Required Hedging. On or before each date (x) that is thirty (30) days after the Closing Date (or such later date as may be agreed by the Administrative Agent), (y) that each Reserve Report is delivered under Section 9.13(a), and (z) on which any Credit Event occurs during any time period described in clause (a) below that would result in an increased Required Hedging Percentage (each such date, a “Hedging Test Date”), Borrower or other Credit Parties shall enter into Hedge Agreements with a Secured Hedge Counterparty the net notional volumes for which (when aggregated with other commodity Hedge Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Hedge Agreements) are at least, as of each Hedging Test Date: (a) during any time period when the Consolidated Total Debt to EBITDAX Ratio for the most recent Test Period before such Hedging Test Date is less than 2.00 to 1:00, the Required Hedging Percentage of the reasonably anticipated crude oil production and of the reasonably anticipated natural gas production from the Credit Parties’ total Proved Developed Producing Reserves (as forecasted by the Borrower and acceptable to the Administrative Agent based upon the Initial Reserve Reports or the most recent Reserve Report delivered under Section 9.13(a), as applicable) for any month during the 24-month period from the applicable Hedging Test Date, and (b) at all times other than those described in the preceding clause (a), 75% of the reasonably anticipated crude oil production and 50% of the reasonably anticipated natural gas production from the Credit Parties’ total Proved Developed Producing Reserves (as forecasted by the Borrower and acceptable to the Administrative Agent based upon the Initial Reserve Reports or the most recent Reserve Report delivered under Section 9.13(a), as applicable) for any month during the 24-month period from the applicable Hedging Test Date. Notwithstanding the foregoing, the Borrower or other Credit Parties are not required to enter into Hedge Agreements under this Section 9.18 for any month after the Maturity Date. 101
Required Hedging. The Borrower shall, or shall cause other Loan Parties to, enter into by December 31, 2016, and maintain in effect at all times during the 2017 calendar year, Swap Contracts reasonably acceptable to the Administrative Agent with the purpose and effect of fixing prices on oil and natural gas liquids to be produced by the Loan Parties during the 2017 calendar year, covering at least 3,300 barrels of oil per day and at least 5,100 barrels of natural gas liquids per day.
Required Hedging. If on the last day of any Fiscal Quarter, the Eurodollar Base Rate is greater than 2.00% (based on an Interest Period of three months), the Borrower shall within 15 days thereof (or such later date as the Administrative Agent may agree), enter into and thereafter maintain Interest Rate Contracts with a Secured Hedging Counterparty to provide protection against fluctuation of interest rates until at least the third anniversary of the Closing Date in a notional principal amount that equals at least 66.67% of the aggregate principal amount of the Term Loans outstanding at such time and taking into account the scheduled amortization thereof during the applicable period or on such other terms satisfactory to the Administrative Agent to protect the Borrower against increases in the Eurodollar Rate or the Base Rate, as the case may be, as such rates would reasonably impact the Term Loans.
Required Hedging. On or before 10 Business Days after the Effective Date, the Borrower shall enter into a Hedging Agreement with respect to at least 50% of the aggregate principal amount of the Term Loans, which Hedging Agreement (a) shall be maintained in effect by the Borrower until the Maturity Date in respect of the Term Loans and (b) provide for a rate cap, and be placed with counterparties, in each case that are acceptable to the Administrative Agent.
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Required Hedging. Within thirty (30) days of the Effective Date, ---------------- Borrowers shall have (i) entered into xxxxxx satisfactory to Majority Banks covering Borrowers' Oil and Gas Properties with counterparties acceptable to the Banks and (ii) interest rate protection agreements satisfactory to Majority Banks providing interest rate protection.
Required Hedging. The Borrower shall, within thirty (30) days of the Closing Date (or such later date as the Administrative Agent may agree in its sole discretion), enter into and thereafter maintain Interest Rate Contracts with a Secured Hedging Counterparty to provide protection against fluctuation of interest rates until at least the third anniversary of the Closing Date in a notional principal amount that equals at least the Required Notional Amount for the applicable period of the aggregate principal amount of the Term Loans outstanding at such time at a capped per annum LIBOR Rate, in each case, of 2.00% (based on an Interest Period of one month) or on such other terms satisfactory to the Administrative Agent to protect the Borrower against increases in the LIBOR Rate; provided that the final, aggregate cost to the Borrower of such Interest Rate Contracts shall not exceed $678,000.
Required Hedging. Borrower shall at all times maintain in effect the forward, future, swap or hedging contracts described on Schedule 3, subject to the maturity of such contracts by their terms. Borrower shall use its best efforts to maintain a prudent commodity price hedging strategy.
Required Hedging. The Borrower shall, on or before each applicable Required Hedging Date (or such later date acceptable to the Administrative Agent (but, in any event, no later than the tenth (10th) Business Day following such Required Hedging Date) but only so long as the Borrower is diligently pursuing a course of action to implement the hedging requirements under this Section 7.12), enter into and thereafter maintain Interest Rate Contracts with a Secured Hedging Counterparty until at least the fourth anniversary of the Effective Date in a notional principal amount as of the date such Interest Rate Contracts are entered that equals at least (i) 100% of the portion of the aggregate principal amount of the Term Loans outstanding on such date equal to $25,500,000 (taking into account scheduled amortization thereof during the applicable period) and (ii) 75% of the portion of the aggregate principal amount of the Term Loans outstanding on such date in excess of $25,500,000 (taking into account scheduled amortization thereof during the applicable period). Such Interest Rate Contracts shall provide for a fixed rate or a capped per annum eurodollar rate not more than 3.00% and such other terms satisfactory to the Administrative Agent to protect the Borrower against increases in the Eurodollar Rate or the Base Rate, as the case may be, as such rates would reasonably impact the Term Loans. On the third anniversary of the Effective Date and on each subsequent anniversary of the Effective Date, the Borrower shall extend such Interest Rate Contracts to a minimum average remaining tenor of 18 months.
Required Hedging. The Administrative Agent shall have received evidence reasonably satisfactory to it that the Borrower shall have entered into the Lender Party Hedge Transactions described in Schedule 5.1.15. All such Lender Party Hedge Transactions will have a fixed price or floor prices and aggregate notional volumes acceptable to the Administrative Agent in its sole discretion.
