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Last Look - Oil settles lower for a second consecutive week
Latest Insight
Last Look - Oil settles lower for a second consecutive week
Non-Operated Producer Saves $2 Million Annually By Taking Gas In Kind
Physical Marketing Solution • Non-Op

Situation

A 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.

Solution

AEGIS 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.

Outcome

AEGIS 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.

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