Common use of Natural Gas Liquids Hedging Clause in Contracts

Natural Gas Liquids Hedging. The Issuer shall enter into on or prior to the Closing Date, and thereafter maintain until the earlier of (i) [***] or (ii) [***], Hedge Agreements with an aggregate notional volume of (and fixing the price exposure with respect to) at least 85% but no more than 95% of the projected natural gas liquids output from the Issuer’s (together with its Subsidiaries’) Assets for each month, classified as “proved, developed and producing” and as described in the Reserve Report (the NGL Hedge Percentage”), including by way of (1) an initial hedging strategy consisting of one or more swap transactions and/or swaptions, based on a Reserve Report updated on at least a [***]; provided, however, that, in each case, the Issuer shall not enter into or maintain any Hedge Agreements for purposes of speculation or investment; provided further, (i) for the avoidance of doubt, the foregoing shall not prohibit Issuer from selling call options or swaptions and (ii) the Issuer’s compliance with the 95% limit in the NGL Hedge Percentage shall be determined without giving effect to any offsetting or similar Hedge Agreements that would otherwise result in a position that is opposite and equivalent to all or a portion of an existing Hedge Agreement (including any transaction thereunder). Neither the Issuer, nor any party otherwise having authority to act on behalf of the Issuer, is authorized to, or will, enter into an amendment to any Hedge Agreement without obtaining the prior written consent of each Rating Agency; provided that nothing in this sentence shall restrict the Issuer (i) from entering into Hedge Agreements during and after the NGL Hedge Period (excluding the entry into any offsetting Hedge Agreements described in the proviso of the immediately preceding sentence) or terminating Hedge Agreements, in part or in whole, in order to maintain compliance with the terms set forth herein or to mitigate the risk that the applicable Hedge Counterparty elects not to extend the swap transaction at the end of the initial four-year term; or (ii) from optimizing, novating, transferring, rolling or terminating Hedge Agreements, provided further that the NGL Hedge Percentage and the requirement to maintain the basis hxxxxx under clause (2) is satisfied at all time until the earlier of (i) [***] or (ii) [***].

Natural Gas Liquids Hedging. The Issuer shall enter into on or prior to the Closing Date, and thereafter maintain until the earlier of (i) [***] or (ii) [***], Hedge Agreements with an aggregate notional volume of (and fixing the price exposure with respect to) at least 85% but no more than 95% of the projected natural gas liquids output from the Issuer’s (together with its Subsidiaries’) Assets for each month, classified as “proved, developed and producing” and as described in the Reserve Report (the “NGL Hedge Percentage”), including by way of (1) an initial hedging strategy consisting of one or more swap transactions and/or swaptions, based on a Reserve Report updated on at least a [***]; provided, however, that, in each case, the Issuer shall not enter into or maintain any Hedge Agreements for purposes of speculation or investment; provided further, (i) for the avoidance of doubt, the foregoing shall not prohibit Issuer from selling call options or swaptions and (ii) the Issuer’s compliance with the 95% limit in the NGL Hedge Percentage shall be determined without giving effect to any offsetting or similar Hedge Agreements that would otherwise result in a position that is opposite and equivalent to all or a portion of an existing Hedge Agreement (including any transaction thereunder). Neither the Issuer, nor any party otherwise having authority to act on behalf of the Issuer, is authorized to, or will, enter into an amendment to any Hedge Agreement without obtaining the prior written consent of each Rating Agency; provided that nothing in this sentence shall restrict the Issuer (i) from entering into Hedge Agreements during and after the NGL Hedge Period (excluding the entry into any offsetting Hedge Agreements described in the proviso of the immediately preceding sentence) or terminating Hedge Agreements, in part or in whole, in order to maintain compliance with the terms set forth herein or to mitigate the risk that the applicable Hedge Counterparty elects not to extend the swap transaction at the end of the initial four-year termforth; or (ii) from optimizing, novating, transferring, rolling or terminating Hedge Agreements, provided further that the NGL Hedge Percentage and the requirement to maintain the basis hxxxxx under clause (2) is satisfied at all time until the earlier of (i) [***] or (ii) [***].

Natural Gas Liquids Hedging. The Issuer shall enter into on or prior to the Closing Date, and thereafter maintain until the earlier of (i) [***] or (ii) [***], Hedge Agreements with an aggregate notional volume of (and fixing the price exposure with respect to) at least 85% [***] but no more than 95% of the projected natural gas liquids output from the Issuer’s (together with its Subsidiaries’) Assets for each month, classified as “proved, developed and producing” and as described in the Reserve Report (the NGL Hedge Percentage”), including by way of (1) an initial hedging strategy consisting of one or more swap transactions and/or swaptions, based on a Reserve Report updated on at least a [***]; provided, however, that, in each case, the Issuer shall not enter into or maintain any Hedge Agreements for purposes of speculation or investment; provided further, (i) for the avoidance of doubt, the foregoing shall not prohibit Issuer from selling call options or swaptions and (ii) the Issuer’s compliance with the 95% limit in the NGL Hedge Percentage shall be determined without giving effect to any offsetting or similar Hedge Agreements that would otherwise result in a position that is opposite and equivalent to all or a portion of an existing Hedge Agreement (including any transaction thereunder). Neither the Issuer, nor any party otherwise having authority to act on behalf of the Issuer, is authorized to, or will, enter into an amendment to any Hedge Agreement without obtaining the prior written consent of each Rating Agency; provided that nothing in this sentence shall restrict the Issuer (i) from entering into Hedge Agreements during and after the NGL Hedge Period (excluding the entry into any offsetting Hedge Agreements described in the proviso of the immediately preceding sentence) or terminating Hedge Agreements, in part or in whole, in order to maintain compliance with the terms set forth herein or to mitigate the risk that the applicable Hedge Counterparty elects not to extend the swap transaction at the end of the initial four-year term; or (ii) from optimizing, novating, transferring, rolling or terminating Hedge Agreements, provided further that the NGL Hedge Percentage and the requirement to maintain the basis hxxxxx under clause (2) is satisfied at all time until the earlier of (i) [***] or (ii) [***].

Natural Gas Liquids Hedging. The Issuer shall enter into on or prior to the Closing Date, and thereafter maintain until the earlier of (i) [***] or (ii) [***], Hedge Agreements with an aggregate notional volume of (and fixing the price exposure with respect to) at least 85% [***] but no more than 95% of the projected natural gas liquids output from the Issuer’s (together with its Subsidiaries’) Assets for each month, classified as “proved, developed and producing” and as described in the Reserve Report (the “NGL Hedge Percentage”), including by way of (1) an initial hedging strategy consisting of one or more swap transactions and/or swaptions, based on a Reserve Report updated on at least a [***]; provided, however, that, in each case, the Issuer shall not enter into or maintain any Hedge Agreements for purposes of speculation or investment; provided further, (i) for the avoidance of doubt, the foregoing shall not prohibit Issuer from selling call options or swaptions and (ii) the Issuer’s compliance with the 95% limit in the NGL Hedge Percentage shall be determined without giving effect to any offsetting or similar Hedge Agreements that would otherwise result in a position that is opposite and equivalent to all or a portion of an existing Hedge Agreement (including any transaction thereunder). Neither the Issuer, nor any party otherwise having authority to act on behalf of the Issuer, is authorized to, or will, enter into an amendment to any Hedge Agreement without obtaining the prior written consent of each Rating Agency; provided that nothing in this sentence shall restrict the Issuer (i) from entering into Hedge Agreements during and after the NGL Hedge Period (excluding the entry into any offsetting Hedge Agreements described in the proviso of the immediately preceding sentence) or terminating Hedge Agreements, in part or in whole, in order to maintain compliance with the terms set forth herein or to mitigate the risk that the applicable Hedge Counterparty elects not to extend the swap transaction at the end of the initial four-year termforth; or (ii) from optimizing, novating, transferring, rolling or terminating Hedge Agreements, provided further that the NGL Hedge Percentage and the requirement to maintain the basis hxxxxx under clause (2) is satisfied at all time until the earlier of (i) [***] or (ii) [***].