Quantitative and Qualitative Disclosures About Market Risk
−Removed: primary source of market risk for us includes fluctuations in commodity prices and interest rates.
+Added: primary sources of market risk for us include fluctuations in commodity prices and interest rates.
All of our financial instruments
are for purposes other than trading.
−Removed: At June 30, 2020, we had an outstanding loan balance of $930,000 under our
−Removed: credit agreement, which bears interest at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half
−Removed: of one percent (0.5%) floating daily.
−Removed: If the interest rate on our bank debt increases or
−Removed: decreases by one percentage point our annual pretax income would change by $9,300, based on the outstanding balance at June 30,
+Added: At September 30, 2020, we had an outstanding loan balance of $1,175,000 under our credit agreement, which bears
+Added: interest at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half of one percent (0.5%) floating daily.
+Added: If the interest rate on our bank debt increases or decreases by one percentage point our annual pretax income would change by
+Added: $11,750 based on the outstanding balance at September 30, 2020.
Credit risk is the risk of loss as a result of nonperformance by other parties of their contractual obligations.
primary credit risk is related to oil and gas production sold to various purchasers and the receivables are generally not collateralized.
−Removed: At June 30, 2020, our largest credit risk associated with any single purchaser was $113,067 or 58% of our total oil and gas receivables.
−Removed: not experienced any significant credit losses.
+Added: At September 30, 2020, our largest credit risk associated with any single purchaser was $212,549 or 66% of our total oil and gas
+Added: We have not experienced any significant credit losses.
Our most significant market risk is the pricing for crude oil and natural gas.
15 unchanged sentences
predict when oil prices will stabilize.
−Removed: addition, prices for natural gas have been adversely effected by temporary pipeline capacity constraints in the Permian Basin.
−Removed: We are unable to predict exactly how long this limitation will continue.
−Removed: example, the NYMEX West Texas Intermediate (“WTI”) posted price for crude oil on March 31, 2020 was $16.75 per bbl
−Removed: and averaged $14.68, $24.67 and $34.35 per bbl for the months of April, May and June 2020, respectively.
−Removed: The WTI posted price
−Removed: for crude oil was $35.25 on June 30, 2020.
−Removed: The Henry Hub Spot Market Price (“Henry Hub”) posted price for natural
−Removed: gas on March 31, 2020 was $1.71 per MMBtu and averaged $1.74, $1.75 and $1.63 per MMBtu for the months of April, May and June
−Removed: 2020, respectively.
−Removed: The Henry Hub posted price for natural gas was $1.67 on June 30, 2020.
−Removed: See Results of Operations above for
−Removed: the Company’s realized prices during the quarter.
in oil and natural gas prices will materially adversely affect our financial condition, liquidity, ability to obtain financing
and operating results.
−Removed: Changes in oil and gas
−Removed: prices impact both estimated future net revenue and the estimated quantity of proved reserves.
−Removed: Any reduction in reserves, including
−Removed: reductions due to price fluctuations, can reduce the borrowing base under our credit facility and adversely affect the amount
−Removed: of cash flow available for capital expenditures and our ability to obtain additional capital for our acquisition, exploration
−Removed: and development activities.
−Removed: In addition, a noncash write-down of our oil and gas properties could be required under full cost
−Removed: accounting rules if prices declined significantly, even if it is only for a short period of time.
−Removed: Lower prices may also reduce
−Removed: the amount of crude oil and natural gas that can be produced economically.
−Removed: Thus, we may experience material increases or decreases
−Removed: in reserve quantities solely as a result of price changes and not as a result of drilling or well performance.
+Added: Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved
+Added: Any reduction in reserves, including reductions due to price fluctuations, can reduce the borrowing base under our credit
+Added: facility and adversely affect the amount of cash flow available for capital expenditures and our ability to obtain additional
+Added: capital for our acquisition, exploration and development activities.
+Added: In addition, a noncash write-down of our oil and gas properties
+Added: could be required under full cost accounting rules if prices declined significantly, even if it is only for a short period of
+Added: Lower prices may also reduce the amount of crude oil and natural gas that can be produced economically.
+Added: Thus, we may experience
+Added: material increases or decreases in reserve quantities solely as a result of price changes and not as a result of drilling or well
any improvements in oil and gas prices can have a favorable impact on our financial condition, results of operations and capital
1 unchanged sentence
If the average oil price
−Removed: had increased or decreased by ten dollars per barrel for the quarter ended June 30, 2020, our pretax income would have increased
+Added: had increased or decreased by ten dollars per barrel for the first six months of fiscal 2021, our pretax income would have increased
or decreased by $246,770.
−Removed: If the average gas price had increased or decreased by one dollar per mcf for the quarter ended June
−Removed: 30, 2020, our pretax income would have increased or decreased by $79,516.
+Added: If the average gas price had increased or decreased by one dollar per mcf for the first six months of
+Added: fiscal 2021, our pretax income would have increased or decreased by $168,406.
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.