Natural Gas Price Settlement Date

Natural gas contracts and pricing are pretty complicated but here is my take on something royalty owners should be aware of regarding how pricing affects them month to month.

Many mineral owners / royalty owners are paid royalties on natural gas wells, or oil wells that also produce natural gas. And many have the erroneous perception, or assumption, that the wildly fluctuating natural gas futures price is cause for great angst. In large part, I don't think it really works that way. Natural gas futures prices indirectly affect the natural gas settlement price which is posted before the first of each month. What is the settlement price?

Royalty owners are usually paid based on one price for the entire month, and most natural gas contracts that their oil well or gas well operator is subject to are based on the settlement price which was set for the subject month. I don't know who makes the settlement price... some Grand Wizard Of Natural Gas... but it's posted online on various websites.

When is the natural gas settlement price posted? Answer -- it is posted upon the close of the market on the third business day before the first of the next month. So, for the July 2017 settlement price, for example, it will be posted in the afternoon of Wednesday, June 28, 2017. 

Once a settlement price is posted, you can quit worrying about the volatility of prices for almost a whole month. All the futures price does is give you heartburn. Although, as mentioned, futures price trends do affect future settlement prices. But if price goes down a lot early in the month, there's a chance it could rise back up before month's end. Usually, the settlement price will be pretty close to the futures price at the end of the month; although, I have seen it be several percent lower, to my chagrin!

Sell East Texas Mineral Rights

Do you own mineral rights (oil and gas rights) in East Texas? We buy minerals all over the USA and to broaden our risk, we are increasing our portfolio of mineral rights and royalty rights there. it doesn't matter to us whether there is an existing oil and gas lease. So, if you wish to sell East Texas mineral rights whether leased to an oil company or not, please contact us.

For the next year or two, several East Texas counties are in our expansion area:

• Angelina County
• San Augustine County
• Nacogdoches County
• Shelby County
• Panola County
• Harrison County

There are numerous oil companies / gas companies which own wells in this part of Texas. The largest is XTO Energy, a subsidiary of ExxonMobil. Here is a more complete list of some of the operators which have oil or gas wells in the area: • BP America Production Company • Cci East Texas Upstream LLC • Chevron U. S. A. Inc. • Comstock Oil & Gas, LP • Covey Park Resources LLC • Glassell Producing Company, Inc. • Harleton Oil & Gas Inc. • Indigo Minerals LLC • Memorial Production Oper. LLC • Patara Oil & Gas LLC • Pedernales Petroleum Op, LLC • Petroquest Energy, L.L.C. • R. Lacy Services, LTD. • Sabine Oil & Gas Corporation • Samson Lone Star, LLC • Sheridan Production Company, LLC • Tanos Exploration II, LLC • Trivium Operating, LLC • Valence Operating Company • XTO Energy Inc.

We are very active and certainly can serve as your mineral rights buyer in San Augustine county and the other counties. Let us know if you are interested in selling East Texas mineral rights, regardless where they are. We can buy mineral rights if they are not producing any income or those that are also producing royalties from an oil and gas lease.

You can also check this website, as it provides additional information. To recap, you may definitely sell East Texas mineral rights in Angelina County, sell San Augustine County mineral rights or royalty rights (sell oil and gas rights), and also in Nacogdoches County, Panola County, Shelby County and Harrison County, Texas. We can purchase as little as a few acres for those selling mineral rights in San Augustine county and the other counties. Please contact us and let's discuss!