Permian producers spent much of this year paying buyers to haul away the natural gas that comes up with their oil. Waha Hub spot prices stayed below zero for a record 90 days in a row before turning positive on June 16, Reuters reported, and the hub had averaged minus $2.19 per million British thermal units for the year up to that point. Four of the five companies below still posted record results in the second quarter. Three of the five don’t drill at all, and one of the two that do works mostly in North Dakota, far from Waha.
The U.S. Energy…
Industry Background
Upstream activity across major producing basins continues to reflect the balance between capital discipline and the operational pressures of sustaining output. U.S. shale plays — particularly the Permian Basin — remain the swing producer of last resort in global markets, with rig count data serving as a leading indicator for future production volumes.
Exploration and production companies are increasingly focusing on high-return, low-breakeven assets, prioritizing inventory depth in proven basins over frontier exploration spending as investor expectations for free cash flow generation remain elevated.
What to Watch
Market participants will be monitoring rig count trends, quarterly earnings guidance from major E&P operators, and any production adjustment announcements from OPEC+ members for signals on near-term supply trajectory.
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