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Permalink Reply by wyalusing jim on May 6, 2013 at 5:31am

the nymex has no direct relationship to the price that your gasco(s) are able to sell your gas for.

the main thing that you can take from watching the nymex is the month over month trend. usually if the nymex goes up, so will the price on which your royalties are based, but it does not have to.

the nymex closed feb. at $3.226, most companies were under that because the day to day weighted average of pricing was lower.

in march the nymex closed at $3.427, so you can probably expect a higher price for that month...and so on.

 

Jun - 2012	$2.429
Jul - 2012	$2.774
Aug - 2012	$3.01
Sep - 2012	$2.634
Oct - 2012	$3.023
Nov - 2012	$3.471
Dec - 2012	$3.696
Jan - 2013	$3.354
Feb - 2013	$3.226
Mar - 2013	$3.427
Apr - 2013	$3.976
May - 2013	$4.152
12 Month Average	$3.264 wj

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Permalink Reply by bungalow_steve on May 6, 2013 at 5:39am

Natural gas prices works the same way as the price of firewood, all depends what the demand and supply is where you live. The posted rates quoted on the Web are usually for Louisiana (where most of the natural gas pipeline converge) and are meant for future traders. You need to find the LOCAL rate in your area where your gas is being sold. It may be much less or much more then Louisiana.

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Permalink Reply by wyalusing jim on May 6, 2013 at 7:43am

makes no difference what published index you use, they are an average of prices just like nymex, just at a different sales point. they still wont accurately reflect the prices on your royalty statements.

here in nepa, most gas is sold into tgp zone 4, but more often than not royalty prices are higher, depending on the company that's selling it.

there is no published index that will show what you should be getting paid, your royalties depend on what your lessees are able to sell the gas for.

wj

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