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 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.
+Added: Based on our production for the first nine months of 2020 , our oil and gas sales for the nine months ended September 30, 2020 would have moved up or down $36.3 million for each 10% change in oil prices per Bbl, $4.0 million for each 10% change in NGL prices per Bbl, and $2.9 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.
2 unchanged sentences
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 June 30, 2020 and additional contracts entered into through July 31, 2020 .
−Removed: 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 :
+Added: The table below summarizes the terms of the derivative contracts we had in place as of September 30, 2020 and additional contracts entered into through October 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 September 30, 2020 .
Volume (Bbls)
2 unchanged sentences
Crude oil swaps
+Added: October 2020 - December 2020
+Added: January 2021 - March 2021
+Added: April 2021 - June 2021
July 2021 - September 2021
1 unchanged sentence
January 2021 - March 2021
+Added: April 2021 - June 2021
+Added: July 2021 - September 2021
+Added: October 2021 - December 2021
Volume (Bbls)
1 unchanged sentence
Crude oil basis swaps
+Added: October 2020 - December 2020
+Added: January 2021 - March 2021
+Added: April 2021 - June 2021
July 2021 - September 2021
4 unchanged sentences
October 2020 - December 2020
−Removed: $39.00 - $44.50
These crude oil swap transactions are settled based on the NYMEX WTI or ICE Brent oil price on each trading day within the specified monthly settlement period.
These oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during each applicable settlement period.
−Removed: These crude oil collars are settled based on the NYMEX WTI price on each trading day within the specified monthly settlement period and establish floor and ceiling prices for the contractual volumes.
+Added: These crude oil collars are settled based on the NYMEX WTI price on each trading day within the specified monthly settlement period and establish floor and ceiling prices for the contracted volumes.
Volume (MMBtu)
2 unchanged sentences
Natural gas swaps
−Removed: July 2020 - September 2020
October 2020 - December 2020
January 2021 - March 2021
+Added: April 2021 - June 2021
+Added: July 2021 - September 2021
+Added: October 2021 - December 2021
Volume (MMBtu)
2 unchanged sentences
Natural gas basis swaps
+Added: October 2020 - December 2020
+Added: January 2021 - March 2021
+Added: April 2021 - June 2021
July 2021 - September 2021
October 2021 - December 2021
+Added: Volume (MMBtu)
+Added: Volume (MMBtu/d)
+Added: Weighted Average Collar Price Ranges
+Added: ($/MMBtu) (3)
+Added: Natural gas collars
+Added: October 2020 - December 2020
+Added: January 2021 - March 2021
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 June 30, 2020 , are presented below:
+Added: These natural gas collars are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period and establish floor and ceiling prices for the contracted volumes.
+Added: Changes in the fair value of derivative contracts from December 31, 2019 to September 30, 2020 , are presented below:
(in thousands)
3 unchanged sentences
Change in the futures curve of forecasted commodity prices (1)
−Removed: Net fair value of oil and gas derivative contracts outstanding as of June 30, 2020
+Added: Net fair value of oil and gas derivative contracts outstanding as of September 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 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.
+Added: A hypothetical upward or downward shift of 10% per Bbl in the NYMEX forward curve for crude oil as of September 30, 2020 would cause a $11.3 million increase or decrease, respectively, in this fair value position, and a hypothetical upward or downward shift of 10% per Mcf in the NYMEX forward curve for natural gas as of September 30, 2020 would cause a $3.7 million increase or decrease, respectively, in this same fair value position.
Interest Rate Risk
Our ability to borrow and the rates offered by lenders can be adversely affected by deteriorations in the credit markets and/or downgrades in our credit rating.
−Removed: The uncertainties regarding the impact of COVID-19 as well as the significant decline in global oil and gas prices in March and April of 2020 has impacted the credit markets, resulting in increases in market interest rates for new debt issuances.
−Removed: 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 June 30, 2020 , we had $370.0 million of debt outstanding under our credit agreement, with a weighted average interest rate of 3.5% .
+Added: The uncertainties regarding the impact of COVID-19 as well as the significant decline in March and April of 2020 in global oil and gas prices and their continued volatility throughout 2020 has impacted the credit markets, resulting in increases in market interest rates for new debt issuances.
+Added: CRP’s credit facility interest rate is based on a LIBOR spread (subject to a 1% floor), which exposes us to interest rate risk on our borrowings outstanding to the extent LIBOR increases above the floor.
+Added: As of September 30, 2020 , we had $355.0 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 $3.6 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.