13 unchanged sentences
COMMODITY PRICE RISK
−Removed: As part of our hedging strategy, we use commodity derivative financial instruments and physical-forward contracts described in Note C of the Notes to Consolidated Financial Statements in this Annual Report to reduce the impact of near-term price fluctuations of natural gas, NGLs and condensate.
+Added: As part of our hedging strategy, we use commodity derivative financial instruments and physical-forward contracts described in Note D of the Notes to Consolidated Financial Statements in this Annual Report to reduce the impact of near-term price fluctuations of natural gas, NGLs and condensate.
Although our businesses are primarily fee-based, in our Natural Gas Gathering and Processing segment, we are exposed to commodity price risk as a result of retaining a portion of the commodity sales proceeds associated with our fee with POP contracts.
−Removed: Under certain fee with POP contracts, our contractual fees and POP percentage may increase or decrease if
−Removed: Table of Cont ents
−Removed: production volumes, delivery pressures or commodity prices change relative to specified thresholds.
−Removed: In certain commodity price environments, our contractual fees on these fee with POP contracts may decrease, which would impact the average fee rate in our Natural Gas Gathering and Processing segment.
+Added: Under certain fee with POP contracts, our contractual fees and POP percentage may increase or decrease if production volumes, delivery pressures or commodity prices change relative to specified thresholds.
We are exposed to basis risk between the various production and market locations where we buy and sell commodities.
6 unchanged sentences
Total change in estimated fair value of commodity contracts $ 52.6 $ 52.1
−Removed: Our sensitivity analysis represents an estimate of the reasonably possible gains and losses that would be recognized on our commodity derivative contracts assuming hypothetical movements in future market prices and is not necessarily indicative of actual results that may occur.
+Added: Our sensitivity analysis represents an estimate of the reasonably possible gains and losses that would be recognized on our commodity derivative contracts assuming hypothetical movements in future market prices and is not necessarily indicative of
+Added: actual results that may occur.
Actual gains and losses may differ from estimates due to actual fluctuations in market prices, as well as changes in our commodity derivative portfolio during the year.
−Removed: The following tables set forth hedging information for our Natural Gas Gathering and Processing segment’s forecasted equity volumes for the periods indicated:
+Added: The following tables set forth hedging information for our Natural Gas Gathering and Processing segment’s forecasted equity volumes for the period indicated:
Year Ending December 31, 2023
8 unchanged sentences
Hedged Average Price Percentage
−Removed: NGLs - excluding ethane ( MBbl/d ) - Conway/Mont Belvieu
−Removed: 0.9 $ 1.11 / gallon 5%
−Removed: Condensate ( MBbl/d ) - WTI-NYMEX
−Removed: 0.2 $ 74.95 / Bbl 7%
Natural gas ( BBtu/d ) - NYMEX and basis
11 unchanged sentences
Future increases in commercial paper rates or bond rates could expose us to increased interest costs on future borrowings.
−Removed: We may manage interest-rate risk through the use of fixed-rate debt, floating-rate debt and interest-
−Removed: Table of Cont ents
+Added: We may manage interest-rate risk through the use of fixed-rate debt, floating-rate debt and interest-rate swaps.
Interest-rate swaps are agreements to exchange interest payments at some future point based on specified notional amounts.
−Removed: At December 31, 2021 and 2020, we had forward-starting interest-rate swaps with notional amounts totaling $1.1 billion to hedge the variability of interest payments on a portion of our forecasted debt issuances.
+Added: In 2022, we settled $750 million of our forward-starting interest-rate swaps related to our underwritten public offering of $750 million senior unsecured notes, resulting in a gain of $28.1 million, which is included in accumulated other comprehensive loss and amortized into interest expense over the term of the related debt.
+Added: In December 2022, we terminated the remaining $375 million of our forward-starting interest swaps that had mandatory termination dates of December 31, 2022.
+Added: We simultaneously entered into forward-starting interest-rate swaps with the same notional amounts at current market rates to hedge the variability of interest payments on a portion of our forecasted debt issuances that may result from changes in the benchmark interest rate before the debt is issued.
+Added: At December 31, 2022, and December 31, 2021, we had forward-starting interest-rate swaps with notional amounts totaling $0.4 billion and $1.1 billion, respectively, to hedge the variability of interest payments on a portion of our forecasted debt issuances.
All of our interest-rate swaps are designated as cash flow hedges.
−Removed: At December 31, 2021 and 2020, we had derivative liabilities of $145.5 million and $203.4 million, respectively, related to these interest-rate swaps.
+Added: At December 31, 2022 and 2021, we had derivative assets of $10.9 million and derivative liabilities of $145.5 million, respectively, related to these interest-rate swaps.
The following table presents the effect of a 10% hypothetical change in interest rates on the estimated fair value of our interest-rate derivative instruments as of the dates indicated:
4 unchanged sentences
Actual gains and losses may differ from estimates due to actual fluctuations in interest rates, as well as changes in our interest-rate derivative portfolio during the year.
−Removed: See Note C of the Notes to Consolidated Financial Statements in this Annual Report for more information on our hedging activities.
+Added: See Note D of the Notes to Consolidated Financial Statements in this Annual Report for more information on our hedging activities.
COUNTERPARTY CREDIT RISK
4 unchanged sentences
We are not typically exposed to material credit risk with producers under fee with POP contracts as we sell the commodities and remit a portion of the sales proceeds back to the producer less our contractual fees.
−Removed: In 2021 and 2020, approximately 90% of the downstream commodity sales in our Natural Gas Gathering and Processing segment were made to customers rated investment-grade by S&P, approved through comparable internal counterparty analysis, or were secured by letters of credit or other collateral.
+Added: In 2022 and 2021, approximately 95% and 90%, respectively, of the downstream commodity sales in our Natural Gas Gathering and Processing segment were made to customers rated investment-grade by S&P, approved through comparable internal counterparty analysis, or were secured by letters of credit or other collateral.
Natural Gas Liquids - Our Natural Gas Liquids segment’s counterparties are primarily NGL and natural gas gathering and processing companies;
7 unchanged sentences
We are not typically exposed to material credit risk on the majority of our exchange services fees, as we purchase NGLs from our gathering and processing counterparties and deduct our fee from the amounts we remit.
−Removed: We also earn sales revenue on the downstream sales of NGL products.
+Added: We also earn sales revenue on the downstream sales of purity NGLs.
In 2022 and 2021, approximately 85% and 70%, respectively, of this segment’s commodity sales were made to customers rated investment-grade by S&P, approved through comparable internal counterparty analysis, or were secured by letters of credit or other collateral.
1 unchanged sentence
Natural Gas Pipelines - Our Natural Gas Pipelines segment’s customers are primarily local natural gas distribution companies, electric-generation facilities, large industrial companies, municipalities, producers, processors and marketing companies.
−Removed: In 2021 and 2020, approximately 85% of our revenues in this segment were from customers rated investment-grade by S&P, approved through comparable internal counterparty analysis, or were secured by letters of credit or other collateral.
+Added: In 2022 and 2021, approximately 90% and 85%, respectively, of our revenues in this segment were from customers rated investment-grade by S&P, approved through comparable internal counterparty analysis, or were secured by letters of credit or other collateral.
In addition, the majority of our Natural Gas Pipelines segment’s pipeline tariffs provide us the ability to require security from shippers.
−Removed: Table of Cont ents
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.