6 unchanged sentences
Due to the historical price volatility of these commodities, from time to time, depending upon our view of opportunities under the then-prevailing market conditions, we enter into commodity pricing derivative contracts for a portion of our anticipated production volumes for the purpose of reducing the variability of oil and natural gas prices we receive.
−Removed: Our credit facility limits our ability to enter into derivative transactions to 90% of expected production volumes from estimated proved reserves.
We use, and may continue to use, a variety of commodity-based derivative contracts, including fixed price swaps, basis swaps and collars.
−Removed: At December 31, 2019, our commodity derivative contracts consisted of oil fixed price swaps under which we receive a fixed price for the contract and pay a floating market price to the counterparty over a specified period for a contracted volume.
−Removed: Our oil fixed price swap transactions are settled based upon the last day settlement of the first nearby month futures contract of the contract period and are settled in the production month.
−Removed: At December 31, 2019, our open commodity derivative contracts consisted of the following:
−Removed: Oil Price Swaps
−Removed: Notional (MBbls) Weighted Average
−Removed: January 2020 - March 2020 273 $ 61.05
−Removed: In addition to the contracts outstanding at December 31, 2019 shown above, in January 2020, we executed oil swap contracts with two counterparties covering 182 MBbls of second quarter 2020 oil sales at a weighted average strike price of $60.00/Bbl.
+Added: At December 31, 2020, we had no open commodity derivative contracts.
Because we have not designated any of our derivative contracts as hedges for accounting purposes, changes in fair values of our derivative contracts are recognized as gains and losses in current period earnings.
3 unchanged sentences
Year Ended December 31,
−Removed: 2019 2018 2017
(Gain) loss on commodity derivative contracts $ (5,765) $ (1,094)
Cash (received) paid on settlements $ (5,879) $ (6,266)
−Removed: See “Note 6—Derivatives” to the consolidated financial statements in Item 8 of this report for additional information regarding our commodity derivatives.
+Added: As of December 31, 2020, the Company had no derivative contracts.
+Added: See “Note 6—Derivatives” to the accompanying consolidated financial statements in Item 8 of this report for additional information regarding our commodity derivatives.
We are exposed to credit risk related to counterparties to our derivative financial contracts.
3 unchanged sentences
We monitor the credit ratings of our derivative counterparties and consider our counterparties’ credit default risk ratings in determining the fair value of our derivative contracts.
−Removed: Our derivative contracts are with multiple counterparties to minimize exposure to any individual counterparty.
+Added: Our derivative contracts have been with multiple counterparties to minimize exposure to any individual counterparty.
We do not require collateral or other security from counterparties to support derivative instruments.
1 unchanged sentence
As a result of the netting provisions, our maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from the counterparties under the commodity derivative contracts.
−Removed: Our loss is further limited as any amounts due from a defaulting counterparty that is a lender under the credit facility can be offset against amounts owed, if any, to such counterparty.
−Removed: As of December 31, 2019, the counterparties to our open commodity derivative contracts consisted of three financial institutions, all of which are also lenders under the credit facility.
−Removed: As a result, we are not required to post additional collateral under our commodity derivative contracts.
+Added: Therefore, we are not required to post additional collateral under our commodity derivative contracts.
We are also exposed to credit risk related to the collection of receivables from our joint interest partners for their proportionate share of expenditures made on projects we operate.
1 unchanged sentence
Interest Rate Risk.
−Removed: We are exposed to interest rate risk on our credit facility.
−Removed: This variable interest rate on our credit facility fluctuates, and exposes us to short-term changes in market interest rates as our interest obligations on this instrument is periodically redetermined based on prevailing market interest rates, primarily LIBOR and the federal funds rate.
+Added: We are exposed to interest rate risk on our New Credit Facility.
+Added: This variable interest rate on our New Credit Facility fluctuates, and exposes us to short-term changes in market interest rates as our interest obligations on this instrument is periodically redetermined based on prevailing market interest rates, primarily LIBOR.
We had $20.0 million in outstanding variable rate debt as of December 31, 2020.
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.