Non-Operator Saves $2 Million Annually by Taking Gas In Kind

Market: Oil & Gas  |  Commodity: Natural Gas & Residue  | Customer: Non-Operating Working Interest Owner

 

Background

A non-operating working interest owner in the U.S. was receiving residue gas revenue through an operator-managed marketing arrangement. Without direct access to pricing details or deductions, they had limited influence over the marketing of their production share. As demand charges and transportation fees increased, they turned to AEGIS to evaluate alternatives and regain commercial control. 

 A non-operated oil and gas producer in the U.S. was receiving residue gas

 

The Challenge

Due to the operator’s underutilization of downstream transportation, the non-operator was burdened with approximately $0.90 per MMBtu in passed-through demand charges. They also lacked transparency into how their gas was marketed and had no leverage to negotiate or optimize fees. This absence of visibility and flexibility made it difficult to identify cost-saving opportunities or improve netback revenue. 

 

Solution

AEGIS engaged directly with the operator on behalf of the non-operator to negotiate take-in-kind rights, allowing them to assume direct possession of their residue gas at the processing plant. With these rights secured, AEGIS launched a hands-on marketing process—soliciting bids from multiple buyers to drive competitive pricing and eliminate hidden fees. 

In addition, AEGIS delivered detailed commercial insights, including midstream contract reviews, market pricing benchmarks, and full transparency into deductions. This empowered the client to make smarter, more strategic marketing decisions with improved confidence and control. 

Results & Impact

The non-operator captured nearly $1.00 per MMBtu in savings by avoiding operator-imposed transportation and marketing fees—resulting in over $2 million in annual value. Beyond the financial impact, they achieved full visibility into pricing and deductions, along with the operational flexibility to optimize future marketing strategies. 
ngl yields
$2,000,000 Annual Savings

The producer captured savings of nearly $1.00 per MMBtu.

 

 

Conclusion

By securing take-in-kind rights and partnering with AEGIS for both execution and advisory, the non-operator significantly improved their cost structure and overall commercial position. This case highlights how AEGIS enables customers to enhance transparency, reduce costs, and maximize value across their physical marketing operations. 

 producer captured savings of nearly $1.00 per MMBtu by avoiding operator-imposed transportation and marketing fees

 

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