Replies to This Discussion

Permalink Reply by Carol Hart on June 30, 2023 at 15:45

Way way down Royalty checks !!!!!

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Permalink Reply by Rock Man on July 1, 2023 at 4:15

Agree prices are way down and we are at a low time in NE Tx / W La area.

But could be a lot worse - group I consult for just got Delaware Basin revenue statement from OXY with realized gas price of $.0078 per MCF.

Yes - 7.8 cents.

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Permalink Reply by Bill R on July 3, 2023 at 18:47

Dang

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Permalink Reply by Rock Man on July 4, 2023 at 4:20

Missed an error on my original post.

Should read "$0.078 per MCF."

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Permalink Reply by Skip Peel - Mineral Consultant on July 4, 2023 at 4:34

Too much gas, not enough pipe.  What price did you get for the crude?

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Permalink Reply by Rock Man on July 4, 2023 at 5:48

$70 this past month - down from $78 the previous month

NGL's about 30% of oil price

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Permalink Reply by Skip Peel - Mineral Consultant on July 4, 2023 at 6:05

So, about $23.40 per gallon?  We don't get to discuss NGLs (Natural Gas Liquids) much as we focus on the Haynesville and Bossier shales which generally do not produce NGLs.  NGLs are important hydrocarbons which often fly under the radar for most of our members.

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Permalink Reply by Rock Man on July 4, 2023 at 9:08

Per barrel NGL. Not gallon

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Permalink Reply by Skip Peel - Mineral Consultant on July 4, 2023 at 9:25

A 42 gallon barrel?  So, about $0.557 per gallon?

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Permalink Reply by Rock Man on July 4, 2023 at 10:48

That is about the average for the range of NGL's

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Permalink Reply by Jesse Joyner on July 3, 2023 at 20:02

Yes, royalty income has taken a nosedive. That's true. It's been tough on us mineral/landowners.

Yet such is the nature of the beast. Historically, the oil patch has always had its booms/busts, going back to farmers being paid pennies for a barrel of oil back in the early 1900s. That was a hell-of-a downturn, which brought in conservation and regulation. (As it should have.)

Boom/bust. The cycle is always repeating itself.

Of course, there's something else in the math equations which should be considered, too. This most recent precipitous downward spiral in NG pricing seems to be exceptionally large due to the fact that NG had spiked so unrealistically high due to the EU's need for LNG (i.e., due to Putin's war in Ukraine).

Ergo, our present (and quite drastic) hub drop appeared to be exceptionally dramatic due to the unheard run-up in LNG demand last year. As they say, what goes up, must come down.

But hey, there's good news on the horizon. NG futures have sorta skyrocket way up in a short amount of time per the huge cooling demand in regards to the Southern heat dome sizzling so many states. Hence, the hub futures have now adjusted up, as will the royalty checks (the mailbox money) later this year.

Yep, the good ol' oil patch. Gotta love it, huh?

 

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Permalink Reply by Cynthia Garrison Payne on July 4, 2023 at 13:16

 So true

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