May 4, 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 pares gains after U.S. says two vessels crossed Strait of Hormuz
- Summary: Brent crude rose 1.9% to $110.22 and WTI gained 0.5% to $102.41 after the U.S. Navy reported two destroyers entered the Gulf amid the ongoing Strait of Hormuz disruption. Prices earlier spiked to $114.30 following reports of an attack on a U.S. warship, though Central Command denied the claim while investigating a drone strike on a UAE tanker. On Sunday, OPEC+ set June output targets 188,000 barrels per day higher, marking a third monthly increase despite ongoing supply disruptions in the Gulf region.
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Permian output rises to record levels while flaring falls, report shows - Summary: A TIPRO report reveals that U.S. flaring intensity fell 45% since 2019 while production rose 8%, with the Permian basin seeing a 62% intensity decline. Texas annual production surpassed 2 billion barrels for the first time, as the Permian produced 6.3 MMbpd, nearly half of the total U.S. output. Between 2023 and 2024, Permian output grew 6% while flared volumes fell 4%, a trend supported by new pipeline projects like Matterhorn Express, despite a minor year-over-year intensity rise in 2024.
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- U.S. natural gas futures climb as output falls, LNG exports surge
- Summary: June gas futures rose 1.3% to $2.804/mmBtu as average Lower 48 output fell to 109.8 bcfd in April, down from 110.4 bcfd in March. Waha Hub prices in West Texas remained negative for a record 60 consecutive days, averaging -$2.17/mmBtu so far in 2026 due to persistent Permian pipeline constraints. While gas demand is projected to slide to 100 bcfd next week, U.S. LNG export flows hit a record 18.8 bcfd in April, helping to reduce the inventory surplus to 7% above normal from 8% the previous week.
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- U.S. oil drillers see modest uptick in activity
- Summary: The total U.S. rig count rose to 547 this week, with oil rigs increasing by one to 408 and gas rigs rising by one to 130, according to Baker Hughes. Weekly crude oil production remained steady at 13.586 million bpd, while the number of well-completion crews grew by four to 169 as the Eagle Ford rig count reached 43. Despite oil prices falling on Friday to $108.30 for Brent and $101.90 for WTI amid hope for an Iran deal, WTI prices remain up approximately $8 per barrel over the previous week.
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ExxonMobil Q1 earnings beat estimates on higher upstream production - Summary: ExxonMobil reported first-quarter 2026 earnings of $1.16 per share, beating estimates by 8.4% as total revenues rose 2.4% year-over-year to $85,138 million. Net upstream production averaged 4,594 koebd, supported by liquids growth in Guyana and the Permian, though results included a $706 million identified item from Middle East disruptions and $3,883 million in unfavorable timing effects. The company distributed $9.2 billion to shareholders and reaffirmed plans for $20 billion in share repurchases.
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Natural gas and LNG exports to hit record highs through 2027 - Summary: U.S. LNG exports reached 17.9 Bcf/d in March, an 8% increase over previous forecasts, as the price spread between Henry Hub and Europe widened by 83% to $14.89/MMBtu following disruptions in Qatar. Full-year 2026 exports are projected at 17.0 Bcf/d, supported by 0.9 Bcf/d of new capacity from Corpus Christi Stage 3 and Golden Pass Train 1. Marketed production is expected to rise 2% in 2026, keeping storage 3% above average at 1,900 Bcf, while Henry Hub prices are forecast to average $3.10/MMBtu.
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SM Energy closes $950 million South Texas asset sale - Summary: SM Energy Company completed the $950 million sale of specific South Texas assets, generating approximately $900 million in net proceeds to strengthen its balance sheet and reduce leverage. The transaction marks a major step toward the firm’s goal of exceeding $1 billion in total divestitures as it optimizes its portfolio following a recent merger with Civitas Resources. CEO Beth McDonald noted the sale advances 2026 strategic priorities, focusing capital on high-return, advantaged assets.
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