10 unchanged sentences
Long-term debt, including current portion:
−Removed: $ 894 $ 2,025 $ 1,477 $ 2,280 $ 1,617 $ 14,051 $ 22,344 $ 27,043
+Added: Fixed rate $ 2,026 $ 1,478 $ 2,281 $ 1,619 $ 1,244 $ 15,027 $ 23,675 $ 27,768
Weighted-average interest rate 4.9 % 5.0 % 5.1 % 5.1 % 5.1 % 5.1 %
−Removed: 5.0 % 5.1 % 5.2 % 5.3 % 5.4 % 5.4 %
2021 2022 2023 2024 2025 Thereafter (1) Total Fair Value December 31, 2020
3 unchanged sentences
__________________
−Removed: __________________
(1) Includes unamortized discount / premium and debt issuance costs.
Commodity Price Risk
−Removed: We are exposed to the impact of fluctuations in the market price of NGLs and natural gas, as well as other market factors, such as market volatility and energy commodity price correlations.
+Added: We are exposed to the impact of fluctuations in the market price of natural gas, NGLs, and crude oil as well as other market factors, such as market volatility and energy commodity price correlations.
We are exposed to these risks in connection with our owned energy-related assets, our long-term energy-related contracts, and limited proprietary trading activities.
1 unchanged sentence
The fair value of derivative contracts is subject to many factors, including changes in energy commodity market prices, the liquidity and volatility of the markets in which the contracts are transacted, and changes in interest rates.
−Removed: At December 31, 2020 and 2019, our derivative activity was not material.
+Added: Sequent routinely utilizes various types of derivative instruments to economically hedge certain commodity price risks inherent in the natural gas marketing industry.
+Added: These instruments include a variety of exchange-traded and OTC energy contracts such as forward contracts, futures contracts, and basis swaps, as well as physical transactions that qualify as derivatives.
+Added: These economic hedging activities are not designated and do not qualify for hedge accounting treatment.
+Added: The maturities of Sequent’s derivative contracts at December 31, 2021 were as follows:
+Added: Value Maturity
+Added: Fair Value Measurements Using (1) 2022 2023 - 2024 2025 - 2026+
+Added: Level 1 $ (69) $ (49) $ (30) $ 10
+Added: Level 2 (317) (77) (108) (132)
+Added: Level 3 (16) (13) (11) 8
+Added: Fair value of contracts outstanding at end of period (2) $ (402) $ (139) $ (149) $ (114)
+Added: _______________
+Added: (1) See Note 17 – Fair Value Measurements, Guarantees, and Concentration of Credit Risk of Notes to Consolidated Financial Statements for discussion of valuation techniques by level within the fair value hierarchy.
+Added: See Note 18 – Derivatives for the amount of change in fair value recognized in the Consolidated Statement of Income.
+Added: (2) Excludes cash collateral of $267 million in Level 1.
+Added: Sequent Value at Risk (VaR)
+Added: VaR is the maximum potential loss in portfolio value over a specified time period that is not expected to be exceeded within a given degree of probability.
+Added: Sequent’s VaR may not be comparable to that of other companies due to differences in the factors used to calculate VaR.
+Added: Sequent’s VaR is determined using a parametric model with a 95 percent confidence interval and a one-day holding period, which means that 95 percent of the time, the risk of loss in a day from a portfolio of positions is expected to be less than or equal to the amount of VaR calculated.
+Added: The open exposure of Sequent is managed in accordance with established policies that limit market risk and require daily reporting of potential financial exposure to senior management.
+Added: Because Sequent generally manages physical gas assets and economically protects its positions by hedging in the futures markets, Sequent’s open exposure is generally mitigated.
+Added: Sequent employs daily risk testing, using both VaR and stress testing, to evaluate the risk of its positions.
+Added: Sequent actively monitors open commodity positions and the resulting VaR and maintains a relatively small risk exposure as total buy volume is close to sell volume, with minimal open natural gas price risk.
+Added: Sequent had the following VaRs for the period subsequent to the Sequent Acquisition:
+Added: Six Months Ended December 31, 2021
+Added: Average $ 3.6
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.