FINWIRES · TerminalLIVE
FINWIRES

Williston Rig Count Hits Highest Since October 2025 as Lower 48 Activity Rises, UBS Says

By

The Williston rig count reached 33, its highest since October 2025, as US Lower 48 activity rose and operators increasingly adopted longer lateral wells, UBS said in a Tuesday note.

Williston activity increased by one rig over the week, with the basin's count now 50% above the 22-rig trough reached in mid-February 2026 as higher crude prices supported drilling.

Private operators, including Phoenix Operating and Koda Resources, drove much of the recent increase, according to the North Dakota Department of Mineral Resources' monthly update.

Among public exploration and production companies, Chord Energy (CHRD) led Williston activity with 4 rigs, while Devon Energy (DVN) and Chevron (CVX) each had three rigs, UBS Evidence Lab data showed.

Longer laterals, particularly 4-mile wells, have become a key drilling trend in the basin, with UBS saying the approach can improve capital efficiency and lower supply costs and breakevens.

North Dakota's Q2 2026 completions averaged about 13,600 feet in lateral length, up 15% from the state's 2025 average of about 11,800 feet, according to the North Dakota Department of Mineral Resources.

Chord Energy had the most visible 4-mile drilling program among public Exploration and Production companies, with such wells accounting for about 40% of its 2026 drilling plan before the company plans to scale the program in 2027.

Across the Lower 48, the four-week average active rig count increased 1 rig week-over-week to 620, putting activity 13% above year-end 2025 levels, according to the note.

Oil rigs increased 25% from year-end 2025, while gas rigs declined 11% and activity among other rig categories fell materially, UBS said.

Permian activity was unchanged overall, as the Delaware added 3 rigs, the Midland lost 2 rigs and other Permian areas declined by 1 rig.

Outside the Permian, the Williston Basin, Woodford and Denver-Julesburg each gained 1 rig, while Eagle Ford activity fell by 1 rig.

Gas drilling was unchanged in the Haynesville but declined by 1 rig in Appalachia over the week, according to UBS Evidence Lab data.

UBS' coverage group and integrated oil companies had 276 active rigs last week, down three from the previous week, with Exxon Mobil (XOM), Occidental Petroleum (OXY), and Murphy Oil (MUR) each adding one rig.

Devon Energy, Chevron, SM Energy (SM), California Resources (CRC), Range Resources (RRC) and Gulfport Energy (GPOR) each had 1 fewer rig over the week, potentially reflecting rig movements.

Exxon Mobil remained the most active public operator with 35 rigs, followed by Devon Energy with 32, ConocoPhillips (COP) with 30, Occidental Petroleum with 24 and EOG Resources (EOG) with 23, with UBS' coverage group accounting for 45% of Lower 48 active rigs.

Related Articles

Commodities

Benford Investment Targets US Oil, Gas Opportunities as LNG Demand Grows

Benford Investment is expanding its US oil and natural gas investment focus as record production and rising LNG exports support demand, the company said Tuesday.The Hong Kong-based investment firm will assess opportunities across oil and gas production, energy infrastructure and businesses serving rising domestic and international energy demand.US marketed natural-gas production should average a record 122.5 billion cubic feet per day in 2026, the company said, citing data from the US Energy Information Administration.Five LNG projects are expected to start operations through 2027, with US LNG exports projected to rise from about 15 Bcf/d in 2025 to roughly 17 Bcf/d in 2026, according to EIA.Benford said expanding LNG infrastructure will allow US natural-gas producers to serve domestic customers while reaching international markets, supporting its broader investment focus.The company will also examine established producing regions such as the Permian Basin, where natural-gas output should average about 29.2 Bcf/d in 2026.Permian Basin gas production is expected to increase about 6% from 2025, while Benford will assess production economics, infrastructure, reserves, operations and balance-sheet strength.Benford said reliable energy supplies, resilient infrastructure, rising electricity demand and industrial activity will support investment interest in US oil and natural gas.The company will weigh commodity price exposure, operating costs, capital needs, financial strength, regulatory and environmental factors, and potential long-term returns, stressing that it will assess each opportunity individually.

Commodities

US Natural Gas Update: Warmer Weather Forecasts Spur Late Rally

US natural-gas prices rose into positive territory in after-hours trade on Tuesday amid warmer forecasts, having softened through most of the day, tracking a plunge in crude-oil prices.The front-month Henry Hub price edged up by 0.40% to $2.793 per million British thermal units, while the continuous contract gained 0.35% to $2.845/MMBtu.The Energy Buyers' Guide said that with just two trading days left before the expiry of the September contract, which could introduce some additional volatility to the front of the curve, "the broader fundamental backdrop remains relatively soft, and winter pricing continues to carry most of the recent downside momentum as the market approaches the fall shoulder season."In the near term, the Commodity Weather Group said Tuesday that forecasts had shifted to hotter, with above-average temperatures expected across the Gulf, Midwest and Mid-Atlantic from Aug. 30 through Sept. 8. Beyond the first week of September, temperatures are expected to be milder as the market transitions into the shoulder season.The warm weather in the southern US is supporting national demand. US demand from the lower-48 states was 77.9 billion cubic feet per day, up 2.8% year over year, according to BNEF. Celsius Energy said powerburn rose to 45.4 Bcf on Monday, up 2 Bcf from Sunday and up 2.5 Bcf from the same day a year ago. It said natural gas made up 45% of the power fuel mix.On the supply side, U.S. Lower-48 dry-gas production was estimated at 110.9 Bcf/d, up 1.4% from a year earlier, according to BNEF.Output remains robust despite some recent variability. Bloomberg pegged Lower-48 dry gas production at 110.9 Bcf/d on Tuesday, up 1.4% from the same period last year. Gelber & Associates said production was running at its weakest level in two weeks, while Canadian imports stood at 4.6 Bcf/d, putting total supply at 115.6 Bcf/d.Government inventory data Thursday is expected show a 22-27 Bcf build for the week ended Aug. 21, Reuters said Tuesday. That would be smaller than the five-year average of 33 Bcf.Estimated net gas flows to US liquefied natural gas export terminals were 17.4 Bcf/d on Tuesday, down 2.9% from the previous week, according to BNEF. Flows remained below capacity as Golden Pass continued its slow production ramp-up and maintenance at Cheniere Energy's Corpus Christi plant, while Freeport LNG reduced feedgas demand.

Commodities

US Power Update: Electricity Markets Mostly Higher, Gas Dominates Generation Mix

US electricity markets were mostly higher Tuesday afternoon, with ISO New England's intraday prices peaking at $263.02 per megawatt-hour, according to data from GridStatus.io.Electric Reliability Council of Texas' real-time locational marginal price stood at $26.78/MWh at 4 p.m. ET. Net load was 49.48 gigawatts, with natural gas leading the generation mix at 40.3%.California Independent System Operator's real-time LMP came in at $56.94/MWh at 4 p.m. ET. Net load totaled 10.43 GW, with solar leading at 55.7%. The intraday high reached $86.15/MWh at 4:55 p.m. ET.Southwest Power Pool's real-time LMP was $18.23/MWh at 4 p.m. ET. Net load stood at 39.81 GW, while natural gas accounted for 37.3% of the generation mix.PJM's real-time LMP was $29.03/MWh at 4 p.m. ET. Net load stood at 87.14 GW at 12 p.m. ET, with gas leading the mix at 41.1%.Midcontinent ISO's real-time LMP came to $32.29/MWh at 4 p.m. ET. Net load was 78.23 GW, with coal accounting for 31.2% of the generation mix.New York ISO's real-time LMP reached $45.87/MWh at 4 p.m. ET. Net load totaled 18.73 GW, with dual fuel making up 33.2% of the mix.ISO NE's real-time LMP stood at $49.55/MWh at 4 p.m. ET. Net load came to 13.52 GW, with natural gas supplying 48.6% of generation. Prices reached an intraday high of $263.02/MWh at 1:50 a.m. ET.Independent Electricity System Operator's real-time LMP was $42.50/MWh at 4 p.m. ET. Net load was 18.25 GW at 3:55 p.m. ET, with nuclear accounting for 40.6% of the mix.The National Weather Service's Climate Prediction Center forecasts temperatures to stay above normal across much of the central and eastern US from Sept. 2-8, with near-normal readings across the West.