The Company utilizes hedging as a risk-management tool, entering into hedging agreements to help ensure a predictable level of cash flow and earnings. The Company has modified its hedging policy, implementing a combination of swaps and costless collars. Collars ensure a minimum floor price but allow the Company to benefit from price increases up to a predetermined ceiling price. The revised hedging policy will allow the Company to keep more of the upside when prices rise while maintaining downside protection.