September settlement price up $0.181 over August.  YTD Monthly Settlement Price Avg. - $2.281.

Month

  2008

  2009

  2010

  2011

  2012

  2013

  2014

  2015

  2016

Jan

$7.172

$6.136

 $5.814

 $4.216

 $3.084

 $3.354

 $4.407

 $3.189

 $2.372

Feb

$7.996

$4.476

 $5.274

 $4.316

 $2.678

 $3.226

 $5.557

 $2.866

 $2.189

Mar

$8.930

$4.056

 $4.816

 $3.793

 $2.446

 $3.427

 $4.855

 $2.894

 $1.711

Apr

$9.578

$3.631

 $3.842

 $4.240

 $2.191

 $3.976

 $4.584

 $2.590

 $1.903

May

$11.280

$3.321

 $4.271

 $4.377

 $2.036

 $4.151

 $4.795

 $2.517

 $1.995

Jun

$11.916

$3.538

 $4.155

 $4.326

 $2.429

 $4.148

 $4.619

 $2.815

 $1.963

Jul

$13.105

$3.949

 $4.717

 $4.357

 $2.774

 $3.707

 $4.400

 $2.773

 $2.917

Aug

$9.217

$3.379

 $4.774

 $4.370

 $3.010

 $3.459

 $3.808

 $2.886

 $2.672

Sep

$8.394

$2.843

 $3.651

 $3.857

 $2.634

 $3.566

 $3.957

 $2.638

 $2.853

Oct

$7.472

$3.730

 $3.837

 $3.759

 $3.023

 $3.498

 $3.984

 $2.563

-

Nov

$6.469

$4.289

 $3.292

 $3.524

 $3.471

 $3.497

 $3.728

 $2.033

-

Dec

$6.888

$4.486

 $4.267

 $3.364

 $3.696

 $3.818

 $4.282

 $2.206

-

AVG

$9.035

$3.986

 $4.393

 $4.042

 $2.789

 $3.652

 $4.415

 $2.664

 $2.281

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Replies to This Discussion

That is called the industry found too much gas.  The same thing happened to the price of oil.  

Jay

Thanks, Jay.  Here is a technical industry question.  Just because they found it....do they have to keep over producing so much of it?

Yes, they do.  The reason why is that they are mortgaged out the you know what.  They borrowed to the hilt and the bills are due.  They even sold off their mid stream units for cash and along with these sales came deliverable commitments.  Rut row.  

Jay

I wonder how many of those companies charged their mineral lessors through royalty deductions to build those midstream assets and then entered into sales of those systems that locked in higher than usual gathering fees advantageous to a buyer in order to maximize the sales price?  Royalty recipients' interests are devalued on both ends of that scenario.

Probably all of them.

jay

Then it will probably keep a lot of O&G focused law firms busy for some years to come.

Good for them.  Ambulance chasers need work too.  No need to create value when you can ransom it.  

Jay

Won't be any personal injury lawyers involved.  And it won't be ambulances being chased.  The scenario of charging royalty deductions for midstream infrastructure on the front end and locking in high gathering and treatment rates or stand by charges on the back end to enhance a sale price is something that is relatively new the best I can tell.  Do you think this combination in fact has a long history of use by a number of operating companies?  That those charges are traditional?

I give up. I work for the industry and I am also a royalty owner with a lease that was before all of the hype and no deduct clauses. You are asking me questions that you know the answer to just to gauge my opinion I suppose.
Jay

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