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Permalink Reply by Skip Peel - Mineral Consultant on July 28, 2016 at 10:06

Several major Marcellus operators reported adding rigs this week.  And Marcellus/Utica production is still rising even before any new drills.  Sustained $3 natural gas is looking more and more like next year.

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Permalink Reply by Skip Peel - Mineral Consultant on July 28, 2016 at 11:29

July NG Settlement price - $2.917.  Just released August Settlement price - $2.672.

https://www.business.directenergy.com/market-insights/nymex-settlem...

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Permalink Reply by David on July 28, 2016 at 14:26

A lot is going to depend on temps this month and early September, as far as injection amounts. 

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Permalink Reply by Skip Peel - Mineral Consultant on July 28, 2016 at 14:34

The majority of supply is sold based on the monthly settlement price.  The spot price does spike based on weather extremities but little volume relatively speaking is sold on the spot market.  August is in the books, at a steep decrease to July.  That only leaves September before injection season begins anew.  With Marcellus operators adding rigs I just don't think we will get to $3 for a price that will be reflected on royalty statements this year.

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