Weak pricing for associated natural gas in the oil-rich Permian Basin is not a needle mover by itself in determining the pace of activity for Diamondback Energy Inc., CFO Kaes Van’t Hof said Wednesday.

“We could run the gas price to zero in the Permian and still make great returns on oil wells,” Van’t Hof said during a call to discuss fourth quarter 2023 earnings. “For us personally, we try to protect our gas price through hedging as well as through some pipeline commitments to get our gas to bigger markets, as well as protecting our basis exposure.”

He added, “But generally, I think the Permian, even if you stay disciplined on oil, eventually you’re going to have to move to gassier zones. And there’s a lot of gas and associated gas left to be produced in the...