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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