This I believe is a very important chart, another Novi chart for the Permian Basin, production rate over time, good thru July 2025.

I've previously shown you how well productivity increased significantly in 2024 in the Permian Basin and that the increase in lateral lengths in the Midland Basin may have been the primary cause. In the four core counties of the Delaware Basin there were almost twice as many rigs working (148, avg.) as there were in the Midland Basin's four core counties (75) thru the year 2024 (Rig Locator, etc.), but the Delaware Basin only saw an 11% increase in laterals over 10,000 feet from 2023. The Midland Basin increased lateral lengths by 40% in 2024. I attribute 90 plus percent of increased well productivity in the Permian in 2024 and the beginning of 2025 to lateral lengths.

Previous charts I've shown you have significantly higher initial potentials (IP's) in 2024 and 2025 than past years. Reservoir management for maximum recovery of oil in place has been replaced by the need for maximum cash flow, returned as fast as possible. At current product prices it is the ONLY way the sector can continue to drill new wells.

The 15,000 footers in the Midland Basin were all drilled in high graded, core counties, like Midland and Martin, and squeezed in between thousands of 10,000-foot laterals drilled before 2024. In my opinion these high graded, core counties are over drilled in the three primary benches in the sub-Basin, many of <600 foot spacing; GOR is very high. liquids productivity was waning before 2024 (Ovi/POB) and wells are effectively gassing out.

Longer Laterals covered this all up starting in 2024. That to me is the only logical explanation for the explosion in well productivity.

When normalized for lateral length, 2024 & 2025 production profiles in the entire Permian Basin tell us a way different story. We see what things are going to look like in the future when they run out of room to stuff ultra long laterals into an already overcrowded dance floor. That will happen, way sooner than people think. It is so crowded now in the cores the sector is drilling horseshoe laterals in undrilled sections.

When lateral length is "standardized" with other wells in the Basin, 2024 (and those wells drilled to date in 2025) are effectively the least productive wells in Permian history.