FANG · News · 20260805N

Permian Gas Constraints

Diamondback Energy, Inc. · 2026-08-05 · Importance 26 · Surprise 24

Midstream gas constraints pressured Diamondback’s second-quarter gas prices. New pipeline capacity is expected to ease those constraints and support a recovery in Permian gas pricing. Rising power demand was identified as an additional potential driver of improved gas-market fundamentals. Diamondback is expanding its gas and power optionality, including a proposed power project near Midland, Texas.

Key facts

• Midstream gas constraints pressured Q2 gas prices, though new pipeline capacity and rising power demand are expected to drive future gas price recovery. source