Diamondback plans to keep shale drilling mainly flat in 2027

Diamondback Energy Inc., the biggest oil driller focused solely on the Permian Basin, said it’s planning to hold activity steady going into next year despite crude hovering near $100. CEO Kaes Van’t Hof said that while he expects prices to stay “higher for longer,” he’s erring on the side of caution regarding exploration and production. “It’s not a good way to run an E&P just to be a perma-bull,” Van’t Hof told analysts and investors Nov. 3 on conference call. “It’s always good to prepare the company for a swing to the downside.” Diamondback raised output guidance by less than 1% for this year. A formal 2027 plan is expected to be announced in February, he said. The drilling giant is closely watched as a proxy for the U.S. shale industry because of its vast footprint in the Permian Basin, which has been the engine of U.S. oil expansion. For now, Diamondback’s steady activity for next year matches that of its larger rival Chevron Corp., which has said it plans pump just above 1 million barrels a day of oil equivalent in the Texas and New Mexico basin through the next decade. Diamondback posted third-quarter earnings Nov. 2 that beat analysts’ expectations. The shares, which were up by a third this year, fell 1.9% at 10:57 a.m. in New York. Bob Toews, CEO of TruckDown, discusses winter readiness in the connected fleet era. Tune in above or by going to RoadSigns.ttnews.com. The base-case projection from Diamondback is that it will run about 19 drilling rigs next year and five frack…

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