ExxonMobil's Core Upstream Growth Engines: Permian and Guyana

Group 1 - Exxon Mobil Corporation (XOM) has a strong portfolio of upstream assets, particularly in the oil-rich Permian Basin and offshore Guyana, with low production costs allowing it to withstand unfavorable oil and gas price environments [1][3] - The acquisition of Pioneer Natural Resources on May 3, 2024, has significantly enhanced ExxonMobil's upstream portfolio, adding 1.4 million net acres and an estimated 16 billion barrels of oil equivalent resources [2][7] - Despite operational strengths, ExxonMobil anticipates a decline in earnings for Q2 2025 due to lower oil and natural gas prices, which poses a concern for its exploration and production activities [3][7] Group 2 - Chevron (CVX) and Diamondback Energy (FANG) are also strong players in the Permian Basin, with Chevron being one of the largest producers and FANG focusing solely on low-cost production in the region [4][5] - XOM's stock has seen a marginal decline of 0.5% over the past year, compared to a nominal gain of 0.7% for the broader industry [6] - From a valuation perspective, XOM trades at a trailing 12-month EV/EBITDA of 6.73X, which is above the industry average of 4.27X [9]