Permian Basin natural gas prices at negative all-time lows

|About: Apache Corporation (APA)|By:, SA News Editor

Next-day natural gas prices at the Waha hub in west Texas extend their slide into record negative levels, as spot prices fell to negative $3.38/MMBtu for Wednesday, easily beating the previous all-time next-day low of negative $1.99/MMBtu set last week.

Prices have been negative in the real-time or next-day market since March 22, meaning drillers have needed to pay those with pipeline capacity to take the gas.

With production of both oil and gas in the Permian Basin soaring to record highs, pipeline infrastructure has not been able to keep up with the growth, trapping gas in the Permian and depressing Waha prices, boosting the Waha discount to the U.S. Henry Hub benchmark in Louisiana to a record high.

Permian producers include EOG, PXD, LPI, FANG, AR, CRZO, CXO, DVN, OXY, CVX, XOM, NBL, APC, APA, ECA, WPX, CDEV, REN, EGN, JAG, AXAS, HK, MCF, XEC, PE, SM, MTDR, QEP, ESTE, REI

ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, KOLD, UNL, GASX

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