7 unchanged sentences
We enter into derivative contracts to achieve a more predictable cash flow by reducing our exposure to commodity price volatility.
−Removed: All derivative positions are carried at their fair value in the balance sheet and are marked-to-market at the end of each period.
+Added: All derivative positions are carried at their fair value on the balance sheet and are marked-to-market at the end of each period.
Any realized gains and losses on settled derivatives, as well as mark-to-market gains or losses, are aggregated and recorded to gain (loss) on derivative instruments, net on the statements of operations rather than as a component of other comprehensive income or other income (expense).
3 unchanged sentences
Any interim cash needs are funded by cash from operations or borrowings under our Revolving Credit Facility.
−Removed: The following table summarizes our open oil swap contracts as of December 31, 2020, by fiscal quarter.
+Added: The following table summarizes our open crude oil swap contracts as of December 31, 2021, by fiscal quarter.
Settlement Period Oil (Barrels) Weighted Average Price ($)
8 unchanged sentences
Q4 446,200 66.25
+Added: Q1 136,500 $ 64.65
+Added: Q2 136,500 64.19
+Added: Q3 138,000 63.51
+Added: Q4 138,000 62.96
_____________
−Removed: (1) We have entered into crude oil derivative contracts that give counterparties the option to extend certain current derivative contracts for additional periods.
−Removed: Options covering a notional volume of 3.1 million barrels for 2022 are exercisable on or about December 31, 2021.
−Removed: If the counterparties exercise all such options, the notional volume of our existing crude oil derivative contracts will increase as follows for 2022:
−Removed: (i) for the first quarter of 2022, by 1,010,250 barrels at a weighted average price of $53.20 per barrel, (ii) for the second quarter of 2022, by 1,021,475 barrels at a weighted average price of $53.20 per barrel, (iii) for the third quarter of 2022, by 549,700 barrels at a weighted average price of $51.71 per barrel, and (iv) for the fourth quarter of 2022, by 549,700 barrels at a weighted average price of $51.71 per barrel.
−Removed: (2) We have entered into crude oil derivative contracts that give counterparties the option to extend certain current derivative contracts for additional periods.
−Removed: Options covering a notional volume of 1.5 million barrels for 2023 are exercisable on or about December 31, 2022.
−Removed: If the counterparties exercise all such options, the notional volume of our existing crude oil derivative contracts will increase as follows for 2023:
−Removed: (i) for the first quarter of 2023, by 630,000 barrels at a weighted average price of $49.80 per barrel, (ii) for the second quarter of 2023, by 273,000 barrels at a weighted average price of $46.59 per barrel, (iii) for the third quarter of 2023, by 276,000 barrels at a weighted average price of $46.59 per barrel, and (iv) for the fourth quarter of 2023, by 276,000 barrels at a weighted average price of $46.59 per barrel.
−Removed: From time to time, we also hedge our oil basis differential to mitigate price risk associated with fluctuations in takeaway capacity.
−Removed: As of December 31, 2020, we have hedged approximately 1.5 million barrels for 2021 at a weighted average price of $(2.39) per barrel.
−Removed: See Note 12 to our financial statements.
+Added: (1) This table does not include volumes subject to swaptions and call options, which are crude oil derivative contracts we have entered into which may increase our swapped volumes at the option of our counterparties.
+Added: See Note 12 to our financial statements for further details regarding our commodity derivatives, including the swaptions and call options that are not included in the foregoing table.
The following table summarizes our open natural gas swap contracts as of December 31, 2021, by fiscal quarter.
9 unchanged sentences
Q4 920,000 3.47
+Added: Q1 637,000 $ 3.22
+Added: Q2 637,000 3.22
+Added: Q3 644,000 3.22
+Added: Q4 644,000 3.22
+Added: _____________
+Added: (1) This table does not include volumes subject to collars.
+Added: See Note 12 to our financial statements for further details regarding our commodity derivatives, including the collars that are not included in the foregoing table.
+Added: See Note 12 to our financial statements for further details regarding our commodity derivatives, including basis swap contracts for both crude oil and natural gas, which are not included in the foregoing tables.
Interest Rate Risk
Our long-term debt as of December 31, 2021 is comprised of borrowings that contain fixed and floating interest rates.
−Removed: The Second Lien Notes and our Unsecured VEN Bakken Note bear cash interest at fixed rates.
+Added: Our 2028 Notes bear cash interest at fixed rates.
Our Revolving Credit Facility interest rate is a floating rate option that is designated by us within the parameters established by the underlying agreement.
8 unchanged sentences
The Company uses interest rate swaps to effectively convert a portion of its variable rate indebtedness to fixed rate indebtedness.
−Removed: As of December 31, 2020, we had interest rate swaps with a total notional amount of $200.0 million.
−Removed: As a result, changes in interest rates can impact results of operations and cash flows.
−Removed: A 1% increase in short-term interest rates on our floating-rate debt outstanding at December 31, 2020 would cost us approximately $3.3 million in additional annual interest expense.
+Added: As of December 31, 2021, we had interest rate swaps with a total notional amount of $200.0 million, which exceeded our amount of outstanding variable rate indebtedness as of December 31, 2021.
+Added: Changes in interest rates can impact results of operations and cash flows.
+Added: However, because the notional amount of our interest rate swaps as of December 31, 2021 was greater than our amount of outstanding variable rate indebtedness as of such date, a 1% increase in short-term interest rates on our floating-rate debt outstanding at December 31, 2021 would not result in any increased additional annual interest expense.
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.