18 unchanged sentences
In order to manage such price risks, we enter into commodity derivative instruments such as physical forward contracts, futures contracts, fixed-for-float swaps and basis swaps.
−Removed: The following table summarizes our portfolio of commodity derivative instruments outstanding at March 31, 2020 (volume measures as noted):
+Added: The following table summarizes our portfolio of commodity derivative instruments outstanding at June 30, 2020 (volume measures as noted):
Derivative Purpose
2 unchanged sentences
Natural gas processing:
−Removed: Forecasted natural gas purchases for plant thermal reduction (Bcf)
+Added: Forecasted natural gas purchases for plant thermal reduction (billion cubic feet (“Bcf”))
Cash flow hedge
+Added: Forecasted sales of NGLs (MMBbls)
+Added: Cash flow hedge
Octane enhancement:
27 unchanged sentences
Cash flow hedge
−Removed: Propylene marketing:
−Removed: Forecasted sales of NGLs for propylene marketing activities (MMBbls)
+Added: Petrochemical marketing:
+Added: Forecasted sales of petrochemical products (MMBbls)
Cash flow hedge
14 unchanged sentences
Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes.
−Removed: The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is December 2021, December 2020 and December 2022, respectively.
−Removed: Reflects the use of derivative instruments to manage risks associated with transportation, processing, storage assets and end use power requirements.
−Removed: At March 31, 2020, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging the fair value of commodity products held in inventory and (iii) hedging natural gas processing margins.
+Added: The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is December 2022, March 2021 and December 2022, respectively.
+Added: Current volumes include approximately 0.7 Bcf of physical derivatives instruments that are predominantly priced as index plus a premium or minus a discount.
+Added: Reflects the use of derivative instruments to manage risks associated with our transportation, processing, storage assets and end use power requirements.
+Added: At June 30, 2020, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging the fair value of commodity products held in inventory and (iii) hedging natural gas processing margins.
Sensitivity Analysis
35 unchanged sentences
Sensitivity Analysis
−Removed: At March 31, 2020, our interest rate hedging portfolio consisted of forward-starting swaps.
+Added: At June 30, 2020, our interest rate hedging portfolio consisted of forward-starting swaps.
Forward-starting swaps hedge the risk of an increase in underlying benchmark interest rates during the period of time between the inception date of the swap agreement and the future date of a debt issuance.
1 unchanged sentence
With respect to the tabular data below, the portfolio’s estimated economic value at a given date is based on a number of factors, including the number and types of derivatives outstanding at that date, the notional value of the swaps and associated interest rates.
−Removed: The following table summarizes our portfolio of forward-starting swaps at March 31, 2020 (dollars in millions):
+Added: The following table summarizes our portfolio of forward-starting swaps at June 30, 2020 (dollars in millions):
Hedged Transaction
31 unchanged sentences
Asset (Liability)
−Removed: The $235.7 million decrease in the fair value of this portfolio from December 31, 2019 to April 15, 2020 was primarily due to declining interest rates relative to the fixed rates specified in the swap agreements.
−Removed: Upon settlement, we would expect that any loss on these swaps would ultimately be offset by lower interest rates on future debt issuances.
+Added: The $ 254.1 million decrease in the fair value of this portfolio from December 31, 2019 to July 15, 2020 was primarily due to declining interest rates relative to the fixed rates specified in the swap agreements.
+Added: Upon settlement, we would expect that any loss on these swaps would be offset by lower interest rates on future debt issuances.
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.