Valor | Energy Connection – August 24, 2026

August 24, 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.

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  Continental resources significantly expands Permian Basin position with acquisition of FireBird Energy II
• Summary: Continental Resources agreed to acquire FireBird Energy II, adding about 54,000 net acres in the Midland Basin and expanding its Permian acreage by over 40% in 14 months. The acquired assets encompass 147,000 net resource acres across more than six stacked-pay reservoirs with 307 gross operated locations. Current production from the 95% operated assets is approximately 32,000 boepd (69% oil), and the deal is scheduled to close in September 2026 subject to customary conditions.
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  Devon Energy reaches final investment decision on Solitude Pipeline System
• Summary: Devon Energy reached a positive Final Investment Decision on the WhiteWater-led Solitude Pipeline System, taking a 25% equity interest alongside WhiteWater (50%), MPLX (10%), Diamondback Energy (7.5%), and Western Midstream Partners (7.5%). The system features two 48-inch natural gas pipelines with a phase-one capacity of 2.25 Bcf per day targeted for mid-2029, followed by a second phase in 2030. Devon has also secured LNG-linked pricing for 100 MMcf per day in 2027 and 150 MMcf per day in 2028.
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• U.S. energy firms cut rigs for first time in four weeks, says Baker Hughes
• Summary: Baker Hughes reported that U.S. energy firms reduced the total oil and gas rig count by five to 588 for the week ending August 21, marking the first decline in four weeks. Oil rigs fell by three to 452, gas rigs dropped by one to 127, and miscellaneous rigs decreased by one to nine, though the total count remains up 50 rigs or 9.3% year-over-year. Texas added four rigs to reach 281, while regional counts rose by two to 267 in the Permian basin and by one to 50 in the Eagle Ford shale.
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• U.S. shale majors cut spending despite higher oil prices
• Summary: U.S. shale companies are trimming spending to reduce debt and boost shareholder returns, with Chevron and ConocoPhillips cutting spending by 10% in the first half of the year. The spending cuts come as the International Energy Agency projects a global oil deficit of 1.8 million barrels daily. Meanwhile, EIA data shows U.S. crude production reached 13.714 million barrels daily in May, with full-year average daily production expected to rise by a modest 200,000 barrels per day to 13.8 million.
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• EIA shows crude oil inventories still rising
• Summary: U.S. crude oil inventories increased by 4.4 million barrels to reach 428.8 million barrels during the week ending August 14, placing commercial stockpiles right at the five-year average. Gasoline inventories rose by 700,000 barrels as daily production grew to 9.7 million barrels, while middle distillate stocks dropped by 1.5 million barrels to sit 13% below the five-year average. Over the last four weeks, total product demand averaged 20.5 million barrels per day, down 2.9% year-over-year.
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  Enverus unveils top U.S. drillers of 2026
• Summary: Helmerich & Payne led U.S. land drilling contractors in 1Q26 with 15.85 million feet of total drilled measured depth across 776 wells, followed by Patterson-UTI with 9.51 million feet across 442 wells. Exxon led drilling customers with 5.44 million feet drilled across 229 wells, while EOG moved up two spots to second with 3.39 million feet, ahead of Devon’s 3.30 million feet. U.S. active rigs averaged 637.6 for the week ending July 31, 2026, marking a 13% increase year over year.
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  Exxon eyes Shell’s $8 billion U.S. chemicals business
• Summary: Exxon is competing with LyondellBasell, Apollo Global Management, and Kuwait Petroleum Corporation to acquire Shell’s U.S. chemicals business, which could fetch $8 billion. Shell’s U.S. chemicals division comprises four production facilities across Louisiana, Texas, and Pennsylvania. Recent Shell divestments include selling a European renewable power business with 500 megawatts of capacity to TotalEnergies and a 35% stake in Cyprus Offshore Block 12 to MOL for $720 million.
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The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.