Non-Operated Producer Saves $2 Million Annually By Taking Gas In Kind
Physical Marketing Solution • Non-Op
SituationA large non-operated producer was marketing through the operator of the well. The operator was passing back ~$0.90/mmbtu in unused demand charges for downstream transport that was being underutilized. The non-operated producer engaged AEGIS to assess how they might reduce these charges. | SolutionAEGIS engaged with the operator on behalf of the non-operated producer and negotiated a take-in-kind arrangement where the non-operated producer took its gas in-kind and had AEGIS market the products on its behalf. |
OutcomeAEGIS saved the non-operated producer nearly $1.00/mmbtu in downstream and marketing fees. In addition, the non-operated producer increased transparency into its midstream deducts and residue gas pricing. The end result was over $2,000,000 in savings per year. |
