Waha Hub natural gas prices rebound after a record 90-day negative streak, though Permian producers remain pressured by regional oversupply as the broader energy sector posts record quarterly results.
Natural gas prices at the Waha Hub experienced a historic period of negative pricing, remaining below zero for 90 consecutive days due to severe oversupply in the Permian Basin. While prices turned positive on June 16, the year-to-date average of minus $2.19 per million British thermal units highlights the extreme logistical and supply-demand imbalances facing producers in the region.
Waha Hub spot prices remained below zero for a record 90 consecutive days.
The hub averaged minus $2.19 per million British thermal units for the year up to June 16.
Permian Basin natural gas prices at the Waha Hub have finally turned positive after a historic 90-day period of negative pricing. Despite the severe supply glut that forced producers to pay for gas removal, major energy firms reported record second-quarter earnings, largely insulated by geographic diversification and non-drilling business models.
The negative pricing was driven by a severe oversupply of natural gas in the Permian Basin, forcing producers to pay buyers to haul away the gas produced alongside oil.
Most companies analyzed were either non-drilling entities or operated in regions outside the Permian Basin, insulating them from the specific price collapse at the Waha Hub.