Should just be a short term thing (like a week) while they do GulfCoast pipeline maintenance. But they will be bumping against capacity and bringing on new capacity, rinse lather repeat, as long as development keeps up at this pace.
Another recent thread concludes there is no free source for Waha prices, only a costly subscription service.
@Roy An interesting observation has evolved over the course of the internet age (let’s say 1995 until now). Information (and data) is, although arguably slowly, having a value placed on it. And, as a free marketplace should, the consumer is the disproportionate winner in the game. (Just look at this forum as an example to mineral owners). In the case of Waha pricing, it’s just a niche bit of info that mostly professionals are interested in, and thus they are perfectly willing to pay for it… but it seems ‘high’ to most smallish mineral owners who are interested.
Matador Resources said this Waha problem will last four days (10/26/22 quarterly earnings webcast), said production will decline and gas prices will be only $2-$3 but unclear what time period Matador meant, said Matador will not need to flare. Pipeline capacity will increase late 2023.
Here is a report forecasting tight takeaway capacity for Permian gas.
Pioneer (10/28/22) expects smaller operators to receive discounted prices until new pipeline capacity comes on line 2023-24, the Waha price curve is discounted vz NYMEX & SoCal price curves, but have not heard of planned shut-ins by other operators. Pioneer sells 25% of gas thru Waha (was 15% previous quarter).
This topic was automatically closed after 90 days. New replies are no longer allowed.