May 11, 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.
- Oil prices rise after Trump rejects Iran’s latest peace proposal, but US stocks hold steady
- Summary: Brent crude climbed more than 2% to $104 and WTI rose similarly after the United States and Iran failed to reach agreement on a peace proposal, leaving the Strait of Hormuz largely closed and global energy supplies tight. Iran’s proposal sought an immediate end to hostilities, control over the Strait, and a lifting of the naval blockade — terms that fell short of what both sides required to end the conflict. The Strait has remained effectively closed since early March, keeping an estimated 9–10 million barrels per day offline and WTI well above Permian breakeven levels. Upcoming talks in Beijing may cap further gains as markets monitor whether China can influence a path toward reopening the Strait.
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Viper Energy buying Riverbend interests for $522 million - Summary: Viper Energy will acquire equity interests in Riverbend Oil & Gas IX for $522 million, consisting of $337 million in cash and 3.7 million Class A common shares. The deal includes 3,064 net royalty acres across the Midland and Delaware basins, with 75% overlapping Viper’s current position and operated by firms like ExxonMobil and ConocoPhillips. This acquisition is expected to add 1,000 barrels of oil per day to Viper’s 2026 production guidance, which currently ranges from 64,500 to 66,500 bpd.
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- Top Permian producer adds rigs as oil rally holds
- Summary: Diamondback Energy is raising its 2026 oil production target to 520,000+ bpd and total output to 972,000+ boe/d, breaking from the industry’s capital-discipline playbook. The firm is immediately adding two to three drilling rigs and five fracking crews, increasing capital expenditures from $3.75 billion to $3.9 billion. This shift follows a first-quarter beat of 521,000 bpd, occurring alongside CapEx hikes from rivals like ConocoPhillips and a rise in the total U.S. rig count to 547 as of May 1.
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- ExxonMobil leads Permian growth outlook for 2026
- Summary: An East Daley Analytics review of 14 public operators indicates Permian Basin oil production will grow by 183,000 barrels per day, or 2.7%, in 2026. ExxonMobil leads this outlook with a projected increase of 113,000 bpd as it utilizes its 1.5 million acres to reach a long-term goal of 2 million bpd by 2030. While Permian Resources and Occidental forecast growth of 6% and 3.6% respectively, most public firms maintain capital discipline, delaying the impact of new drilling on regional pipelines.
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Gas prices keep rising, but do big oil companies plan to drill more? Not so far - Summary: Major oil companies like Chevron and ExxonMobil are maintaining a “steady as she goes” strategy, sticking to pre-war production plans despite crude prices hovering above $100. A Dallas Fed survey shows executives expect U.S. output to increase by no more than 250,000 barrels per day this year — a small fraction of the estimated 9–10 million barrels per day currently offline due to the Strait of Hormuz closure. For Permian mineral owners, that production discipline at elevated prices is a constructive signal — restrained supply growth with WTI above $100 is historically the environment that supports strong royalty revenue.
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U.S. drillers add oil and gas rigs for third week in a row, says Baker Hughes - Summary: U.S. energy firms increased the total rig count by one to 548 in the week ending May 8, marking a three-week streak of gains, though the count remains 5% below last year’s levels. Oil rigs rose by two to 410, while gas rigs fell by one to 129, as energy firms continue focusing on shareholder returns following a 7% rig decline in 2025. Despite rising prices, the EIA projects 2026 crude output will slide to 13.5 million bpd from 13.6 million bpd, while gas output grows to 109.6 bcfd with a 4% price rise.
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U.S., U.K. Big Oil & Gas Sees Mixed Q1 Results Amid Mideast War - Summary: First-quarter profits for four global supermajors fell to a collective $15.3 billion, a $2.1 billion decrease from 2025 and 52% below the record $31.7 billion set in 2023. Earnings for U.S.-based ExxonMobil and Chevron sank 45% and 37% respectively, driven largely by nearly $6.8 billion in combined derivative timing effects tied to the Strait closure — not operational underperformance. Critically, both companies grew domestic production, with Chevron’s U.S. upstream output rising 24% to over 2 million BOE/d and ExxonMobil increasing U.S. output to just under 1.6 million bpd — signaling a strong earnings rebound once Hormuz supply flows normalize.
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