7 unchanged sentences
Pricing for oil, natural gas and NGLs has been volatile and unpredictable for several years, and we expect this volatility to continue for the foreseeable future.
−Removed: Based on our production for the first three months of 2020 , our oil and gas sales for the three months ended March 31, 2020 would have moved up or down $17.1 million for each 10% change in oil prices per Bbl, $1.4 million for each 10% change in NGL prices per Bbl, and $0.8 million for each 10% change in natural gas prices per Mcf.
+Added: Based on our production for the first half of 2020 , our oil and gas sales for the six months ended June 30, 2020 would have moved up or down $24.4 million for each 10% change in oil prices per Bbl, $2.3 million for each 10% change in NGL prices per Bbl, and $1.7 million for each 10% change in natural gas prices per Mcf.
Due to this volatility, we have historically used, and we may elect to continue to selectively use, commodity derivative instruments (such as collars, swaps and basis swaps) to mitigate price risk associated with a portion of our anticipated production.
−Removed: Our derivative instruments allow us to reduce, but not eliminate, the potential effects of the variability in cash flows from operations due to fluctuations in oil and natural gas prices and provide increased certainty of cash flows for our drilling program and debt service requirements.
+Added: Our derivative instruments allow us to reduce, but not eliminate, the potential effects of the variability in cash flows from operations due to fluctuations in oil and natural gas prices and thereby provide increased certainty of cash flows for our drilling program and debt service requirements.
These instruments provide only partial price protection against declines in oil and natural gas prices, but alternatively they may partially limit our potential gains from future increases in prices.
Our credit agreement limits our ability to enter into commodity hedges covering greater than 85% of our reasonably anticipated projected production from proved properties.
−Removed: The following table summarizes the terms of the swap contracts we had in place as of March 31, 2020 and additional contracts entered into through May 1, 2020 .
−Removed: Refer to Note 7—Derivative Instruments in Item 1 of Part I of this Quarterly Report for open derivative positions as of March 31, 2020 :
+Added: The following table summarizes the terms of the swap contracts we had in place as of June 30, 2020 and additional contracts entered into through July 31, 2020 .
+Added: Refer to Note 7—Derivative Instruments in Item 1 of Part I of this Quarterly Report for open derivative positions as of June 30, 2020 :
Volume (Bbls)
−Removed: Weighted Average Fixed Price ($/Bbl) (1)
+Added: Weighted Average
+Added: Fixed Price ($/Bbl) (1)
Crude oil swaps
−Removed: April 2020 - June 2020
July 2020 - September 2020
October 2020 - December 2020
+Added: January 2021 - March 2021
Volume (Bbls)
1 unchanged sentence
Crude oil basis swaps
−Removed: April 2020 - June 2020
July 2020 - September 2020
October 2020 - December 2020
−Removed: These crude oil swap transactions are settled based on the NYMEX WTI price as of the specified settlement date.
+Added: Volume (Bbls)
+Added: Weighted Average Collar Price Ranges (3)
+Added: Crude oil collars
+Added: October 2020 - December 2020
+Added: $39.00 - $44.50
+Added: These crude oil swap transactions are settled based on the NYMEX WTI or ICE Brent oil price on each trading day within the specified monthly settlement period.
These oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during each applicable settlement period.
+Added: These crude oil collars are settled based on the NYMEX WTI price on each trading day within the specified monthly settlement period and establish floor and ceiling prices for the contractual volumes.
Volume (MMBtu)
2 unchanged sentences
Natural gas swaps
−Removed: April 2020 - June 2020
July 2020 - September 2020
October 2020 - December 2020
+Added: January 2021 - March 2021
Volume (MMBtu)
2 unchanged sentences
Natural gas basis swaps
−Removed: April 2020 - June 2020
July 2020 - September 2020
October 2020 - December 2020
−Removed: These natural gas swap contracts are settled based NYMEX Henry Hub price as of the specified settlement date.
+Added: These natural gas swap contracts are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period.
These natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price and the NYMEX price of natural gas, during each applicable settlement period.
−Removed: Changes in the fair value of derivative contracts from December 31, 2019 to March 31, 2020 , are presented below:
+Added: Changes in the fair value of derivative contracts from December 31, 2019 to June 30, 2020 , are presented below:
(in thousands)
1 unchanged sentence
Net fair value of oil and gas derivative contracts outstanding as of December 31, 2019
−Removed: Contracts settled
+Added: Contract settlements
Change in the futures curve of forecasted commodity prices (1)
−Removed: Net fair value of oil and gas derivative contracts outstanding as of March 31, 2020
+Added: Net fair value of oil and gas derivative contracts outstanding as of June 30, 2020
At inception, new derivative contracts entered into by us have no intrinsic value.
−Removed: A hypothetical upward or downward shift of 10% per Bbl in the NYMEX forward curve for crude oil as of March 31, 2020 would cause a less than $13.6 million increase or decrease, respectively, in this fair value liability, and a hypothetical upward or downward shift of 10% per Mcf in the NYMEX forward curve for natural gas as of March 31, 2020 would cause a $0.6 million increase or decrease, respectively, in this same fair value liability.
+Added: A hypothetical upward or downward shift of 10% per Bbl in the NYMEX forward curve for crude oil as of June 30, 2020 would cause a $13.8 million increase or decrease, respectively, in this fair value liability, and a hypothetical upward or downward shift of 10% per Mcf in the NYMEX forward curve for natural gas as of June 30, 2020 would cause a $1.3 million increase or decrease, respectively, in this same fair value liability.
Interest Rate Risk
2 unchanged sentences
CRP’s credit facility interest rate, on the other hand, is based on a LIBOR spread, which exposes us to interest rate risk on our borrowings outstanding to the extent LIBOR increases.
−Removed: As of March 31, 2020 , we had $235.0 million of debt outstanding under our credit agreement, with a weighted average interest rate of 2.1% .
+Added: As of June 30, 2020 , we had $370.0 million of debt outstanding under our credit agreement, with a weighted average interest rate of 3.5% .
Assuming no change in the amount outstanding, the impact on interest expense of a 1.0% increase or decrease in the assumed weighted average interest rate would be approximately $3.7 million per year.
4 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.