OXYCHEM Market Analysis and Guidance
MIDSTREAM AND MARKETING
NARROWING WAHA-HOUSTON SHIP CHANNEL SPREAD
.
Narrowing natural gas spreads and moderating market
volatility lessen Oxy's gas marketing income potential
1.0
Permian to Gulf Coast gas spread has contracted as
basin supply/demand balance has stabilized due to:
о
• Third party pipeline maintenance
0.0
о
Higher ethane recovery
$/MMbtu
(1.0)
(2.0)
о
Increased pipeline flows to the Southwest,
California and Mexico
о
⚫ Hotter temperatures driving intra-basin gas demand
(3.0)
(4.0)
• Midstream & Marketing's annualized cash flow
changes $35 MM per $0.10/ MMbtu change in Waha
to HSC spread
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Waha and HSC Spread
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Jul-23
Oct-23
......
HSC Actual
HSC Forecast
Jan-24
Apr-24
Jul-24
Oct-24
Waha Actual
Waha Forecast
OXY
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