Strong Permian Basin production of oil and, by extension, associated gas continues to propel supplies in West Texas and depress prices in the region. Natural gas production nationally reached record levels around 107 Bcf/d early this year, according to Wood Mackenzie estimates. But leading exploration and production (E&P) companies, including Chesapeake Energy Corp. and EQT…
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Permian Natural Gas Compression Demand Climbing, Says Kodiak CEO
Kodiak Gas Services Inc.’s customers in the Permian Basin are clamoring for more natural gas compression as they prepare for the next wave of LNG exports, according to CEO Mickey McKee. The CEO recently discussed the uptick in demand by exploration and production (E&P) customers in announcing the latest quarterly results. The company, headquartered in…
Golden Pass, Delfin Take Final Capacity for Kinder Morgan’s Texas-Louisiana Expansion Project
Kinder Morgan Inc.’s (KMI) Texas-Louisiana Expansion project, aimed at bringing additional natural gas supply to the Gulf Coast, is now fully subscribed after two LNG exporters signed on as customers. Natural Gas Pipeline Company of America LLC (NGPL), a KMI subsidiary, told FERC in a recent filing it has inked agreements to supply the Golden…
West Texas Spot Natural Gas Prices Tank as Pipeline Work Traps Supply
Spot natural gas prices for Wednesday flow at Waha and nearby delivery hubs in West Texas fell into negative territory as pipeline maintenance prevented some gas from leaving the basin and mild, spring-like weather reduced demand. Waha Hub spot prices for next-day delivery tumbled 72.0 cents day/day to minus 54.5 cents. The last time Waha’s…
Natural Gas Price Volatility? For Ovintiv, Efficiencies and Hedging Poised as Shield
Denver-based Ovintiv Inc. has set up its year to avoid natural gas price swings through a hedging program that covers about 50% of volumes. The independent, which operates across the Anadarko, Permian and Uinta basins, as well as the Montney Shale in Western Canada, has a base Nymex price assumption of $2.50/Mcf for 2024. “More…
Effort to End Colorado Natural Gas and Oil Development Going Nowhere, Says Civitas CEO
Another attempt to phase out natural gas and oil drilling in Colorado is ramping up, but it’s unlikely to advance, Civitas Resources Inc. CEO Christopher Doyle said Wednesday.Doyle helmed a conference call with analysts to discuss fourth quarter results and the outlook for 2024. Most of the discussion centered on the Denver-Julesburg (DJ) Basin in…
Atlas Energy, Hi-Crush Combination Set to Deliver ‘More Sand, More Barrels’ for Permian E&Ps
Austin, TX-based Atlas Energy Solutions Inc. has clinched an agreement valued at $450 million to acquire Hi-Crush Inc., merging two proppant sand operators to create the largest operator in the Permian Basin. In the agreement, scheduled for completion by the end of March, Atlas would pay $150 million cash, trade $175 million in common shares…
Growing Demand for Dual-Fuel and E-Fleets, but E&P Activity Still Weak, Says ProPetro Chief
Permian Basin-focused ProPetro Holding Corp. is giving its exploration customers more of what they want – electric and dual-fuel fleets – as it continues to industrialize its business, CEO Sam Sledge said. The Midland, TX-based completions expert works across the Lower 48, with most of the exploration and production (E&P) work centered in the Permian.…
Matador Skirting Permian Natural Gas Constraints and Raising Output
Dallas-based independent Matador Resources Co., which works in the Permian Basin, Haynesville and Eagle Ford shales, reported record natural gas production for 2023, and it is not planning to reduce output this year, even with low prices. The independent “exceeded production expectations” for gas and oil. Output increased 38% year/year during 4Q2023, driven by the…
Diamondback, Undeterred by Low Permian Natural Gas Prices, Pursuing ‘Value Over Volumes’ in 2024
Weak pricing for associated natural gas in the oil-rich Permian Basin is not a needle mover by itself in determining the pace of activity for Diamondback Energy Inc., CFO Kaes Van’t Hof said Wednesday. “We could run the gas price to zero in the Permian and still make great returns on oil wells,” Van’t Hof…