14 unchanged sentences
Accordingly, the nature and volume of our derivative instruments may change depending on the specific exposure being managed.
−Removed: See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report for additional information regarding our derivative instruments and hedging activities.
Commodity Hedging Activities
−Removed: The prices of natural gas, NGLs, crude oil, petrochemicals and refined products are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control.
+Added: The price of energy commodities such as of natural gas, NGLs, crude oil, petrochemicals and refined products are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control.
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 September 30, 2020 (volume measures as noted):
−Removed: Derivative Purpose
−Removed: Long-Term (2)
−Removed: Derivatives designated as hedging instruments:
−Removed: Natural gas processing:
−Removed: Forecasted natural gas purchases for plant thermal reduction (billion cubic feet (“Bcf”))
−Removed: Cash flow hedge
−Removed: Forecasted sales of NGLs (million barrels (“MMBbls”)) (3)
−Removed: Cash flow hedge
−Removed: Octane enhancement:
−Removed: Forecasted purchase of NGLs (MMBbls)
−Removed: Cash flow hedge
−Removed: Forecasted sales of octane enhancement products (MMBbls)
−Removed: Cash flow hedge
−Removed: Natural gas marketing:
−Removed: Natural gas storage inventory management activities (Bcf)
−Removed: Fair value hedge
−Removed: NGL marketing:
−Removed: Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)
−Removed: Cash flow hedge
−Removed: Forecasted sales of NGLs and related hydrocarbon products (MMBbls)
−Removed: Cash flow hedge
−Removed: NGLs inventory management activities (MMBbls)
−Removed: Fair value hedge
−Removed: Refined products marketing:
−Removed: Forecasted purchases of refined products (MMBbls)
−Removed: Cash flow hedge
−Removed: Forecasted sales of refined products (MMBbls)
−Removed: Cash flow hedge
−Removed: Refined products inventory management activities (MMBbls)
−Removed: Fair value hedge
−Removed: Crude oil marketing:
−Removed: Forecasted purchases of crude oil (MMBbls)
−Removed: Cash flow hedge
−Removed: Forecasted sales of crude oil (MMBbls)
−Removed: Cash flow hedge
−Removed: Petrochemical marketing:
−Removed: Forecasted sales of petrochemical products (MMBbls)
−Removed: Cash flow hedge
−Removed: Derivatives not designated as hedging instruments:
−Removed: Natural gas risk management activities (Bcf) (4)
−Removed: Mark-to-market
−Removed: NGL risk management activities (MMBbls) (4)
−Removed: Mark-to-market
−Removed: Refined products risk management activities (MMBbls) (4)
−Removed: Mark-to-market
−Removed: Crude oil risk management activities (MMBbls) (4)
−Removed: Mark-to-market
−Removed: 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 2022, December 2021 and December 2022, respectively.
−Removed: Forecasted NGL sales volumes under natural gas processing exclude 0.3 MMBbls of additional hedges executed under contracts that have been designated as normal sales agreements.
−Removed: Reflects the use of derivative instruments to manage risks associated with our transportation, processing and storage assets.
−Removed: At September 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.
+Added: At March 31, 2021, 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: For a summary of our portfolio of commodity derivative instruments outstanding, see Note 13 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
Sensitivity Analysis
7 unchanged sentences
Classification
−Removed: September 30,
Fair value assuming no change in underlying commodity prices
7 unchanged sentences
Classification
−Removed: September 30,
Fair value assuming no change in underlying commodity prices
7 unchanged sentences
Classification
−Removed: September 30,
Fair value assuming no change in underlying commodity prices
4 unchanged sentences
Asset (Liability)
−Removed: At September 30, 2020, our commodity hedging strategies exhibited in the stress test values were mainly attributable to contango positions in our NGL, refined products and crude oil marketing portfolios.
−Removed: The decrease in fair value of our commodity hedging portfolios from September 30, 2020 to October 15, 2020 is primarily due to an increase in the underlying commodity prices.
−Removed: In general, we expect that any loss on these derivative instruments would be offset by gains recognized at settlement on the physical transactions.
Interest Rate Hedging Activities
1 unchanged sentence
This strategy may be used in controlling our overall cost of capital associated with such borrowings.
−Removed: Sensitivity Analysis
−Removed: At September 30, 2020, our interest rate hedging portfolio consisted of forward-starting swaps.
−Removed: 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.
−Removed: Under the terms of the forward-starting swaps, we pay to the counterparties (at the expected settlement dates of the instruments) amounts based on a fixed interest rate applied to a notional amount and receive from the counterparties an amount equal to a variable interest rate (based on LIBOR or an equivalent index rate) on the same notional amount.
−Removed: 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 September 30, 2020 (dollars in millions):
−Removed: Hedged Transaction
−Removed: Number and Type
−Removed: of Derivatives
−Removed: Weighted-Average
−Removed: Future long-term debt offering
−Removed: 1 forward-starting swap
−Removed: Cash flow hedge
−Removed: Future long-term debt offering
−Removed: 5 forward-starting swaps
−Removed: Cash flow hedge
−Removed: Future long-term debt offering
−Removed: 2 forward-starting swaps (1)
−Removed: Cash flow hedge
−Removed: Future long-term debt offering
−Removed: 1 forward starting swap (1)
−Removed: Cash flow hedge
−Removed: Future long-term debt offering
−Removed: 2 forward starting swaps (1)
−Removed: Cash flow hedge
−Removed: Future long-term debt offering
−Removed: 2 forward starting swaps (1)
−Removed: Cash flow hedge
−Removed: These swaps were entered into during the first quarter of 2020.
−Removed: The following table shows the effect of hypothetical price movements (a sensitivity analysis) on the estimated economic value of our forward-starting swap portfolio at the dates indicated (dollars in millions):
−Removed: Forward-Starting Swap
−Removed: Portfolio Fair Value at
−Removed: Classification
−Removed: September 30,
−Removed: Fair value assuming no change in underlying interest rates
−Removed: Asset (Liability)
−Removed: Fair value assuming 10% increase in underlying interest rates
−Removed: Asset (Liability)
−Removed: Fair value assuming 10% decrease in underlying interest rates
−Removed: Asset (Liability)
−Removed: The increase in fair value of our interest rate hedging portfolio from September 30, 2020 to October 15, 2020 was primarily due to an increase in market 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 be offset by lower interest rates on future debt issuances.
+Added: As a result of market conditions in March 2021, we terminated our entire portfolio of forward-starting swaps, representing an aggregate $1.08 billion in notional value.
+Added: As of the filing date of this quarterly report, we do not have any interest rate hedging derivative instruments outstanding.
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.