Most of our Permian Basin companies received much lower "realized prices" for their natural gas because the gas pipelines serving West Texas are full. If the upstream companies don't have firm transportation contracts in place, their new gas production must be given away or flared. The situation will last a couple more quarters, but should be resolved in 2H 2019.
Read this: https://www.permian.texansfornaturalgas ... he-Permian
An example is Jagged Peak (JAG) which only realized $0.70/mcf on their Q4 natural gas sales. Their NGL prices also came in well below my Q4 estimate at just $15.44/bbl. This compares to their realized NGL price of $24.81/bbl in Q3 2018.
By Q4 2019 our Permian companies should all be getting much higher prices for their gas and NGLs.
The pipeline takeaway capacity issue in the Marcellus/Utica play have been mostly resolved and AR, GPOR, RRC and SWN are reporting much better gas prices because the differentials to HH prices have gotten a lot smaller.
New pipelines for the Permian Basin
New pipelines for the Permian Basin
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group