Our primary business objective is to generate stable cash flows, provide quarterly distributions to unitholders, and increase those distributions over time. To achieve this objective, we execute the following strategies.
We seek to acquire long-lived reserves with moderate production decline rates and reserve exploitation potential in our existing operating areas and in new areas that exhibit similar characteristics to our existing asset base. In addition, our diverse property base provides us with opportunities for incremental acquisitions, which increase our ownership in fields in which we already have a working interest.
To achieve this goal, we expect to leverage our relationship with our affiliate, Lime Rock Resources, to provide additional acquisition opportunities through drop-down transactions and joint acquisitions. Lime Rock Resources may offer us the opportunity to purchase some of its mature, producing oil and natural gas assets. In addition, we may have the opportunity to work jointly with Lime Rock Resources and the portfolio companies of Lime Rock Partners to pursue third-party acquisitions of oil and natural gas properties that may not otherwise be attractive acquisition candidates for any of us individually.
We seek to reduce the impact of commodity price volatility on our cash flow from operations through an active hedging program. Our strategy includes maintaining a portfolio of commodity derivative contracts covering a majority of our future oil and natural gas production over a period of three to five years at any given point in time.
We also seek to maintain a balanced capital structure to allow for borrowing capacity to execute our strategy. We believe our borrowing capacity under our revolving credit facility and our internally generated cash flows will provide us with the liquidity and financial flexibility to develop our existing asset base and pursue acquisitions.