Diamondback Energy Inc. does not plan to grow its Permian Basin oil production next year despite the bullish outlook for prices, management said Tuesday.

CEO Travis Stice told analysts during the third quarter 2021 earnings call that, “In order to initiate a moderate growth plan, we would need to see material changes to global oil and gas fundamentals, along with shareholder support for such growth, and we do not see either of those things today.”

Stice said that, “As we move into 2022, we are still seeing excess oil supply and varying demand recovery profiles across the globe. As such, we remain committed to capital discipline and our plan to return excess free cash flow to our stockholders.

“Therefore, we are committing to maintaining our fourth quarter 2021...