Citi reviews well productivity and drilling trends for energy producers

Investing.com -- Citi released a quarterly review covering well productivity, drilling activity, hedging positions and commodity price trends across major U.S. oil and gas producers.

In the Delaware Basin, EOG Resources showed well productivity in line with year-to-date results and better performance in early 2026 compared to the previous year. Devon Energy posted slightly lower productivity while Occidental Petroleum recorded more substantial declines.

Eagle Ford operations for both Devon and EOG produced results above 2025 levels. The Midland Basin showed mixed results, with Diamondback Energy's program showing modest improvement and APA Corporation holding flat, while Occidental trended below prior performance.

Among smaller oil producers, most operators maintained steady productivity versus 2025. Magnolia Oil & Gas' Eagle Ford and Permian Resources' Delaware programs matched 2025 productivity throughout the year. Matador Resources' early outperformance in the Delaware began aligning with previous trends. Chord Energy's Bakken position tracked below 2025 due to slight productivity decline and a shift to longer lateral drilling.

For natural gas producers, Southwest Appalachia showed productivity gains for Antero Resources and Expand Energy compared to 2025, while Range Resources operations trended mostly in line. EQT Corporation posted slightly weaker results. Expand Energy's Northeast Appalachia and Haynesville positions delivered consistent productivity while Comstock Resources' Haynesville program declined slightly.

U.S. onshore rig activity increased 7% during the quarter, with horizontal drilling up 10%, partially offset by decreases of 6% in vertical and 18% in directional drilling, according to Baker Hughes data.

During the third quarter, WTI crude oil prices fell 9% while Henry Hub natural gas prices dropped 6% sequentially. Gas producers noted diverging regional prices, with weakness in Appalachia contrasting with the South Central region. TTF prices rose 38% quarter-over-quarter. Blended NGL prices increased sequentially as a percentage of WTI.

Oil-focused hedges present a headwind for Diamondback Energy, Matador Resources, California Resources and Devon Energy during the quarter, while gas-focused operators should see hedging-related gains.

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