Negative Permian gas prices, a windfall for ConocoPhillips

摘要

Negative natural gas prices in the Permian Basin were a commercial windfall for ConocoPhillips in the second quarter, top executives from the company said Tuesday. Surplus pipeline capacity allowed the company to buy stranded gas in the West Texas play, often at negative prices, and move those volumes westbound into higher-priced markets. “Our offtake out of the Permian is multiples of what our equity production requires,” ConocoPhillips Chief Financial Officer Don Wallette said on the company second-quarter earnings call.