Natural Gas is still negative on royalty statements. Does anybody have any insight on when it will go back to positive?
Waha gas pricing went positive in mid-November. So probably won’t get a positive number for residue until February '25 (i.e. when you get paid for Dec gas). This is cyclical…you run out of takeaway capacity and prices go in the tank. The nadir of the cycle was 2Q-3Q24, but it will happen again in I guess 2-3 years. In my mind as a gross simplification, you get one year of almost HHub pricing, you get one year of 75% HHub pricing, you get one year of zero/negative pricing. Then it repeats as new pipe comes online and fills up. Fortunately most of the gas is rich enough in liquids that you still make a bit of money when Waha is zero or slightly negative.
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Thank You, appreciate the info