Prices · natural gas
Natural gas prices: Henry Hub history and what moved it.
The U.S. benchmark for natural gas, daily from 1997, with the weather, storage, production, and export events behind each big move. Most West Virginia royalty income is gas, and gas here sells against Appalachian indexes that trade below Henry Hub.
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How to read this chart against your royalty statement
- Your price is Henry Hub minus a basis. Appalachian gas is priced at regional points such as Dominion South or TETCO M2. When pipelines out of the basin are full, that discount widens; when new capacity opens, it narrows. Your statement shows the operator’s realized price, not the benchmark.
- Winter sets the tone. Cold snaps lift prices for days or weeks; storage levels going into winter decide how far. A spike that lasts a few trading days barely moves the monthly average most statements use.
- Deductions change the net. Many West Virginia leases allow gathering, compression, and transportation costs to be deducted from royalties. The same benchmark can produce very different checks depending on the lease language.
- LNG exports now matter. Since 2016, U.S. export terminals connect domestic prices to world markets. European and Asian demand, and outages at export plants, show up at Henry Hub.
Questions owners ask
Why is my royalty price so far below Henry Hub?
Appalachian basis, deductions allowed by the lease, and the lag between production month and payment month all pull the realized price below the benchmark. Compare the monthly average for the production month, not the day you received the check.
Which months should I compare?
Royalties usually arrive one to two months after the production month. Use the table view to read the monthly average for the production month printed on your statement.