June 1, 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.
- Kimbell expands Permian footprint with $147-million royalty acquisition
- Summary: Kimbell Royalty Partners will buy Permian Basin mineral and royalty interests from Mesa Royalties for $147 million, funding 70% with equity and 30% in cash. The acquisition adds 711 net royalty acres across 15 counties, encompassing over 2,300 producing wells and 364 drilled but uncompleted wells and permits. The assets are projected to produce 1,390 boed, including 754 bopd of oil, over the next 12 months, boosting Kimbell’s total portfolio to more than 135,000 gross wells and 93 active rigs.
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Waha gas prices hit 16-week high as Permian pipeline constraints ease - Summary: Next-day spot natural gas prices at the Waha Hub reached a 16-week high of minus 46 cents/MMBtu on May 28, up from minus $2 on May 27, though remaining below zero for a record 78 consecutive days. Daily prices have averaged a negative $2.38/MMBtu so far in 2026, marking a record 87 negative days this year. While the EIA expects Permian output to hit 29.2 Bcf/d in July, upcoming pipeline capacity is projected to boost monthly production to a high of 30.2 Bcf/d by December.
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- Record-low U.S. shale well backlog curbs fast output gains amid export surge
- Summary: U.S. crude inventories fell 12.4 million barrels to 806.8 million for the week ending May 22, dropping 52 million barrels since the war began. High export demand has depleted the DUC shock absorber, which hit a record low of 4,972 in April after 14 consecutive months of decline. Completion crews rose 21% this year to 189, and while the EIA raised its 2026 output forecast to 13.65 million bpd, operators are adding rigs to rebuild the backlog, lifting the onshore oil rig count to 425.
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- Oil drops 20% from 2026 peak on optimism over U.S.-Iran ceasefire talks
- Summary: Global oil prices tumbled around 20% from their 2026 peaks, with Brent crude falling nearly 19% in May to $92.56, while WTI futures dropped 16.5% month-to-date to $87.18. The declines follow a 60-day memorandum of understanding that is mostly agreed upon to pause hostilities and reopen the Strait of Hormuz, which held 20% of global energy supply. Meanwhile, Iranian crude loadings for May fell below 0.3 million bpd from April’s 1.5 million bpd average as missile strikes continue in the Gulf.
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Supermajor warns oil prices could hit $160 within weeks - Summary: Global oil inventories dropped by a record 8.7 million bpd in May as the closed Strait of Hormuz continues to block 12 to 13 million bpd. JPMorgan calculated that out of 8.4 billion barrels in global stocks, only 0.8 billion are realistically available without causing system stress. While oil currently trades between $90 and $110, Exxon models show Brent could spike to $150–$160 within weeks once the operational floor is hit, triggering an eventual demand destruction benchmark of 5.5 mbd.
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U.S. drillers add more rigs in response to higher prices - Summary: The total active U.S. drilling rig count rose to 562, driven by a four-rig increase in oil rigs to 429 while gas rigs held steady at 125, according to Baker Hughes. Weekly crude oil production averaged 13.702 million bpd, sitting 160,000 bpd under the record high, as completion crews rose by five to 184 and Permian rigs increased by five to 255. Oil prices fell on deal rumors, with Brent trading down 1.84% to $91.99 and WTI down 1.05% to $87.85, losing $12 and $10 weekly respectively.
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Forecasts for above-average U.S. temps boost Nat-Gas prices - Summary: July Nymex natural gas closed up 0.15% on Friday, hitting a 2.5-month nearest-futures high due to forecasts for above-normal U.S. temperatures for June 8–12. While the EIA raised its 2026 dry gas production forecast to 110.61 bcf/d, current lower-48 demand fell 1.9% year-over-year to 67.7 bcf/d alongside flat rig counts at 125. Global constraints remain supportive as LNG terminal net flows rose 2.1% weekly to 18.5 bcf/d and inventories rose by 92 bcf, coming in below the 96 bcf expected build.
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