Diamondback plans flat output into 2027 despite near-$100 oil
CEO Kaes Van't Hof said the company will keep activity mostly flat next year and stay ready for a possible downturn in crude prices.
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what happened
Diamondback Energy plans to stay cautious and keep activity mostly flat next year. CEO Kaes Van't Hof said on Tuesday, citing Bloomberg, that he expects crude prices near $100 a barrel to remain elevated for a long time.
Van't Hof said the company does not want to be a permanent bull and is preparing for a possible drop in prices. Diamondback does not expect a notable production increase in 2027. Its base case calls for 19-20 rigs and five frac crews, completing 120-140 wells per quarter, compared with 135 wells in the third quarter. Larger rival Chevron has also said it plans to pump just above 1 million boe per day in the Permian Basin through the next decade.
why it matters
Restrained plans from large shale producers suggest no sharp jump in Permian supply in the coming years. That matters for oil markets, because US production growth directly affects the balance of supply and demand.
market impact
Oil: no Permian output growth supports the market balance
- Brent pressure up — expected restrained US shale growth limits supply additions
- WTI pressure up — steady Permian activity adds no new volumes
tags
instruments
sources
- Diamondback to keep production plans steady going into next year, CEO says — Seeking Alpha, 3 November 2026 at 23:52 UTC
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