ExxonMobil's Bold Bet on the Permian Basin: Massive Growth Ahead?

Core Insights - Exxon Mobil Corporation (XOM) has achieved record production levels in the Permian Basin, producing approximately 1.6 million barrels of oil equivalent per day (MMBoE/D), marking its highest output to date [2][7] - The company is utilizing innovative technologies, specifically lightweight proppant, to enhance recovery rates from 15% to 20%, allowing for increased oil extraction from existing wells [3][7] - ExxonMobil projects an increase in production to 2.3 MMBoE/D by 2030, indicating a significant growth trajectory from the current output [4][7] Company Performance - XOM's share price has decreased by 4.7% over the past year, contrasting with a 4% increase in the broader industry [6] - The company's current enterprise value to EBITDA (EV/EBITDA) ratio stands at 6.93X, which is higher than the industry average of 4.31X, suggesting a premium valuation [9] Earnings Estimates - The Zacks Consensus Estimate for XOM's 2025 earnings has been revised upward recently, with current estimates for the current quarter at $1.70, next quarter at $1.62, and the current year at $6.59 [11][12]