So far for June 2025, the frac spread has averaged $3.08/MMBtu—a 7% decline from May 2025 and a 25% drop compared to the same period last year. This marks the lowest point for the frac spread over the past 12 months. While propane and natural gasoline retain the largest share of the frac spread, both have retreated from previous highs. Isobutane and normal butane continue to provide modest contributions, while ethane has slipped into negative pricing territory, a trend that’s been aggravated by recent tariff policy shifts.
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- Analyst Insight
Frac Spread - Chart Toppers
Ethane’s out of the red.
After a dip into negative pricing last month, ethane is back in the black—thanks to the end of tariffs that had been dragging down the frac spread.
- Blog
Crash and Burn - Why Did the Frac Spread Collapse? And What's Next?
Over the past nine months, the frac spread —a rough-cut measure of the value of extracting NGLs from raw gas at gas processing plants — has taken a terrifying plunge, from $9.82/MMBtu in early March to only $2.16/MMBtu on Monday. Given that the frac spread is the differential between the price of natural gas and the weighted average price of a typical barrel of NGLs on a dollars-per-MMBtu basis, a 78% nosedive like that suggests that something is seriously out of whack, and that at least some market players are taking a real hit financially. In today’s RBN blog, we discuss the frac spread, the drivers behind its recent freefall, and what it would take for gas processing margins to rebound.
- Analyst Insight
Chart Toppers - Frac Spread
Frac spread edges to $3.55/MMBtu (+4.7% MoM) but remains ~~12% below last year — propane still calls the shots.
