|
|
 | | | |
- close
- close
- close
- close
These excerpts taken from the DVN 10-K filed Feb 27, 2009. Commodity
Price Risk Management
From time to time, we enter into NYMEX related financial
commodity collar and price swap contracts. Such contracts are
used to manage the inherent uncertainty of future revenues due
to oil and gas price volatility. Although these financial
contracts do not relate to specific production from our
operating areas, they will affect our overall revenues, earnings
and cash flow in 2009.
As of February 3, 2009, our financial commodity contracts
pertaining to 2009 consisted only of gas collars. The key terms
of these contracts are presented in the following table.
To the extent that monthly NYMEX prices in 2009 are outside of
the ranges established by the gas collars, we and the
counterparties to the contracts will settle the difference. Such
settlements will either increase or decrease our revenues for
the period. Also, we will mark-to-market the contracts based on
their fair values throughout 2009. Changes in the
contracts’ fair values will also be recorded as increases
or decreases to our revenues. The expected ranges of our
realized gas prices as a percentage of NYMEX prices, which are
presented earlier in this report, do not include any estimates
of the impact on our gas prices from monthly settlements or
changes in the fair values of our gas collars.
In January 2009, we entered into an early settlement arrangement
with one of our counterparties. As a result of this early
settlement, we received $36 million in January 2009.
Commodity
Price Risk Management
From time to time, we enter into NYMEX related financial
commodity collar and price swap contracts. Such contracts are
used to manage the inherent uncertainty of future revenues due
to oil and gas price volatility. Although these financial
contracts do not relate to specific production from our
operating areas, they will affect our overall revenues, earnings
and cash flow in 2009.
As of February 3, 2009, our financial commodity contracts
pertaining to 2009 consisted only of gas collars. The key terms
of these contracts are presented in the following table.
To the extent that monthly NYMEX prices in 2009 are outside of
the ranges established by the gas collars, we and the
counterparties to the contracts will settle the difference. Such
settlements will either increase or decrease our revenues for
the period. Also, we will mark-to-market the contracts based on
their fair values throughout 2009. Changes in the
contracts’ fair values will also be recorded as increases
or decreases to our revenues. The expected ranges of our
realized gas prices as a percentage of NYMEX prices, which are
presented earlier in this report, do not include any estimates
of the impact on our gas prices from monthly settlements or
changes in the fair values of our gas collars.
In January 2009, we entered into an early settlement arrangement
with one of our counterparties. As a result of this early
settlement, we received $36 million in January 2009.
Commodity Price Risk Management From time to time, we enter into NYMEX related financial commodity collar and price swap contracts. Such contracts are used to manage the inherent uncertainty of future revenues due to oil and gas price volatility. Although these financial contracts do not relate to specific production from our operating areas, they will affect our overall revenues, earnings and cash flow in 2009. As of February 3, 2009, our financial commodity contracts pertaining to 2009 consisted only of gas collars. The key terms of these contracts are presented in the following table.
To the extent that monthly NYMEX prices in 2009 are outside of the ranges established by the gas collars, we and the counterparties to the contracts will settle the difference. Such settlements will either increase or decrease our revenues for the period. Also, we will mark-to-market the contracts based on their fair values throughout 2009. Changes in the contracts’ fair values will also be recorded as increases or decreases to our revenues. The expected ranges of our realized gas prices as a percentage of NYMEX prices, which are presented earlier in this report, do not include any estimates of the impact on our gas prices from monthly settlements or changes in the fair values of our gas collars. In January 2009, we entered into an early settlement arrangement with one of our counterparties. As a result of this early settlement, we received $36 million in January 2009. Commodity Price Risk Management From time to time, we enter into NYMEX related financial commodity collar and price swap contracts. Such contracts are used to manage the inherent uncertainty of future revenues due to oil and gas price volatility. Although these financial contracts do not relate to specific production from our operating areas, they will affect our overall revenues, earnings and cash flow in 2009. As of February 3, 2009, our financial commodity contracts pertaining to 2009 consisted only of gas collars. The key terms of these contracts are presented in the following table.
To the extent that monthly NYMEX prices in 2009 are outside of the ranges established by the gas collars, we and the counterparties to the contracts will settle the difference. Such settlements will either increase or decrease our revenues for the period. Also, we will mark-to-market the contracts based on their fair values throughout 2009. Changes in the contracts’ fair values will also be recorded as increases or decreases to our revenues. The expected ranges of our realized gas prices as a percentage of NYMEX prices, which are presented earlier in this report, do not include any estimates of the impact on our gas prices from monthly settlements or changes in the fair values of our gas collars. In January 2009, we entered into an early settlement arrangement with one of our counterparties. As a result of this early settlement, we received $36 million in January 2009. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for DVN: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
