Item 3 Quantitative and Qualitative Disclosures About Market Risk
−Removed: For the three months ended March 31, 2024, there were no material changes to market risks from the information provided under Item 305 of Regulation S-K included under the caption Part II, Item 7A – Quantitative and Qualitative Disclosures About Market Risk in the 2023 Annual Report.
+Added: For the three and six months ended June 30, 2024, there were no material changes to market risks from the information provided under Item 305 of Regulation S-K included under the caption Part II, Item 7A – Quantitative and Qualitative Disclosures About Market Risk in the 2023 Annual Report.
Commodity Price Risk
Our financial results are sensitive to fluctuations in oil, NGL and natural gas prices.
−Removed: These commodity price changes also impact the volume changes under our PSC-type contracts.
+Added: These commodity price changes also impact the volume changes under our PSCs.
We maintain a commodity hedging program primarily focused on hedging crude oil sales to help protect our cash flows, margins and capital program from the volatility of crude oil prices.
−Removed: As of March 31, 2024, we had a net liability of $49 million for our commodity derivative positions which are carried at fair value.
−Removed: For more information on our derivative positions as of March 31, 2024 , refer to Part I, Item 1 – Financial Statements, Note 6 Derivatives.
+Added: As of June 30, 2024, we had a net liability of $38 million for our commodity derivative positions which are carried at fair value.
+Added: Following the closing of the Aera Merger, we expect to increase our commodity hedging program with respect to natural gas.
+Added: For more information on our derivative positions as of June 30, 2024 , refer to Part I, Item 1 – Financial Statements, Note 5 Derivatives.
We have price exposure for natural gas we purchase and use in our business.
6 unchanged sentences
Concentration of credit risk is regularly reviewed to ensure that counterparty credit risk is adequately diversified.
−Removed: As of March 31, 2024, the majority of our credit exposure was with investment-grade counterparties.
−Removed: We believe exposure to counterparty credit-related losses related to our business at March 31, 2024 was not material and losses associated with counterparty credit risk have been insignificant for all periods presented.
+Added: As of June 30, 2024, the majority of our credit exposure was with investment-grade counterparties.
+Added: We believe exposure to counterparty credit-related losses related to our business at June 30, 2024 was not material and losses associated with counterparty credit risk have been insignificant for all periods presented.
Interest-Rate Risk
−Removed: Changes in interest rate may affect the amount of interest we pay on our long-term debt.
−Removed: We had no variable-rate debt outstanding as of March 31, 2024 .
+Added: Changes in interest rates may affect the amount of interest we pay on our long-term debt.
+Added: We had $30 million of variable-rate debt outstanding as of June 30, 2024 .
Our 2026 Senior Notes bear interest at a fixed rate of 7.125% per annum.
+Added: Our 2029 Senior Notes bear interest at a fixed rate of 8.250% per annum.
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.