Natural gas shot in price with the cold weather. Opening wells up alot in Oklahoma. Will our royalty checks reflect this?
Depends on what gas/oil closes at for the month I think. Last I read on it, oil closes three business days before the 25th so the price for the month of March 2021 will depend on what oil closes at on that specific date I think. Natural gas I’m not as sure.
It would depend upon whether or not your well was opened up and if the contract price for your operator also increased. Time will tell.
Generally oil contracts are based on 30 day average pricing, with several additional +/- factors such as demand at Cushing.
Probably not FWP. The largest percentage of natural gas sales are on a contracted basis. The very high prices you are reading about are for natural gas on the spot market so the contracts are not privy to those large swings in prices.
" In Oklahoma, Chris Bird’s company Exponent Energy, was using similarly improvised measures, including a propane gas torch, to keep its gas wells from freezing. In just five days, Exponent’s wells in Osage County raked in about $3 million of revenue, compared with around $800,000 for the whole of last year." Get ready for a buying frenzy - is my guess.
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