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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.
−Removed: The overall objective of our hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices.
+Added: The overall objective of our hedging program is to protect our cash flows from undue exposure to the risk of changing commodity prices.
Our use of derivatives is further described in Note 3 to the Condensed Consolidated Financial Statements and "Commodity Risk Management" under "Capital Resources and Liquidity" in Item 2., "Management's Discussion and Analysis of Financial Condition and Results of Operations." Our OTC derivative commodity instruments are placed primarily with financial institutions and the creditworthiness of those institutions is regularly monitored.
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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 NYMEX natural gas price on September 30, 2022 and December 31, 2021 would increase the fair value of our natural gas derivative commodity instruments by approximately $500 million and $577 million, respectively.
−Removed: A hypothetical increase of 10% in the NYMEX natural gas price on September 30, 2022 and December 31, 2021 would decrease the fair value of our natural gas derivative commodity instruments by approximately $604 million and $581 million, respectively.
−Removed: For purposes of this analysis, we applied the 10% change in the NYMEX natural gas price on September 30, 2022 and December 31, 2021 to our natural gas derivative commodity instruments as of September 30, 2022 and December 31, 2021 to calculate the hypothetical change in fair value.
+Added: A hypothetical decrease of 10% in the NYMEX natural gas price on March 31, 2023 and December 31, 2022 would increase the fair value of our natural gas derivative commodity instruments by approximately $287 million and $727 million, respectively.
+Added: A hypothetical increase of 10% in the NYMEX natural gas price on March 31, 2023 and December 31, 2022 would decrease the fair value of our natural gas derivative commodity instruments by approximately $208 million and $333 million, respectively.
+Added: For purposes of this analysis, we applied the 10% change in the NYMEX natural gas price on March 31, 2023 and December 31, 2022 to our natural gas derivative commodity instruments as of March 31, 2023 and December 31, 2022 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 Condensed Consolidated Financial Statements.
The above analysis of our derivative commodity instruments does not include the offsetting impact that the same hypothetical price movement may have on our physical sales of natural gas.
−Removed: The portfolio of derivative commodity instruments held to hedge our forecasted produced gas approximates a portion of our expected physical sales of natural gas;
+Added: The portfolio of derivative commodity instruments held to hedge our forecasted produced natural gas approximates a portion of our expected physical sales of natural gas;
therefore, an adverse impact to the fair value of the portfolio of derivative commodity instruments held to hedge our forecasted production associated with the hypothetical changes in commodity prices referenced above should be offset by a favorable impact on our physical sales of natural gas, assuming that the derivative commodity instruments are not closed in advance of their expected term and the derivative commodity instruments continue to function effectively as hedges of the underlying risk.
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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 rate we pay on borrowings under our credit 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 and Term Loan 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 the borrowings under our credit facility during the nine months ended September 30, 2022 would have increased interest expense by approximately $6 million.
+Added: There were no borrowings for the three months ended March 31, 2023 under our credit facility or Term Loan Facility.
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.
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To manage the level of credit risk, we enter into transactions primarily with financial counterparties that are of investment grade, enter into netting agreements whenever possible and may obtain collateral or other security.
−Removed: Approximately 22%, or $1,151 million, of our OTC derivative contracts outstanding at September 30, 2022 had a positive fair value.
+Added: Approximately 60%, or $938 million, of our OTC derivative contracts outstanding at March 31, 2023 had a positive fair value.
Approximately 36%, or $710 million, of our OTC derivative contracts outstanding at December 31, 2022 had a positive fair value.
−Removed: As of September 30, 2022, we were not in default under any derivative contracts and had no knowledge of default by any counterparty to our derivative contracts.
−Removed: During the three months ended September 30, 2022, we made no adjustments to the fair value of our derivative contracts due to credit related concerns outside of the normal non-performance risk adjustment included in our established fair value procedure.
+Added: As of March 31, 2023, we were not in default under any derivative contracts and had no knowledge of default by any counterparty to our derivative contracts.
+Added: During the three months ended March 31, 2023, we made no adjustments to the fair value of our derivative contracts due to credit related concerns outside of the normal non-performance risk adjustment included in our established fair value procedure.
We monitor market conditions that may impact the fair value of our derivative contracts.
We are exposed to the risk of nonperformance by credit customers on physical sales of natural gas, NGLs and oil.
−Removed: Revenues and related accounts receivable from our operations are generated primarily from the sale of produced natural gas, NGLs and oil to marketers, utilities and industrial customers located in the Appalachian Basin and in markets that are accessible through our transportation portfolio, which includes markets in the Gulf Coast, Midwest and Northeast United States and Canada.
−Removed: We also contract with certain processors to market a portion of NGLs on our behalf.
+Added: Revenues and related accounts receivable from our operations are generated primarily from the sale of our produced natural gas, NGLs and oil to marketers, utilities and industrial customers located in the Appalachian Basin and in markets that are accessible through our transportation portfolio, which includes markets in the Gulf Coast, Midwest and Northeast United States and Canada.
+Added: We also contract with certain processors to market a portion of our NGLs on our behalf.
No one lender of the large group of financial institutions in the syndicate for our credit facility holds more than 10% of the financial commitments under such facility.
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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.