• Iso-Butane Stocks Remain at Same Level in Dec. 2008 and Jan. 2009

  
  
  When GPR last looked at iso-butane stock levels (GPR 2/4/09), we found that it went against most inventory levels for other NGLs at the time. This correlated with iso-butane having a price rally when other NGLs were not improving.
  - Apr. 1 2009
  

• Frac Spread Margins Improve with Prices

  
  
  The NGL price rally carried over to improve the frac spread margins for all NGLs at both Mont Belvieu and Conway, aside from ethane, which posted a 24% drop in its frac spread margin at Conway and a 16% drop at Mont Belvieu. Iso-butane margins improved the most at both hubs, as the Conway frac improved by 36% while Mont Belvieu’s margin was up 20%.
  - Mar. 25 2009
  

• Conway Margins Increase

  
  
  Frac spread margins in Conway were up across the board this week due to NGL prices holding firm and a 20% drop in feedstock prices. Three of the five NGL margins also improved at Mont Belvieu.
  - Mar. 18 2009
  

• Dec. Butane Storage Levels Up 113% from Prior Year

  
  
  At first glance, December storage of butane doesn’t look unusual, since the month’s stock level is lower than six previous month’s levels in the past year.
  - Mar. 18 2009
  

• Flat Prices, Higher Feedstock Prices Reduce Margins

  
  
  Flat NGL prices combined with increased feedstock prices conspired to take frac spread margins down this past week at both Mont Belvieu and Conway. The one NGL that was an exception to this rule was C5+, which saw its margin improve 8% at Conway and 2% at Mont Belvieu.
  - Mar. 4 2009
  

• Ethane Margins Continue to Improve

  
  
  Frac spread margins mostly were down over the past week, with the notable exception of ethane, which continues to improve after a lengthy run of less-than-profitable conditions.The margin to fractionate ethane at Mont Belvieu was up 5%, pushing the spread to 12¢/gal, the highest it has been in Texas since Oct. 8, 2008. Meanwhile, Conway’s ethane margins were up 32%, pushing the spread to 8¢.
  - Feb. 25 2009
  

• C5+ Stock Levels Up, But Reflect Relative Pricing Strength

  
  
  C5+ Stock Levels Up, But Reflect Relative Pricing Strength
  - Feb. 25 2009
  

• Iso-butane Margins Continue to Shrink

  
  
  Frac spread margins were down for the second straight week at Conway due to a continued depression of NGL prices. However, an 11% drop in feedstock prices improved margins in most cases at Mont Belvieu.The biggest drop in margin at both hubs was for iso-butane, which also suffered the largest decrease in price at both Mont Belvieu and Conway. The margin to fractionate at Texas was down 13% from last week, while the frac spread margin tumbled 28% at Kansas.
  - Feb. 18 2009
  

• November Propane Hit Six-Year High Storage Levels

  
  
  The Energy Information Administration’s storage data for November 2008, the most recent data available, shows that propane nearly matched ethane’s 2,560,000 bbl stock levels in the month with 2,471,000 bbl.
  - Feb. 18 2009
  

• Frac Spread Margins Continue Volatility

  
  
  Frac spread margins continued to be volatile due to the constant fluctuations in feedstock and NGL prices. While margins for three products improved at Conway, the other two products had double digit drops in the margin to fractionate. That was still a stronger week for frac spreads than those found at Mont Belvieu, which had drops in margins across the board.
  - Feb. 11 2009
  

• November Ethane Stock Levels Hits 14-Year High

  
  
  The record levels of natural gas production in 2008 coupled with the dramatic fall in natural gas prices in the second half of the year saw producers begin to reject ethane seemingly overnight, but what became of the ethane that was already produced?The Energy Information Administration’s storage data from November 2008, the most recent data available, shows that ethane stock levels hit 2,560,000 bbl for the month. The last time a single month had this much ethane stored was Oct. 1994.
  - Feb. 11 2009
  

• Propane Margins Improve at Both Hubs

  
  
  Frac spreads largely kept pace with the results of NGL prices this week due to feedstock prices remaining relatively unchanged from last week.As with NGL prices, the biggest gains for the frac were with propane at both hubs and butane at Conway. The biggest drops were with Mont Belvieu butane and iso-butane at both Kansas and Texas.
  - Feb. 4 2009
  

• Low Iso-butane Stock Levels Seem to Be Cause of Price Rally

  
  
  The first thing that jumps out upon first viewing of the chart for iso-butane stock levels is how low the storage level was for November, which is the most recent data available from the Energy Information Administration.
  - Feb. 4 2009
  

• Iso-butane, Butane See Sizable Margin Improvements in Texas

  
  
  The sizable gains in iso-butane and butane prices at Mont Belvieu, combined with lower feedstock prices, continue to improve frac spread margins at the hub.However, lower NGL prices coincided with lower frac spread margins at Conway. Butane was the biggest gainer in margin at Texas this week, as its frac improved 31% to 65¢/gal. Iso-butane had the second largest improvement in margin at Mont Belvieu, as it rose 25% to 74¢.
  - Jan. 28 2009
  

• Butane Stock Levels Fell 33% in Oct.

  
  
  Since the economic downturn in the second half of 2008, butane has remained one of the highest priced and consistent NGLs despite the large stock levels that were accumulated throughout the year.Butane had a large build-up throughout much of 2008, following a year in which storage levels were at their lowest in 10 years.
  - Jan. 21 2009
  

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%