Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons for the purpose of reducing the Credit Parties’ commodity price risk in respect of crude oil.
Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons not for speculative purposes in the form of swaps, costless collars or other commodity Hedge Agreements reasonably acceptable to the Administrative Agent so long as (a) at least 25% of the Specified Volumes to be hedged are hedged by instruments in the form of commodity swaps at the then prevailing Strip Price and (b) the Specified Volumes not hedged as described in clause (a) are hedged with instruments providing for a price floor equal to or greater than the lesser of (x) $40.00 for Xxxxx crude and (y) then prevailing Strip Price for the applicable volumes. As used herein, “Specified Volumes” means, with respect to any applicable period described in Section 9.18, (i) if the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended Test Period prior to the date of delivery of the applicable Hedging Compliance Certificate is greater than 2.00 to 1.00, 50% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18), calculated based on daily volumes on an annual basis or (ii) if the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended Test Period prior to the date of delivery of the applicable Hedging Compliance Certificate is less than or equal to 2.00 to 1.00, 33% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18), calculated based on daily volumes on an annual basis.
Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons not for speculative purposes and in the form of swaps, costless collars or other commodity Hedge Agreements reasonably acceptable to the First Lien Exit Administrative Agent (or, if there is no outstanding First Lien Exit Facility, the Majority Lenders) so long as (a) at least 25% of the Specified Volumes to be hedged are hedged by instruments in the form of commodity swaps at the then prevailing Strip Price and (b) the Specified Volumes not hedged as described in clause (a) are hedged with instruments providing for a price floor equal to or greater than the lesser of (x) $40.00 for Xxxxx crude and (y) then prevailing Strip Price for the applicable volumes. As used herein, “Specified Volumes” shall mean, with respect to any applicable period described in Section 9.18, 50% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18).
More Definitions of Acceptable Commodity Hedge Agreements
Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons for the purpose of reducing the Credit Parties’ commodity price risk in respect of crude oil, natural gas, natural gas liquids or other Hydrocarbons.
Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons not for speculative purposes in the form of swaps, costless collars or other commodity Hedge Agreements reasonably acceptable to the Administrative Agent so long as (a) at least 25% of the Specified Volumes to be hedged are hedged by instruments in the form of commodity swaps at the then prevailing Strip Price and (b) the Specified Volumes not hedged as described in clause (a) are hedged with instruments providing for a price floor equal to or greater than the lesser of (x) $40.00 for Brent crude and (y) then prevailing Strip Price for the applicable volumes. As used herein, “Specified Volumes” means, with respect to any applicable period described in Section 9.18, (i) if the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended Test Period prior to the date of delivery of the applicable Hedging Compliance Certificate is greater than 2.00 to 1.00, 50% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18), calculated based on daily volumes on an annual basis or (ii) if the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended Test Period prior to the date of delivery of the applicable Hedging Compliance Certificate is less than or equal to 2.00 to 1.00, 33% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18), calculated based on daily volumes on an annual basis.
Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons not for speculative purposes in the form of swaps, costless collars or other commodity Hedge Agreements reasonably acceptable to the Administrative Agent so long as (a) at least 25% of the Specified Volumes to be hedged are hedged by instruments in the form of commodity swaps at the then prevailing Strip Price and (b) the Specified Volumes not hedged as described in clause (a) are hedged with instruments providing for a price floor equal to or greater than the lesser of (x) $40.00 for Brent crude and (y) then prevailing Strip Price for the applicable volumes. As used herein, “Specified Volumes” means, with respect to any applicable period described in Section 9.18, 50% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18).
Acceptable Commodity Hedge Agreements means Hedge Agreements entered into with Approved Counterparties in respect of Hydrocarbons not for speculative purposes in the form of swaps, costless collars or other commodity Hedge Agreements reasonably acceptable to the Administrative Agent so long as (a) at least 25% of the Specified Volumes to be hedged are hedged by instruments in the form of commodity swaps at the then prevailing Strip Price and (b) the Specified Volumes not hedged as described in clause (a) are hedged with instruments providing for a price floor equal to or greater than the lesser of (x) $40.00 for Xxxxx crude and (y) then prevailing Strip Price for the applicable volumes. As used herein, “Specified Volumes” means, with respect to any applicable period described in Section 9.18, 50% of the reasonably anticipated Hydrocarbon production in respect of crude oil from the Credit Parties’ total Proved Developed Producing Reserves (as forecast based upon the applicable Reserve Report described in Section 9.18).