Table of Contents Index to Financial Statements (1) Based on last day settlement prices from monthly futures contracts. (2) This discount includes a basis differential, a heating content adjustment, physical basis sales, third-party transportation charges and fuel charges, and excludes financial basis hedges. We receive a sales price for our natural gas at a discount to average monthly NYMEX settlement prices based on heating content of the gas, locational basis differentials and transportation and fuel charges. Additionally, we receive a sales price for our oil and NGLs at a difference to average monthly West Texas Intermediate settlement and Mont Belvieu NGL composite prices, respectively, due to a number of factors including product quality, composition and types of NGLs sold, locational basis differentials and transportation and fuel charges. We regularly enter into various hedging and other financial arrangements with respect to a portion of our projected natural gas, oil and NGL production in order to ensure certain desired levels of cash flow and to minimize the impact of price fluctuations, including fluctuations in locational market differentials. We refer you to Item 7A,  Quantitative and Qualitative Disclosures about Market Risk , of this Annual Report,  Note 5  to the consolidated financial statements included in this Annual Report, and our derivative risk factor for additional discussion about our derivatives and risk management activities. The table below presents the amount of our future production in which the basis is protected as of December 31, 2018: 53 For the years ended December 31, Increase/ Increase/ 2018 (Decrease) 2017 (Decrease) 2016 Natural Gas Price: NYMEX Henry Hub Price  ($/MMBtu)  (1) $ 3.09  (1%) $ 3.11  26% $ 2.46  Discount to NYMEX  (2) (0.64) (27%) (0.88) 1% (0.87) Average realized gas price per Mcf, excluding derivatives $ 2.45  10% $ 2.23  40% $ 1.59  Gain (loss) on settled financial basis derivatives  ($/Mcf) (0.04) (0.01) 0.03  Gain (loss) on settled commodity derivatives  ($/Mcf) (0.06) (0.03) 0.02  Average realized gas price per Mcf, including derivatives $ 2.35  7% $ 2.19  34% $ 1.64  Oil Price: WTI oil price  ($/Bbl) $ 64.77  27% $ 50.96  18% $ 43.32  Discount to WTI (7.98) 2% (7.84) (35%) (12.12) Average oil price per Bbl, excluding derivatives $ 56.79  32% $ 43.12  38% $ 31.20  Loss on settled derivatives  ($/Bbl) (0.72) – – Average oil price per Bbl, including derivatives $ 56.07  30% $ 43.12  38% $ 31.20  NGL Price: Average net realized NGL price per Bbl, excluding derivatives $ 17.91  24% $ 14.46  94% $ 7.46  Gain (loss) on settled derivatives  ($/Bbl) (0.68) 0.02  – Average net realized NGL price per Bbl, including derivatives $ 17.23  19% $ 14.48  94% $ 7.46  Percentage of WTI, excluding derivatives 28%  28% 17%  Total Weighted Average Realized Price: Excluding derivatives  ($/Mcfe) $ 2.66  $ 2.32  $ 1.62  Including derivatives  ($/Mcfe) $ 2.57  $ 2.29  $ 1.66  Volume (Bcf) Basis Differential Basis Swaps – Natural Gas 2019 107  $ (0.29) 2020 59  (0.44) Total 166  Physical Sales Arrangements – Natural Gas 2019 110  $ (0.16) 2020 45  (0.23) Total 155 