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: 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, 2020, we had no open commodity derivative contracts.
+Added: We may use a variety of commodity-based derivative contracts, including fixed price swaps, basis swaps and collars.
+Added: At December 31, 2021, the Company's open derivative contracts consisted of natural gas and NGL commodity derivative contracts under which we will receive a fixed price for the contract and pay a floating market price to the counterparty over a specified period for a contracted volume.
+Added: These commodity derivative contracts consisted of the following:
+Added: Notional Units Weighted Average Fixed Price per Unit
+Added: NGL Price Swaps:
+Added: January 2022 - February 2022 1,042,000 Gallons $ 1.20
+Added: Natural Gas Price Swaps:
+Added: January 2022 - February 2022 720,000 MMBtu $ 4.07
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: (Gain) loss on commodity derivative contracts $ (5,765) $ (1,094)
−Removed: Cash (received) paid on settlements $ (5,879) $ (6,266)
−Removed: As of December 31, 2020, the Company had no derivative contracts.
+Added: Loss (gain) on commodity derivative contracts $ 2,251 $ (5,765)
+Added: Cash paid (received) on settlements $ 2,230 $ (5,879)
See “Note 6—Derivatives” to the accompanying consolidated financial statements in Item 8 of this report for additional information regarding our commodity derivatives.
4 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 have been with multiple counterparties to minimize exposure to any individual counterparty.
+Added: Historically, derivative contracts have been with multiple counterparties to minimize exposure to any individual counterparty, and in addition our counterparties have been large financial institutions.
We do not require collateral or other security from counterparties to support derivative instruments.
−Removed: We have master netting agreements with each of our derivative contract counterparties, which allow us to net our derivative assets and liabilities by commodity type with the same counterparty.
+Added: We have master netting agreements with our derivative contract counterparties, which allow us to net our derivative assets and liabilities by commodity type with the same counterparty.
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.
3 unchanged sentences
Interest Rate Risk.
−Removed: We are exposed to interest rate risk on our New Credit Facility.
−Removed: 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.
−Removed: We had $20.0 million in outstanding variable rate debt as of December 31, 2020.
+Added: We were exposed to interest rate risk under the 2020 Credit Facility.
+Added: The variable interest rate on our 2020 Credit Facility fluctuated, and exposed us to short-term changes in market interest rates as our interest obligations on this instrument were periodically redetermined based on prevailing market interest rates, primarily LIBOR.
+Added: The 2020 Credit Facility was terminated during the second half of 2021.
+Added: See "Note — 11 Long-Term Debt" to the accompanying consolidated financial statements in Item 8 of this report for further discussion.
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.