COVID-19 Impacts on Economic Environment.  Subsequent to September 30, 2020, COVID-19 outbreaks levels have continued and, in some cases, increased in some areas of the United States.  The impacts of the COVID-19 pandemic on the economy combined with actions of certain foreign governments of oil producing countries have caused s significant decrease in global crude oil demand contributing to a substantial decrease in crude oil prices compared to the prior year and an increase in the volatility of the crude oil market.  Additionally, prices for NGLs and natural gas have been impacted, but to a lesser degree.  This economic environment has caused oil and gas operators to reduce their capital expenditure budgets, reduce activity and shut-in significant production.  The full impact of the COVID-19 pandemic and the volatility in crude oil prices continue to evolve as of the date of this Quarterly Report.  However, the scope and length of this economic downturn and the effect on future prices and demand of crude oil, NGLs and natural gas cannot be determined and we could be adversely affected in future periods.

In response to the market changes, we reduced our capital expenditure budget in 2020, experienced production shut-ins from non-operated oil and gas properties and shut-in a limited number of our operated oil and gas properties.  We are actively monitoring the impact on our results of operations, financial position, and liquidity and may need to make further changes in response to the market for oil, NGLs and natural gas.

Hurricanes Impact on our Production.  In the second and third quarters of 2020, the Gulf of Mexico experienced multiple hurricanes that required us to shut-in wells due to their impact.  In October 2020, we experienced additional hurricane activity which required shutting in most of our fields for several days.  We have since returned substantially all wells to production that were shut-in due to the hurricanes, as have operators of properties in which we have a non-operator interest.  One of our fields had planned downtime which was extended due to hurricane activity and had not returned to production as of the end of October 2020.  While no major structural damage was incurred, which has been assessed through October, increased costs for repairs are expected in the fourth quarter of 2020.