Today, leading Midland Basin operators like Diamondback Energy are proving that factory development has entered a new phase. In the modern Permian, factory development no longer means single-bench repetition. It means standardized execution of a DSU-level, full-zone development design across the Spraberry and Wolfcamp stack.

Devon Energy’s $79 million acquisition of federal oil and gas leases in New Mexico’s Eddy County marks a defining moment for the Permian Basin as the industry enters 2026. With bids reaching an unprecedented $218,751 per acre, the record-setting sale signals not only the enduring value of top-tier shale acreage, but also how recent changes in federal royalty policy are reshaping investment strategies across U.S. oil and gas. In one of North America’s most prolific producing counties, Devon’s move underscores a broader shift toward securing long-life, capital-efficient inventory in the core of the Permian Basin.

In the Permian Basin, Diamondback’s conversation has shifted. The next advantage isn’t about drilling faster or chasing the hottest single bench — it’s about how entire sections are developed. One phrase that keeps coming up in executive commentary is “co-developing, not just select benches.”

Devon Energy emphasized that Oklahoma’s Anadarko Basin has clear structural advantages, particularly its gas positioning and freedom from Waha-style takeaway bottlenecks, making it increasingly attractive in a strengthening gas market. While interest in the basin is rising, Devon said it is regularly assessing its long-term portfolio fit, keeping the door open to future M&A without signaling any immediate plans to exit.

Diamondback Energy’s Q3 2025 commentary delivered one of the clearest signals yet about where the Permian is heading—and who is best positioned to win. The company emphasized that the Midland Basin is its core engine, backed by unmatched cost structure, full-zone co-development, record-breaking drilling efficiency, and a deep inventory of high-return locations.

Diamondback Energy continues to advance its Reagan County footprint, with new activity pointing toward the next stage of development in Block H, one of the core zones acquired through the Double Eagle IV acquisition.