December Weather Provides Short Lived Opportunity

We expect royalty owners’ checks this month for November production to be very similar to what they saw in October. But looking forward to the December production month, royalty owners will be very pleased. Due to the cold and significant rally in the natural gas market, natural gas heavy royalty owners should see a 25% to 50% increase in their check value relative to the previous month. Unfortunately, this will be short-lived due to the retreat in natural gas since the beginning of the year. We may see prices move back up for a time before the winter season wraps up. Now the focus will be on the summer fundamentals and weighing the possible weakness in price, especially in specific regions. Either way, the market anticipates continued volatility in price fluctuations. Crude oil has stabilized somewhat in the mid to low $50 range. Location dislocation volatility to WTI pricing looks to continue. With our tools, we have great options for royalty owners to manage and take advantage of this volatile market. See how Advance Royalty Company can help you make sense of your mineral rights ownership.