5 unchanged sentences
Increases in natural gas and NGLs prices may be accompanied by, or result in, increased well drilling costs, increased production taxes, increased lease operating expenses, increased volatility in seasonal gas price spreads for our storage assets and increased end-user conservation or conversion to alternative fuels.
−Removed: In addition, to the extent we have hedged our production at prices below the current market price, we will not benefit fully from an increase in the price of natural gas.
+Added: In addition, to the extent we have hedged our production at prices below the current market price, we will not benefit fully from an increase in the price of natural gas, and, depending on our then-current credit ratings and the terms of our hedging contracts, we may be required to post additional margin with our hedging counterparties.
The overall objective of our hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices.
1 unchanged sentence
We primarily enter into derivative instruments to hedge forecasted sales of production.
−Removed: We also enter into derivative instruments to hedge basis and exposure to fluctuations in interest rates.
−Removed: Our use of derivative instruments is implemented under a set of policies approved by our Hedge and Financial Risk Committee and reviewed by our Board of Directors.
+Added: We also enter into derivative instruments to hedge basis.
+Added: Our use of derivative instruments is implemented under a set of policies approved by our management-level Hedge and Financial Risk Committee and is reviewed by our Board of Directors.
For derivative commodity instruments used to hedge our forecasted sales of production, which are at, for the most part, NYMEX natural gas prices, we set policy limits relative to the expected production and sales levels that are exposed to price risk.
5 unchanged sentences
We monitor price and production levels on a continuous basis and make adjustments to quantities hedged as warranted.
−Removed: A hypothetical decrease of 10% in the market price of natural gas on December 31, 2020 and 2019 would increase the fair value of our natural gas derivative commodity instruments by approximately $501 million and $389 million, respectively.
−Removed: A hypothetical increase of 10% in the market price of natural gas on December 31, 2020 and 2019 would decrease the fair value of our natural gas derivative commodity instruments by approximately $495 million and $395 million, respectively.
−Removed: For purposes of this analysis, we applied the 10% change in the market price of natural gas on December 31, 2020 and 2019 to our natural gas derivative commodity instruments as of December 31, 2020 and 2019 to calculate the hypothetical change in fair value.
+Added: A hypothetical decrease of 10% in the NYMEX natural gas price on December 31, 2021 and 2020 would increase the fair value of our natural gas derivative commodity instruments by approximately $577 million and $501 million, respectively.
+Added: A hypothetical increase of 10% in the NYMEX natural gas price on December 31, 2021 and 2020 would decrease the fair value of our natural gas derivative commodity instruments by approximately $581 million and $495 million, respectively.
+Added: For purposes of this analysis, we applied the 10% change in the NYMEX natural gas price on December 31, 2021 and 2020 to our natural gas derivative commodity instruments as of December 31, 2021 and 2020 to calculate the hypothetical change in fair value.
The change in fair value was determined using a method similar to our normal process for determining derivative commodity instrument fair value described in Note 4 to the Consolidated Financial Statements.
4 unchanged sentences
Interest Rate Risk.
−Removed: Changes in market interest rates affect the amount of interest we earn on cash, cash equivalents and short-term investments and the interest rates we pay on borrowings on our credit facility and, prior to its full redemption on June 30, 2020, our Term Loan Facility.
+Added: Changes in market interest rates affect the amount of interest we earn on cash, cash equivalents and short-term investments and the interest rate we pay on borrowings under our credit facility.
None of the interest we pay on our senior notes fluctuates based on changes to market interest rates.
−Removed: A 1% increase in interest rates on our borrowings on our credit facility and term loan facility during the year ended December 31, 2020 would have increased 2020 annual interest expense by approximately $5 million.
−Removed: A 1% increase in interest rates on our borrowings under our credit facility, term loan facility and floating rate notes during the year ended December 31, 2019 would have increased 2019 annual interest expense by approximately $14 million.
−Removed: Interest rates on the Adjustable Rate Notes fluctuate based on changes to the credit ratings assigned to our senior notes by Moody's, S&P and Fitch.
+Added: A 1% increase in interest rates on the borrowings under our credit facility during the year ended December 31, 2021 would have increased interest expense by approximately $6 million.
+Added: Interest rates on our 6.125% senior notes due 2025 and 7.00% senior notes due 2030 fluctuate based on changes to the credit ratings assigned to our senior notes by Moody's, S&P and Fitch.
+Added: Interest rates on our other outstanding senior notes do not fluctuate based on changes to the credit ratings assigned to our senior notes by Moody's, S&P and Fitch.
For a discussion of credit rating downgrade risk, see Item 1A., "Risk Factors – Our exploration and production operations have substantial capital requirements, and we may not be able to obtain needed capital or financing on satisfactory terms." Changes in interest rates affect the fair value of our fixed rate debt.
−Removed: See Note 10 to the Consolidated Financial Statements for further discussion of our debt and Note 4 to the Consolidated Financial Statements for a discussion of fair value measurements, including the fair value of our debt.
+Added: See Note 10 to the Consolidated Financial Statements for further discussion of our debt and Note 4 to the Consolidated Financial Statements for a discussion of fair value measurements, including the fair value measurement of our debt.
Other Market Risks.
16 unchanged sentences
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.