Surging Natural Gas Prices
How are the surging natural gas prices affecting drilling this year, and what about going into 2022? Are the gas companies taking advantage of these higher prices? What`s next?
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Replies to This Discussion
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Permalink Reply by farmgas on
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When a gas company buys another gas companies assets as Paleface mentioned, how do things change in the relationship with the landowners or royalty owners? Is the new gas company obligated to fulfill the terms of the old lease?
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Permalink Reply by Nancy Mosley on
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Yes. But sometimes this does not happen. Then what?
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Permalink Reply by farmgas on
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Good question. Any landowners or royalty owners with firsthand experience in this situation?
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Permalink Reply by Nancy Mosley on
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Yes, in WV. For old wells: for many decades for these old wells, no deductions were taken out. Last year a new company bought the wells and soon started deducting WV oil and gas severance taxes, then this year deducted Ad Valorem taxes. As I understand that latter tax, this is what the producers pay on their working interest portion of the revenue. The oil and gas owner pays his/her own Ad Valorem tax as part of the property tax charged by the county. The calculation for producing oil and gas property includes this information, and the tax is different for producing vs nonproducing property.
The amounts are not large enough to get a lawyer involved but I have heard of other situations where the amounts were significant, for the newer wells. If you have an iron clad lease, you have a decent chance of fighting this sort of thing, but the companies will do their best to ignore the lease terms, or be creative in interpreting these.
I hope to hear from others about this.
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Permalink Reply by Educate Me on
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EQT bought out Rice and everything remained the same. Rice leases were honored as far as I am aware.
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RRC decent report thanks to hedges .. EQT uninspired report . BOA still likes gas stocks over oil ... Propane prices finally stabilized .. Propane inventories too high
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Permalink Reply by farmgas on
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Did you notice the interest in NW Pennsylvania by RRC for Utica & gas liquids? Something to watch in years ahead. CNX report tomorrow.
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Yes Farmgas did notice RRC mention of NW PA .. This area has a long history of production , since then a few attempts to unlock its secrets have been met with failure ..[ Floyd Wilson , Petrohawk ? } if memory serves me, tried several years ago and failed .. Wilson had an ego as big as Texas , I was not a fan
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Floyd Wilson = Halcon
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Permalink Reply by farmgas on
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2Q CNX reporting out today. Any thoughts? How does wall street view it?
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CNX continues to uninspire , decent outfit , zippo dividends , 11 % CAGR on share buybacks .. Most energy Investors will continue to look elsewhere for greater potential upside .. CNX is more bond like than most producers and the clock continues to click on remaining well sites .. Best of luck , as this is one mans opinion .
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