2 unchanged sentences
Commodity Price Risk.
−Removed: UNL is exposed to commodity price risk.
+Added: UNL is exposed to commodity price
In particular, UNL is exposed to natural gas price risk through its holdings of Futures Contracts together
1 unchanged sentence
As a result, fluctuations in the value of the Futures
−Removed: Contracts that UNL holds in its portfolio, as described in “Contractual Obligations"
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations"
−Removed: above, are expected to
−Removed: directly affect the value of UNL's shares.
+Added: Contracts that UNL holds in its portfolio, as described in “Contractual Obligations"
+Added: under “Item 7.
+Added: Management’s
+Added: Discussion and Analysis of Financial Condition and Results of Operations"
+Added: above, are expected to directly affect the value
+Added: of UNL’s shares.
OTC Contract Risk
5 unchanged sentences
UNL may enter into certain transactions
−Removed: where an OTC component is exchanged for a corresponding futures contract (“Exchange for Related Position” or “EFRP”
+Added: where an OTC component is exchanged for a corresponding futures contract (“Exchange for Related Position”
+Added: or “EFRP”
transactions).
19 unchanged sentences
or terminated only by mutual consent of the original parties and subject to agreement on individually negotiated terms.
−Removed: it may not be possible for USCF to modify, terminate or offset UNL's obligations or its exposure to the risks associated with
−Removed: a transaction prior to its scheduled termination date.
+Added: it may not be possible for USCF to modify, terminate or offset UNL’s obligations or its exposure to the risks associated
+Added: with a transaction prior to its scheduled termination date.
To reduce the credit risk that arises in
4 unchanged sentences
USCF assesses or reviews, as appropriate,
−Removed: the creditworthiness of each potential or existing counterparty to an OTC swap pursuant to guidelines approved by USCF’s
−Removed: board of directors (the "Board").
−Removed: Furthermore, USCF on behalf of UNL only enters into OTC swaps with counterparties
−Removed: who are, or are affiliates of, (a) banks regulated by a United States federal bank regulator, (b) broker-dealers regulated by the
−Removed: SEC, (c) insurance companies domiciled in the United States, or (d) producers, users or traders of energy, whether or not regulated
−Removed: Any entity acting as a counterparty shall be regulated in either the United States or the United Kingdom unless otherwise
−Removed: approved by the Board after consultation with its legal counsel.
+Added: the creditworthiness of each potential or existing counterparty to an OTC swap pursuant to guidelines approved by the Board.
+Added: USCF on behalf of UNL only enters into OTC swaps with counterparties who are, or are affiliates of, (a) banks regulated
+Added: by a United States federal bank regulator, (b) broker-dealers regulated by the SEC, (c) insurance companies domiciled
+Added: in the United States, or (d) producers, users or traders of energy, whether or not regulated by the CFTC.
+Added: Any entity acting
+Added: as a counterparty shall be regulated in either the United States or the United Kingdom unless otherwise approved by the Board after
+Added: consultation with its legal counsel.
Existing counterparties are also reviewed periodically by USCF.
−Removed: will also require that the counterparty be highly rated and/or provide collateral or other credit support.
−Removed: Even if collateral is
−Removed: used to reduce counterparty credit risk, sudden changes in the value of OTC transactions may leave a party open to financial risk
−Removed: due to a counterparty default since the collateral held may not cover a party’s exposure on the transaction in such situations.
+Added: UNL will also require
+Added: that the counterparty be highly rated and/or provide collateral or other credit support.
+Added: Even if collateral is used to reduce counterparty
+Added: credit risk, sudden changes in the value of OTC transactions may leave a party open to financial risk due to a counterparty default
+Added: since the collateral held may not cover a party’s exposure on the transaction in such situations.
In general, valuing OTC derivatives is
7 unchanged sentences
value for an outstanding OTC derivatives transaction.
−Removed: During the reporting period of this
−Removed: annual report on Form 10-K, UNL limited its OTC activities to EFRP transactions.
+Added: During the reporting period of this annual
+Added: report on Form 10-K, UNL limited its OTC activities to EFRP transactions.
UNL anticipates that the use of Other
3 unchanged sentences
OTC swaps may result in higher transaction-related
−Removed: expenses than the brokerage commissions paid in connection with the purchase of Futures Contracts, which may impact UNL's
+Added: expenses than the brokerage commissions paid in connection with the purchase of Futures Contracts, which may impact UNL’s
ability to successfully track the Benchmark Futures Contracts.
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.