Diamondback to keep production plans steady going into next year, CEO says

What happened

Diamondback Energy CEO Kaes Van't Hof said the company plans to keep activity mainly flat going into next year, despite expecting crude prices near $100 per barrel to remain higher for longer. Its plan includes 19–20 rigs and five fracturing crews, targeting modest single-digit production growth.

Confirmed

Global impact / market context

A steady drilling program limits how quickly Diamondback can increase oil and gas output, even if prices remain high. That restraint can preserve cash and reduce the risk of committing to costly wells just before prices fall, but it also caps near-term production growth.

Analyst inference

The article describes Diamondback’s cautious plan as matching Chevron’s stated intention to keep Permian Basin output just above 1 million barrels of oil equivalent per day through the next decade. This suggests both companies are prioritizing steady production over rapid growth in the region.

Analyst inference

What to watch

1. Check whether Diamondback maintains its planned 19–20 rigs and five fracturing crews next year; changes would signal a shift in capital spending and production plans. Analyst inference
2. Compare reported well completions with the planned 120–140 per quarter and 135 in the latest quarter to see whether activity remains broadly steady. Analyst inference
3. Watch for updated production guidance, especially whether the company continues to expect modest single-digit growth and no notable increase in 2027 output. Analyst inference

Evidence

• seekingalpha.com