Replies to This Discussion

Permalink Reply by Adam Martin on December 18, 2014 at 8:32am

We got $2.05 from EQT in Sept so I would say there is definitely something up. We've been thinking it was low for a while now and the only explination given is that the "local market price" is lower than NYMEX (Henry Hub). Not sure where our gas goes or which hub it is sold thru (Dominion North, Dom South or someone else) but we've consistently been between 1 to 2 dollars less on average than NYMEX pricing. Odd that in this instance, the same operator is paying a different price for the same month. I know my parents EQT gas bill at their home, they pay close to $11 per MCF for gas to heat their home.

So EQT pays my family ~$2 bucks per MCF, charges us production costs close to 30% and then sells it back to my parents for ~$11 bucks. Seems like a pretty good deal for EQT.

• ▶ Reply