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Commodity-price risk.
−Removed: Certain of our processing services are provided under percent-of-proceeds and keep-whole agreements for which Occidental is typically responsible for the marketing of the natural gas, condensate, and NGLs.
+Added: Certain of our processing services are provided under percent-of-proceeds and keep-whole agreements.
Under percent-of-proceeds agreements, we receive a specified percentage of the net proceeds from the sale of residue and/or NGLs.
Under keep-whole agreements, we keep 100% of the NGLs produced, and the processed natural gas, or value of the natural gas, is returned to the producer, and because some of the gas is used and removed during processing, we compensate the producer for the amount of gas used and removed in processing by supplying additional gas or by paying an agreed-upon value for the gas used.
−Removed: For the year ended December 31, 2019 , 93% of our wellhead natural-gas volume (excluding equity investments) and 100% of our crude-oil, NGLs, and produced-water throughput (excluding equity investments) were serviced under fee-based contracts.
−Removed: A 10% increase or decrease in commodity prices would not have a material impact on our operating income (loss), financial condition, or cash flows for the next twelve months, excluding the effect of imbalances described below.
+Added: For the year ended December 31, 2020, 93% of our wellhead natural-gas volume (excluding equity investments) and 100% of our crude-oil and produced-water throughput (excluding equity investments) were serviced under fee-based contracts.
+Added: A 10% increase or decrease in commodity prices would not have a material impact on our operating income (loss), financial condition, or cash flows for the next twelve months, excluding the effect of the below-described imbalances.
We bear a limited degree of commodity-price risk with respect to settlement of natural-gas imbalances that arise from differences in gas volumes received into our systems and gas volumes delivered by us to customers, and for instances where actual liquids recovery or fuel usage varies from contractually stipulated amounts.
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Other natural-gas volumes owed to or by us are valued at our weighted-average cost of natural gas as of the balance sheet dates and are settled in-kind.
−Removed: Our exposure to the impact of changes in commodity prices on outstanding imbalances depends on the timing of settlement of the imbalances.
+Added: Our exposure to the impact of changes in commodity prices on outstanding imbalances depends on the settlement timing of the imbalances.
+Added: See General Trends and Outlook under Part II, Item 7 and Risk Factors under Part I, Item 1A of this Form 10-K.
Interest-rate risk.
−Removed: The FOMC raised its target range for the federal funds rate four separate times during 2018 and has decreased its target range three times in 2019.
+Added: The FOMC decreased its target range for the federal funds rate three times during 2019 and twice in 2020.
Any future increases in the federal funds rate likely will result in an increase in short-term financing costs.
−Removed: As of December 31, 2019 , we had $380.0 million in outstanding borrowings under the RCF and $3.0 billion in outstanding borrowings under the Term loan facility.
−Removed: The RCF and Term loan facility each bear interest at a rate based on LIBOR or an alternative base rate at WES Operating’s option.
−Removed: While a 10% change in the applicable benchmark interest rate would not materially impact interest expense on outstanding borrowings under the RCF and Term loan facility, it would impact the fair value of the Senior Notes at December 31, 2019 .
+Added: As of December 31, 2020, we had (i) no outstanding borrowings under the RCF that bear interest at a rate based on LIBOR or an alternative base rate at WES Operating’s option, and (ii) the Floating-Rate Senior Notes that bear interest at a rate based on LIBOR.
+Added: While a 10% change in the applicable benchmark interest rate would not materially impact interest expense on our outstanding borrowings, it would impact the fair value of the senior notes at December 31, 2020.
+Added: See General Trends and Outlook under Part II, Item 7 and Risk Factors under Part I, Item 1A of this Form 10-K.
Additional variable-rate debt may be issued in the future, either under the RCF or other financing sources, including commercial bank borrowings or debt issuances.
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.