Henry Hub Spot price closes today at $7.51.

A large withdrawal and cold weather have dramatically increased prices for the very short term but it is music to m y ears.

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Permalink Reply by Spring Branch,mineral owner on January 8, 2010 at 9:07
Is that the February Henry Hub price to which you refer during the last five business days in January, Les? Do Operators in the Haynesville Shale use the Henry Hub price exclusively?
Permalink Reply by Lorissa Gail on January 8, 2010 at 10:43
Devon uses the Houston Ship Channel Natural Gas prices for their royalty caluculations - first of the month price.
Permalink Reply by little ole 1st grade teacher on January 8, 2010 at 11:09
Does anyone know what EXXON/XTO uses for their royalty caluculations?
And when the pricing for the month is set?
Permalink Reply by w.r. frank on January 8, 2010 at 15:23
Why would North Louisiana NG be based on Houston Ship Channel prices? The HA. Shale NG goes east to Perryville!
Permalink Reply by Les Bamburg on January 8, 2010 at 19:27
WR, it may be East Texas production.
Permalink Reply by Missy on January 12, 2010 at 16:52
Les, Do you know which price Questar uses to pay royalties? In NW LA?
Permalink Reply by Les Bamburg on January 12, 2010 at 18:53
Missy, unfortunately I do not have any information regarding which gas pipeline Questar utilizes for their gas sales. Their field gas price should be around Henry Hub less 20-30 cents and there may be additional deductions under the specific lease agreement.
Permalink Reply by Les Bamburg on January 8, 2010 at 19:26
Joanne, I would assume that would be gas sales in East Texas. Much of the gas sold in East Texas is delivered to Texas Intrastate pipelines and priced based on the Houston Ship Channel Gas Index.

For 2009, the Houston Ship Channel monthly prices averaged $3.78/MMBtu which was 20.5 cents below NYMEX. The pricing basis improved during the 2nd half of 2009.
Permalink Reply by Lorissa Gail on January 12, 2010 at 9:05
Les,
Sorry for the confusion. Yes, the gas basing its price to the Houston Ship Channel is from East Texas...(Shelby County). It is good to know the structure of moving the gas. Thanks!
Permalink Reply by Les Bamburg on January 8, 2010 at 19:20
SB, there are ~ 70 Gas Index prices that are published each month based on the sales transactions during Bid Week. Henry Hub is just one of these Gas Index points. The various Gas Index points are located throughout the US in bothe producing areas and market areas.
Permalink Reply by Gale on September 16, 2010 at 15:56
Typically my experience as a royalty owner going on nearly 20 yrs is the checks are 3 months begins so in April you should see your january's production.
Permalink Reply by VSC DeSoto South on January 8, 2010 at 10:10
Commodity traders and gas futures speculators?

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