Common use of Minimum Hedging Clause in Contracts

Minimum Hedging. Commencing from and after March 31, 2022, the Borrower shall maintain Hedge Agreements (other than three-way collars) with one or more Approved Counterparties hedging minimum notional volumes of (i) at least 75% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the first full calendar month following each Minimum Hedging Requirement Date (as hereinafter defined) through and including the 24th full calendar month following each such Minimum Hedging Requirement Date and (ii) at least 50% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the 25th full calendar month following each such Minimum Hedging Requirement Date through and including the 36th full calendar month following each such Minimum Hedging Requirement Date; provided, that in the case of each of the foregoing clauses (i) and (ii), the notional volumes hedged under such Hedge Agreements shall be deemed reduced by the notional volumes of any short puts or other similar derivatives having the effect of exposing the Borrower or any other Loan Party to commodity price risk below the “floor” created by such Hedge Agreements of the Loan Parties for each applicable calendar month. On or prior to the date each Reserve Report (other than the Initial Reserve Report) is required to be delivered by the Borrower pursuant to Section 8.11(a) (each, a “Minimum Hedging Requirement Date”), the Borrower shall deliver evidence in form and substance satisfactory to the Administrative Agent that it has entered into Hedge Agreements to be in compliance with this Section 8.17 as of such Minimum Hedging Requirement Date. 2.4 Section 9.18 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:

Minimum Hedging. Commencing from and after March 31, 2022, the Borrower shall maintain Hedge Agreements (other than three-way collars) with one or more Approved Counterparties hedging minimum notional volumes of (i) at least 75% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the first full calendar month following each Minimum Hedging Requirement Date (as hereinafter defined) through and including the 24th full calendar month following each such Minimum Hedging Requirement Date and (ii) at least 50% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the 25th full calendar month following each such Minimum Hedging Requirement Date through and including the 36th full calendar month following each such Minimum Hedging Requirement Date; providedprovided that, notwithstanding the foregoing, until the Minimum Hedging Requirement Date occurring on October 1, 2022, Borrower shall not be required to maintain any Hedge Agreements pursuant to this Section 8.17 for any full calendar month from and after January 1, 2025; provided further, that in the case of each of the foregoing clauses (i) and (ii), the notional volumes hedged under such Hedge Agreements shall be deemed reduced by the notional volumes of any short puts or other similar derivatives having the effect of exposing the Borrower or any other Loan Party to commodity price risk below the “floor” created by such Hedge Agreements of the Loan Parties for each applicable calendar month. On or prior to the date each Reserve Report (other than the Initial Reserve Report) is required to be delivered by the Borrower pursuant to Section 8.11(a) (each, a “Minimum Hedging Requirement Date”), the Borrower shall deliver evidence in form and substance satisfactory to the Administrative Agent that it has entered into Hedge Agreements to be in compliance with this Section 8.17 as of such Minimum Hedging Requirement Date. 2.4 Section 9.18 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:

Minimum Hedging. Commencing from The Borrower will, within thirty (30) days after the Closing Date enter into, and after March 31will thereafter maintain on a rolling twenty-four (24) month basis, 2022Hedging Transactions in the form of swap agreements, the Borrower shall maintain Hedge Agreements puts, calls in connection with puts and/or collars (but not three way collars, other than three-three way collars) with one or more Approved Counterparties hedging minimum notional volumes collars in existence as of (i) at least 75% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative AgentJuly 1, for each full calendar month during the period from and including the first full calendar month following each Minimum Hedging Requirement Date (as hereinafter defined) through and including the 24th full calendar month following each such Minimum Hedging Requirement Date and (ii) at least 50% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the 25th full calendar month following each such Minimum Hedging Requirement Date through and including the 36th full calendar month following each such Minimum Hedging Requirement Date; provided, 2022 that in the case of each of the foregoing clauses (i) and (ii), the notional volumes hedged under such Hedge Agreements shall be deemed reduced by the notional volumes of any short puts or other similar derivatives having the effect of exposing the Borrower or any other Loan Party to commodity price risk below the “floor” created by such Hedge Agreements of the Loan Parties for each applicable calendar month. On or prior to the date each Reserve Report (other than the Initial Reserve Report) is required to be delivered are acquired by the Borrower pursuant to Section 8.11(athe Stronghold Transactions) (each, a “Minimum Hedging Requirement Date”), the Borrower shall deliver evidence in form and substance satisfactory at prices reasonably acceptable to the Administrative Agent that it has entered into Hedge Agreements (and, in the case of collars, on terms reasonably acceptable to the Administrative Agent) in respect of crude oil and natural gas, on not less than fifty percent (50%) (such percentage, as adjusted from time to time pursuant to the proviso at the end of this sentence, the “Required Hedging Percentage”) of the projected production from the Loan Parties’ proved, developed, producing Oil and Gas Properties (as reflected in the most recently delivered Reserve Report (and, for the avoidance of doubt, from the Closing Date until the date the first Reserve Report is delivered pursuant to this Agreement, the Initial Reserve Report shall be deemed to be in compliance with this Section 8.17 the “most recently delivered Reserve Report”)); provided, that, (a) if on any Hedge Testing Date (i) the Borrowing Base Utilization Percentage as of such Minimum Hedge Testing Date is less than twenty-five percent (25%) and (ii) the Leverage Ratio (as reflected in the Compliance Certificate delivered on such Hedge Testing Date) is not greater than 1.25 to 1.00, the Required Hedging Requirement Date. 2.4 Section 9.18 Percentage for months thirteen (13) through twenty-four (24) of the Credit Agreement rolling twenty-four (24) month period provided for in this Section 5.19 shall be zero percent (0%) from such Hedge Testing Date to the next succeeding Hedge Testing Date, and (b) if on any Hedge Testing Date (i) the Borrowing Base Utilization Percentage as of such Hedge Testing Date is hereby amended equal to or greater than twenty-five percent (25%), but less than fifty percent (50%) and restated (ii) the Leverage Ratio (as reflected in its the Compliance Certificate delivered on such Hedge Testing Date) is not greater than 1.25 to 1.0, the Required Hedging Percentage for months thirteen (13) through twenty-four (24) of the rolling twenty-four (24) month period provided for in this Section 5.19 shall be twenty-five percent (25%) from such Hedge Testing Date to the next succeeding Hedge Testing Date (the “Required Hedging Partial Suspension Right”). If the Borrower fails to timely deliver financial statements pursuant to Section 5.1(b), an accompanying Compliance Certificate pursuant to Section 5.1(c) and a certificate pursuant to Section 5.1(e) at any time the Required Hedging Partial Suspension Right is utilized, the Required Hedging Percentage shall (unless the Administrative Agent otherwise consents, which consent shall be in the Administrative Agent’s sole discretion) be set at fifty percent (50%) for the entirety of the rolling twenty-four (24) month period provided for in this Section 5.19 from the date such financial statements, Compliance Certificate and certificate were due until the next succeeding Hedge Testing Date. If the Borrower seeks to read utilize the Required Hedging Partial Suspension Right for any Hedge Testing Date associated with a Fiscal Quarter ending December 31, the Borrower will, notwithstanding the parenthetical in full as follows:Section 5.1(c), deliver a Compliance Certificate with the financial statements delivered pursuant to Section 5.1(b).

Minimum Hedging. Commencing from and after March 31(a) The Credit Parties shall enter into and, 2022subject to Section 9.16(b), maintain in effect at all times Swap Agreements with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes, the Borrower shall maintain Hedge Agreements (other than three-way collars) with one or more Approved Counterparties hedging minimum notional volumes of which are at least, (i) at least for each month during the twenty-four (24) calendar month period immediately following the Initial Funding Date, seventy-five percent (75% %) of the reasonably anticipated projected production (measured on a Bbl basis and not, for the avoidance of crude oil doubt, on a volumetric basis) from the Credit Parties’ Oil and Gas Properties classified constituting PDP Reserves (as “proved developed producing” set forth in the most recent Reserve Report most recently delivered pursuant to the Administrative Agent, for each full calendar month during the period from and including the first full calendar month following each Minimum Hedging Requirement Date (as hereinafter definedterms of this Agreement) through and including the 24th full calendar month following each such Minimum Hedging Requirement Date of crude oil and (ii) at least for each month during the twenty-fifth (25) through thirty-sixth (36) calendar month period following the Initial Funding Date, fifty percent (50% %) of the reasonably anticipated projected production (measured on a Bbl basis and not, for the avoidance of crude oil doubt, on a volumetric basis) from the Credit Parties’ Oil and Gas Properties classified constituting PDP Reserves (as “proved developed producing” set forth in the most recent Reserve Report most recently delivered pursuant to the Administrative Agentterms of this Agreement) of crude oil). Such Swap Agreements shall be Existing Swaps or otherwise in the form of fixed price swaps (at market prices) or “costless collars”. (b) On each Minimum Hedging Test Date, the Credit Parties shall enter into and, subject to Section 9.16(b), maintain in effect at all times Swap Agreements with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes, the notional volumes of which are at least, for each full calendar month during a rolling period of twenty-four (24) calendar months commencing with the end of the then next upcoming month end, seventy-five percent (75%) of the reasonably anticipated projected production (measured on a Bbl basis and not, for the avoidance of doubt, on a volumetric basis) from the Credit Parties’ Oil and Gas Properties constituting PDP Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of crude oil and (ii) for each month during a rolling period of twelve (12) months commencing with the end of the then month end of the twenty-fifth (25) month from the date of determination, fifty percent (50%) of the reasonably anticipated projected production (measured on a Bbl basis and including not, for the 25th full calendar month following each such Minimum Hedging Requirement Date through avoidance of doubt, on a volumetric basis) from the Credit Parties’ Oil and including Gas Properties constituting PDP Reserves (as set forth in the 36th full calendar month following each such Minimum Hedging Requirement most recent Reserve Report delivered pursuant to the terms of this Agreement) of crude oil). Such Swap Agreements shall be in the form of fixed price swaps (at market prices) or “costless collars” or with respect to the Existing Swaps, in the form of the Existing Swaps as of the Effective Date; provided, provided that any Swap Agreements entered into to satisfy the requirements of this Section 8.18(b) (i) may be in the case form of each of the foregoing clauses collars and not “costless collars” or purchased put options (iprovided that any such collars or such put options shall have a price floor equal to $60 per barrel) and (ii)) such collars and such put options may have premiums in an aggregate amount not to exceed $10 million. (c) The Credit Parties shall enter into and maintain in effect at all times Swap Agreements (entered into Not for Speculative Purposes) with an Approved Counterparty in respect of forty-thousand (40,000) million British thermal units of natural gas for fuel for each day during the eighteen (18) calendar month period immediately following the Initial Funding Date, which such Swap Agreements shall provide the Credit Parties with protection against cost fluctuations for the foregoing items. (d) On each Minimum Hedging Test Date, the notional volumes hedged under Credit Parties shall enter into and maintain in effect at all times Swap Agreements (entered into Not for Speculative Purposes) with an Approved Counterparty in respect of forty-thousand (40,000) million British thermal units of natural gas for fuel for each day during the eighteen (18) calendar month period commencing with the end of the then next upcoming month end, which such Hedge Swap Agreements shall be deemed reduced by the notional volumes of any short puts or other similar derivatives having the effect of exposing the Borrower or any other Loan Party to commodity price risk below the “floor” created by such Hedge Agreements of the Loan Parties for each applicable calendar month. On or prior to the date each Reserve Report (other than the Initial Reserve Report) is required to be delivered by the Borrower pursuant to Section 8.11(a) (each, a “Minimum Hedging Requirement Date”), the Borrower shall deliver evidence in form and substance satisfactory to the Administrative Agent that it has entered into Hedge Agreements to be in compliance with this Section 8.17 as of such Minimum Hedging Requirement Date. 2.4 Section 9.18 of provide the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:Parties with protection against cost fluctuations for the foregoing items.

Minimum Hedging. Commencing from and after March (a) On or before (i) December 31, 20222021 (or such later date as the Administrative Agent may agree, in its discretion), the Borrower shall maintain provide to the Administrative Agent reasonably satisfactory evidence that the Credit Parties have entered into Swap Agreements constituting Acceptable Hedge Agreements (other than three-way collars) with one or more Approved Counterparties hedging minimum Transactions covering notional volumes of natural gas representing not less than twenty-five percent (i25%), and (ii) at least 75% March 31, 2022 (or such later date as the Administrative Agent may agree, in its discretion), the Borrower shall provide to the Administrative Agent reasonably satisfactory evidence that the Credit Parties have entered into Swap Agreements constituting Acceptable Hedge Transactions covering notional volumes of natural gas representing not less than fifty percent (50%), in each case, of the reasonably anticipated projected production of crude oil natural gas from Oil and Gas Properties classified the Credit Parties’ Proved Developed Producing Reserves as “proved developed producing” such projected production is set forth in the Initial Reserve Report or the Reserve Report most recently delivered pursuant to Section 8.12 for each quarter in the period of four (4) consecutive full calendar quarters commencing with (and including) the fifth calendar quarter after the Effective Date. (b) In addition to the Administrative Agentforegoing and subject to clause (d) below, for the Borrower shall, as of each Spring Scheduled Redetermination Date, have entered into (and shall thereafter maintain) hedge transactions comprising Acceptable Hedge Transactions covering notional quarterly volumes of natural gas representing not less than (i) fifty percent (50%) of the reasonably anticipated projected quarterly production of natural gas from the Credit Parties’ Proved Developed Producing Reserves during each full month in the calendar month during quarter in which such Spring Scheduled Redetermination Date occurs and each calendar quarter remaining in the period from and including the first full calendar month following each Minimum Hedging Requirement year that such Spring Scheduled Redetermination Date (as hereinafter defined) through and including the 24th full calendar month following each such Minimum Hedging Requirement Date occurred, and (ii) at least 50% thirty percent (30%) of the reasonably anticipated projected quarterly production of natural gas from the Credit Parties’ Proved Developed Producing Reserves during each calendar quarter occurring during the calendar year subsequent to the calendar year in which such Spring Scheduled Redetermination Date occurred, in each case, as such reasonably anticipated projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” is set forth in the Reserve Report then most recently delivered Reserve Report provided by the Borrower. (c) In addition to the Administrative Agentforegoing and subject to clause (d) below, for each full calendar month during the period from and including the 25th full calendar month following each such Minimum Hedging Requirement Date through and including the 36th full calendar month following each such Minimum Hedging Requirement Date; providedBorrower shall, that in the case as of each Fall Scheduled Redetermination Date, have entered into (and shall thereafter maintain) hedge transactions comprising Acceptable Hedge Transactions covering notional quarterly volumes of the foregoing clauses natural gas representing not less than (i) fifty percent (50%) of the reasonably anticipated projected quarterly production of natural gas from the Credit Parties’ Proved Developed Producing Reserves during each calendar quarter occurring in the calendar year immediately following the calendar year in which such Fall ScheduleScheduled Redetermination Date occurred, and (ii) thirty percent (30%) of the reasonably anticipated projected quarterly production of natural gas from the Credit Parties’ Proved Developed Producing Reserves during each calendar quarter occurring during the calendar year immediately subsequent to the calendar year described in the preceding clause (Section 8.19(c)(i)), in each case, as such reasonably anticipated projected production is set forth in the notional volumes hedged under such Hedge Agreements shall be deemed reduced then most recently delivered Reserve Report provided by the notional volumes Borrower. (d) The Borrower shall not be required to comply with the requirements of Section 8.19(b)(ii) or Section 8.19(c)(ii) at any short puts time that (x) the Pro Forma Net Leverage Ratio is equal to or other similar derivatives having less than 1.251.50 to 1.00 and (y) the effect Aggregate Revolving Credit Commitment available to be borrowed on the date of exposing determination (disregarding for purposes of this Section 8.19(d) the Borrower condition set forth in Section 6.02(c)) equals or any other Loan Party to commodity price risk below the “floor” created by such Hedge Agreements exceeds thirty-fivetwenty-five percent (3525%) of the Loan Parties for each applicable calendar month. On or prior to the date each Reserve Report (other than the Initial Reserve Report) is required to be delivered by the Borrower pursuant to Section 8.11(a) (each, a “Minimum Hedging Requirement Date”), the Borrower shall deliver evidence in form and substance satisfactory to the Administrative Agent that it has entered into Hedge Agreements to be in compliance with this Section 8.17 as of such Minimum Hedging Requirement DateAggregate Elected Commitment Amount. 2.4 Section 9.18 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows: