According to the EIA’s most recent Drilling Productivity Report, the natural gas spot price spread between the Permian Basin, as priced at the Waha Hub in western Texas, and the U.S. national benchmark Henry Hub in Louisiana has grown dramatically thanks to increased Permian production.

Natural gas prices at Waha are approximately one dollar per MMBtu lower than Henry Hub prices and will continue to widen due to the takeaway bottleneck in the Permian.

June’s average natural gas production was up 2.1 Bcf/d from last June to 10.4 Bcf/d,...

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