Permian Producer Increases Revenue by $40,000,000 by Actively Marketing NGLs

Background

An oil and gas producer operating in the Permian Basin was preparing to enter a new acreage dedication agreement for midstream services. Under the proposed terms, the midstream provider would gain control over the marketing of the producer’s NGLs and residue gas – potentially limiting the producer’s revenue upside and reducing transparency into pricing and transportation arrangements.

The Challenge

Without take-in-kind rights, the producer would lose the ability to market their own NGLs and residue gas – instead relying on the midstream company’s marketing terms, which often includes hidden fees, suboptimal commercial arrangements, and limited flexibility. This structure directly threatened the producer’s netback pricing and overall revenue potential. Compounding the issue, the producer lacked internal expertise to assess midstream contract risks or to independently execute competitive product marketing strategies.

Solution

Additionally, AEGIS applied basin-specific insights and contract diligence capabilities to help the producer understand processing constraints and downstream risks that could affect pricing or logistics.

Results & Impact

Through a competitive marketing strategy, AEGIS secured transportation and fractionation offers that were $0.06/gallon higher than the proposed midstream terms. As the producer’s volumes ramped over five years, this premium translated into more than $40 million in incremental revenue. Beyond deal execution, the engagement demonstrated the long-term value of structuring midstream agreements around producer control, transparency and flexibility – ensuring sustained margin uplift and stronger alignment with the producer’s commercial goals.

Conclusion

This case highlights the distinct advantage AEGIS delivers by combining strategic advisory with hands-on commercial execution. From early-stage contract evaluation to post-close product marketing, AEGIS serves as an unconflicted, experienced partner dedicated to maximizing netback pricing, safeguarding client interests, and ensuring efficient product movement at every stage.

By aligning commercial strategy with execution, AEGIS empowers producers to unlock hidden value and retain control in even the most complex midstream environments.