NGL Prices - Increase is a big revenue boost
Posted: Mon Feb 20, 2017 11:54 am
NGL's are a mixture of natural gas liquids that are extracted from the "wet gas" stream. Propane is a major part of most company's NGLs.
Several of the Sweet 16 produce a lot of NGLs. RRC, SM, AR, GPOR, XEC and EOG are at the top of the list. In my 2/16 podcast, which you can view from the EPG Home Page, shows on slide three the big increase in NGL prices from Q3 to Q4.
See: http://www.eia.gov/petroleum/heatingoilpropane/
Ethane demand is expected to increase sharply in 2H 2017
Most companies do not hedge their NGLs. If NGL prices move back to 50% of WTI prices, it will give some of our Sweet 16 a big revenue boost this year.
I break out the production mix of each company at the bottom of the forecast models on the EPG website.
Several of the Sweet 16 produce a lot of NGLs. RRC, SM, AR, GPOR, XEC and EOG are at the top of the list. In my 2/16 podcast, which you can view from the EPG Home Page, shows on slide three the big increase in NGL prices from Q3 to Q4.
See: http://www.eia.gov/petroleum/heatingoilpropane/
Ethane demand is expected to increase sharply in 2H 2017
Most companies do not hedge their NGLs. If NGL prices move back to 50% of WTI prices, it will give some of our Sweet 16 a big revenue boost this year.
I break out the production mix of each company at the bottom of the forecast models on the EPG website.