Diamondback Backs Permian Gas Pipeline Push

Diamondback Energy expects the Permian Basin to become the nation's largest natural gas play by the 2030s, backed by a new large-diameter pipeline project.

Updated on Nov. 3, 2026 in Oil and Gas

Wide photograph of a bare steel pipeline trench running across flat West Texas scrubland under golden-hour light, with a distant pumpjack on the horizon. — Diamondback Energy said the Permian Basin could become the nation's largest natural gas play by the 2030s, backing the Solitude pipeline to Katy, Texas. AI Illustration. Upload story photo >

Midland-based Diamondback Energy reported third-quarter results and said it expects the Permian Basin to become the United States' biggest natural gas play by the 2030s. A WhiteWater-led consortium that includes Diamondback reached final investment decision on the Solitude pipeline, a large-diameter line linking the Permian to Katy, Texas.

Why it matters

The Permian is already the center of U.S. oil output, and a shift toward gas would reshape how producers in Midland and across the basin market their production. Gas pipeline capacity from the Permian to Gulf Coast markets is central to supplying LNG export demand.

Diamondback reported Q3 production of 1.03 million barrels of oil equivalent per day, up two percent from the prior quarter, while adjusted net income fell to $1.65 billion from $1.83 billion. Net debt stood at $10.42 billion, and the Solitude pipeline is slated to carry about 2.25 billion cubic feet of gas per day once operational.

The players

Diamondback Energy

A Midland, Texas-based independent oil and gas producer focused on the Permian Basin, and a key partner in the Solitude pipeline project.

WhiteWater

A private infrastructure investment firm that led the consortium reaching final investment decision on the Solitude pipeline.

The details

Solitude consists of two 48-inch pipelines running from the Permian Basin to Katy, Texas, and is backed by Diamondback Energy, Devon Energy, MPLX, and Western Midstream Partners. Diamondback also raised its 2026 oil production guidance slightly to about 524,000 barrels per day.

August 17: WhiteWater announced final investment decision on the Solitude pipeline.
Q3 2026: Diamondback reported third-quarter production and earnings.
Late 2029: Solitude is expected to begin operations.
2030: Partners expect to double Solitude's capacity.

Market Landscape

The Permian's rise as the core of U.S. oil production has set up a shift toward gas, as producers increasingly need outlets for associated gas. Diamondback's expansion positions it alongside peers competing to move Permian gas to Gulf Coast markets.

For Midland-area residents and energy workers, a Permian gas buildout could mean sustained drilling and infrastructure jobs over the coming decade. Consumers on the Gulf Coast may see gas supply and LNG export capacity expand as Solitude comes online.

The takeaway

Watch whether the Permian's gas buildout keeps pace with oil output, since the balance between the two will determine how much Midland-based producers can grow. Investors and residents alike should track Solitude's progress toward its late 2029 start.