Hello, I am trying to learn how to read our revenue statements and match the production reported to the RRC. See this example of our revenue statement for production in Oct 21. The production from the report from the RRC does not match the production on the revenue statement. Also, where to you find the production of plant products on the RRC?
Lastly, why on the revenue statement do they put in some production amount then net it back out again. For example, under Plant Products you see 1299.44 as production and then that same amount is netted out.
RRC production reports are mcf volumes of gas at the wellhead. The gas is then transported to a plant for processing and the liquids are removed and sold separately from the remaining dry gas. Liquids may be called Natural Gas Liquids and Products and are generally composed of ethane, propane, butane, isobutane, and propane. Most frequently the products volumes are measured in gallons. The volumes and mixtures derived from the gas vary from well to well. So the gas plus products on your check are really the breakdown of the well gas and will not total back to the RRC production report. If the 2021 volumes and sales are on a current check, then they are most likely reversals and rebooks of the original data. It is not uncommon for companies to adjust volumes and revenues at a later date after an audit of the original reports.
