1. West Texas Tough Love

    I watched the movie No Country for Old Men last week for the second time. At first, it made me think about gas prices in West Texas, but then I was reminded of an old Texas oilman joke: Oilman:  "Well, I have some good news and bad news." Banker:  "Well, what is it?" Oilman:  "The bad news is we …Read More

  2. A Closer Look at LNG – How the Natural Gas Markets are Now Much More Complex

    When trying to understand how a commodity is priced, the best foundation is from a fundamental perspective. Simply stated, when supply is above demand, prices fall and when the inverse occurs, prices rise. However, this equation gets exponentially more complex for natural gas when attempting to pars…Read More

  3. A Look Ahead: Summer Possibilities as Winter Comes to a Close

    Waha daily cash prices (Permian Nat. Gas Pricing Hub) traded down to $-.75 today. How can prices trade negative? The producer is paying the buyer to take the gas off their hands so that they can continue to produce more valuable production (Oil and NGLs). There may be relief in the near future as GX…Read More

  4. The Permian Is Going Major

    Both Chevron and Exxon announced that they are seeing plus-30% returns at the current strip in the Permian. Exxon announced that they can profitably drill at $15 oil, making their operation cost-competitive with some of the lowest cost supply regions globally. A major driver behind this activity is …Read More

  5. A Brief Look Into The Appalachian Basin

    In the recent history of the shale revolution, the Appalachian basin has been associated with huge amounts of natural gas production, and along with that, the need for interstate pipelines to get the gas to major demand regions (these regions primarily being the Northeast urban corridor, the southea…Read More

  6. Oil, Gas and Liquids Winter Price Update

    Meet Us This Spring To Learn More About Mineral Value If you like excitement, the energy markets are not disappointing right now! Next-day gas deliveries that utilities are buying in the Northwest is currently trading for $150/MCF! Yes, you read that right! There's been lots of interesting price act…Read More

  7. Winter Coming To A Close And A Great Week At Nape

    It was a good week at NAPE and participation was very strong. Thanks to everyone who came by the booth to hear more about the Advance Royalty Payment! As winter comes to a close, all eyes again are on the supply-demand dynamics. Many regional variables look to add to the volatility as natural gas de…Read More

  8. Extreme Weather In The West Brings Extreme Prices

    The last week has had some very cold temps in the West and Northwest. This caused significant short-term pricing spikes in natural gas in the Rockies and other western hubs — $10 and higher! However, nationally, the futures prices continue to degrade into the mid $2 range for the summer. We still …Read More

  9. 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 ow…Read More

  10. Late Summer Market Swoon, But Not In The Commodity You Think

    Crude oil has taken a major tumble recently from recent highs in the mid $70 range. Oil-rich royalty checks have already been impacted by the discount to WTI in most producing regions. Now with the WTI price decrease, the further value of royalty payments will see a reduction of 30-40 % over the com…Read More