Record natural gas production and strong oil output in the New Mexico portion of the Permian Basin played a primary role in boosting expectations for revenue in the years to come, according to the state’s Legislative Finance Committee (LFC). 

In fiscal year (FY) 2023, which ended June 30, the state produced 2.95 Tcf of natural gas, or about 8.1 Bcf/d, which was a 13% year/year increase, LFC said in a recent report.

Even as global economic activity declined and as a warmer winter kept “upward pressure on prices, New Mexico’s energy companies have continued to expand production rates and enhance well productivity, consistently breaking monthly production record,” LFC economists said in the August analysis.

Natural gas production reached a record 9.5 Bcf/d in March, and...