Investing.com - Mizuho Securities hosted investor meetings with 19 U.S. oil and gas companies on Monday as the industry prepares for the 2027 budget season amid a volatile commodity price environment. The firm met with integrated oil companies, upstream producers, refining and midstream operators to assess spending plans and operational outlooks.

Exploration and production companies are planning only modest growth spending for 2027, with increases expected in the low- to mid-single-digit range. Service cost inflation remains modest and is partially offset by efficiency gains. The F2027 oil strip stood at approximately $79 per barrel as of Monday, while refining cracks may remain elevated 12 to 18 months beyond any peace deal.

Advanced recovery technology remains a key focus across the sector. Mizuho discussed different perspectives from Permian and non-Permian operators including Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Occidental Petroleum (NYSE: OXY), Devon Energy (NYSE: DVN), ConocoPhillips (NYSE: COP) and EOG Resources (NYSE: EOG). Some operators favor measured growth spending while others plan to maintain current activity levels reflecting sustaining capital with low-single digit growth.

Company-specific developments include Enerplus (NYSE: ERF) expressing confidence in announcing a CEO appointment by third-quarter 2026 earnings, with the company having hedged approximately 55% of fourth-quarter and first-quarter volumes at above-strip prices. Callon Petroleum (NYSE: CPE) has made progress on plans to unlock value from its minerals portfolio while targeting drilling and completion cost improvements. Devon Energy indicated optimism on completing its asset rationalization plan in the fall with an update on strategy and capital allocation.

Midstream operators met by Mizuho expressed confidence that fiscal year 2027 could bring another year of heightened growth capital spending. Kinder Morgan (NYSE: KMI) is expected to provide details on recent open season results during its upcoming earnings call. Targa Resources (NYSE: TRGP) recent agreements with Exxon Mobil have prompted other producers to seek comprehensive Permian midstream solutions.