Energy commodities have a proven history of sudden and significant commodity price declines—and there might be no worse time for a steep drop than when your company is trying to do an acquisition.

A company that signs an agreement to purchase an energy asset typically commits to paying a fixed price. But the purchased asset’s value can float with the underlying commodity’s forward price curve in that 30- to 45-day period before the acquisition’s close. E&P and production master limited partnership (MLP) enterprises seeking to grow through acquisition face the ...