Just got my March royalty check, and even though the volume was higher than the past 2 years, the price was about a third of the “normal” price, so my check was about1/3 of what it usually is. Has anyone noticed this? Thinking of what the prices of gas is today, why would the price “go down” now? Thanks for any info..
What state/county are your minerals, and is your check mostly oil or mostly natural gas and plant products / NGLs? Royalty checks stemming mostly from natural gas wells are probably down in realized price coming off the winter months, while March oil well royalties are getting the realized price bump the Iran conflict kicked up.
Also, double check the production date of those higher volumes. Some checks can include volumes for several months, all in one check.
Gasoline is refined out of oil and pricing moves with oil prices. Natural gas is processed to remove ethane, butane, propane, iso-propane and those products are sold separately from the remaining ‘dry’ gas. May be called products or NGL - natural gas liquids - on your check detail.