So far for June 2025, the frac spread has averaged $2.94/MMBtu—an 11% decline from May 2025 and a significant 29% drop compared to the same period last year. This marks the lowest point for the frac spread over the past 12 months, underscoring mounting pressure on natural gas liquids prices.
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Frac Spread - Chart Toppers
The frac spread just hit its lowest point in a year — down from last month and sharply lower year-over-year.
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Ratio Ga-Ga? – Consequences of a Lower Crude-to-Gas Price Ratio
We saw a slight recovery in crude prices Friday (December 19, 2014) with CME NYMEX West Texas Intermediate (WTI) futures up $2.41/Bbl from Thursday’s close. At the same time CME NYMEX Henry Hub natural gas futures were down $0.18 to $3.464/MMbtu. That meant the crude-to-gas price ratio between these two commodities was up 1.5X to 16.3X from it’s recent low under 15X on Thursday. However futures markets indicate that market expectations for the crude-to-gas ratio are for it to remain at a low level between 15X (i.e. WTI in $/Bbl is 15X Henry gas in $/MMbtu) and 17X for most of the next decade. If that turns out to be true there are serious implications for shale drilling, gas processing and LNG export prospects in the U.S. Today we look at what may happen and why.
