Matterhorn pipeline is firming up Waha natural gas prices in the Permian basin. Next-day delivery cash prices at Waha have been on par with original forward market expectations. From June 1, 2024, until mid-October 2024, the Waha price for the forward December 2024 delivery contract averaged around $2.53 / MMBtu.
Now that we are into the December delivery month, next day delivery cash prices at Waha have averaged around $2.28 / MMBtu from December 1st until December 5th. Cash prices at Waha will likely increase further as we get deeper into the month of December because demand should continue to increase seasonally in the Permian basin.
Therefore, it is likely that cash prices at Waha for December will average close to what forward prices for December were indicating (at $2.53 / MMBtu) a few months before Matterhorn pipeline commenced operations.
