3 unchanged sentences
Market risk refers to the risk of loss from adverse changes in oil and natural gas prices.
−Removed: Realized pricing is primarily driven by the prevailing domestic price for crude oil and spot prices applicable to the region in which we produce natural gas.
+Added: Realized pricing is primarily driven by the prevailing domestic price for crude oil and spot prices applicable to the region in which we produce oil and natural gas.
Historically, prices received for oil and natural gas production have been volatile and unpredictable.
1 unchanged sentence
The prices we receive depend on many factors outside of our control.
−Removed: Oil prices we received during 2022 ranged from a monthly average low of $75.33 per barrel to a monthly average high of $114.86 per barrel.
−Removed: Natural gas prices we received during 2022 ranged from a monthly average low of $2.16 per Mcf to a monthly average high of $9.78 per Mcf.
−Removed: A significant decline in the prices of oil or natural gas could have a material adverse effect on our financial condition and results of operations.
−Removed: In order to reduce commodity price uncertainty and increase cash flow predictability relating to the marketing of our crude oil and natural gas, we may enter into crude oil and natural gas price hedging arrangements with respect to a portion of our expected production.
+Added: Oil prices received during 2023 ranged from a monthly average low of $68.72 per barrel to a monthly average high of $89.13 per barrel.
+Added: Natural gas prices realized during 2023 ranged from a monthly average low of $(0.94) per Mcf to a monthly average high of $1.52 per Mcf.
+Added: In some months, fees exceeded the pricing, causing a negative net realized price.
+Added: Gross natural gas prices ranged from a monthly average low of $0.76 per Mcf to a monthly average high of $2.78 per Mcf.
+Added: Fees ranged from a monthly average low of $(2.07) per Mcf to a monthly average high of $(0.87) per Mcf.
+Added: NGL prices received during 2023 ranged from a monthly average low of $7.07 per barrel to a monthly average high of $14.71 per barrel.
+Added: A significant decline in the prices of oil or natural gas would likely have a material adverse effect on our financial condition and results of operations.
+Added: In order to reduce commodity price uncertainty and increase cash flow predictability relating to the marketing of our crude oil and natural gas, we enter into crude oil and natural gas price hedging arrangements with respect to a portion of our expected production.
The following table summarizes the Company's hedges in place on a monthly basis by commodity type.
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Our principal exposure to credit risk is through receivables from the sale of our oil and natural gas production (approximately $37.9 million as of December 31, 2023).
−Removed: We are subject to credit risk due to the concentration of our oil and natural gas receivables with our most significant customers.
−Removed: We do not require our customers to post collateral, and the inability of our significant customers to meet their obligations to us or their insolvency or liquidation may adversely affect our financial results.
−Removed: For the year ended December 31, 2022, sales to three customers, Phillips, NGL Crude, and Enterprise represented 68%, 13% and 5%, respectively, of our oil, natural gas, and natural gas liquids revenues.
−Removed: As of December 31, 2022, Phillips represented 69% of our accounts receivable, NGL Crude represented 7% of our accounts receivable and Enterprise represented 10% of our accounts receivable.
−Removed: We believe that the loss of any of these customers would not materially impact our business because we could readily find other purchasers for our oil and natural gas.
+Added: We are subject to credit risk due to the concentration of our oil and natural gas receivables with our most significant customers, or purchasers.
+Added: We do not require our purchasers to post collateral, and the inability of our significant purchasers to meet their obligations to us or their insolvency or liquidation may adversely affect our financial results.
+Added: The following table sets forth certain information regarding the top three purchasers of our oil, natural gas, and NGLs for the year ended December 31, 2023.
+Added: We believe that the loss of any of these purchasers would not materially impact our business because we could readily find other purchasers for our oil and natural gas.
+Added: For the Year Ended
+Added: December 31, 2023
+Added: December 31, 2023
+Added: Percentage of Oil, Natural Gas, and Natural Gas Liquids Revenues
+Added: Percentage of accounts receivables from the sale of our oil and natural gas production
+Added: Phillips 66 Company ("Phillips")
+Added: Enterprise Crude Oil LLC ("Enterprise")
+Added: NGL Crude Partners ("NGL Crude")
Interest Rate Risk
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Changes in interest rates affect the interest earned on the Company’s cash and cash equivalents and the interest rate paid on borrowings under the Credit Facility.
−Removed: As of December 31, 2022, we had $415.0 million outstanding on our Credit Facility with a weighted average interest rate of 5.8%.
+Added: As of December 31, 2023, we had $425.0 million outstanding on our Credit Facility with a weighted average annual interest rate for the year then ended of 8.8%.
A 1% change in the interest rate on our Credit Facility would result in an estimated $4.3 million change in our annual interest expense.
−Removed: See "Note 10 - REVOLVING LINE OF CREDIT" in the Footnotes to the financial statements for more information on the Company’s interest rates on our Credit Facility.
+Added: See "Note 9 — REVOLVING LINE OF CREDIT" in the notes to the financial statements for more information on the Company’s interest rates of our Credit Facility.
Currently, we do not use interest rate derivative instruments to manage exposure to interest rate changes.
+Added: Currency Exchange Rate Risk
+Added: Foreign sales accounted for none of the Company's sales;
+Added: the Company accepts payment for its commodity sales only in U.S.
+Added: Ring is therefore not exposed to foreign currency exchange rate risk on these sales.
Please also see Item 1A “Risk Factors” above for a discussion of other risks and uncertainties we face in our business.
3 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.