I have a batch of wells in Crockett County Texas and on one of the producers’ paystub, the have the price listed from as low as .29 and up to 3.41, but most of them are in under 1.00. This is on 295 wells and this is greatly decreased.
I shot them a question, but of course, no response yet. Natural gas has stayed pretty consistent between 2 and 3 dollars so I don’t understand where they are getting these prices.
Looking for some guidance. Thanks!
NGL is natural gas liquids which are removed from the gas in processing at the plant and sold separately from the remaining ‘dry’ gas.
Composed of Butane, ethane, isobutane, etc. NGL’s are priced in gallons and are very different from the gas which is priced in mcf. Some operators will gather all the sales together and enter as a total gas sales on your check. Others will have separate lines for the gas and the liquids as a total. Some operators further separate the liquids into the components. Ethane has a particularly low price as there is an overabundance and that is likely the $0.29 price.
Thank you so much for the education regarding this issue. It is appreciated.