluation of data obtained through geophysical and geological analyses, production data and engineering studies, the results of which are often inconclusive or subject to varying interpretations.
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Our cost of drilling, completing and operating wells is often uncertain before drilling commences.
−Removed: These levels of uncertainty may be increased with respect to our position in the Permian Basin acquired in 2018 due to less experience operating in the area.
Overruns in planned expenditures are common risks that can make a particular project uneconomical.
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• reductions in crude oil, natural gas and NGL prices;
+Added: • inflation in exploration and drilling costs;
+Added: • disruptions in our supply chain for raw materials, chemicals and equipment;
• delays imposed by or resulting from compliance with regulatory requirements;
• proximity to and capacity of transportation facilities;
+Added: • contractual disputes;
• title problems;
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Business—Exploration and Production Operations” for information about our estimated crude oil and natural gas reserves and the PV-10 and Standardized Measure as of December 31, 2021, 2020 and 2019.
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In order to prepare our estimates, we must project production rates and the timing of development expenditures.
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You should not assume that the present value of future net revenues from our estimated net proved reserves is the current market value of our estimated net crude oil and natural gas reserves.
−Removed: In accordance with SEC requirements, we based the estimated discounted future net revenues from our estimated net proved reserves on the unweighted arithmetic average of the first-day-of-the-month price for the preceding 12 months without giving effect to derivative transactions.
+Added: In accordance with SEC requirements, we based the estimated discounted future net revenues from our estimated net proved reserves on the unweighted arithmetic average of the
+Added: first-day-of-the-month price for the preceding 12 months without giving effect to derivative transactions.
Actual future net revenues from our oil and gas properties will be affected by factors such as:
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A write-down constitutes a non-cash charge to earnings.
−Removed: During the year ended December 31, 2020, we recognized impairment charges of $4.4 billion on our proved oil and gas properties and $401.1 million on our unproved oil and gas properties.
−Removed: During the years ended December 31, 2019 and 2018, we recognized impairment charges on our unproved oil and gas properties of $5.4 million and $0.9 million, respectively.
−Removed: We also recorded an impairment charge of $383.4 million on oil and gas properties held for sale during the year ended December 31, 2018.
−Removed: If crude oil, natural gas and NGL prices continue to decline or for an extended period of time remain at depressed levels, we may be caused to incur impairment charges in the future, which could have a material adverse effect on our access to capital and our results of operations for the periods in which such charges are taken.
The unavailability or high cost of additional drilling rigs, equipment, supplies, personnel and oilfield services or the unavailability of sufficient transportation for our production could adversely affect our ability to execute our exploration and development plans within our budget and on a timely basis.
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Additionally, these services may not be available on commercially reasonable terms.
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Shortages or the high cost of drilling rigs, equipment, supplies, personnel or oilfield services or the unavailability of sufficient transportation for our production could delay or adversely affect our development and exploration operations or cause us to incur significant expenditures that are not provided for in our capital plan, which could have a material adverse effect on our business, financial condition or results of operations.
−Removed: Additionally, compliance with new or emerging legal requirements that affect midstream operations in North Dakota or Texas may reduce the availability of transportation for our production.
−Removed: For example, the NDIC adopted regulations in late 2013 that impose more rigorous pipeline development standards on midstream operators, some of whom we rely on to construct and operate pipeline infrastructure to transport the crude oil and natural gas we produce.
−Removed: We will not be the operator on all of our drilling locations, and, therefore, we will not be able to control the timing of exploration or development efforts, associated costs, or the rate of production of any non-operated assets.
−Removed: We may enter into arrangements with respect to existing or future drilling locations that result in a greater proportion of our locations being operated by others.
−Removed: As a result, we may have limited ability to exercise influence over the operations of the drilling locations operated by our partners.
−Removed: Dependence on the operator could prevent us from realizing our target returns for those locations.
−Removed: The success and timing of exploration and development activities operated by our partners will depend on a number of factors that will be largely outside of our control, including:
−Removed: • the timing and amount of capital expenditures;
−Removed: • the operator’s expertise and financial resources;
−Removed: • approval of other participants in drilling wells;
−Removed: • selection of technology;
−Removed: • the rate of production of reserves, if any.
−Removed: This limited ability to exercise control over the operations of some of our drilling locations may cause a material adverse effect on our results of operations and financial condition.
−Removed: All of our producing properties and operations are located in the Williston Basin and the Permian Basin regions, making us vulnerable to risks associated with operating in a limited number of geographic areas.
−Removed: Our producing properties are geographically concentrated in Williston Basin in northwestern North Dakota and northeastern Montana and the Permian Basin in West Texas, with these two basins comprising 86% and 14%, respectively, of our production during the year ended December 31, 2020.
−Removed: As a result, we may be disproportionately exposed to the impact of economics in the Williston Basin and the Permian Basin or delays or interruptions of production from those wells caused by transportation capacity constraints, curtailment of production, availability of equipment, facilities, personnel or services, significant governmental regulation, natural disasters, adverse weather conditions, plant closures for scheduled maintenance or interruption of transportation of crude oil or natural gas produced from the wells in those areas.
−Removed: In addition, the effect of fluctuations on supply and demand may become more pronounced within specific geographic crude oil and natural gas producing areas such as the Williston Basin and the Permian Basin, which may cause these conditions to occur with greater frequency or magnify the effect of these conditions.
+Added: Additionally, compliance with new or emerging legal requirements that affect midstream operations in North Dakota or Montana may reduce the availability of transportation for our production.
+Added: For example, the NDIC adopted regulations in 2013 that impose more rigorous pipeline development standards on midstream operators, some of whom we rely on to construct and operate pipeline infrastructure to transport the crude oil and natural gas we produce.
+Added: All of our producing properties and operations are located in the Williston Basin, making us vulnerable to risks associated with operating in a concentrated geographic area.
+Added: Our producing properties are geographically concentrated in the Williston Basin in northwestern North Dakota and northeastern Montana.
+Added: As a result, we may be disproportionately exposed to the impact of economics in the Williston Basin or delays or interruptions of production from those wells caused by transportation capacity constraints, curtailment of production, availability of equipment, facilities, personnel or services, significant governmental regulation, natural disasters, adverse weather conditions, plant closures for scheduled maintenance or interruption of transportation of crude oil or natural gas produced from the wells in those areas.
+Added: In addition, the effect of fluctuations on supply and demand may become more pronounced within specific geographic crude oil and natural gas producing areas such as the Williston Basin, which may cause these conditions to occur with greater frequency or magnify the effect of these conditions.
Our crude oil, natural gas and NGLs are sold in a limited number of geographic markets and each has a generally fixed amount of storage and processing capacity.
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The impact of regional economics or delays or interruptions of production in an area could have a material adverse effect on our financial condition and results of operations.
−Removed: The marketability of our production is dependent upon crude oil, natural gas and NGL gathering, processing and transportation facilities, some of which are owned by third parties.
−Removed: Market conditions or operational impediments could hinder our access to crude oil, natural gas or NGL markets, delay our production or reduce the realized prices we receive .
−Removed: Market conditions or the unavailability of satisfactory oil, natural gas and NGL gathering, processing and transportation arrangements may hinder our access to oil, natural gas and NGL markets or delay production from our wells.
−Removed: Our ability to market our production depends in part on the availability, proximity and capacity of gathering systems, pipelines and processing facilities owned by midstream operators, including third parties and OMP.
−Removed: Our failure to obtain such midstream services on acceptable terms could materially harm our business.
−Removed: The shutdown, unavailability of, or lack of, available capacity on these systems and facilities could result in the shut-in of producing wells, the flaring of natural gas that could result in restrictions on production or monetary sanctions, or the delay, or discontinuance of, development plans for properties.
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−Removed: transportation of our production can be interrupted by other customers that have firm arrangements.
−Removed: In addition, these midstream operators may also impose specifications for the products that they are willing to accept.
−Removed: If the total mix of a product fails to meet the applicable product quality specifications, the midstream operators may refuse to accept all or a part of the products or may invoice us for the costs to handle or damages from receiving the out-of-specification products.
−Removed: In those circumstances, we may be required to delay the delivery of or find alternative markets for that product, or shut-in the producing wells that are causing the products to be out of specification, potentially reducing our revenues.
−Removed: The disruption of midstream operators’ facilities due to maintenance, weather or other interruptions of service could also negatively impact our ability to market and deliver our products.
−Removed: We have no control over when or if such facilities are restored.
−Removed: If our production becomes shut-in for any of these or other reasons, we would be unable to realize revenue from those wells until other arrangements were made to deliver the products to market.
−Removed: A total shut-in of our production could materially affect us due to a resulting lack of cash flows, and if a substantial portion of the production is hedged at lower than market prices, those financial hedges would have to be paid from borrowings absent sufficient cash flows.
+Added: Our operations on the Fort Berthold Indian Reservation of the Three Affiliated Tribes in North Dakota are subject to various federal, state, local and tribal regulations and laws, any of which may increase our costs and have an adverse impact on our ability to effectively conduct our operations.
+Added: Various federal agencies within the U.S.
+Added: Department of the Interior (the “Department of the Interior”), particularly the BIA and the Office of Natural Resource Revenue, along with the Three Affiliated Tribes of the Fort Berthold Indian Reservation (“MHA Nation”), promulgate and enforce regulations pertaining to operations on the Fort Berthold Indian Reservation.
+Added: In addition, the MHA Nation is a sovereign nation having the right to enforce laws and regulations independent from federal, state and local statutes and regulations.
+Added: These tribal laws and regulations include various taxes, fees, approvals and other conditions that apply to lessees, operators and contractors conducting operations on the Fort Berthold Indian Reservation.
+Added: Lessees and operators conducting operations on tribal lands may be subject to the MHA Nation’s court system.
+Added: Recently, on February 4, 2022, the Department of the Interior issued an official opinion stating that the minerals beneath the Missouri River riverbed located on the Fort Berthold Indian Reservation belong to the MHA Nation and not the state of North Dakota, overturning a 2020 Trump-agency decision that gave the state of North Dakota ownership.
+Added: One or more of these factors may increase our costs of doing business on the Fort Berthold Indian Reservation and may have an adverse impact on our ability to effectively transport products within the Fort Berthold Indian Reservation or to conduct our operations on such lands.
+Added: We depend upon Crestwood, a third party midstream provider, for a large portion of our midstream services, and our failure to obtain and maintain access to the necessary infrastructure from Crestwood and other midstream providers to successfully deliver crude oil, natural gas and NGLs to market may adversely affect our earnings, cash flows and results of operations .
+Added: Our delivery of oil, natural gas and NGLs depends upon the availability, proximity and capacity of pipelines, other transportation facilities and gathering and processing facilities primarily owned by Crestwood as well as other third-parties.
+Added: The capacity of transmission, gathering and processing facilities may be insufficient to accommodate potential production from existing and new wells, which may result in substantial discounts in the prices we receive for our oil, natural gas and NGLs or result in the shut-in of producing wells or the delay or discontinuance of development plans for properties.
+Added: Our ability to secure access to pipeline infrastructure on favorable economic terms could affect our competitive position.
+Added: Historically our ownership interest in and control of OMP allowed us to exercise significant control over the development of midstream infrastructure to service our operations.
+Added: However, as a result of the OMP Merger, we no longer control those operations and facilities and will be dependent on Crestwood and, to a lesser extent, other third-party providers for these services.
+Added: Access to midstream assets may be unavailable due to market conditions or mechanical or other reasons.
+Added: A lack of access to needed infrastructure, or an extended interruption of access to or service from our or third-party pipelines and facilities for any reason, including vandalism, sabotage or cyber-attacks on such pipelines and facilities or service interruptions, could result in adverse consequences to us, such as delays in producing and selling our crude oil, natural gas and NGLs.
+Added: Our dependence on Crestwood and other third parties for transmission, gathering and processing services makes us dependent on them in order to get our crude oil, natural gas and NGLs to market.
+Added: To the extent these services are delayed or unavailable, we would be unable to realize revenue from wells served by such facilities until suitable arrangements are made to market our production.
+Added: Our failure to obtain these services on acceptable terms could materially harm our business.
+Added: Legal and regulatory challenges to transportation may impact our ability to move volume.
In addition, the impact of pending and future legal proceedings on these systems, pipelines and facilities can affect our ability to market our products and have a negative impact on realized pricing.
−Removed: On July 6, 2020, the operator of the Dakota Access Pipeline (“DAPL”) was ordered by a U.S.
+Added: In July 2020, the operator of DAPL was ordered by a U.S.
District court to halt oil flow and empty the pipeline within 30 days while an environmental impact study (“EIS”) is completed.
−Removed: On July 15, 2020, the U.S.
+Added: Also in July 2020, the U.S.
Court of Appeals for the District of Columbia Circuit issued a temporary administrative stay while the court considers the merits of a longer-term emergency stay order through the appeals process.
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District court’s ruling that an EIS is needed and also reaffirmed its earlier decision which allows DAPL to operate through the EIS process.
−Removed: We regularly use DAPL in addition to other outlets to market our crude oil in the Williston Basin to end markets.
−Removed: To mitigate the risks associated with a potential shutdown of DAPL, we have proactively arranged for portions of our Williston Basin crude oil volumes to be sold at alternative outlets at fixed differentials to NYMEX WTI.
+Added: The owners of DAPL appealed the lower court decision to the U.S.
+Added: Supreme Court in September 2021;
+Added: however, the appeal was rejected on February 22, 2022.
+Added: The Corps continues to conduct the EIS, which is estimated to be completed no later than November 2022.
+Added: Once the EIS is completed, the Corps will determine whether DAPL is safe to operate or must be shut down.
+Added: We regularly use DAPL in addition to other outlets to market our crude oil to end markets.
+Added: To mitigate the risks associated with a potential shutdown of DAPL, we have proactively arranged for portions of our crude oil volumes to be sold at alternative outlets at fixed differentials to NYMEX WTI.
In the event DAPL were to cease operating, we would anticipate Williston Basin crude oil prices to weaken materially before improving as the market adapts to rail transportation.
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Business—Regulation—Regulation of transportation and sales of crude oil” for more information about the regulations relating to the transport of crude oil by rail.
+Added: Limited takeaway capacity can result in significant discounts to our realized prices.
The crude oil business environment has historically been characterized by periods when crude oil production has surpassed local transportation and refining capacity, resulting in substantial discounts in the price received for crude oil versus prices quoted for NYMEX WTI crude oil.
In the past, there have been periods when this discount has substantially increased due to the production of crude oil in the area increasing to a point that it temporarily surpasses the available pipeline transportation, rail transportation and refining capacity in the area.
−Removed: Expansions of both rail and pipeline facilities have reduced the prior constraint on crude oil transportation out of the Williston Basin and the Permian Basin and improved basin differentials received at the lease.
+Added: Expansions of both rail and pipeline facilities have reduced the prior constraint on crude oil transportation out of the Williston Basin and improved basin differentials received at the lease.
See “Part II, Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Commodity Prices” for information about our realized crude oil prices and average price differentials relative to NYMEX WTI for the years ended December 31, 2020, 2019 and 2018.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations” for information about our realized crude oil prices and average price differentials relative to NYMEX WTI for the years ended December 31, 2021, 2020 and 2019.
Additionally, the refining capacity in the U.S.
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In addition, delays in the development of reserves could cause us to have to reclassify our proved reserves as unproved reserves.
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−Removed: Unless we replace our crude oil and natural gas reserves, our reserves and production will decline, which would adversely affect our business, financial condition and results of operations.
+Added: Unless we replace our crude oil and natural gas reserves, our reserves and production will decline, which could adversely affect our business, financial condition and results of operations.
Unless we conduct successful development, exploitation and exploration activities or acquire properties containing proved reserves, our estimated net proved reserves will decline as those reserves are produced.
2 unchanged sentences
We may not be able to develop, exploit, find or acquire additional reserves to replace our current and future production at acceptable costs.
−Removed: If we are unable to replace our current and future production, the value of our reserves will decrease, and our business, financial condition and results of operations would be adversely affected.
+Added: If we are unable to replace our current and future production, the value of our reserves will decrease, and our business, financial condition and results of operations could be adversely affected.
Our business is subject to operating risks that could result in substantial losses or liability claims, and we may not be insured for, or our insurance may be inadequate to protect us against, these risks.
We are not insured against all risks.
−Removed: Additionally, certain of our insurance policies also provide coverage to OMP and as a result, a claim by OMP against one of our shared insurance policies may reduce the remaining amount of coverage available to us.
Losses and liabilities arising from uninsured and underinsured events could materially and adversely affect our business, financial condition or results of operations.
3 unchanged sentences
• shortages of, or delays in, obtaining water for hydraulic fracturing activities;
+Added: • supply chain disruptions which could delay or halt our development projects;
• mechanical difficulties, such as stuck oilfield drilling and service tools and casing failure;
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We cannot assure you that the analogies we draw from available data from other wells, more fully explored locations or producing fields will be applicable to our drilling locations.
−Removed: Further, initial production rates reported by us or other operators
−Removed: T able of Contents
−Removed: in the Williston Basin and the Permian Basin may not be indicative of future or long-term production rates.
+Added: Further, initial production rates reported by us or other operators in the Williston Basin may not be indicative of future or long-term production rates.
In sum, the cost of drilling, completing and operating any well is often uncertain, and new wells may not be productive.
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Our ability to drill and develop these locations is subject to a number of uncertainties, including the availability of capital, seasonal conditions, regulatory approvals, crude oil and natural gas prices, costs and drilling results.
−Removed: These levels of uncertainty may be increased with respect to our positions in the Permian Basin acquired in 2018 due to less experience operating in the area.
In addition, we may not be able to raise the substantial amount of capital that would be necessary to drill a substantial portion of our potential drilling locations.
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Failure to drill sufficient wells in order to hold acreage will result in a substantial lease renewal cost, or if renewal is not feasible, loss of our lease and prospective drilling opportunities .
−Removed: As of December 31, 2020, approximately 98% and 74% of our total net acreage in the Williston Basin and the Permian Basin, respectively, was held by production.
+Added: As of December 31, 2021, approximately 99% of our total net acreage in the Williston Basin was held by production.
The leases for our net acreage not held by production will expire at the end of their primary term unless production is established in paying quantities under the units containing these leases, the leases are held beyond their primary terms under continuous drilling provisions or the leases are renewed.
1 unchanged sentence
Unless production is established within the spacing units covering the undeveloped acres on which some of the locations are identified, the leases for such acreage will expire.
−Removed: In the Permian Basin, our acreage must be drilled before lease or term assignment expiration and, in some leases, must be further perpetuated via additional drilling activity to satisfy continuous drilling and development provisions, including under the CDA.
−Removed: Additionally, certain leases and term assignments in the Permian Basin require development at various depths in order to perpetuate our ownership as to those depths.
−Removed: If we fail to meet certain drilling and development obligations under the CDA, the CDA may be subject to early termination, in which case, we would lose rights to certain non-productive acreage and depths and may be obligated to pay non-performance fees of up to approximately $100 million.
−Removed: As of December 31, 2020, we had an aggregate of 6,648 net acres expiring in 2021, 1,121 net acres expiring in 2022 and 167 net acres expiring in 2023 in the Williston and Permian Basins.
+Added: As of December 31, 2021, we had an aggregate of 1,115 net acres expiring in 2022, 161 net acres expiring in 2023 and 864 net acres expiring in 2024 in the Williston Basin.
The cost to renew such leases may increase significantly and we may not be able to renew such leases on commercially reasonable terms or at all.
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As such, our actual drilling activities may materially differ from our current expectations, which could adversely affect our business.
−Removed: During the years ended December 31, 2020, 2019 and 2018, the Predecessor recorded non-cash impairment charges of $401.1 million, $5.4 million and $0.9 million, respectively, on our unproved properties due to expiring leases, periodic assessments and drilling plan uncertainty on certain acreage of our unproved properties.
−Removed: Due to the extraordinary market conditions during 2020, we agreed with University Lands to pause operations, and on December 31, 2020, we executed an amendment to the CDA reflecting that agreement.
−Removed: The amendment reduced or postponed certain drilling and development obligations for the year ended December 31, 2020 and did not result in the payment of any penalty.
−Removed: Our current budget contemplates drilling activity which does not meet certain obligations under the CDA.
−Removed: We are currently in discussions with University Lands similar to those held in 2020, in which we will seek an amendment for the reduction of our drilling obligations for 2021 similar to that previously received.
−Removed: We can provide no assurance that we will be successful in obtaining this amendment.
−Removed: Given the early stages of our discussions with University Lands on our drilling obligations for 2021 and the continuous flexibility we have with our drilling program to adjust as market and business conditions warrant, we cannot predict whether we will incur losses or estimate the amount of any potential loss.
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+Added: During the period from January 1, 2020 through November 19, 2020 (Predecessor) and the year ended December 31, 2019 (Predecessor), we recorded non-cash impairment charges of $401.1 million and $5.4 million, respectively, on our unproved properties due to expiring leases, periodic assessments and drilling plan uncertainty on certain acreage of our unproved properties.
+Added: We did not record any impairment charges on unproved properties during the year ended December 31, 2021 (Successor) or the period from November 20, 2020 through December 31, 2020 (Successor).
+Added: We will not be the operator on all of our drilling locations, and, therefore, we will not be able to control the timing of exploration or development efforts, associated costs, or the rate of production of any non-operated assets.
+Added: We may enter into arrangements with respect to existing or future drilling locations that result in a greater proportion of our locations being operated by others.
+Added: As a result, we may have limited ability to exercise influence over the operations of the drilling locations operated by our partners.
+Added: Dependence on the operator could prevent us from realizing our target returns for those locations.
+Added: The success and timing of exploration and development activities operated by our partners will depend on a number of factors that will be largely outside of our control, including:
+Added: • the timing and amount of capital expenditures;
+Added: • the operator’s expertise and financial resources;
+Added: • approval of other participants in drilling wells;
+Added: • selection of technology;
+Added: • the rate of production of reserves, if any.
+Added: This limited ability to exercise control over the operations of some of our drilling locations may cause a material adverse effect on our results of operations and financial condition.
Our operations are subject to environmental and occupational health and safety laws and regulations that may expose us to significant costs and liabilities.
−Removed: Our crude oil and natural gas E&P operations, midstream operations and related operations are subject to stringent federal, tribal, regional, state and local laws and regulations governing occupational health and safety aspects, the discharge of materials into the environment or otherwise relating to environmental protection.
+Added: Our operations are subject to stringent federal, tribal, regional, state and local laws and regulations governing occupational health and safety aspects, the discharge of materials into the environment or otherwise relating to environmental protection.
These laws and regulations may impose numerous obligations that are applicable to our operations and services.
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Should we fail to comply with all applicable statutes, rules, regulations and orders of FERC, the CFTC or the FTC, we could be subject to substantial penalties and fines.
−Removed: Climate change and climate change legislation and regulatory initiatives could result in increased operating costs, restrictions on drilling and reduced demand for the crude oil and natural gas that we produce.
+Added: Our operations are subject to a series of risks arising out of the threat of climate change, energy conservation measures or initiatives that stimulate demand for alternative forms of energy that could result in increased operating costs, restrictions on drilling and reduced demand for the crude oil and natural gas that we produce.
The threat of climate change continues to attract considerable attention in the United States and foreign countries.
As a result, numerous proposals have been made and are likely to continue to be made at the international, national, regional and state levels of government to monitor and limit emissions of GHGs as well as to eliminate such future emissions.
−Removed: As a result, our operations as well as the operations of our midstream customers are subject to a series of regulatory, political, litigation and financial risks associated with the production and processing of fossil fuels and emission of GHGs.
+Added: As a result, our operations are subject to a series of regulatory, political, litigation and financial risks associated with the production and processing of fossil fuels and emission of GHGs.
Business—Regulation—Environmental and occupational health and safety regulation” for more discussion on the threat of climate change and restriction of GHG emissions.
The adoption and implementation of any international, federal, regional or state legislation, executive actions, regulations or other regulatory initiatives that impose more stringent standards for GHG emissions from the oil and natural gas industry or otherwise restrict the areas in which this industry may produce crude oil and natural gas or generate GHG emissions could result in increased compliance costs or costs of consuming fossil fuels.
−Removed: Such legislation, executive actions or regulations could result in increased costs of our or our customers’ compliance or costs of consuming, and thereby reduce demand for crude oil and natural gas, which could reduce demand for our midstream services.
−Removed: Additionally, political, financial and litigation risks may result in us or our customers restricting, delaying or canceling production activities, incurring liability for infrastructure damages as a result of climatic changes, or impairing the ability to continue to operate in an economic manner, which also could reduce demand for our midstream and services.
+Added: Such legislation, executive actions or regulations could result in increased costs of our compliance or costs of consuming, and thereby reduce demand for crude oil and natural gas.
+Added: Additionally, political, financial and litigation risks may result in us restricting, delaying or canceling production activities, incurring liability for infrastructure damages as a result of climatic changes, or impairing the ability to continue to operate in an economic manner.
The occurrence of one or more of these developments could have a material adverse effect on our business, financial condition, results of operations and cash flows.
−Removed: Moreover, the increased competitiveness of alternative energy sources (such as wind, solar geothermal, tidal and biofuels) could reduce demand for hydrocarbons, and therefore for our products and services, which would lead to a reduction in our revenues.
−Removed: Increasing attention and federal actions in regards to ESG matters may impact our business.
+Added: Increasing attention and federal actions in regards to Environmental, Social or Governance (“ESG”) matters may impact our business.
Companies across all industries are facing increasing scrutiny from stakeholders related to their ESG practices.
−Removed: Companies which do not adapt to or comply with investor or stakeholder expectations and standards, which are evolving, or which are
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−Removed: perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and the business, financial condition, and/or stock price of such a company could be materially and adversely affected.
+Added: Companies which do not adapt to or comply with investor or stakeholder expectations and standards, which are evolving, or which are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and the business, financial condition, and/or stock price of such a company could be materially and adversely affected.
Increasing attention to climate change, increasing societal expectations on companies to address climate change, and potential consumer use of substitutes to energy commodities may result in increased costs, reduced demand for our hydrocarbon products and midstream services, reduced profits, increased governmental investigations and private litigation against us, and negative impacts on our stock price and access to capital markets.
+Added: As part of our ongoing effort to enhance our ESG practices, our Board of Directors has established the Nominating, Environmental, Social and Governance Committee, which is charged with overseeing our ESG policies.
+Added: Committee members are expected to review the implementation and effectiveness of our ESG programs and policies.
+Added: Additionally, to help strengthen our ESG performance, we have implemented compensation practices focused on value creation and aligned with shareholder interests.
+Added: Additionally, while we may elect to seek out various voluntary ESG targets in the future, such targets are aspirational.
+Added: We may not be able to meet such targets in the manner or on such a timeline as initially contemplated, including as a result of unforeseen costs or technical difficulties associated with achieving such results.
+Added: To the extent we elected to pursue such targets and were able to achieve the desired target levels, such achievement may have been accomplished as a result of entering into various contractual arrangements, including the purchase of various credits or offsets that may be deemed to mitigate our ESG
+Added: impact instead of actual changes in our ESG performance.
+Added: Notwithstanding our election to pursue aspirational targets in the future, we may receive pressure from investors, lenders or other groups to adopt more aggressive climate or other ESG-related goals, but we cannot guarantee that we will be able to implement such goals because of potential costs or technical or operational obstacles.
In addition, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters.
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Business—Regulation—Environmental and occupational health and safety regulation” for more discussion on these hydraulic fracturing matters.
−Removed: The adoption of any federal, state or local laws or the implementation of regulations or issuance of executive orders restricting hydraulic fracturing activities or locations or suspending or delaying the performance of hydraulic fracturing on federal properties or other locations could potentially result in an increase in our and our customers’ compliance costs, a decrease in the completion of our or our customers’ new crude oil and natural gas wells, and a decrease in demand for our midstream services, which could have a material adverse effect on our liquidity, results of operations, and financial condition.
−Removed: Restrictions, delays or bans on hydraulic fracturing could also reduce the amount of crude oil and natural gas that we or our customers are ultimately able to produce in commercial quantities, which adversely impacts our revenues and profitability.
+Added: The adoption of any federal, state or local laws or the implementation of regulations or issuance of executive orders restricting hydraulic fracturing activities or locations or suspending or delaying the performance of hydraulic fracturing on federal properties or other locations could potentially result in an increase in our compliance costs, and a decrease in the completion of our new crude oil and natural gas wells, which could have a material adverse effect on our liquidity, results of operations, and financial condition.
+Added: Restrictions, delays or bans on hydraulic fracturing could also reduce the amount of crude oil and natural gas that we are ultimately able to produce in commercial quantities, which adversely impacts our revenues and profitability.
Our ability to produce crude oil and natural gas economically and in commercial quantities could be impaired if we are unable to acquire adequate supplies of water for our drilling and completion operations or are unable to dispose of or recycle the water we use economically and in an environmentally safe manner.
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The occurrence of these or similar developments may result in limitations being placed on allocations of water due to needs by third-party businesses with more senior contractual or permitting rights to the water.
−Removed: Our inability to locate or contractually acquire and sustain the receipt of sufficient amounts of water could adversely impact our E&P operations or midstream services and have a corresponding adverse effect on our business, financial condition and results of operations.
+Added: Our inability to locate or contractually acquire and sustain the receipt of sufficient amounts of water could adversely impact our E&P operations and have a corresponding adverse effect on our business, financial condition and results of operations.
Additionally, operations associated with our production and development activities generate drilling muds, produced waters and other waste streams, some of which may be disposed of by means of injection into underground wells situated in non-producing subsurface formations.
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Business—Regulation—Environmental and occupational health and safety regulation” for more discussion on seismicity matters.
−Removed: Compliance with current and future environmental laws, executive orders, regulations and permit requirements governing the withdrawal, storage and use of surface water or groundwater necessary for hydraulic fracturing activities, the injection of waste streams into disposal wells, or any inability to secure transportation and access to disposal wells with sufficient capacity to accept all of our or our customers’ flowback and produced water on economic terms may increase our or our customers’ operating costs and cause delays, interruptions or termination of our or our customers’ operations, the extent of which cannot be predicted but that could be materially adverse to our business and results of operations.
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−Removed: Federal and state legislative and regulatory initiatives relating to pipeline safety that require the use of new or more stringent safety controls, substantial changes to existing integrity management programs or more stringent enforcement of applicable legal requirements could subject us to increased capital and operating costs and operational delays.
−Removed: Certain of our pipelines are subject to regulation by PHMSA under the HLPSA with respect to crude oil and condensate and the NGPSA with respect to natural gas.
−Removed: Those pipeline systems are required to maintain compliance with applicable pipeline integrity management programs.
−Removed: Additionally, those pipeline systems are subject to pipeline safety requirements that may impose more stringent safety obligations, require installation of new or modified safety controls, or perform capital or operating projects on an accelerated basis.
−Removed: New legislation or regulations adopted by PHMSA may impose more stringent requirements applicable to integrity management programs and other pipeline safety aspects of our operations, which could cause us to incur increased capital and operating costs and operational delays.
−Removed: Business—Regulation—Pipeline safety regulation” for more discussion on pipeline safety matters.
−Removed: Our compliance with these applicable PHMSA pipeline safety requirements could have a material adverse effect on our operations, financial position, cash flows and our ability to maintain current distribution levels to the unitholders of OMP to the extent the increased costs are not recoverable through rates.
−Removed: We do not own all of the land on which our pipelines and associated facilities are located, which could result in disruptions to our operations.
−Removed: We do not own all of the land on which our pipelines and associated facilities have been constructed, and we are, therefore, subject to the possibility of more onerous terms and/or increased costs to retain necessary land use if we do not have valid rights-of-way or if such rights-of-way lapse or terminate.
−Removed: We obtain the rights to construct and operate our pipelines on land owned by third parties and governmental agencies for a specific period of time.
−Removed: Additionally, the federal Tenth Circuit Court of Appeals has held that tribal ownership of even a very small fractional interest in an allotted land, that is, tribal land owned or at one time owned by an individual Indian landowner, bars condemnation of any interest in the allotment.
−Removed: Consequently, the inability to condemn such allotted lands under circumstances where an existing pipeline rights-of-way may soon lapse or terminate serves as an additional impediment for pipeline operators.
−Removed: We cannot guarantee that we will always be able to renew existing rights-of-way or obtain new rights-of-way without experiencing significant costs.
−Removed: Any loss of rights with respect to our real property, through our inability to renew right-of-way contracts or otherwise, could have a material adverse effect on our business, results of operations, financial position and ability to make cash distributions to the unitholders of OMP.
+Added: Compliance with current and future environmental laws, executive orders, regulations and permit requirements governing the withdrawal, storage and use of surface water or groundwater necessary for hydraulic fracturing activities, the injection of waste streams into disposal wells, or any inability to secure transportation and access to disposal wells with sufficient capacity to accept all of our flowback and produced water on economic terms may increase our operating costs and cause delays, interruptions or termination of our operations, the extent of which cannot be predicted but that could be materially adverse to our business and results of operations.
Competition in the oil and gas industry is intense, making it more difficult for us to acquire properties, market crude oil and natural gas and secure trained personnel.
−Removed: Our ability to acquire additional drilling locations and to find and develop reserves in the future will depend on our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment for acquiring properties, market crude oil and natural gas and secure equipment and trained personnel.
+Added: Our ability to acquire additional drilling locations and to find and develop reserves in the future will depend on our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment for acquiring
+Added: properties, market crude oil and natural gas and secure equipment and trained personnel.
Also, there is substantial competition for capital available for investment in the oil and gas industry.
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The cost to attract and retain qualified personnel has increased in recent years due to competition and may increase substantially in the future.
+Added: We may also see corporate consolidations among our competitors, which could significantly alter industry conditions and competition within the industry.
Further, the COVID-19 pandemic that began in early 2020 provides an illustrative example of how a pandemic or epidemic can also impact our operations and business by affecting the health of these qualified or trained personnel and rendering them unable to work or travel.
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The extent to which COVID-19 may impact our personnel, and subsequently our business, cannot be predicted at this time.
−Removed: We continue to monitor the situation, have actively implemented policies and practices to address the situation, and may adjust our current policies and practices as more information and guidance become available.
+Added: We continue to monitor impacts of COVID-19, have actively implemented policies and practices to address COVID-19, and may adjust our current policies and practices as more information and guidance become available.
We do not maintain, nor do we plan to obtain, any insurance against the loss of any of these individuals.
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Seasonal weather conditions adversely affect our ability to conduct drilling activities in some of the areas where we operate.
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Severe winter weather conditions limit and may temporarily halt our ability to operate during such conditions.
−Removed: Results of operations in the Permian Basin may also be negatively affected by inclement weather during the winter months to a lesser extent.
These constraints and the resulting shortages or high costs could delay or temporarily halt our operations and materially increase our operating and capital costs.
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We often are not entitled to contractual indemnification for environmental liabilities or title defects in excess of the amounts claimed by us before closing and acquire properties on an “as is” basis.
−Removed: Indemnification from the sellers will generally be effective only during a limited time period after the closing and subject to certain dollar limitations and minimums.
+Added: Indemnification from the sellers will generally be effective only during a limited time period after
+Added: the closing and subject to certain dollar limitations and minimums.
We may not be able to collect on such indemnification because of disputes with the sellers or their inability to pay.
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Even if we successfully integrate the assets acquired, it may not be possible to realize the full benefits we may expect in estimated proved reserves, production volume, cost savings from operating synergies or other benefits anticipated from an acquisition or realize these benefits within the expected time frame.
−Removed: Anticipated benefits of an acquisition may be offset by operating losses relating to changes in commodity prices, in oil and gas industry conditions, by risks and uncertainties relating to the exploratory prospects of the combined assets or operations, failure
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−Removed: to retain key personnel, an increase in operating or other costs or other difficulties.
+Added: Anticipated benefits of an acquisition may be offset by operating losses relating to changes in commodity prices, in oil and gas industry conditions, by risks and uncertainties relating to the exploratory prospects of the combined assets or operations, failure to retain key personnel, an increase in operating or other costs or other difficulties.
If we fail to realize the benefits we anticipate from an acquisition, our results of operations and stock price may be adversely affected.
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A significant reduction in the availability of credit could materially and adversely affect our ability to achieve our planned operating results.
−Removed: Our revolving credit facilities contain operating and financial restrictions that may restrict our business and financing activities.
−Removed: Our revolving credit facilities, including the Oasis Credit Facility and the OMP Credit Facility, contain a number of restrictive covenants that impose significant operating and financial restrictions on us, including restrictions on our ability to, among other things:
+Added: Our revolving credit facility and the indentures governing our senior unsecured notes contain operating and financial restrictions that may restrict our business and financing activities.
+Added: Our revolving credit facility and the indentures governing our senior unsecured notes contains a number of restrictive covenants that impose significant operating and financial restrictions on us, including restrictions on our ability to, among other things:
• sell assets, including equity interests in our subsidiaries;
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• consolidate, merge or transfer all or substantially all of our assets;
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• engage in transactions with affiliates;
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As a result of these covenants, we are limited in the manner in which we conduct our business, and we may be unable to engage in favorable business activities or finance future operations or capital needs.
−Removed: Our ability to comply with some of the covenants and restrictions contained in our revolving credit facilities may be affected by events beyond our control.
+Added: Our ability to comply with some of the covenants and restrictions contained in our revolving credit facility and the indentures governing our senior unsecured notes may be affected by events beyond our control.
If market or other economic conditions deteriorate or if crude oil, natural gas and NGL prices decline substantially or for an extended period of time from their current levels, our ability to comply with these covenants may be impaired.
−Removed: A failure to comply with the covenants, ratios or tests in our revolving credit facilities or any future indebtedness could result in an event of default under our revolving credit facilities or our future indebtedness, which, if not cured or waived, could have a material adverse effect on our business, financial condition and results of operations.
−Removed: If an event of default under either of our revolving credit facilities occurs and remains uncured, the lenders under the applicable Revolving Credit Facility:
+Added: A failure to comply with the covenants, ratios or tests in our revolving credit facility, our senior unsecured notes or any future indebtedness could result in an event of default under which, if not cured or waived, could have a material adverse effect on our business, financial condition and results of operations.
+Added: If an event of default occurs and remains uncured, the lenders under our revolving credit facility:
• would not be required to lend any additional amounts to us;
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• may prevent us from making debt service payments under our other agreements.
−Removed: Our obligations under the Oasis Credit Facility are collateralized by perfected first priority liens and security interests on substantially all of our oil and gas assets, including mortgage liens on oil and gas properties having at least 90% of the reserve value as determined by reserve reports, and if we are unable to repay our indebtedness under the Oasis Credit Facility, the lenders could seek to foreclose on our assets.
−Removed: OMP’s obligations under the OMP Credit Facility are collateralized by mortgages and other security interests on substantially all of OMP’s and its subsidiaries’ properties and assets, including the equity interests in all present and future subsidiaries (subject to certain exceptions).
−Removed: Some or all of the collateral owned by Bobcat DevCo and Beartooth DevCo is subject to an intercreditor agreement between Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent for the OMP Credit Facility, and Wells Fargo as the administrative agent for the Oasis Credit Facility, and acknowledged by Oasis Midstream Services LLC, Bobcat DevCo and Beartooth DevCo.
−Removed: If OMP is unable to repay its indebtedness under the OMP Credit Facility, the lenders could seek to foreclose on OMP’s assets.
−Removed: However, there are no cross-default rights between the Oasis Credit Facility and the OMP Credit Facility.
−Removed: Therefore, an acceleration of the OMP Credit Facility will not trigger automatically an acceleration of the Oasis Credit Facility, and vice versa.
−Removed: Please see “Part II, Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”
+Added: A payment default or an acceleration under our revolving credit facility could result in an event of default and an acceleration under the indentures for our senior unsecured notes.
+Added: If the indebtedness under our senior unsecured notes were to be accelerated, there can be no assurance that we would have, or be able to obtain, sufficient funds to repay such indebtedness in full.
+Added: Our obligations under our revolving credit facility are collateralized by perfected first priority liens and security interests on substantially all of our oil and gas assets, including mortgage liens on oil and gas properties having at least 90% of the
+Added: reserve value as determined by reserve reports, and if we are unable to repay our indebtedness under the revolving credit facility, the lenders could seek to foreclose on our assets.
Our level of indebtedness may increase and reduce our financial flexibility.
−Removed: As of December 31, 2020 (Successor), we had $260.0 million of outstanding borrowings and $6.8 million of outstanding letters of credit under the Oasis Credit Facility, $450.0 million of outstanding borrowings and a de minimis outstanding letter of credit under the OMP Credit Facility, and an aggregate amount of $433.2 million available for future secured borrowings under the revolving credit facilities.
−Removed: Please see “Part II, Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” In the future, we may incur significant indebtedness in order to make future acquisitions or to develop our properties.
+Added: As of December 31, 2021, we had no outstanding borrowings and $2.4 million of outstanding letters of credit under our revolving credit facility and $400.0 million of 6.375% senior unsecured notes outstanding.
+Added: In the future, we may incur significant indebtedness in order to make future acquisitions or to develop our properties.
An increase in our level of indebtedness could affect our operations in several ways, including the following:
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• a high level of debt may place us at a competitive disadvantage compared to our competitors that are less leveraged and therefore, may be able to take advantage of opportunities that our indebtedness would prevent us from pursuing;
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• a high level of debt may make it more likely that a reduction in our borrowing base under the Oasis Credit Facility following a periodic redetermination could require us to repay a portion of our then-outstanding bank borrowings;
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Factors that will affect our ability to raise cash through an offering of our capital stock or a refinancing of our debt include financial market conditions, the value of our assets and our performance at the time we need capital.
−Removed: In addition, the Oasis Credit Facility borrowing base is subject to periodic redeterminations.
−Removed: We could be forced to repay a portion of our bank borrowings under the Oasis Credit Facility due to redeterminations of our borrowing base.
+Added: In addition, the revolving credit facility borrowing base is subject to periodic redeterminations.
+Added: We could be forced to repay a portion of our bank borrowings under the revolving credit facility due to redeterminations of our borrowing base.
If we are forced to do so, we may not have sufficient funds to make such repayments.
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Many of these factors, such as crude oil, natural gas and NGL prices, economic and financial conditions in our industry and the global economy and initiatives of our competitors, are beyond our control.
−Removed: Specifically, the actions of OPEC and other non-OPEC, oil-producing countries, including Russia, have caused substantial increases in the global supply of crude oil which have contributed to sharp declines in crude oil prices in 2020, and therefore negatively affected our ability to generate cash flows from operations.
−Removed: In addition, economic recessions, including those brought on by the COVID-19 pandemic, have a negative effect on the demand for crude oil and natural gas and will and have had a negative effect on our ability to generate cash flows from operations.
If we do not generate enough cash flows from operations to satisfy our debt obligations, we may have to undertake alternative financing plans, such as:
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If for any reason we are unable to meet our debt service and repayment obligations, we would be in default under the terms of the agreements governing our debt, which would allow our creditors at that time to declare all outstanding indebtedness to be due and payable, and our lenders could compel us to apply all of our available cash to repay our borrowings.
−Removed: If amounts outstanding under our revolving credit facilities were to be accelerated, we cannot be certain that our assets would be sufficient to repay in full the money owed to the lenders or to our other debt holders.
+Added: outstanding under our revolving credit facility were to be accelerated, we cannot be certain that our assets would be sufficient to repay in full the money owed to the lenders or to our other debt holders.
Please see “Part II, Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”
+Added: We own Crestwood common units and are exposed to the volatility, liquidity and other risks inherent in holding such units.
+Added: As a result of the closing of the OMP Merger, we hold approximately 21.7% of Crestwood’s issued and outstanding common units, which are publicly traded on the New York Stock Exchange.
+Added: The fair value of the units is subject to fluctuation in the future due to the volatility of the stock market, changes in general economic conditions, and the performance of Crestwood.
+Added: While there is an established trading market for Crestwood’s common units, there are limitations on our ability to dispose of some or all of the units.
+Added: In connection with the closing of the OMP Merger, we entered into a registration rights agreement with Crestwood, which enables us to sell our Crestwood common units but contains customary restrictions on our ability to do so.
+Added: Future sales of Crestwood units would impact our ability to designate directors to Crestwood GP’s Board of Directors.
+Added: Pursuant to the director nomination agreement entered into with Crestwood, we may designate two directors so long as we own at least 15% of Crestwood’s issued and outstanding common units, and we may designate one director if we hold at least 10% (but less than 15%) of Crestwood’s issued and outstanding common units.
Our derivative activities could result in financial losses or could reduce our income.
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• the counterparty to the derivative instrument defaults on its contract obligations;
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• there is an increase in the differential between the underlying price in the derivative instrument and actual price received.
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We make and expect to continue to make substantial capital expenditures in our business for the development, exploitation, production and acquisition of crude oil and natural gas reserves.
−Removed: DeGolyer and MacNaughton projects that we will incur capital costs of $463.3 million over the next five years to develop the proved undeveloped reserves in the Williston and Permian Basins covered by its December 31, 2020 reserve report.
−Removed: Additionally, OMP will continue to invest in midstream assets to support our E&P business segment as well as third-party customers.
+Added: DeGolyer and MacNaughton projects that we will incur capital costs of $1.2 billion over the next five years to develop the proved undeveloped reserves in the Williston Basin covered by its December 31, 2021 reserve report.
Please see “Part II, Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” for more information about our capital expenditures.
−Removed: The actual amount and timing of our future capital expenditures may differ materially from our estimates as a result of, among other things, commodity prices, actual drilling results, the availability of drilling rigs and other services and equipment, and regulatory, technological and competitive developments.
−Removed: We intend to finance our future capital expenditures primarily through cash flows provided by operating activities, borrowings under our revolving credit facilities and cash settlements of derivative contracts;
+Added: The actual amount and timing of our future capital expenditures may differ materially from our estimates as a result of, among other things, commodity prices, inflation in costs, actual drilling results, the availability of drilling rigs and other services and equipment, and regulatory, technological and competitive developments.
+Added: We intend to finance our future capital expenditures primarily through cash flows provided by operating activities;
however, our financing needs may require us to alter or increase our capitalization substantially through the issuance of additional debt or equity securities or the sale of non-strategic assets.
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The issuance of additional equity securities could have a dilutive effect on the value of our common stock.
−Removed: In addition, upon the issuance of certain debt securities (other than on a borrowing base redetermination date), our borrowing base under the Oasis Credit Facility will be automatically reduced by an amount equal to 25% of the aggregate principal amount of such debt securities.
+Added: In addition, upon the issuance of certain debt securities (other than on a borrowing base redetermination date), our borrowing base under our revolving credit facility will be automatically reduced by an amount equal to 25% of the aggregate principal amount of such debt securities.
Our cash flows provided by operating activities and access to capital are subject to a number of variables, including:
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• our ability to access the equity and debt capital markets.
−Removed: If the borrowing base under our Oasis Credit Facility or our revenues decrease as a result of low crude oil, natural gas or NGL prices, operating difficulties, declines in reserves or for any other reason, we may have limited ability to obtain the capital necessary to sustain our operations at current levels.
+Added: If the borrowing base under our revolving credit facility or our revenues decrease as a result of low crude oil, natural gas or NGL prices, operating difficulties, declines in reserves or for any other reason, we may have limited ability to obtain the capital necessary to sustain our operations at current levels.
If additional capital is needed, we may not be able to obtain debt or equity financing on terms favorable to us, or at all.
−Removed: If cash generated by operations or cash available under our Oasis Credit Facility is not sufficient to meet our capital requirements, the failure to obtain additional financing could result in a curtailment of our operations relating to development of our drilling locations, which in turn could lead to a possible expiration of our leases and a decline in our estimated net proved reserves, and could adversely affect our business, financial condition and results of operations.
+Added: If cash generated by operations or cash available under the revolving credit facility is not sufficient to meet our capital requirements, the failure to obtain additional financing could result in a curtailment of our operations relating to development of our drilling locations, which in turn could lead to a possible expiration of our leases and a decline in our estimated net proved reserves, and could adversely affect our business, financial condition and results of operations.
+Added: We may maintain material balances of cash and cash equivalents for extended periods of time at commercial banks in excess of amounts insured by government agencies such as the Federal Deposit Insurance Corporation.
+Added: We may maintain material balances of cash and cash equivalents for extended periods of time at commercial banks in excess of amounts insured by government agencies such as the Federal Deposit Insurance Corporation (“FDIC”).
+Added: A failure of our commercial banks could result in us losing any funds we have deposited in excess of amounts insured by the FDIC.
+Added: Any losses we sustain on our cash deposits could materially adversely affect our financial position.
The inability of one or more of our customers or affiliates to meet their obligations to us may adversely affect our financial results.
−Removed: Our principal exposures to credit risk are through receivables resulting from the sale of our crude oil and natural gas production ($161.5 million in receivables at December 31, 2020), which we market to energy marketing companies, other producers, power generators, local distribution companies, refineries and affiliates, and joint interest receivables ($31.9 million at December 31, 2020).
+Added: Our principal exposures to credit risk are through receivables resulting from the sale of our crude oil and natural gas production, which we market to energy marketing companies, other producers, power generators, local distribution companies, refineries and affiliates, and joint interest receivables.
We are subject to credit risk due to the concentration of our crude oil and natural gas receivables with several significant customers.
This concentration of customers may impact our overall credit risk since these entities may be similarly affected by changes in economic and other conditions.
−Removed: For the Successor period of November 20, 2020 through December 31, 2020, sales
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−Removed: to ExxonMobil Oil Corporation and Phillips 66 Company accounted for approximately 22% and 15%, respectively, of our total product sales.
−Removed: For the Predecessor period of January 1, 2020 through November 19, 2020, Phillips 66 Company and Gunvor USA LLC accounted for approximately 11% and 10%, respectively, of our total product sales.
−Removed: For the year ended December 31, 2019, sales to Phillips 66 Company accounted for approximately 14% of our hydrocarbon product sales.
−Removed: No other purchasers accounted for more than 10% of our total sales in 2020 or 2019.
−Removed: For the year ended December 31, 2018, no purchaser accounted for more than 10% of our total sales.
We do not require all of our customers to post collateral.
The inability or failure of our significant customers to meet their obligations to us or their insolvency or liquidation may adversely affect our financial results.
+Added: See “Part II.
+Added: Item 8.—Financial Statements and Supplementary Data—Note 21—Significant Concentrations” for additional information on significant concentrations with major customers.
Joint interest receivables arise from billing entities who own a partial interest in the wells we operate.
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We have limited ability to control participation in our wells.
−Removed: For the year ended December 31, 2020, we recorded a credit of $0.2 million for changes in our estimate of expected credit losses.
+Added: For the year ended December 31, 2021 (Successor), we recorded an immaterial charge for changes in our estimate of expected credit losses.
In addition, our crude oil and natural gas derivative arrangements expose us to credit risk in the event of nonperformance by counterparties.
Derivative assets and liabilities arising from derivative contracts with the same counterparty are reported on a net basis, as all counterparty contracts provide for net settlement.
−Removed: At December 31, 2020, we had derivatives in place with eight counterparties and a total net derivative liability of $94.1 million.
−Removed: We may not be able to utilize a portion of our net operating losses (“NOLs”) to offset future taxable income for U.S.
+Added: At December 31, 2021, we had commodity derivatives in place with eight counterparties and a total net derivative liability of $204.7 million.
+Added: Potential future legislation or the imposition of new or increased taxes or fees may generally affect the taxation of oil and natural gas exploration and development companies and may adversely affect our operations and cash flows.
+Added: In past years, U.S.
+Added: federal and state level legislation has been proposed that would, if enacted into law, make significant changes to U.S.
+Added: tax laws, including to certain key U.S.
+Added: federal and state income tax provisions currently available to oil and natural gas exploration and development companies.
+Added: Such proposals include, but are not limited to, (i) an increase in the U.S.
+Added: income tax rate applicable to corporations such as us and (ii) the elimination of tax subsidies for fossil fuels.
+Added: Congress could consider, and could include, some or all of these proposals in connection with future legislation or tax reform.
+Added: It is unclear whether these or similar changes will be enacted and, if enacted, how soon any such changes could take effect.
+Added: Additionally, states in which we operate or own assets may impose new or increased taxes or fees on oil and natural gas extraction.
+Added: The passage of any legislation as a result of these proposals and other similar changes in U.S.
+Added: federal income tax laws or the imposition of new or increased taxes or fees on natural gas and oil extraction could adversely affect our operations and cash flows.
+Added: We may not be able to utilize all or a portion of our net operating loss carryforwards or other tax benefits to offset future taxable income for U.S.
federal or state tax purposes, which could adversely affect our financial position, results of operations and cash flows.
−Removed: As of December 31, 2020, we had significant federal and state income tax NOLs.
+Added: We may be limited in the portion of our net operating loss carryforwards (“NOLs”) that we can use in the future to offset taxable income for U.S.
+Added: federal and state income tax purposes.
Utilization of these NOLs depends on many factors, including our future taxable income, which cannot be assured.
−Removed: As a result of our emergence from the Chapter 11 Cases and related transactions, our NOLs will be reduced by the amount of discharge of indebtedness income we recognized under Section 108 of the Internal Revenue Code of 1986, as amended (the “Code”).
−Removed: Following such reduction, the federal NOLs are not subject to expiration, however the state NOLs will begin to expire in 2023.
−Removed: If a corporation experiences an “ownership change,” any NOLs, losses or deductions attributable to a “net unrealized built-in loss” and other tax attributes could be substantially limited, and timing of the usage of such tax attributes could be substantially delayed, under Section 382 of the Code (“Section 382”).
+Added: Under Section 382 (“Section 382”) of the Internal Revenue Code of 1986, as amended (the “Code”), if a corporation experiences an “ownership change,” any NOLs, losses or deductions attributable to a “net unrealized built-in loss” and other tax attributes (“Tax Benefits”) could be substantially limited, and timing of the usage of such Tax Benefits could be substantially delayed.
A corporation generally will experience an ownership change if one or more stockholders (or group of stockholders) who are each deemed to own at least 5% of the corporation’s stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period.
−Removed: As a result of our emergence from the Chapter 11 Cases and related transactions, we experienced an ownership change that subjected certain of our tax attributes, including NOLs, to limitations under Section 382.
−Removed: Determining the limitations under Section 382 is technical and highly complex, and no assurance can be given that upon further analysis our ability to take advantage of our NOLs may be limited to a greater extent than we currently anticipate.
−Removed: If we are limited in our ability to use our NOLs in future years in which we have taxable income, we will pay more taxes than if we were able to utilize our NOLs fully, which could have a negative impact on our financial position, results of operations and cash flows.
−Removed: Additionally, we may experience ownership changes in the future as a result of subsequent shifts in our stock ownership that we cannot predict or control that could result in further limitations being placed on our ability to utilize our federal NOLs, which could adversely affect our financial position, results of operations and cash flows.
+Added: Determining the limitations under Section 382 is technical and highly complex, and no assurance can be given that upon further analysis our ability to take advantage of our NOLs or other Tax Benefits may be limited to a greater extent than we currently anticipate.
+Added: Upon our emergence from bankruptcy in November 2020, we experienced an ownership change.
+Added: However, we believe that we qualified for and, as a result, utilized an exception under Section 382(l)(5) (the “Section 382(l)(5) Exception”) from the limitation that would otherwise be imposed under Section 382.
+Added: However, if we were to experience a subsequent ownership change within the two-year period immediately following our emergence from bankruptcy, we would be precluded from utilizing any remaining pre-emergence NOLs following such subsequent ownership change.
+Added: If we are limited in our ability to utilize our NOLs or other Tax Benefits in future years in which we have taxable income, we will pay more taxes than if we were able to utilize our NOLs and Tax Benefits fully, which could have a negative impact on our financial position, results of operations and cash flows.
+Added: Additionally, we may experience ownership changes in the future as a result of subsequent shifts in our stock ownership that we cannot predict or control that could result in further limitations being placed on our ability to utilize our NOLs and Tax Benefits, which could adversely affect our financial position, results of operations and cash flows.
The enactment of derivatives legislation and regulation could have an adverse effect on our ability to use derivative instruments to reduce the negative effect of commodity price changes, interest rate and other risks associated with our business.
−Removed: On July 21, 2010, new comprehensive financial reform legislation, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), was enacted that establishes federal oversight and regulation of the over-the-counter derivatives market and entities, such as us, that participate in that market.
+Added: In 2010, new comprehensive financial reform legislation, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), was enacted that establishes federal oversight and regulation of the over-the-counter derivatives market and entities, such as us, that participate in that market.
The Dodd-Frank Act requires the CFTC, the SEC and other regulators to promulgate rules and regulations implementing the new legislation.
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Although we expect to qualify for the non-financial end-user exception from margin requirements for swaps to other market participants, such as swap dealers, these rules may change the cost and availability of the swaps we use for hedging.
−Removed: If any of our swaps do not qualify for the non-financial end-user exception, we could be required
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−Removed: to post initial or variation margin, which would impact liquidity and reduce our cash.
+Added: If any of our swaps do not qualify for the non-financial end-user exception, we could be required to post initial or variation margin, which would impact liquidity and reduce our cash.
This would in turn reduce our ability to execute hedges to reduce risk and protect cash flows.
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Our ability to declare and pay dividends is subject to certain considerations and limitations.
−Removed: We declared a dividend of $0.375 per share of common stock payable on March 22, 2021 to shareholders of record as of March 8, 2021.
Any payment of future dividends will be at the discretion of our Board of Directors and will depend on, among other things, our earnings, financial condition, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends and other considerations that our Board of Directors deems relevant.
Cash dividend payments in the future may only be made out of legally available funds and, if we experience substantial losses, such funds may not be available.
−Removed: Certain covenants in the Oasis Credit Facility may limit our ability to pay dividends.
+Added: Certain covenants in our revolving credit facility may limit our ability to pay dividends.
We can provide no assurance that we will continue to pay dividends at the current rate or at all.
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The exercise of all or any number of outstanding warrants or the issuance of stock-based awards may dilute your holding of shares of our common stock.
−Removed: As of the date of filing this report, we have outstanding Warrants (as defined in “Part II, Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Recent Developments—Emergence from voluntary reorganization under Chapter 11”) to purchase approximately 1.6 million shares of our common stock at an initial exercise price of $94.57.
−Removed: In addition, as of December 31, 2020, approximately 2.4 million shares of our common stock were reserved for future issuance under the Oasis Petroleum Inc.
+Added: We have outstanding warrants to purchase shares of our common stock at an exercise price of $90.57.
+Added: In addition, as of February 21, 2022, approximately 1.4 million shares (excluding impacts from total shareholder return adjustments) of our common stock were reserved for future issuance under the Oasis Petroleum Inc.
2020 Long Term Incentive Plan (the “2020 LTIP”).
−Removed: The exercise of equity awards, including any stock options that we may grant in the future, the Warrants, and the sale of shares of our common stock underlying any such options or Warrants, could have an adverse effect on the market for our common stock, including the price that an investor could obtain for their shares.
−Removed: There is a limited trading market for our common stock and the market price of our common stock is subject to volatility.
−Removed: Upon our emergence from bankruptcy, our Predecessor common stock was cancelled, and we issued new common stock.
−Removed: Since the Emergence Date, liquidity for our common shares has been below historical levels, reflecting a concentrated shareholder base, undeveloped market and fewer shares outstanding.
−Removed: The market price of the new common stock could be subject to wide fluctuations in response to, and the level of trading that develops with the new common stock may be affected by, numerous
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−Removed: factors, many of which are beyond our control.
−Removed: These factors include, among other things, our new capital structure as a result of the transactions contemplated by the Plan, our limited trading history subsequent to our emergence from bankruptcy, our limited trading volume, the concentration of holdings of our new common stock, the lack of comparable historical financial information due to our adoption of fresh start accounting, actual or anticipated variations in our operating results and cash flow, the nature and content of our earnings releases, announcements or events that impact our products, customers, competitors or markets, business conditions in our markets and the general state of the securities markets and the market for energy-related stocks, as well as general economic and market conditions and other factors that may affect our future results.
+Added: The exercise of equity awards, including any stock options that we may grant in the future, warrants, and the sale of shares of our common stock underlying any such options or warrants, could have an adverse effect on the market for our common stock, including the price that an investor could obtain for their shares.
+Added: The market price of our common stock is subject to volatility.
+Added: The liquidity for our common shares has been below historical levels, and the market price of our common stock could be subject to wide fluctuations.
+Added: If there is a thin trading market or “float” for our stock, the market price for our common stock may fluctuate significantly more than the stock market as a whole.
+Added: Without a large float, our common stock would be less liquid than the stock of companies with broader public ownership and, as a result, the trading prices of our common stock may be more volatile.
+Added: In addition, in the absence of an active public trading market, investors may be unable to liquidate their investment in us.
+Added: The market price of our common stock can be affected by, numerous factors, many of which are beyond our control.
+Added: These factors include, among other things, actual or anticipated variations in our operating results and cash flow, the nature and content of our earnings releases, announcements or events that impact our products or services, customers, competitors or markets, business conditions in our markets and the general state of the securities markets and the market for energy-related stocks, as well as general economic and market conditions and other factors that may affect our future results.
General risk factors
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The outcome of such matters often cannot be predicted with certainty.
−Removed: If our efforts to defend ourselves in legal, governmental and regulatory matters are not successful, it is possible the outcome of one or more such proceedings could result in substantial liability, penalties, sanctions, judgments, consent decrees or orders requiring a change in our business practices, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
+Added: If our efforts to defend ourselves in legal, governmental and regulatory matters are not successful, it is possible the outcome of one or more such
+Added: proceedings could result in substantial liability, penalties, sanctions, judgments, consent decrees or orders requiring a change in our business practices, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Judgments and estimates to determine accruals related to legal, governmental and regulatory proceedings could change from period to period, and such changes could be material.
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A cyber incident involving our information systems or data and related infrastructure, or that of our business partners, including any vendor or service provider, could disrupt our business plans and negatively impact our operations in the following ways, among others:
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• supply chain disruptions, which could delay or halt development of additional infrastructure, effectively delaying the start of cash flows from the project;
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As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities.
+Added: Our profitability may be negatively impacted by inflation in the cost of labor, materials and services.
+Added: Although inflation in the United States has been relatively low in recent years, the U.S.
+Added: economy has recently experienced a significant inflationary effect from, among other things, supply chain disruptions and governmental stimulus or fiscal policies
+Added: adopted in response to the COVID-19 pandemic.
+Added: While we cannot predict any future trends in the rate of inflation, the global COVID-19 pandemic has brought unprecedented uncertainty to the near-term economic outlook.
+Added: A significant increase in inflation would raise our costs for labor, materials and services, which would negatively impact our profitability and cash flows.
Ineffective internal controls could impact our business and financial results.
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See “Part II, Item 8.
−Removed: Financial Statements and Supplementary Data—Note 24—Commitments and Contingencies” and “—Note 2—Emergence from Voluntary Reorganization under Chapter 11,” which are incorporated herein by reference, for a discussion of material legal proceedings.
+Added: Financial Statements and Supplementary Data—Note 22—Commitments and Contingencies,” which is incorporated herein by reference, for a discussion of material legal proceedings.
Mine Safety Disclosures
Not applicable.
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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.