Net Realizable Financial Obligation definition

Net Realizable Financial Obligation means (a) in the case of outstanding commodity derivative contracts, the amount required to terminate or discharge each such contract based upon current market prices of the relevant commodity and (b) in the case of natural gas and natural gas liquids purchase agreements, the outstanding amount owed for product received that would be recorded as a liability under GAAP, in each case, net of any amounts owed to Midcoast Operating under any agreements with counterparties that have received Financial Support Agreement Parental Guarantees from the Borrower pursuant to the Financial Support Agreement.
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Examples of Net Realizable Financial Obligation in a sentence

  • The “Parental Guarantee Amount” represents the aggregate Net Realizable Financial Obligation (as defined below) of Midcoast and its wholly owned subsidiaries under their respective commodity derivative contracts and natural gas and NGL purchase agreements that are guaranteed by EEP, in each case after taking into account market fluctuations in commodity prices, any related EEP letters of credit and any increases or decreases to the obligations underlying each guarantee.

  • The “Parental Guarantee Amount” represents the aggregate Net Realizable Financial Obligation (as defined below) of Midcoast and its wholly owned subsidiaries under their respective commodity derivative contracts and natural gas and NGL purchase agreements that are guaranteed by EEP, in each case after taking into account market fluctuations, any related EEP letters of credit and any increases or decreases to the obligations underlying each guarantee.