August 10, 2026 Edition
At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.
Diamondback reports first production of one million barrels of oil equivalent- Summary: Midland-based Diamondback Energy reported Q2 production of 1.018 million boed, the first time the company has reached at least one million boed. Oil production rose to 525,000 b/d while CEO Kaes Van’t Hof confirmed the company is holding capital spending at $3.9 billion this year, relying on technical innovation to improve recovery across nearly 9,000 locations on 902,000 Permian Basin acres.
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San Mateo Midstream closes $752M acquisition of Cardinal Midstream - Summary: San Mateo Midstream, a joint venture between Matador Resources and Five Point Infrastructure, completed its $752 million acquisition of Cardinal Midstream in the northern Delaware Basin. The deal adds a gas processing plant in Loving County, Texas with roughly 320 MMcf/d of inlet capacity and approximately 145 miles of gathering pipelines, bringing San Mateo’s total processing capacity above one billion cubic feet per day. The acquisition makes San Mateo the largest private natural gas processor in the area and adds nine new gas customers to the system.
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- U.S. energy firms leave rig count unchanged in latest week, Baker Hughes says
- Summary: U.S. energy firms left the total rig count unchanged this week as oil rigs fell by three to 409 while gas rigs rose by three to 133, their highest level since July 2023. The count remains 45 rigs or 8.3% above last year, and the EIA projects 2026 crude output will reach 13.7 million bpd with gas output hitting 111.0 bcfd. Despite the pause, the sustained year-over-year growth reflects continued operator confidence in current price levels.
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- Natural gas producers head into winter promising restraint
- Summary: Natural gas producers are heading into winter 2026/27 deferring wells and tying drilling plans to stronger prices, even as new Permian Basin pipelines open the market’s next wave of supply. The Hugh Brinson Pipeline is expected to reach its full 1.5 Bcf/d capacity by September 1, directing more Permian gas to Henry Hub as the summer cooling season winds down. Storage inventories remain 6.7% above the five-year average following a larger-than-expected 33 Bcf build for the week ending July 31.
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- Oil price uncertainty as negotiations continue
- Summary: WTI crude futures were trading near $84.12 late in the week, down approximately 7%, as conflicting signals from ongoing Hormuz negotiations created uncertainty about the near-term supply outlook. Vessel traffic through the Strait declined from the prior week as Iran weighed terms for a potential permanent shipping arrangement. Analysts noted that limited spare capacity and low commercial inventories leave prices exposed to significant volatility in either direction.
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U.S. upstream M&A declines in Q2, but Permian demand remains robust - Summary: U.S. upstream M&A fell to $9.1 billion in Q2, down 76% from Q1 and the third-lowest quarterly total since 2020, as crude price volatility complicated deal valuations. Despite slower deal flow, Enverus reports that pricing for top-tier Permian acreage keeps climbing as high-quality drilling locations become scarce. The firm expects activity to accelerate in H2 2026 as higher oil prices improve free cash flow for buyers and encourage private operators to bring assets to market.
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How Chevron became the AI darling of Big Oil - Summary: Chevron signed a 20-year agreement with Microsoft to supply 2.67 gigawatts of natural gas-fired power for data centers in Reeves County, Texas, in a project dubbed Project Kilby slated to come online in 2028. CEO Mike Wirth confirmed the Permian Basin can grow production to support additional hyperscaler agreements, positioning Chevron as the leading energy company in AI data center power. SpaceX and Amazon are also building private gas power plants in Texas, with Amazon’s proposed GW Ranch project potentially generating 7.65 gigawatts from 35 turbines.
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