On its Q1 2026 earnings call today, Permian pure-play operator Diamondback Energy reported oil production of 521 Mbbl/d, exceeding company guidance. CEO Kaes Van't Hof attributed the beat in roughly equal parts to better well performance, citing post-Endeavor sharing of completion strategies, and to lower base downtime in field operations. In response to the Middle East-driven supply disruption, Diamondback raised full-year 2026 oil guidance to 520+ Mbbl/d (from 500–510 Mbbl/d) and announced plans to add 2–3 rigs and keep a fifth frac crew on year-round rather than releasing it mid-year as originally planned. Van't Hof, who described the 520 Mbbl/d level as "the new baseline," said of the shift back to Diamondback's "green light" growth posture: "If this isn't a signal to grow production in an advantaged area like the Permian Basin, then I don't know what is."
Persistently negative Waha natural gas prices have prompted Diamondback to shut in roughly 2–3 Mbbl/d of oil production for purely economic reasons. The company noted that at around negative $3/MMbtu Waha, the differential erodes a well's NGL uplift, and beyond that it starts eating into the oil value, though with $100/bbl crude the math is more forgiving than at $60/bbl. The company is focusing its development on "some of the oiliest stuff in the basin," and expects two new long-haul gas pipes coming online in 2H 2026 to provide additional egress capacity and narrow Waha basis.
