Natural Gas Liquids (NGLs)
Valuable hydrocarbons — ethane, propane, butane, and others — separated from the gas stream at a processing plant, adding value beyond dry gas.
Natural gas liquids, or NGLs, are the heavier hydrocarbons that come out of the raw gas stream when it is processed: ethane, propane, butane, isobutane, and natural gasoline. Raw "wet" gas from the wellhead contains these components mixed in; a processing plant strips them out and leaves "dry" pipeline gas that is mostly methane.
NGLs matter to owners because they are sold separately and can add meaningful value on top of the residue gas. A royalty on rich gas can pay more than the same royalty on dry gas once the liquids are accounted for. The flip side is that processing, transport, and fractionation show up as post-production costs that may be deducted from your share, depending on your lease.
NGLs are distinct from condensate, which is a free liquid that drops out under field conditions. How NGL revenue and deductions appear depends heavily on lease language — review how royalties work and your royalty statement.