Permian Producer Increases Revenue by $40,000,000 by Actively Marketing NGLs
Midstream Negotiations • NGL Take-in-Kind
SituationAn oil and gas producer engaged AEGIS to negotiate an acreage dedication for midstream services in the Permian Basin. At the point AEGIS was engaged, the proposed midstream contract did not have take-in-kind marketing rights for the producer. | SolutionAEGIS quickly engaged on the producer’s behalf to negotiate take-in-kind rights for NGLs and residue gas at the tailgate of the midstream processing plant. |
OutcomeAEGIS ultimately marketed the NGL barrels to various bidders. Proposals came in $0.06/gallon better for Transportation and Fractionation. This uplift in pricing provided a little more than $40 million in incremental revenue to the customer over the subsequent 5-year period as volumes ramped up. |
