Diamondback reports a Permian program that includes 17 drilling rigs, five completion crews, six completed 3-mile U-turn wells, ongoing chemical EOR testing and contracted access to additional long-haul gas takeaway serving Gulf Coast markets.
Published by Allstream Insiders.
Allstream Insiders Summary
Diamondback Energy is maintaining approximately $3.9 billion of 2026 capital expenditures, including about $3.31 billion for operated horizontal drilling and completions across its Permian Basin position.
Diamondback’s August 2026 update provides the following forward program indicators:
- Q3 2026 capital expenditures: $950 million to $1.05 billion;
- 2026 net lateral footage completed: 6.1 million to 6.5 million feet;
- 2026 average completed lateral length: approximately 12,900 feet;
- Current activity: 17 drilling rigs and five completion crews;
- Gas takeaway: secured long-haul capacity expected to more than double by year-end 2026; and
- Technology development: chemical enhanced-oil-recovery testing and the company’s first six 3-mile U-turn wells.
The $3.9 billion total also covers non-operated drilling and completions, capital workovers, science, infrastructure, midstream and environmental spending. Diamondback did not divide that remaining companywide amount into named project budgets.
Diamondback Upstream Program Tracker
| Program | Diamondback-reported scope | Current stage | Scale or schedule |
|---|---|---|---|
| 2026 operated drilling and completions | Permian horizontal development | Active | Approximately $3.31 billion within a $3.9 billion total capital plan |
| Q3 capital program | Operated and non-operated development and supporting capital | Guided | $950 million to $1.05 billion |
| U-turn well design | Three-mile laterals drilled approximately 1.5 miles out and back | First six wells executed | Technical design demonstrated during Q2 2026 |
| Chemical enhanced oil recovery | Chemical EOR testing across producing wells | Second batch of tests flowing back | Builds on a 50-well pilot completed in H2 2025 |
| Permian gas takeaway | Commitments to multiple long-haul pipelines serving Gulf Coast markets | Contracted capacity being added | Secured long-haul takeaway expected to more than double by year-end 2026 |
| Permian power opportunities | Gigawatt-scale power development concepts on Diamondback surface acreage | Pre-contract development | One large project described as shovel-ready; further details tied to a future long-term agreement |
Diamondback Maintains a $3.9 Billion 2026 Capital Program
Diamondback maintained its full-year 2026 capital guidance at approximately $3.9 billion in its August results update. The company’s Form 10-Q states that its board had previously increased the 2026 budget by approximately 4% during the second quarter.
The current capital plan includes approximately $3.31 billion for operated horizontal drilling and completions. The remainder covers several company-reported categories:
- non-operated drilling and completions;
- capital workovers;
- science;
- infrastructure;
- midstream; and
- environmental projects.
Diamondback has not provided individual forward budgets for those categories in the results release. The aggregate capital plan should therefore not be converted into project-specific spending estimates.
The company expects to invest between $950 million and $1.05 billion during the third quarter of 2026. Its full-year guidance is based on completing between 6.1 million and 6.5 million net lateral feet at an average lateral length of approximately 12,900 feet.
Seventeen Rigs and Five Completion Crews Support the Permian Program
Diamondback reported that it was operating 17 drilling rigs and five completion crews when it filed its second-quarter Form 10-Q. The company said it can adjust its rig cadence, completion activity and capital budget in response to commodity prices and market conditions.
Diamondback added a completion crew during the second quarter and used its inventory of drilled but uncompleted wells to accelerate activity. The operational approach allows the company to change the timing of well completions without treating every drilled well as an immediate production commitment.
From an industrial supply-chain perspective, Allstream observes that a development program of this scale could require continuing demand for drilling rigs, directional services, casing, cementing, pressure pumping, wireline, proppant, chemicals, water management, production equipment and field logistics. These are potential work categories associated with the disclosed activity level, not Diamondback-announced awards, bid packages or procurement dates.
Diamondback Executes Its First Six Three-Mile U-Turn Wells
Diamondback executed its first six U-turn wells during the second quarter, using a three-mile lateral design that extends approximately 1.5 miles before turning back. The company also reported drilling its longest well to date at a total depth of 31,465 feet.
The U-turn design represents a technical development approach rather than a separately sanctioned capital project. Its potential value lies in accessing longer lateral footage where lease geometry or surface constraints may not support a conventional straight three-mile well.
Allstream observes that continued use of the design could involve specialized well planning, directional drilling, measurement-while-drilling, rotary-steerable systems, casing design and completion engineering. Diamondback has not announced a future U-turn well count or separate procurement program tied to the design.
Chemical Enhanced-Oil-Recovery Tests Advance Beyond the Initial Pilot
Diamondback is evaluating a second batch of chemical enhanced-oil-recovery tests following a 50-well pilot completed during the second half of 2025. The company said the current test wells were flowing back when it issued its August stockholder letter.
Chemical EOR is intended to improve recovery from producing reservoirs without relying solely on new drilling locations. Diamondback described the current results as encouraging, but the program remains in testing and evaluation rather than a disclosed fieldwide deployment.
If the technical and commercial results support a larger program, the work could create demand for specialty chemicals, laboratory and reservoir analysis, injection equipment, well interventions, monitoring, production diagnostics and field services. Those possibilities are Allstream analysis and remain conditional on further testing and capital decisions.
Long-Haul Gas Takeaway Capacity Is Expected to More Than Double
Diamondback expects its secured long-haul natural-gas takeaway capacity to more than double by year-end 2026 through commitments to multiple pipelines serving Gulf Coast markets. The company is also evaluating local demand paths within the Permian Basin.
The additional capacity is intended to reduce Diamondback’s exposure to regional constraints and improve access to larger demand hubs. The Form 10-Q similarly states that the company expects new contracts and expanded regional infrastructure to reduce the effects of Permian takeaway limitations later in 2026.
These are transportation commitments rather than Diamondback-operated pipeline construction projects. The disclosures support increased contracted access but do not identify a Diamondback pipeline budget or assign construction work to the company.
Diamondback Evaluates Gigawatt-Scale Power Development on Surface Acreage
Diamondback said it is working to advance additional gigawatt-scale power opportunities on its surface acreage in West Texas. The company described one large project as shovel-ready but tied further disclosure to execution of a long-term contract with a counterparty.
The concept is linked to growing interest in behind-the-meter data-center development in the Permian Basin, where natural gas and available land could support on-site generation. The project remains at a pre-contract development stage and should not be presented as a sanctioned power plant, confirmed data-center campus or awarded construction program.
If a long-term agreement advances the project, the development could involve gas supply, power generation, electrical infrastructure, civil construction, cooling, water, controls and data-center support systems. These potential scopes are Allstream analysis; Diamondback has not announced a customer, location, capacity, construction schedule or contractor team for the project.
Allstream Perspective
Diamondback’s August update shows a Permian development program combining conventional scale with targeted technical experimentation. The company’s core execution remains its 17-rig, five-crew drilling and completion program, supported by approximately $3.31 billion of operated development capital.
The U-turn wells and chemical EOR program represent two different inventory-development strategies. U-turn drilling could increase accessible lateral length within constrained acreage geometry, while chemical EOR could improve recovery from wells already in production. Neither disclosure should be interpreted as a guaranteed full-scale rollout.
Gas takeaway commitments and early power-development work broaden the infrastructure surrounding Diamondback’s upstream portfolio. The contracted takeaway expansion has a year-end 2026 milestone, while the gigawatt-scale power concept remains dependent on a long-term commercial agreement.
For contractors, manufacturers and service providers, the most immediate company-described demand remains drilling, completions and supporting Permian field infrastructure. Technology pilots and power development could create additional work only as Diamondback completes testing and announces further commercial or capital decisions.
