U.S. Energy Development Corp. (USEDC) says it expects to deploy up to $1 billion in 2026, largely targeting upstream oil and gas opportunities in the Permian Basin. The plan follows a similar $1 billion deployment in 2025 and builds on the company’s $390 million 2025 acquisition of roughly 20,000 acres in Reeves and Ward counties, where USEDC expects to drill about 22 wells, with additional activity possible alongside other operators.

Company executive Jake Plunk said USEDC intends to keep expanding its Permian inventory using “stress-tested” underwriting focused on capital discipline, free-cash-flow visibility, and operational control where it makes sense. He estimated 25%–30% of 2026 capital will go to operated assets, about 30% to strategic partnerships expected to drill 25–30 wells, and the remainder to non-operated participation in the “wellbore market.” For context on how direct energy ownership can be evaluated, see Guardian’s investment approach and oil & gas tax benefits.

Source: Midland Reporter-Telegram

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Energy Transfer said it will increase the size of its Desert Southwest pipeline expansion before construction begins, raising the mainline diameter to 48 inches from 42 inches. The company said the change could lift capacity to as much as 2.3 billion cubic feet per day, depending on the final compression configuration, to move Permian Basin natural gas to existing and new delivery points in New Mexico and Arizona.

The company now expects the project to cost about $5.6 billion, while keeping the targeted in-service date in the fourth quarter of 2029. Analysts cited in the report pointed to growing natural gas demand in the Desert Southwest tied to population growth, potential coal-to-gas power plant shifts, and rising electricity needs from data centers—estimating that announced Arizona data center load by 2032 could require up to 950 million cubic feet per day of additional gas supply. The report also noted the route was not described as changing and that Energy Transfer has secured pipe delivery commitments from U.S. manufacturers for late 2027.

Permian Basin operators are increasingly drilling on the edges of core areas and in deeper intervals, and the resulting production is trending more gas-heavy, according to analysis cited by East Daley Analytics. The shift is drawing added attention from midstream companies as higher gas volumes support new pipelines, processing capacity, and related infrastructure buildouts.

The article notes that Morningstar DBRS expects modestly positive growth for North American pipeline and midstream in 2026, supported by rising natural gas production and demand drivers such as expanding LNG export capacity and growing power needs from data centers. East Daley also attributes higher gas-to-oil ratios to both geology (more gas-prone areas in the Delaware Basin versus the Midland Basin) and well maturity, as aging wells tend to release more methane as reservoir pressure declines.

In performance comparisons cited, gas output is described as more persistent than oil output in both sub-basins. For an average Midland Basin well, gas production takes about 12.5 months to decline to 75% of peak versus about four months for oil; in the Delaware Basin, the figures are about 4.5 months for gas versus 3.5 months for oil. For investors evaluating cash-flow profiles and deal structure, related considerations may include Guardian’s investment approach and potential oil & gas tax benefits.

Source: Midland Reporter-Telegram
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New data from the U.S. Interior Department shows a sharp increase in oil and gas drilling permits approved on federal lands since President Donald Trump returned to office in January 2025. According to the Bureau of Land Management, 5,742 permits to drill were approved over roughly a year-long period—about a 55% jump compared with the same timeframe under the prior administration.

Interior Secretary Doug Burgum said the administration’s “energy dominance” agenda is aimed at expanding domestic supply and strengthening U.S. competitiveness. He argued that higher energy output can help reduce everyday costs for consumers and support broader economic goals. The report also noted that industry-aligned groups have highlighted recent regulatory and fiscal actions as supportive of expanded U.S. energy development. For additional context on investment considerations, Guardian Energy Partners shares educational resources on topics like oil & gas investing tax benefits and its principled approach.

Source: Fox Business
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U.S. natural gas surged Tuesday to the highest level in nearly 14 years as Russia’s invasion of Ukraine wreaks havoc on global energy markets. Henry Hub prices jumped more than 9% at one point to a session high of $8.169 per million British thermal units (MMBtu) during morning trading on Wall Street, the highest level