August 3, 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.
$2.2 billion merger creates major Permian land and minerals platform- Summary: SoftVest and Blackbeard signed an agreement to combine Permian Basin Royalty Trust with Blackbeard’s assets to create PBT Land and Minerals in a $2.24 billion deal. Existing PBT unitholders will own 59% of the new entity, while Blackbeard holds 41% after contributing 80,000 net royalty acres and 68,000 surface acres. Blackbeard Operating has increased Waddell Ranch production from 3,000 bpd to over 35,000 bpd, and the new company will assume a $500 million credit facility with leverage below 0.4x EBITDA.
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U.S. natural gas prices fall 4% to 11-week low on record output - Summary: U.S. gas futures fell 3.6% to settle at $2.767 per mmBtu, marking an 11-week low driven by record daily output of 112.3 bcfd and ample storage. Average Lower 48 output rose to 110.6 bcfd in July, while storage levels sat 6.6% above normal for the week ending July 24. Meanwhile, average gas flows to major U.S. LNG export plants eased to 17.2 bcfd in July due to plant maintenance, contrasting with higher international prices of $20 per mmBtu in Europe and $22 in Asia.
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- Oil prices settle more than 1% higher, log strongest month since March
- Summary: Oil prices closed higher on Friday as Brent rose 1.2% to $90.12 a barrel and WTI gained 1.3% to $84.67, bringing July gains to 24% and 21%, respectively. Market data showed 29 commodity vessels transited the Bab el-Mandeb strait on Thursday, while U.S. crude output dropped 2% in May from April’s record high. Concurrently, U.S. demand for crude and petroleum products fell over 3.5% in May to 20.07 million barrels per day, as analysts projected Brent crude to average $85.22 per barrel in 2026.
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- Counts decline last week of drilling rigs in Texas, Permian Basin, U.S.
- Summary: Baker Hughes reported that U.S. drilling rigs dropped by 1 to 587, which remains up 45 rigs or 8.30 percent from 542 a year ago. Texas experienced its first decline after 14 weeks, dropping 2 rigs to 272, though its count remains up 23 rigs or 9.24 percent year-over-year. The Permian Basin count fell by 1 rig to 258, New Mexico held steady at 96, and Haynesville retained second place among basins with 56 rigs, while Eagle Ford held at 47, Oklahoma at 50, Louisiana at 37, and North Dakota at 24.
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- Strategic petroleum reserve now below half capacity of crude oil
- Summary: The Bipartisan Policy Center reported that the Strategic Petroleum Reserve held 308 million barrels of crude oil as of July 24, which is less than half its 714 million barrel capacity and the lowest since 1983. Inventory fell following a 180 million barrel release in 2022 during the Russia-Ukraine war and a 172 million barrel release in 2026 after the Strait of Hormuz closed. Although below the 726 million barrel peak of 2009, the SPR volumes helped bridge gaps alongside reduced customer demand.
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Exxonmobil, Chevron steer windfall profits into debt reduction - Summary: ExxonMobil and Chevron directed Q2 blowout profits toward debt reduction rather than major buyback increases, with ExxonMobil lowering net debt by over $7 billion. Chevron allocated $8.4 billion to debt reduction and lifted output 20% to 4.07 million barrels per day, while Shell reduced net debt by $10.8 billion to lower its net debt-to-equity ratio under 19%. ExxonMobil posted $14.7 billion in overall profit, while Chevron achieved record quarterly profits supported by U.S. refinery utilization above 97%.
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OPEC+ is about to pause oil output hikes - Summary: OPEC+ plans to pause phased output increases after September, following a final target increase of about 188,000 barrels per day. The move concludes the rollback of a 1.65 million barrels per day supply cut agreed upon in 2023, even as Iraq’s output fell from 4 million to 1.4 million barrels per day. With Goldman Sachs warning oil could reach $120 per barrel, companies like Chevron and ConocoPhillips hold significant stakes in Iraqi fields, including West Qurna 2 and Kirkuk assets.
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