August 2, 2021
Permian full-cycle costs at Henry Hub range from a low of 3.08 USD/Mcf for wells with an Initial Productivity (IP) greater than 12 MMcf/d to a high of 16.68 USD/Mcf for wells with an IP of under 2 MMcf/d. To help offset some of the full-cycle costs, there is liquids uplift providing 1.45-1.21 USD/Mcf in revenue at IP’s greater than 12 to under 2 MMcf/d.
Operating costs range from 1.04-1.24 USD/Mcf while royalties & taxes and overhead represent about 0.72 USD/Mcf. F&D costs range from 0.63-8.78 USD/MMcf and the 15% producer return ranges from 0.40-5.62 USD/MMcf. The Henry Hub differential is 0.30 Mcf/d.