• Q2 2010 Frac Spread: Margins Crumbled as NGL Prices Fell Sharply

  
  
  There were significant drops in natural gas liquid frac spread margins from the start to the end of the second quarter, most notably in the case of ethane, which became negative to produce at Conway during the quarter though the margin was theoretically positive as the quarter closed.
  - Jul. 29 2010
  

• Frac Spread Margins Largely Improve as NGL Prices Increase

  
  
  Modest increases in both natural gas liquid (NGL) and natural gas feedstock prices helped to largely increase NGL frac spread margins this week at both Mont Belvieu and Conway with the exceptions of Conway ethane and C5+ and Mont Belvieu iso-butane, all of which saw their margins fall this week.
  - Jul. 29 2010
  

• June 2010 Frac Spread: Margins Move Down on Lack of Summer Demand

  
  
  The frac spread margin for natural gas liquids (NGL) deteriorated throughout the month of June as the normal summer decrease in NGL and natural gas prices occurred. However, natural gas feedstock prices fell at a slower rate than NGL prices, which hastened the fall of NGL margins further down.
  - Jul. 22 2010
  

• Conway Ethane Margins Again Turn Negative

  
  
  Improved natural gas feedstock prices drove the Conway ethane frac spread margin back into negative territory a week after it had regained theoretical positive value. Overall, Mont Belvieu margins outperformed their Conway counterparts with only C5+ margins improving at both Conway and Mont Belvieu this week.
  - Jul. 22 2010
  

• Conway Ethane Margins Theoretically Turn Positive

  
  
  Natural gas liquid (NGL) frac spread margins improved across the board at both hubs this past week as NGL prices stabilized and natural gas feedstock prices fell 9% at both Conway and Mont Belvieu.
  - Jul. 15 2010
  

• Frac Spread Week of 6/23/10: Margins Show Improvement on Back of Reduced Gas Prices

  
  
  Natural gas liquid (NGL) frac spread margins showed some improvements despite a general downturn in NGL prices last week as natural gas feedstock prices dropped 10% at both Conway and Mont Belvieu during the same timeframe.
  - Jul. 8 2010
  

• Frac Spread Margins Fall as NGL Prices Lose Value

  
  
  A week after frac spread margins showed positive gains due to weaker natural gas feedstock prices, margins fell across the board as natural gas prices improved while natural gas liquid prices fell at both hubs.
  - Jul. 8 2010
  

• Frac Spread Delayed Until Next Week

  
  
  This week’s frac spread will be delayed until next week while our editor, Frank Nieto, is traveling abroad at the SMi Gas Storage Conference in London this week. Next week’s issue of Gas Processors Report will include this week’s frac spread as well as the one for that week. We apologize for any inconvenience.
  - Jul. 1 2010
  

• Warmer Temperatures Driving Gas Prices Up, But May Encourage Greater Use of Coal

  
  
  Frac spread margins continued to fall for natural gas liquids (NGL) this week with the lone exception of C5+ as NGL prices continue to fall while natural gas feedstock prices gain strength as the temperatures this summer have been very hot.
  - Jun. 24 2010
  

• Conway Ethane Margins Officially Turn Negative

  
  
  Conway ethane margins officially turned negative this week as the margin closed at negative 2¢. Although prices had theoretically been positive for the past month at the hub, when factoring in all expenses they were negative and ethane rejection continues in the mid-continent.
  - Jun. 17 2010
  

• Conway Ethane Margins Fall Below 1¢/gal

  
  
  Although natural gas liquids (NGL) prices improved across the board at both Conway and Mont Belvieu, the steady improvement of natural gas prices had a largely negative effect on frac spread margins at both hubs.
  - Jun. 10 2010
  

• May 2010 Frac Spread: Heavy Margin Losses as Demand, NGL Prices Remain Low

  
  
  Frac spread margins for the month of May saw decreases across the board due to the “dead zone” that is the period between the end of winter and the beginning of the cooling season. This period coincided with a drop in natural gas liquid (NGL) prices due to the continued uncertainty of the global economy.
  - Jun. 3 2010
  

• Frac Spread Margins Continue to Fall as Feedstock Prices Improve

  
  
  Natural gas liquid (NGL) frac spread margins were largely down this week as an improvement in prices still wasn’t enough to overcome last week’s heavy losses. Additionally, natural gas feedstock prices at Conway improved by 9% while the Mont Belvieu price improved by 8%.
  - Jun. 3 2010
  

• Conway Ethane Margins Fall 48%

  
  
  Natural gas liquid (NGL) frac spread margins fell heavily despite sizeable reduction in natural gas feedstock prices due to heavy losses in NGL prices at both Mont Belvieu and Conway this past week.
  - May. 27 2010
  

• Frac Spreads Continue to Fall as Gas Prices Improve

  
  
  Frac spread margins for natural gas liquids (NGL) took a downturn this week as natural gas feedstock prices continued to improve and NGL prices were mixed at both Conway and Mont Belvieu.
  - May. 20 2010
  

Frac Spread Sample Data: Login Or Subscribe To See Current Prices

Aug 14, 2011
Ethane	55.52		82.33
Shrink	27.85		28.18
Margin	27.67	1.78%	54.15	5.59%
Propane	143.92		155.66
Shrink	38.47		38.93
Margin	105.45	1.45%	116.73	3.56%
Normal Butane	168.84		193.08
Shrink	43.55		44.07
Margin	125.29	0.07%	149.01	3.51%
Isobutane	196.00		210.25
Shrink	41.83		42.33
Margin	154.17	-1.69%	167.92	0.61%
Pentane+	222.23		245.92
Shrink	46.58		47.13
Margin	175.65	-1.78%	198.79	-0.63%
NGL ($/Bbl)	55.41	-0.71%	63.64	1.03%
Shrink	15.34		15.53
Margin	40.07	-0.08%	48.11	2.39%
Gas ($/mmBtu)	4.20	-2.33%	4.25	-2.97%
Gross Bbl Margin (in cents/gal)	92.34	0.05%	112.41	2.53%
NGL Value in $/mmBtu
Ethane	3.06	-0.32%	4.53	2.50%
Propane	5.00	0.41%	5.40	1.85%
Normal Butane	1.82	-0.56%	2.09	1.93%
Iso-Butane	1.22	-1.82%	1.31	-0.13%
Pentane+	2.87	-1.89%	3.17	-1.09%
Total Bbl Val.	13.96	-0.55%	16.50	1.30%
Margin	9.76	0.23%	12.25	2.87%