NGL is not NGL

[Petroleum economist]

There is no uniform definition of NGL. NGL (=Natural Gas Liquids) is an undefined mix of C2- C6 hydrocarbons (ethane, propane, butane, isobutane, pentane, and hexane). Each of the components have their own application and pricing. As the mix of NGL per company varies, so does the realized NGL price per company.

In general it can be said that the heavier a component MW, the more valuable it is. Fees to move NGL’s to processing location/market can make a big difference in the realized NGL price. For example western Texas saw in 2025 negative NGL prices. NGL pricing tends to be seasonal, with dips in summer and peaks in winter. NGL is sold by weight. I convert weight to volumes in order to calculate the value of NGL production per company, which is expressed in bbl/d.

Summary
There is a wide range of realized NGL prices. Realized NGL prices of oil producers tend to be lower than those of gas producers. Some oil producers strip out all heavy components from the NGL, which lowers the NGL price. Some gas producers mix their light condensates in with their NGL. This drives up the NGL price.
Realized NGL prices in Canada on average are higher than in the USA. Using the Monte Belvieu propane price as a reference price, the realized NGL price for oil producers is always negative. Some gas producers with mixed in heavier components manage to fetch a premium over Mont Belvieu. Realized NGL prices for oil and gas producers are company specific and cannot be derived based on general assumptions.

Mont Belvieu reference price
In my ranking I use the Mont Belvieu LDH Propane (OPIS) price as the reference price for NGL’s. I compare the realized prices per company over the last four quarters with the Mont Belvieu propane price over the same period. Propane is sold by weight. I convert the propane weight to volumes in order to compare it with the company NGL prices which are expressed in $/bbl. With these data I calculate a delta NGL price per company to be used for predicting future realized NGL prices.

US oil producers
Some oil companies tend to mix-in the heavier components of their fluids with their oil. This results in a lean NGL with a low price. The delta NGL of US oil companies is always negative with a range of minus $ 8-32/bbl:
• EOG Resources: -$ 8.72/bbl
• SM Energy: -$ 9.50/bbl
• Magnolia Oil and Gas: -$ 11.91/bbl
• Permian Resources: -$ 12.91/bbl
• W&T Offshore: -$ 13.05/bbl
• Devon Energy: -$ 13.12/bbl
• Diamondback Energy: -$ 13.35/bbl
• Crescent Energy: -$ 13.75/bbl
• Sandridge Energy: -$ 14.88/bbl
• Murphy Oil: -$ 14.95/bbl
• Chord Energy: -$ 24.12/bbl
• Ring Energy: -24.97/bbl
• Riley Energy: -$ 31.85/bbl

US gas producers
US gas companies cannot always mix the heavier components in with their oil and thus produce a richer NGL. As a consequence, two companies (Antero and EQT) manage a premium over Mont Belvieu. The other gas companies have a riche NGL and thus good realized NGL prices, The NGL prices for gas producers are on average higher than those of their oil counterparts:
• Antero Resources: +$ 10.40/bbl
• EQT Corporation: +$ 6.71/bbl
• Gulfport Energy: -$ 1.92/bbl
• Expand Energy: -$ 6.93/bbl
• Range Resources: -$ 7.38/bbl

Canadian oil producers
There is a stronger NGL demand in Canada than there is in the USA. This results in higher NGL prices. As a consequence, Canadian oil companies fetch on average higher NGL prices (discount $ 1 -14/bbl) than their US counterparts (discount $ 8-32/bbl):
• Surge Energy: -$ 0.24/bbl
• Bonterra Energy: -$ 1.26/bbl
• Whitecap Resources: -$ 5.64/bbl
• Tamarack Valley: -$ 7.97/bbl
• Paramount resources: -$ 8.75/bbl
• Kolibri Global: -$ 10.79/bbl
• Athabasca Oil: -$ 11.81/bbl
• Spartan Delta: - $ 13.93/bbl

Canadian gas producers
Similar to US gas producers, some Canadian gas producers (Rubellite, Peyto, Peyto and Advantage) and produce a rich NGL with a high price as a result which carries a premium over Mont Belvieu:
• Rubellite Energy: +$ 11.06/bbl
• Peyto Exploration: +$ 10.49/bbl
• Advantage Energy: +$ 5.09/bbl
• Journey Energy: -$ 0.99/bbl
• Yangarra Resources: -$ 2.71/bbl
• Kelt Exploration: -$ 5.51/bbl
• Paramount Resources: -$ 8.75/bbl
• Petrus Resources: -$ 9.06/bbl
• Tourmaline Oil: -$ 11.07/bbl
• ARC Resources: -$ 15.35/bbl

Conclusions
There is a wide range of realized NGL prices. Realized NGL prices of oil companies tend to be lower than those of gas producers. Some oil producers strip out all heavy components from the NGL, which lowers NGL prices as oil. Some gas producers do not mix in their light condensates with their oil, but with their NGL. This drives up their NGL price.
Realized NGL prices in Canada on average are higher than in the USA. Using the Monte Belvieu propane price as a reference, the realized NGL price for oil producers is always negative. Some gas producers mix in heavier elements into the NGL and manage to fetch a premium over Mont Belvieu. Realized NGL prices for oil and gas producers are company specific and cannot be derived based on general assumptions.

[allen46]

Good information!! thanks Harry.