WTI Discount


#1

I’ve been reading about the discounted sale price of crude in the Permian due to infrastructure bottlenecks. How is this affecting mineral owner royalty checks? Are we absorbing those discounts as well, or are we getting market rate for our oil?


#2

Generally, yes we are absorbing the discount. It can depend on how prepared your operator was for the takeaway crunch, especially on gas. In other words, some operators are better positioned than others to get better prices.