Minimum Hedging Requirements Clause Samples
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Minimum Hedging Requirements. (a) The Borrower shall provide to the Administrative Agent on or before December 31, 2018, evidence satisfactory to the Administrative Agent that the Borrower has entered into (and thereafter, the Borrower shall maintain in effect) Hedge Transactions with Approved Counterparties for commodity prices with respect to the monthly notional volumes of crude oil and natural gas (calculated on an equivalent basis) such that the notional volumes of all crude oil and natural gas related Hedge Transactions of the Borrower, in the aggregate, equal or exceed (but subject to limitations set forth in Section 7.12) fifty percent (50%) of the Loan Parties’ reasonably anticipated projected production of crude oil and natural gas (calculated on an equivalent basis) from Oil and Gas Properties comprising Proved Developed Producing Reserves of the Loan Parties evaluated in the Initial Engineering Report for each remaining calendar month during the period from the Closing Date through the period ending twelve (12) full calendar months after the Closing Date.
(b) Without limiting the foregoing requirements set forth in Section 6.19(a) in any manner (and subject to limitations set forth in Section 7.12), from and after December 31, 2018, the Borrower shall enter into from time to time (and thereafter, the Borrower shall maintain in effect) Hedge Transactions with Approved Counterparties in respect of commodity prices for crude oil and natural gas such that the notional aggregate volumes of crude oil and natural gas covered by all Hedge Transactions of the Borrower as of any date of determination equal or exceed (i) fifty percent (50%) of the reasonably anticipated projected production of natural gas and crude oil (calculated on an equivalent basis) from Oil and Gas Properties comprising Proved Developed Producing Reserves of the Loan Parties evaluated in the Initial Engineering Report or the then most recently delivered Engineering Report, for each month during the period of twelve consecutive full calendar months immediately following any such date of determination and (ii) twenty-five percent (25%) of the reasonably anticipated projected production of natural gas and crude oil (calculated on an equivalent basis) from Oil and Gas Properties comprising Proved Developed Producing Reserves of the Loan Parties evaluated in the Initial Engineering Report or the then most recently delivered Engineering Report, for each month during the period of twelve (12) consecutive full calendar ...
Minimum Hedging Requirements. The Borrower shall not permit, and shall not permit any of its Restricted Subsidiaries to permit, as of the last day of each calendar month (the "Measurement Date"), the notional volumes of PDP Reserves covered by Hydrocarbon Hedge Contracts to which the Borrower or any Guarantor is then a party (other than basis differential swaps on volumes already hedged pursuant to other Hedge Contracts) to be less than 50% of the Anticipated Production of PDP Reserves for the twenty-four month period immediately following the Measurement Date; provided that, the hedge positions of such Hydrocarbon Hedge Contracts shall be calculated on an annual basis from such Measurement Date. 86
Minimum Hedging Requirements. (a) The Borrower shall provide to the Administrative Agent within sixty (60) days after the Effective Date evidence satisfactory to the Administrative Agent that the Borrower has entered into (and thereafter, the Borrower shall maintain in effect) Hedge Transactions with Approved Counterparties with respect to at least the notional volumes of natural gas and crude oil, as applicable, such that the notional volumes of all natural gas related Hedge Transactions and crude oil related Hedge Transactions of the Borrower and its Restricted Subsidiaries, in the aggregate, equal or exceed fifty percent (50%) of the Borrower’s and its Restricted Subsidiaries’ reasonably anticipated projected production of natural gas and crude oil, calculated separately, for the period of twelve (12) consecutive full calendar months beginning with the first full month following the date on which such evidence is delivered to the Administrative Agent.
(b) Without limiting the foregoing requirements set forth in Section 5.10(a) in any manner (and subject to limitations set forth in Section 6.18), from and after the date that is sixty (60) days after date on which the Borrower shall have delivered to the Administrative Agent each Reserve Report under Section 5.14 (or in connection with an Interim Redetermination), the Borrower shall enter into (and thereafter, the Borrower shall maintain in effect) Hedge Transactions with Approved Counterparties in respect of natural gas and crude oil so that the notional aggregate volumes of natural gas and crude oil covered by all Hedge Transactions of the Borrower as of any date of determination equal or exceed fifty percent (50%) of the reasonably anticipated projected production of natural gas and crude oil, calculated separately, from Oil and Gas Properties comprising proved developed producing reserves of the Borrower and its Restricted Subsidiaries evaluated in such Reserve Report for the period of twelve consecutive full calendar months beginning with the first full month following the date such Reserve Report is delivered to the Administrative Agent (and shall, upon request, provide to the Administrative Agent reasonable evidence satisfactory to the Administrative Agent demonstrating the Borrower’s compliance with the foregoing).
Minimum Hedging Requirements. The Borrower shall provide to the Administrative Agent on or before December 31, 2018, evidence satisfactory to the Administrative Agent that the Borrower has entered into (and thereafter, the Borrower shall maintain in effect) Hedge Transactions with Approved Counterparties for commodity prices with respect to the monthly notional volumes of crude oil and natural gas (calculated on an equivalent basis) such that the notional volumes of all crude oil and natural gas related Hedge Transactions of the Borrower, in the aggregate, equal or exceed (but subject to limitations set forth in Section 7.12) fifty percent (50%) of the Loan Parties’ reasonably anticipated projected production of crude oil and natural gas (calculated on an equivalent basis) from Oil and Gas Properties comprising Proved Developed Producing Reserves of the Loan Parties evaluated in the Initial Engineering Report for each remaining calendar month during the period from the Closing Date through the period ending twelve (12) full calendar months after the Closing Date.
Minimum Hedging Requirements. The Loan Parties shall at all times maintain one or more Swap Agreements hedging notional amounts of crude oil and natural gas, as applicable, covering not less than, (i) for each calendar month from the Effective Date through the calendar year ending December 31, 2018, 80%, (ii) for each calendar month during the calendar year ending December 31, 2019, 60%, and (iii) for each calendar month during the calendar year ending December 31, 2020, 40%, in each case, of the reasonably anticipated production of such crude oil and natural gas constituting PDP Reserves for such calendar month as such anticipated production is set forth in the most recent Reserve Report delivered to the Administrative Agent and the Lenders pursuant to Section 8.12.
Minimum Hedging Requirements. No later than 60 days after the Closing Date, the Borrower shall have entered into Swap Contracts in respect of commodities, the notional volumes for which are at least 50% of the projected production from Proved Developed Producing Reserves, and no later than 90 days after the Closing Date, the Borrower shall have entered into Swap Contracts, in the aggregate, the notional volumes for which are at least 75% of the projected production from Proved Developed Producing Reserves, as reasonably anticipated as of the Closing Date, for each month during the period during which such Swap Contract is in effect for each of crude oil, natural gas, natural gas liquids and realized prices for the natural gas production from the Marcellus region, each calculated separately (it being understood and agreed that (x) natural gas liquids volumes may be hedged directly or for crude oil volumes in a 2:1 ratio and (y) the realized prices for the Marcellus natural gas can be hedged directly using Swap Contracts for the realized prices, or indirectly using the Swap Contracts on the price differentials between a regional commodity hub and ▇▇▇▇▇ Hub) for the period commencing on the Closing Date until the two year anniversary of the Closing Date.
Minimum Hedging Requirements. (a) From the Second Amendment Effective Date until March 31, 2026, the Borrower shall main the Swap Agreements and Hedge Transactions in effect on the Second Amendment Effective Date (which are set forth on Schedule 6.19).
(b) From and after the Second Amendment Effective Date, the Borrower shall enter into from time to time (and thereafter, the Borrower shall maintain in effect) Hedge Transactions with Approved Counterparties in respect of commodity prices for crude oil and natural gas such that the notional aggregate volumes of crude oil and natural gas covered by all Hedge Transactions of the Borrower as of any date of determination equal or exceed the Minimum Hedging Requirement. Notwithstanding anything to the contrary within this Agreement, in no ways shall any “three ways hedging” be included for purposes of determining compliance with this Section 6.19, and the Borrower shall not enter into any collar transaction that has a floor less than eighty-five percent (85%) of the Strip Price as of the date the Borrower enters into such transaction.
(c) Commencing with the fiscal quarter ending September 30, 2023, not later than five (5) Business Days after the end of each fiscal quarter, the Borrower shall provide to the Administrative Agent, evidence reasonably satisfactory to the Administrative Agent demonstrating the Borrower’s compliance with the foregoing requirements of clause (b) of this Section 6.19; for the avoidance of doubt, compliance with the above requirements in clause (b) of this Section 6.19 shall be tested on a quarterly basis commencing with the fiscal quarter ending March 31, 2026.